There are still some unanswered questions:
1. What happened to gas reinjection to recover the even more valuable condensate? Do they even need that equipment now that they have this contract?
2. How reliable a purchaser is this outfit. microcap or big guy?
3. Is this the linchpin for the horizontal well financing? PR makes it sound like horizontal well will be done sometime in 2013 and not in the spring as originally planned.
4. What about the portable power generators? What happened to that idea? They were supposed to have imported at least one unit long ago? Is that gone?
In the long run, all my questions will not matter if these new guys step up and use all that Stream can produce from Delvina. Still need to hit the horizontal to prove up the potential and boost revs and cashflow. Hopefully they will have access to the drill rig within a reasonable time frame once the horizontal hits at forecasted levels AND the new customer ramps up and needs more gas.
5. Another unanswered question is the condensate. I understood that they have a ready market for the condensate but I wonder if that's still true. Condensate sales are very important to the economics of Delvina at current Brent prices. Not sure if European refineries need it as much as Canadian refiners. Might help Stream blend with their other heavy oil fields to receive closer to Brent but that would mean some kind of processing facility, storage tanks, etc. and the cost of separating, storing and moving the condensate to the heavy oil prior to mixing and shipping the end product to the coast.
Lots of questions but at least we are closer to using the potential of Delvina instead of having it shut in.