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 symbol SRX 121 MM shares + 8 MM options listed on TSX eff Sep 27/17 officer…
PRODUCTION Q3/17 prodn +13% per share YOY Q4/17 f/c 18,000 19,000 boe/d Q2 Q3/17 impacted by: low Stn 2 price Sep Oct (0.50/GJ), deferred starting new hzs McMahon GP turnaround Jun 5 Jul 14 (14,000 boe/d shut-in) 3
FUNDS FLOW & CAPEX improving the business; funds flow increasing with prodn growth, diversified nat gas sales, lower costs debt 1.9 X Q3/17 annualized funds flow (Q3 prodn & funds flow reduced by downtime) 4
CASH COSTS PER BOE continuing to decrease cost structure 2017 f/c prodn cost down 0.80/boe or 12% vs 2016 (prodn growth & new processing arrangement at Umbach) transportation excluded from cash costs as sales price for volumes…
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 Q3/17 15,073…
UMBACH ACTIVITY Field compression totals 115 mmcf/d raw Q3/17 was 79 mmcf/d raw increase to 150 mmcf/d for 7 MM (Q1/18) Increasing hz length from 1,300 m to 2,000 m Current inventory: 11 drilled hzs (5 completed) higher condensate…
UMBACH HZ COSTS 2017 hzs 35% longer vs 2016 2017 D&C per meter -12% vs 2016, longer hzs will reduce F&D accounting system costs incl pad & roads royalty credits not subtracted DRILLING hzs fracs length cost COMPLN hzs fracs…
UMBACH TYPE CURVE 9
2017 HZ PERFORMANCE 10
HZ LENGTH 11
UMBACH HZ FIELD CONDENSATE RATES 12
UMBACH HZ ECONOMICS AT STN 2 PRICE less than 20% of f/c 2018 nat gas sold at Stn 2 (corporate avg flat prices nat gas price is higher) current fwd strip for 2018 Stn 2 1.50/GJ incl G&A + interest (1.78/boe 2016), full-cycle…
PROCESSING & TRANSPORTATION 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 & 10 mmcf/d raw 5 years processing…
HEDGING (Nov 9/17) 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 hedged 50% forecast Q4/17 prodn Fixed price hedges…
PRODUCTION GUIDANCE prodn guidance uses 6.3 Bcf/hz, improving with longer hzs capex is flexible, adjust with commodity prices Umbach hz est D&C 4.4 MM 16
US NATURAL GAS SUPPLY/DEMAND Bullish nat gas price with US demand supply US supply (prodn + net imports) declined 4.3 Bcf/d since Jan/15 peak growing exports with LNG export capacity +7.5 Bcf/d by 2019 and pipeline capacity to Mexico…
WESTERN CANADIAN NAT GAS PRICES AECO weaker with H1/17 Ont imports from US +0.6 Bcf/d Chicago price YOY backing out W benefits from FX Cdn nat gas, reversed Nov 1 with mainline very low W Cdn recontracting prices Jul Oct/17 AECO…
SUMMARY Financial results improving Q1 Q3/17 funds flow per share +84% YOY Low & improving cost structure cash costs 7.50/boe (excl trans) & PDP FD&A 6 - 7/boe Prodn growth strong relative to capital investment f/c 2017 +22% per share…
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…
COST OF RESERVE ADDITIONS all-in reflects total capital investment 1P & 2P FD&A do not reflect actual results; based on estimates of future well performance & FDC PDP FD&A reflects actual capital and well results 2016 PDP FD&A…
UMBACH LAND POSITION Montney productive across area Early stage with 2P on 21% of lands prod hzs on 7% of lands multi-year drilling inventory 155 net sections 3 - 4 hzs/section 61.4 net hzs drilled higher quality in terms of…
UMBACH HZ FIELD CONDENSATE RATE
PLANTGATE NAT GAS PRICE AT 2018 FWD STRIP 2018 FWD STRIP (Nov 6/17) Sell in Chicago (Alliance pipeline) NYMEX US3.05/mmbtu Chicago price US2.89/mmbtu NYMEX - Chicago diff - US0.16/mmbtu Chicago price Cdn3.48/GJ Alliance fuel -Cdn0.18/GJ…
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