REVIEW OF EVALUATION PERIOD WORK PROGRAMS FOR CERTAIN PETROLEUM AND NATURAL GAS FIELDS, ALBANIA FOR STREAM OIL & GAS LTD. (As of December 31, 2007) Copies: Stream Oil & Gas Ltd. ( 5 copies) Sproule International Limited (1 copy) Electronic (1 copy) Project No.: 3785.70440 Prepared For: Stream Oil & Gas Ltd. Authors: Greg D. Robinson, P.Eng., Project Leader John L. Chipperfield, P.Geol. Ruslan S. Alissov, B.Sc. (Honours) Exclusivity: This report has been prepared for the exclusive use of Stream Oil & Gas Ltd., and shall not be reproduced, distributed, or made available to any other company or person, regulatory body, or organization without the knowledge and written consent of Sproule International Limited, and without the complete contents of the report. Table of Contents — Page 1 Table of Contents Introduction Disclaimer Review Procedures Exclusivity Certification Summary Discussion Field Rehabilitation History Agreements Takeover of Wells Field Overview Evaluation Period Work Programs Additional Relevant Data Tables Table 1 Summary of Selected Price Forecasts, Exchange and Inflation Rates as of November 30, 2007 Table 2 Gorisht-Kocul Field, August 2007 Well Monthly Production Data Sorted by Rate Table 3 Ballsh-Hekal Field, August 2007 Well Monthly Production Data Sorted by Rate Table 4 Cakran-Mollaj Field, August 2007 Well Monthly Production Data Sorted by Rate Table 5 Delvina-9 and Delvina-10 Core Analyses 3785.70440.JLC.ml J:\Stream 70440\Report\Summary.doc Table of Contents — Page 2 Figures Figure 1 Location Map Figure 2 Gorisht-Kocul Field, Structure Map Figure 3 Gorisht-Kocul Field, Geological Cross-Section Figure 4 Gorisht-Kocul Field, Well Location Map Figure 5 Gorisht-Kocul Field, Annual Production Plot Figure 6 Gorisht-Kocul Field, Daily Production Plot Figure 7 Gorisht-Kocul Field, Group Production Plot for Wells Taken over by Stream Figure 8 Ballsh-Hekal Field, Structure Map Figure 9 Ballsh-Hekal Field, Geological Cross-Section Figure 10 Ballsh-Hekal Field, Well Location Map Figure 11 Ballsh-Hekal Field, Annual Production Plot Figure 12 Ballsh-Hekal Field Daily Production Plot Figure 13 Ballsh-Hekal Field, Group Production Plot for Wells Taken over by Stream Figure 14 Cakran-Mollaj Field, Structure Map Figure 15 Cakran-Mollaj Field, Geological Cross-Section Figure 16 Cakran-Mollaj Field, Well Location Map Figure 17 Cakran-Mollaj Field, Annual Production Plot Figure 18 Cakran-Mollaj Field, Daily Production Plot Figure 19 Cakran-Mollaj Field, Group Production Plot for Wells Taken over by Stream Figure 20 Delvina Field, Structure Map Figure 21 Delvina Field, Geological Cross-Section Figure 22 Delvina Field, Annual Production Plot Figure 23 Delvina Field, Daily Production Plot Figure 24 Delvina Field, Individual Well Rate and Reservoir Pressure Measurement Plot Figure 25 Delvina 12 Well Test Analysis Summary Appendices Appendix A Abbreviations Appendix B Agreements Appendix C Work Programs Appendix D Official Record of Wells Handover 3785.70440.JLC.ml J:\Stream 70440\Report\Summary.doc Introduction — Page 1 Introduction This report was prepared during the period August through December 2007, by Sproule International Limited (“Sproule”) at the request of Dr. Sotiris Kapotas, President, Stream Oil & Gas Ltd. Stream Oil & Gas Ltd. is hereinafter referred to as "the Company". The report consists of a review of four production agreements and associated work programs entered into by the Company in four producing fields in Albania. Three of the fields are fully developed oil fields and one is a partially developed gas field. All fields are operated by Albpetrol Sh.A., the Albanian state exploration and production company. Under the terms of the agreements, the Company is entitled to a share of the current baseline production and to all incremental production in excess of the current baseline production. It has the right to take over operations of all wells in these fields and produce the remaining reserves, but it will not have ownership rights over petroleum in situ. The Company has submitted work programs and began operations under the agreements at the beginning of November, 2007. All information reviewed in the development of this report was supplied by the Company. This report was prepared in conjunction with a reverse takeover of a company listed on the CNQ exchange. It is our understanding that it may subsequently be incorporated into a submission by the Company for a listing on the TSX Venture Exchange. As such, it has been prepared to meet the standards of National Instrument (NI) 51-101. This single volume report consists of the Introduction, Summary and Discussion. The Introduction includes disclaimers and author certificates, the Summary includes high-level summaries of the agreements and work programs and the Discussion includes general commentaries pertaining to the technical and economic review of the four fields and the Company’s agreements and work programs. Disclaimer This report has been prepared by qualified evaluators and auditors of Sproule International Limited using current geological, geophysical and engineering knowledge and techniques. It has been prepared within the Code of Ethics of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Nevertheless, the opinions presented in this report 3785.70440.JLC.ml J:\Stream 70440\Report\Summary.doc Introduction — Page 2 could be affected by the data received and the procedures used by Sproule International Limited, as qualified in the following: 1. All historical data and reports that were obtained from the Company or from public sources were accepted as represented, without any further investigation by Sproule International Limited. 2. In the preparation of this report, a field inspection of the properties was not conducted. 3. Property descriptions, agreements and technical data, as supplied by the Company, were accepted as represented. No further investigation was made into either the legal titles or any operating agreements in place relating to the subject properties. Review Procedures This report is based on interpreted technical data including geological reports, maps and cross- sections, reservoir and production data and other materials supplied by the Company. Published information, materials from the non-confidential files of Sproule International Limited, and our knowledge of the area and nearby analogues assisted in this review. Exclusivity This report has been prepared for the exclusive use of Stream Oil & Gas Ltd. as part of its anticipated filing with the TSX Venture Exchange for a listing under Tier 2 Category 3, and shall not be reproduced, distributed, or made available to any other company or person, regulatory body, or organization without the knowledge and written consent of Sproule International Limited, and without the complete contents of the report. 3785.70440.JLC.ml J:\Stream 70440\Report\Summary.doc Introduction - Page 3 Certification Report Preparation The report, entitled "Review of Evaluation Period Work Programs for Certain Petroleum and Natural Gas Fields, Albania, for Stream Oil & Gas Ltd. (As of December 31, 2007)," was prepared by the following Sproule personnel: / Ruslan Alissov, B.Sc. (Honours) Intermediate International Evaluation Specialist // 1 01'12008 ddlmrnlyr Greg D. Robinson, P.Eng. Vice-President, Engineering 11 117 1 12008 ddlmmlyr SenhVice-President Project Leader I/ 1 of 12008 ddlmmlyr Introduction - Paoe 4 1' Sproule Executive Endorsement This report has been reviewed and endorsed by the following Executive of Sproule: Y President // 1 ,&/I2008 dd/mm/yr Permit to Practice Sproule International Limited is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta and our permit number is P6151. Introduction - Page 5 Certificate Ruslan Alissov, B.Sc. (Honours) I, Ruslan Alissov, Intermediate International Evaluation Specialist at Sproule International Limited, 900, 140 Fourth Ave SW, Calgary, Alberta, declare the following: 1. I hold the following degree: a. B.Sc. (Honours) Mechanical Engineering (2000), Kyzylorda State University, Kyzylorda, Kazakhstan 2. 1 am a member of the following professional organizations: a. Petroleum Society of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) b. Society of Petroleum Engineer5 (SPE) 3. My contribution to the report, entitled "Review of Evaluation Period Work Programs for Certain Petroleum and Natural Gas Fields, Albania, for Stream Oil & Gas Ltd. (As of December 31, 2007)," is based on my engineering knowledge and the data provided to me by the Company, from public sources, and from the non-confidential files of Sproule International Limited. I did not undertake a field inspection of the properties. 4. 1 have no interest, direct or indirect, nor do I expect to receive any interest, direct or indirect, in the properties described in the above-named report or in the securities of Stream Oil & Gas Ltd. Y Ruslan Al~ssov,B.Sc. (Honours) Introduction - Paae 6 Certificate Greg D. Robinson, B.Sc., P.Eng. I, Greg D. Robinson, Vice-President, Engineering, and Director at Sproule International Limited, 900, 140 Fourth Ave SW, Calgary, Alberta, declare the following: 1. I hold the following degree: a. B.Sc. Civil Engineering (1978) University of Manitoba, Winnipeg MB, Canada 2. 1 am a registered professional: a. Professional Engineer (P.Eng.) Province of Alberta, Canada 3. 1 am a member of the following professional organizations: a. Association of Professional Engineers, Geologists and Geophysicists