INTRODUCTION Started Sept 2010, fourth Storm since Nov 1998 history of discipline with capex & focus on per share growth Market cap 425 MM (3.50/share), TSX-V symbol SRX 121 MM shares + 8 MM options officer + director ownership 12%…
PRODUCTION Q3/17 f/c 16,000 boe/d 17,500 boe/d since mid-July, increase when Stn 2 price improves (5 completed hzs to turn on) Q2 Q3/17 reduced by planned turnaround at McMahon GP (80% prodn shut-in Jun 5 Jul 14) since 2013, prodn…
CASH COSTS PER BOE continuing to decrease cost structure 2017 f/c prodn cost -0.80/boe or -12% vs 2016 (prodn growth & new processing arrangement at Umbach) transportation excluded from cash costs as sales price for volumes…
FUNDS FLOW & CAPEX H1/17 funds flow reduced 8% by hedging loss 5
COST OF RESERVE ADDITIONS all-in reflects total capital investment PDP FD&A reflects actual capital and well results 1P & 2P FD&A not reflective of actual results; based on estimates of future well performance & FDC 2016 PDP FD&A…
MAJOR AREAS large shale gas resource in HRB, Umbach Montney needs higher nat gas price 109,000 net acres 15,134 Boe/d* growth from liquids rich Montney nat gas development at Umbach Horn River Basin 78,000 net acres 266 Boe/d* *H1/17…
UMBACH AREA (NE British Columbia) 1.2% H2S requires Montney liquids rich gas processing at sour gas plant 155 net sections 109,000 net acres McMahon GP provides raw gas 1,200 1,300 btu/scf access to 3 sales pipelines H1/17 15,134…
UMBACH LAND POSITION Montney productive across area Early stage 2P on 21% of lands prod hzs on 7% of lands 155 net sections 55.4 net hzs drilled plan 4 hzs/section 400 m well spacing higher quality resource in terms of thickness…
UMBACH ACTIVITY total field compression 115 mmcf/d raw (79 mmcf/d raw H1/17) increase to 150 mmcf/d raw for 7 MM (supports growth to 27,000 boe/d) increasing hz length from 1,300 m to 2,000 m higher condensate prodn at Nig, S…
UMBACH HZ COSTS cost per metre decreasing with longer hzs, increasing length adds reserves and reduces F&D accounting system costs incl pad & roads royalty credits not subtracted DRILLING hzs fracs length cost COMPLN hzs fracs length…
UMBACH ADDITIONAL INFORMATION Firm processing 80 mmcf/d raw 65 mmcf/d raw McMahon GP, 15 mmcf/d raw Stoddart GP processing deal at McMahon started Jan/17, reduced op cost 15% 55 mmcf/d raw 15 years more capital for hz drilling with…
HEDGING (Aug 31/17) Hedging to support growth growth is not hedged target: 50% of current prodn hedged 1 to 12 months forward 25% of current prodn hedged 13 to 24 months forward Fixed price hedges 45% forecast H2/17 prodn H2/17: 30.4…
GUIDANCE guidance based on 6.3 Bcf type curve for new hzs at Umbach (improvement with longer hzs) flexible capex program to maintain strong balance sheet Umbach hz D&C 4.7 MM; +27% vs 2016 from adding length and cost…
US NATURAL GAS SUPPLY/DEMAND Bullish nat gas price with US demand supply since Jan/15, US supply (prodn + net imports) has declined 4.4 Bcf/d exports increasing, 9 Bcf/d LNG facilities operating or being built and new pipelines to…
WESTERN CANADIAN NAT GAS PRICES AECO weak: Ont demand reduced by imports from US (H1/17 +0.6 Bcf/d YOY) Stn 2 weak: Enbridge T-south maintenance & BC demand low late summer longer-term demand rising: AB coal retirements, oil sands…
SUMMARY Financial results improving H1/17 funds flow per share +118% YOY & prodn per share +17% YOY Prodn growth strong relative to capital investment 2016 +3,260 boe/d YOY (+34%/share) vs capex 65 MM Infrastructure supports growth to…
STORM RESOURCES LTD. CONTACT INFO For further information please contact: Brian Lavergne, President and Chief Executive Officer Michael Hearn, Chief Financial Officer Carol Knudsen, Manager Corporate Affairs Address: 200, 640 5th…
APPENDIX
UMBACH HZ FIELD COND GAS RATIO (CGR)
UMBACH OPERATING NETBACK Umbach Q1/17 field operating netback nat gas sales 6% ATP (2.93/GJ) 30% Stn 2 spot (2.36/GJ) 12% Chi spot (US2.95/mmbtu) 52% Chi monthly (US3.40/mmbtu) [1.25 GJ/mcf or 1.18 mmbtu/mcf] nat gas 3.25/mcf…
PLANTGATE NAT GAS PRICE AT 2018 FWD STRIP 2018 FWD STRIP (Aug 9/17) Sell in Chicago (Alliance pipeline) NYMEX US2.99/mmbtu NYMEX US2.99/mmbtu NYMEX - Chicago diff - US0.15/mmbtu NYMEX - Chicago diff -US0.15/mmbtu Chicago price…
AECO - STATION 2 PRICE DIFFERENTIAL prodn growth in BC goes onto TCPL expansions to AECO (does not go to Stn 2) upcoming TCPL expansions: Towerbirch +0.9 Bcf/d Apr/18 N Montney +1.5 Bcf/d Apr/19 [reduces AECO Stn 2 diff] AECO Stn 2…
STORM RESULTS VS MARCELLUS/UTICA 9 public Marcellus/Utica producers AR, COG, ECR, EQT, GPOR, REXX, RICE, RRC, SWN H1/17: 13.2 Bcfe/d (+20% YOY) funds flow 3.3 B capex 6.6 B (1.8 X FF) debt 22 B (2.9 X annual FF) cash costs…
MARCELLUS/UTICA PRODUCERS CAPEX VS FUNDS FLOW with capex almost 2 X funds flow, growth from Marcellus/Utica needs higher nat gas price or outside capital (equity, hedging)
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