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 13% (15% FD) Market cap 480 MM (4.00/sh)…
MAJOR AREAS Umbach Montney large shale gas resource in HRB, needs higher nat gas price 100,000 net acres 8,600 Boe/d* growth since 2013 driven by Montney at Umbach (+100% per share Q2/15 vs Q1/13) Horn River Basin 78,000 net acres 280…
CORPORATE PRODUCTION TCPL & Spectra constraints expected to continue to Nov/15 4
UMBACH AREA (North East British Columbia) Montney liquids rich gas 1% H2S in gas at Umbach, processed at McMahon or 142 net sections Stoddart sour gas plants 100,000 net acres (54 mmcf/d firm capacity) 1,200 1,300 btu/scf Q2/15 8,600…
UMBACH LANDS most of Storms lands in higher productivity sweet spot liquids rich but, shallow depth with low drill & complete cost 142 net sections (168 gross) 100,000 net acres Storms cost to date for land is 2,750/ha or…
UMBACH ACTIVITY majority of activity focused on Q3/15 est 9,250 Boe/d development (cash flow growth), some step-outs to expand delineated area 37 hzs drilled 32 hzs producing inventory of 5 hzs not producing Field compression to 82…
UMBACH HORIZONTAL WELL PERFORMANCE 8
UMBACH 2014 - 2015 HORIZONTAL WELLS 9
UMBACH HORIZONTAL WELL OP DAY RATES 10
COMPARISON WITH NE BC MONTNEY HZS 11
UMBACH HZ COSTS completion cost - adding fracs has offset savings from multi-well pads drill compl fracs length 2013 2,180 K 2,454 K 17 1,170 m 2014 2,080 K 2,499 K 19 1,205 m 2015 2,180 K 22 1,420 m 12
UMBACH SOUTH HZ ECONOMICS full cycle economics: infrastructure +1,160 K per hz (32 MM for 70 mmcf/d facility for 37 hzs) land +200 K per hz F&D: 5.75/boe ROR: 18% Payout: 3.6 yrs PV15: 0.6 MM used 2014 hz cost +300 K for more frac…
MONTNEY PRODUCTIVE OVER LARGE AREA Productivity productivity and condensate rates proven on 1/3 of vary, still learning lands to date 50.6 net sections 202 net hz locations, 33.4 net hzs drilled 170 net hzs to drill 2P reserves on…
FINANCIAL RESULTS Q2/15 vs Q2/14 Boe/d per share +69% NGL prodn +110% 15
FINANCIAL RESULTS growth from Umbach Montney is reflected in financial results Q2/15 funds flow per Boe -58% from Q2/14 (revenue per Boe -52%) Q2/15 cash costs -12% from Q2/14 16
GUIDANCE 17
NATURAL GAS FLOWS IN BC TCPL constraints in Alberta reducing takeaway from NE BC; more nat gas sold at BC Stn 2 reducing price and increasing differential to AECO 18
NATURAL GAS PRICE DIFFERENTIAL IN BC wider AECO BC Stn 2 differential; more nat gas onto BC Spectra system plus TCPL constraints Storms Alliance capacity reduces exposure to AECO BC Stn 2 diff 19
HEDGING, PROCESSING, & MARKETING Target is to hedge 50% current prodn to support growth H2/2015: 25.6 mmcf/d at AECO 4.17/mcf (3.33/GJ) 2016: 17 mmcf/d at AECO 3.72/mcf (2.98/GJ), 500 bpd at WTI 77Cdn/bbl Processing & transportation…
ADDITIONAL INFORMATION Sold 725 boe/d at Grande Prairie for 24 MM July 15th Q3/15 prodn impacted by pipeline constraints plus prodn shut-in due to poor nat gas price when BC Stn 2 below 1.50 - 1.75/GJ, shutting in unhedged volumes…
SUMMARY Montney at Umbach offers competitive advantages with lower hz cost and NGL increasing revenue Converting Montney resource into prodn & cash flow multi-year hz inventory; delineated 1/3 lands with 170 hz locations Operationally,…
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
2015 GUIDANCE Q4/15 forecast prodn +30% 2015 2014 2013 per 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 15,000 10,173 4,773 AECO 2.68/GJ 4.27/GJ 3.01/GJ BC STN 2…
RESERVES SUMMARY RESERVES 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
NAT GAS FLOWS ON BC SPECTRA PIPELINE SYSTEM in 2015, reduced take away onto Alliance & TCPL has reduced BC Stn 2 price
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
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