INTRODUCTION Started Sept 2010, fourth Storm since Nov 1998 history of per share growth in prodn & asset value 119.3 MM shares + 6.0 MM options, TSX-V symbol SRX management, Board ownership 12% (13% FD) Market cap 500 MM (4.50/sh)…
MAJOR AREAS 304,000 NET ACRES HRB shale gas is very Umbach Montney large resource, needs 100,000 net acres higher nat gas price 8,580 Boe/d* Montney at Umbach drives Storms Horn River Basin growth next 3+ years 78,000 net acres 280…
CORPORATE PRODUCTION 4
UMBACH AREA (North East British Columbia) 1% H2S in gas at Montney liquids rich gas Umbach, processed at 141 net sections Stoddart or McMahon 100,000 net acres Gas Plants (Storm firm 1,200 1,300 btu/scf capacity 44 mmcf/d raw) Q1/15…
UMBACH LANDS Umbach South & Nig 100% working interest 109 net sections Umbach North 60% working interest 59 gross sections 33 net sections Storms cost to date for land is 2,750/ha or 1,100/acre Storms hz 29 MM acquire land since…
UMBACH ACTIVITY Umbach South 100% WI 7,650 Boe/d Q1/15 28 hzs drilled, 18 hzs prod 2014 opex 7.36/boe Umbach North 60% WI 930 Boe/d Q1/15 9 hzs drilled, 9 hzs prod 2014 opex 10.14/boe Umbach South field compression capacity is…
UMBACH HORIZONTAL WELL PERFORMANCE 9
UMBACH 2013 - 2015 HORIZONTAL WELLS 10
COMPARISON WITH NE BC MONTNEY HZS 11
UMBACH HZ COSTS completion cost unchanged, adding fracs offsets cost savings from multi-well pads avg drill avg compl fracs drilling costs decreased with 2013 2,177 K 2,454 K 16.9 multi-well pads starting 2014 2014 2,095 K 2,497 K…
UMBACH SOUTH HZ ECONOMICS full cycle economics: infrastructure +1,060 K per hz (32 MM for 70 mmcf/d facility for 37 hzs) land +200 K per hz F&D: 5.95/boe ROR: 21% Payout: 3.0 yrs PV15: 1.3 MM 2015 hzs are longer with more…
MONTNEY PRODUCTIVE OVER LARGE AREA 2P reserves on remaining lands 18% of lands highly prospective Upper Montney given results on 2P on 25.5 net adjacent lands sections out of 141 net sections 73.4 net 2P hz drilling locations end…
FINANCIAL RESULTS Umbach Montney is driving growth in prodn per share and liquids prodn Q4/14 vs Q4/13 +68% boe/d per share +131% oil & NGL prodn 15
FINANCIAL RESULTS growth from Umbach Montney is reflected in financial results 2014 funds flow per share +40% from 2013 2014 cash costs -19% from 2013 16
GUIDANCE 17
NATURAL GAS PRICE DIFFERENTIAL IN BC 18
WHATS AFFECTING NATURAL GAS PRICE IN BC Spectra system effectively full; prodn growth onto TCPL where capacity is affected by maintenance (short term) 19
HEDGING, PROCESSING, & MARKETING Hedging 50% current prodn to support growth for H2/2015, 25.6 mmcf/d at AECO 4.17/mcf (AECO 3.33/GJ) for 2016, 13 mmcf/d to date at AECO 3.75/mcf (AECO 3.00/GJ) Umbach hz ROR 32% at AECO 2.80/GJ (full…
WHAT TO EXPECT IN 2015 Continue to improve Umbach Montney hz rates/reserves Forecast Q4/15 14,000 boe/d, +30% per share vs Q4/14 Managing prodn to meet guidance (can accelerate growth) Sale of 725 boe/d at Grande Prairie for 24 MM Capex…
SUMMARY Convert Montney resource into prodn & cash flow many peers are heavy resource, light capital to develop large hz inventory at Umbach; 175 hzs to drill on 1/3 lands delineated Montney at Umbach offers competitive advantages with…
STORM RESOURCES LTD. CONTACT INFO For further information please contact: Brian Lavergne, President and Chief Executive Officer Donald McLean, Chief Financial Officer Carol Knudsen, Manager Corporate Affairs Address: 200, 640 5th…
APPENDIX
includes June/15 equity issue for 8 MM shares (34 MM net) GUIDANCE Q4/15 prodn +30% per 2015 2014 2013 share year over year Guidance Actual Actual Annual Average Boe/d 11,000 12,000 6,980 3,630 Q4 Production Boe/d 14,000 14,500 10,173…
RESERVES SUMMARY 2P +71% per PDP +39% per share from 2013 share from 2013 86% of 2P at Umbach 1P +125% per share from 2013 proven reserves are 68% of 2P vs 50% in 2013
HORN RIVER BASIN HRB (NE BC) Shale gas from Muskwa, Otter Park, Evie shales 81,000 net acres, 100% WI 123 net sections Drilled 2 hzs & 2 verticals to validate commerciality 1 producing hz, 1 standing hz
Storm land position higher quality (not trend acreage) at reasonable cost given recent transactions 2014 land transactions in the area Jun /14 Todd acquisition 3,900/acre 92 MM, 23,500 acres (50% WI from Paramount) 2014 crown land…
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