Press release from Marketwire
Storm Resources Ltd. ("Storm" or the "Company") is Pleased to Announce Its Financial and Operating Results For the Three and Nine Months Ended September 30, 2011
Monday, November 14, 2011
Storm Resources Ltd. ("Storm" or the "Company") is Pleased to Announce Its Financial and Operating Results For the Three and Nine Months Ended September 30, 201118:24 EST Monday, November 14, 2011CALGARY, ALBERTA--(Marketwire - Nov. 14, 2011) - Storm Resources Ltd. (TSX VENTURE:SRX)Storm has also filed its unaudited condensed interim financial statements as at September 30, 2011 and for the three and nine months then ended along with the Management's Discussion and Analysis ("MD&A") for the same period. This information appears on SEDAR at www.sedar.com and on Storm's website at www.stormresourcesltd.com.Selected financial and operating information for the three and nine months ended September 30, 2011 appears below and should be read in conjunction with the related financial statements and MD&A.Consolidated Highlights Thousands of Cdn$, except volumetric and per share amountsThree Months to September 30, 2011Nine Months to September 30, 2011FINANCIAL Gas sales8312,243 NGL sales153427 Oil sales4981,729Production revenue1,4824,399Funds from operations (1)3961,165Per share - basic ($)0.020.04Per share - diluted ($)0.020.04Net income (loss)(1,023)(1,906)Per share - basic ($)(0.04)90.07)Per share - diluted ($)(0.04)(0.07)Capital expenditures, net of dispositions8,39420,108Cash plus accounts receivable less accounts payable4,0544,054Weighted average common shares outstanding (000s)Basic26,37726,377Diluted26,37726,377Common shares outstanding (000s)Basic26,37726,377Fully diluted28,39128,391OPERATIONSOil equivalent (6:1)Barrels of oil equivalent (000s)47126Barrels of oil equivalent per day511462Average selling price (Cdn$ per Boe)31.5034.91Gas productionThousand cubic feet (000s)239618Thousand cubic feet per day2,5952,263Average selling price (Cdn$ per Mcf)3.483.63NGL ProductionBarrels (000s)25Barrels per day2019Average selling price (Cdn$ per barrel)81.4484.00Oil ProductionBarrels (000s)518Barrels per day5866Average selling price (Cdn$ per barrel)92.6696.30Wells drilledGross2.02.0Net1.21.2(1) Funds from operations and funds from operations per share are non-GAAP measurements. See discussion of Non-GAAP Measurements on page 8 of the MD&A and the reconciliation of funds from operations to the most directly comparable measurement under GAAP, "Cash Flows from Operating Activities", on page 14 of the MD&A.(2) Net funds available for investment comprises cash and accounts receivable less accounts payable and represents funds available, immediately or in the short term, for capital investment. This is a non-GAAP measurement. PRESIDENT'S MESSAGE THIRD QUARTER 2011 HIGHLIGHTS Production averaged 511 Boe per day in the quarter and 462 Boe per day for the year to date. As Storm commenced operations August 17, 2010, and had no production until January 2011, there is no prior year comparison.On November 10, 2011, Storm Resources Ltd. ("Storm" or the "Company") entered into an arrangement agreement (the "Arrangement Agreement") with Storm Gas Resource Corp. ("SGR") to acquire all of the outstanding common shares of SGR (the "Transaction"), its partner in the Horn River Basin ("HRB"). Storm will issue 1.33 common shares of Storm for each SGR common share not already owned by Storm which will result in the issuance of 11.8 million Storm shares. The Transaction adds 400 Boe per day of current production (100% natural gas) and is forecast to add 850 Boe per day (100% natural gas) in 2012 after the second horizontal well in the HRB is completed and tied in (completion started November 10th). InSite Petroleum Consultants Ltd. ("InSite") completed an evaluation of the Discovered-Petroleum-Initially-In-Place ("DPIIP")(1) and Contingent Resources(2) for the Muskwa and Otter Park formations in Storm and SGR's HRB lands. The evaluation includes 30 gross sections, or 19,500 gross acres, and includes lands being acquired as part of the Transaction. Storm's average working interest in the evaluated area is 37%. The best estimate of DPIIP on the evaluated lands is estimated to be 3.1 Tcf gross raw gas which represents an average of 104 Bcf gross raw gas per section. The best estimate of the Contingent Resources within the evaluated area was 242 Bcf net sales to Storm and 421 Bcf net sales to SGR. At Umbach, the second and third horizontal wells were drilled and completed in the third quarter. The second horizontal well commenced production in late September at 4.1 Mmcf per day of gross raw gas (430 Boe per day net to Storm) and the third horizontal well is expected to begin producing in late November. A fourth horizontal well located 2.5 miles south of the first horizontal was cased in early October, included a vertical pilot hole with logs indicating 30 metres of net pay in the Montney, and confirms initial estimates as to the areal extent of the exploitable area. InSite also completed an evaluation of the DPIIP and Contingent Resources for the Montney formation at Umbach. The evaluation includes 19.5 gross sections, or 13,600 gross acres, with Storm's average working interest being 57.5%. DPIIP on the evaluated lands is estimated to be 460 Bcf gross raw gas which represents an average of 23.6 Bcf gross raw gas per section. The best estimate of the Contingent Resources within the evaluated area was 15,130 MBoe net sales to Storm (14% natural gas liquids). The third quarter operating netback was $19.96 per Boe and funds from operations totaled $0.4 million or $0.02 per share outstanding.Capital investment in the quarter was $8.4 million with major expenditures being $3.9 million for drilling and $3.4 million for completions. At September 30, 2011, Storm's total liquidity was $12.7 million which is comprised of $4.1 million of net funds available for investment (working capital surplus) plus $8.6 million for Storm's investments in publicly listed companies (proceeds from the possible future sale of these securities may be used to finance the Company's capital programs).Discovered-Petroleum-Initially-in-Place ("DPIIP") is defined in the Canadian Oil and Gas Evaluation Handbook ("COGEH") as the quantity of hydrocarbons that are estimated to be in place within a known accumulation. DPIIP is divided into recoverable and unrecoverable portions, with the estimated future recoverable portion classified as reserves and contingent resources. There is no certainty that it will be economically viable or technically feasible to produce any portion of this DPIIP except for those portions identified as proved or probable reserves.Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project at an early stage of development. Estimates of contingent resources described herein are estimates only; the actual resources may be higher or lower than those calculated in the independent evaluation. There is no certainty that the resources described in the evaluation will be commercially produced. OPERATIONS REVIEW Horn River Basin ("HRB"), North East British ColumbiaStorm's undeveloped land position in the HRB currently totals 120 gross sections at a 40% working interest (30,200 net acres) and is prospective for natural gas from the Muskwa, Otter Park, and Evie/Klua shales. This land position was acquired jointly with SGR which owns the remaining 60% working interest. SGR also has a 100% working interest in an additional 20 sections (13,100 net acres) in the HRB. On November 10, 2011, Storm entered into the Arrangement Agreement with SGR, which will result in the consolidation of the two companies' interest in the HRB. During the third quarter, production from this area averaged 300 Boe per day at an operating netback of $12.50 per Boe. Production performance of the first horizontal well (40% Storm, 60% SGR) with 12 fracture stimulations continues to exceed expectations with the rate in October averaging 4.8 Mmcf per day gross raw gas (280 Boe per day net to Storm) and cumulative production, since production commenced on March 7th, totaling 1.4 Bcf. Over the first eight months, productivity has been higher than expected and the 30% decline in the rate has been relatively moderate. Compression has not been installed resulting in the flow rate being restricted as the gathering pipeline is operating at a pressure of 700 psig. Completion of the second horizontal well (40% Storm, 60% SGR) with 15 fracture stimulations began November 10th with the estimated cost including tie-in being $11.0 million gross. At current natural gas prices, Storm expects that no royalties will be paid on production from the first two horizontals in the next two to three years due to their qualification under British Columbia's Deep Royalty Credit and Infrastructure Royalty Credit Programs. Independent evaluator InSite recently completed an evaluation of Storm and SGR's DPIIP and Contingent Resources for the Muskwa and Otter Park formations. The evaluated area covers 30 gross sections, or 19,500 gross acres, and includes 3 sections (1,950 net acres) where SGR has a 100% working interest. The InSite evaluation was prepared in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101. The contingencies that prevent the economic Contingent Resources from being classified as reserves are associated with the early evaluation stage of these potential development opportunities. Additional drilling, completion, and testing data is generally required before a commitment can be made to their development. There is no certainty that it will be commercially viable to produce any of the resources. The key findings of the evaluation are as follows:InSite Evaluation of Contingent Resources for Horn River Basin Effective October 31, 2011(1)DPIIP and Contingent ResourcesLow EstimateBest EstimateHigh EstimateMuskwa and Otter Park - average gross thickness92 metres92 metres92 metres- average porosity3.5%4.25%5.0%Gross DPIIP within evaluation area (gross raw Bcf)(1)2,8363,1173,398DPIIP net to SGR's working interest (net raw Bcf)(1)1,7971,9762,154DPIIP net to Storm's working interest (net raw Bcf)(1)1,0391,1411,244Estimated Economic Contingent Resource net to SGR's working interest (net sales Bcf)(2)(3)305421552Estimated Economic Contingent Resource net to Storm's working interest (net sales Bcf)(2)(3)175242317Notes:(1) Numbers in this table are subject to rounding error.(2) DPIIP has been estimated using the gross shale thickness, gas saturation of 78%, gas formation volume factor of 205 scf per ft3, gas Z of 0.98, reservoir temperature of 265 F, average reservoir pressure of 4,142 psig, and adsorbed gas content of 69 scf per ton. (3) Contingent Resources do not include cumulative production from the wells in the area of the evaluation or reserves that were assigned by InSite in the 2010 year-end reserve evaluation.(4) Gas shrinkage of 12% is included in determining Contingent Resources.(5) Storm and SGR's net working interest Contingent Resources are before deducting royalties payable.Excluding proved plus probable reserves assigned to the evaluation area in the 2010 year-end reserve evaluation, the Contingent Resource evaluation assigned a low estimate of Contingent Resources of 175 Bcf sales net to Storm and 305 Bcf sales net to SGR. The low estimate is the most conservative estimate and carries the greatest level of confidence - at least 90% - that the resource will be recovered. The best estimate (50% confidence) of Contingent Resources was 242 Bcf sales net to Storm and 421 Bcf sales net to SGR. The high estimate (less than 10% confidence) of Contingent Resources is 317 Bcf sales net to Storm and 552 Bcf sales net to SGR. The remainder of the DPIIP beyond what has been cumulatively produced, classified as proved plus probable reserves, or classified as Contingent Resources, is currently considered to be the unrecoverable portion. Umbach, North East British ColumbiaStorm has 102 gross sections or 73 net sections at Umbach with 55,500 net undeveloped acres which is primarily prospective for liquids rich natural gas from the Montney formation. Storm's lands are subdivided into a northern land block which consists of 60 gross sections at 53% working interest and a southern land block which consists of 42 gross sections at a 100% working interest. Production averaged 153 Boe per day in the third quarter while the operating netback was $17.64 per Boe.Most of Storm's activity to date has been focused on delineating the Montney resource on the northern block of land. In addition to the first horizontal well (60% working interest), with 7 fracture stimulations, that began producing in March 2011, the second and third horizontal wells (both 60% working interest) were drilled and completed in the third quarter. The second horizontal was completed with 10 fracture stimulations with the final test rate being 4.4 Mmcf per day gross raw gas plus 33 barrels per day of condensate. The well began producing on September 28th at a rate of 4.1 Mmcf per day gross raw gas (430 Boe per day net to Storm) with the current rate being 2.3 Mmcf per day gross raw gas (250 Boe per day net to Storm). The third horizontal was completed with 11 fracture stimulations with the final test rate being 1.7 Mmcf per day gross raw gas plus small amounts of condensate and is expected to begin producing in late November. A fourth horizontal well located 2.5 miles south of the first horizontal was cased in early October and included a logged vertical pilot hole which was also cored. Log analysis and core data from the vertical pilot hole show 30 metres of net pay in the Montney which is consistent with Storm's expectations and supports management's estimate of the exploitable area being as much as 40 gross sections in size. Including NGL recovered at the McMahon Gas Plant, total NGL and condensate production is approximately 30 barrels per Mmcf of sales gas. InSite recently completed an evaluation of DPIIP and contingent resources for the Montney formation on the northern land block. The evaluated area includes 19.5 gross sections (13,600 gross acres) with Storm's average working interest being 57.5%. The InSite evaluation was prepared in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101. The contingencies that prevent the economic Contingent Resources from being classified as reserves are associated with the early evaluation stage of these potential development opportunities. Additional drilling, completion and testing data is generally required before a commitment can be made to their development. There is no certainty that it will be commercially viable to produce any of the resources. The key findings of the evaluation are as follows:InSite Evaluation of Contingent Resources for Umbach Effective October 31, 2011(1)DPIIP and Contingent ResourcesLow EstimateBest EstimateHigh EstimateMontney - average net pay26 metres26 metres26 metres- average porosity7%7%7%Gross DPIIP within evaluation area (gross raw Bcf)(2)460.5460.5460.5DPIIP net to Storm's working interest (net raw Bcf)(2)265.0265.0265.0Estimated Economic Contingent Resource net to Storm's working interest (net sales Bcf)(3)(4)(5)66.2 Bcf Natural Gas 1,818 MBbls Natural Gas Liquids 12,846 MBoe78.0 Bcf Natural Gas 2,137 MBbls Natural Gas Liquids 15,130 MBoe89.8 Bcf Natural Gas 2,455 MBbls Natural Gas Liquids 17,414 MBoeNotes:(1) Numbers in this table are subject to rounding error.(2) DPIIP has been estimated using a net pay cut-off of 20 metres, gas saturation of 80%, gas formation volume factor of 161 scf per ft3, gas Z of 0.8, reservoir temperature of 149 F and, average reservoir pressure of 2,220 psig. (3) Contingent Resources do not include cumulative production from the wells in the area of the evaluation or reserves that were assigned by InSite in the 2010 year-end reserve evaluation.(4) Gas shrinkage of 11% is included in determining Contingent Resources.(5) Storm's net working interest Contingent Resources are before deducting royalties payable.Excluding proved plus probable reserves assigned to the evaluation area in the 2010 year-end reserve evaluation, the Contingent Resource evaluation assigned a low estimate of Contingent Resources of 66.2 Bcf sales net to Storm. The low estimate is the most conservative estimate and carries the greatest level of confidence - at least 90% - that the resource will be recovered. The best estimate (50% confidence) of Contingent Resources was 78.0 Bcf sales net to Storm. The high estimate (less than 10% confidence) of Contingent Resources is 89.8 Bcf sales net to Storm. The remainder of the DPIIP beyond what has been cumulatively produced, classified as proved plus probable reserves, or classified as Contingent Resources, is currently considered to be the unrecoverable portion. On the southern land block, two vertical wells (100% working interest) were completed in the Montney formation in the first quarter with 100-ton fracture treatments and the final test rates on each were approximately 150 to 200 Mcf per day. These vertical wells are five miles apart and confirm that the Montney is productive over a large area; however, the test rates are indicative of lower reservoir quality. An area of better reservoir quality has been identified using 3-D seismic and a vertical delineation well (100% working interest) will be drilled this winter to further evaluate these lands. Red Earth, North Central AlbertaProduction at Red Earth averaged 58 barrels of oil per day in the third quarter from two Slave Point horizontal wells (0.4 net). The operating netback was $64.87 per barrel in the quarter with both horizontal wells benefiting from a 5% royalty rate under Alberta's New Well Royalty Rate program. ACQUISITION OF STORM GAS RESOURCE CORP. On November 10, 2011, Storm entered into the Arrangement Agreement to acquire all of the outstanding shares of SGR, its partner in the HRB. Storm will issue 1.33 common shares for each SGR common share not owned by Storm which will result in the issuance of 11.8 million Storm shares. Following completion of the Transaction, Storm will have approximately 38.2 million common shares outstanding, of which approximately 69% will be held by current shareholders of Storm and approximately 31% will be held by former shareholders of SGR, excluding SGR shares already owned by Storm. It is expected that a joint information circular will be mailed to both Storm and SGR shareholders in early December. Closing of the Transaction is expected to occur in early January 2012, subject to satisfaction of certain conditions including no material adverse change having occurred in either of Storm or SGR, standard stock exchange, court and regulatory approvals and the requisite two-thirds majority approval of SGR's shareholders and the majority of minority approval of Storm's shareholders. Additional information regarding the Transaction:Using a value of $3.73 per Storm common share, which is the 20-day volume weighted average share price ending on November 10th (day agreement was executed), the acquisition cost is $56.3 million. The net cost to Storm is $43.9 million after excluding the 2.5 million shares already owned by Storm. SGR's current production is 400 Boe per day (100% natural gas) and production in 2012 is forecast to average 850 Boe per day (100% natural gas) assuming successful completion of the second horizontal well in the HRB (completion started November 10th).SGR's debt at closing is estimated to be approximately $1.2 million, which includes transaction costs plus capital invested to complete and tie in the second HRB horizontal well. SGR has 81,400 net acres of undeveloped land including 60,000 net acres in the HRB.Using Storm's reserve report prepared by InSite effective December 31, 2010, Storm is acquiring 644 Mboe of total proved reserves and 2,367 MBoe of proved plus probable reserves. Net to SGR's working interest, future development capital ("FDC") is estimated at $6.7 million for total proved reserves and $22.6 million for proved plus probable reserves. FDC for both total proved and proved plus probable reserves would be reduced by $6.7 million net to SGR to reflect capital invested in the first quarter of 2011 for construction of the facility and tie-in of the first horizontal well.Using the evaluation by InSite of Contingent Resources for the Muskwa and Otter Park formations in Storm and SGR's HRB lands dated October 31, 2011, Storm is acquiring Contingent Resources of 305 Bcf net sales in the low case estimate, 421 Bcf net sales in the best case estimate, and 552 Bcf net sales in the high case estimate. The HRB lands included in the InSite Contingent Resource evaluation totalled 30 gross sections representing 19,500 gross acres or 12,500 acres net to SGR.Storm attributes approximately $7.2 million for 68,900 net acres of undeveloped lands outside of the area in the HRB that was evaluated as part of the InSite Contingent Resource evaluation.At closing, SGR is expected to have 11.3 million common shares outstanding and Storm will issue 11.8 million common shares to acquire 8.8 million SGR common shares not already owned by Storm.The Transaction benefits both SGR and Storm shareholders with the combined company having a diversified, resource-oriented asset base with near-term growth coming from exploitation of liquids rich natural gas in the Montney formation at Umbach. SGR shareholders gain asset diversification while retaining exposure to the upside associated with the HRB lands. Storm shareholders benefit from the consolidation of the HRB asset which provides more flexibility in terms of exploitation and development. In addition, the combined company will be financially stronger with a larger production base and proportionately lower cash G&A. INVESTMENTS Storm has share ownership positions in one private company and two publicly traded companies. These shareholdings were transferred to Storm under a plan of arrangement with ARC Energy Trust. The value of the share positions in the two public companies totaled $8.6 million at the end of the third quarter and these securities could possibly be sold in the future with the proceeds being used to finance the Company's capital programs.Storm Gas Resource Corp.SGR is a private company formed in June 2007 to pursue unconventional gas opportunities in the HRB and elsewhere. Storm's share ownership position at present totals 2.5 million shares, representing 22% ownership of SGR. Completion of the Transaction as described above will result in SGR becoming a wholly-owned subsidiary of Storm.Chinook Energy Inc. ("Chinook")Storm holds 4.5 million shares of Chinook which is a TSX-listed oil and gas exploration and production company (symbol 'CKE') based in Calgary with operations focused in Tunisia and Western Canada. Bridge Energy ASA ("Bridge")Storm holds 1.05 million common shares of Bridge (symbol 'Bridge' on the Oslo Stock Exchange), a Norwegian-based exploration and production company with production of approximately 1,400 Boe per day, several development opportunities in the UK sector of the North Sea, and a number of exploratory leads in the Norwegian sector of the North Sea. OUTLOOK Based on field estimates, production in October was approximately 760 Boe per day. Capital expenditures in 2011 are expected to total $26 million which is $2 million higher than previous guidance and results from deferring completion of the fourth horizontal well (0.6 net) and deferring a vertical delineation well (1.0 net) at Umbach while adding the completion and tie-in of the second horizontal well in the HRB. Production in the fourth quarter of 2011 is forecast to be approximately 900 Boe per day (15% oil and NGLs) which is lower than prior guidance of 1,000 to 1,200 Boe per day due to delays with well tie-ins at Umbach. The corporate average royalty rate for 2011 is forecast to average less than 5% versus previous guidance of 10% which is due to royalty incentive programs in Alberta and British Columbia. Operating costs for 2011 are still expected to average $7.25 per Boe in 2011 and cash general and administrative costs are also unchanged at approximately $2.7 million for the year. Storm's resource plays at Umbach and in the HRB both represent material assets for Storm shareholders and provide significant leverage to even a small increase in natural gas prices. We plan to continue gradually advancing both and will do so by working to increase productivity and reserves per horizontal well as well as expanding the resource. We remain optimistic that natural gas prices will improve given that current prices combined with cost inflation result in poor rates of return on most resource plays which will eventually have an impact on supply. For most producers, maintaining or growing natural gas production requires capital expenditures to exceed cash flow which is not sustainable longer term. Although current natural gas prices limit Storm's ability to grow production from both resource plays, we can afford to be patient given that we have already secured the land and validated the commerciality of two large resource plays. As a result, in the current natural gas price environment, we are focused on identifying and acquiring assets which add near-term exploitation upside and diversify our asset base while also continuing to advance both core resource plays. Respectfully,Brian Lavergne, President and Chief Executive OfficerBoe Presentation – For the purpose of calculating unit revenues and costs, natural gas is converted to a barrel of oil equivalent ("Boe") using six thousand cubic feet ("Mcf") of natural gas equal to one barrel of oil unless otherwise stated. Boe may be misleading, particularly if used in isolation. A Boe conversion ratio of six Mcf to one barrel ("Bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All Boe measurements and conversions in this report are derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Mboe means 1,000 Boe.Forward-Looking Information - This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly, and without limitation, this press release contains forward-looking statements and information concerning: production; drilling plans; reserve volumes; capital expenditures; royalties; and production and general and administrative costs.The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Storm, including: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; success to be expected in drilling new wells; the adequacy of budgeted capital expenditures to carrying out planned activities; the availability and cost of services; and the receipt, in a timely manner, of regulatory and other required approvals. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on these forward-looking statements and information because of their inherent uncertainty. In particular, there is no assurance that exploitation of the Company's undeveloped lands and prospects will result in the emergence of profitable operations.Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the oil and gas industry in general such as: operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation of petroleum and natural gas and loss of markets; environmental risks; competition; ability to access sufficient capital from internal and external sources; stock market volatility; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations.Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of the Company are included or are incorporated by reference in the company's MD&A for the three and nine months ended September 30, 2011.The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Brian LavergneStorm Resources Ltd.President & CEO(403) 817-6145ORDonald McLeanStorm Resources Ltd.Chief Financial Officer(403) 817-6145ORCarol KnudsenStorm Resources Ltd.Manager, Corporate Affairs(403) 817-6145www.stormresourcesltd.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.