INTRODUCTION Started Sept 2010, fourth Storm since Nov 1998 history of discipline with capex & focus on per share growth Market cap 275 MM (2.25/share), TSX symbol SRX 121 MM shares + 8 MM options officer + director ownership 12%…
PRODUCTION GROWTH Q4/18 estimate 19,000 21,000 boe/d prodn per share +740% since Q1/12 3
improving with prodn growth, declining costs, liquids price, diversified nat gas sales, better hzs FINANCIALS 2018 est +45% Q1-Q3/18 -11% YOY per share YOY (-0.91/boe) achieving per share growth with capex less 2018 f/c prodn…
history of reserve growth and declining FD&A costs RESERVES 2017 PDP is 26% of 2P (vs 24% in 2016) 2017 PDP 5.76/boe (-16% YOY) all-in reflects total capital investment 2017 PDP +32% per share YOY (1P +26%, 2P +23%)…
UMBACH/NIG/FIREWEED (NE British Columbia) Montney liquids rich gas 0.2% - 1.2% H2S requires processing at sour gas plant raw gas 1,200 - 1,300 btu/scf McMahon GP has access 161 net sections to 3 sales pipelines 36 bbls/mmcf Q1-Q3/18…
LARGE LAND POSITION 161 net sections 113,000 net acres Growth from three areas: Umbach, Nig, & Fireweed Montney productive across the area learning from offsetting hz results early stage 66 net hzs drilled 8% lands developed 2P on…
UMBACH Growth if Stn 2 1.50/GJ 113 net sections, 61 net hzs drilled Currently 16,000 boe/d sales 17% liquids (35 bbls/mmcf) 85 mmcf/d raw Field compression 150 mmcf/d raw 5 standing hzs (3 completed) Q4/18Q1/19 hz drills 8
NIG learning from offsetting hz Develop 2019 2020 results 16 net sections, 3 hzs drilled Currently 4,500 boe/d sales 20% liquids (42 bbls/mmcf) 23 mmcf/d raw to Umbach/McMahon Building 50 mmcf/d sour gas plant f/c 26% liquids (60…
FIREWEED learning from offsetting hz results Q4/18Q1/19 hz drills Develop 2020 standing hz completed Nov/18, 6 day JV with privateco (SRX 50% WI) clean-up, final rate 10.9 mmcf/d + 660 bpd cond (1400 m, 35 stages) 26 net sections,…
updated type curve IMPROVING HZ RESULTS 11
previous type curve 12
2018 HZS ARE BEST TO DATE 13
CONDENSATE RATES ALSO IMPROVING 14
UMBACH HZ COSTS longer hzs more expensive but, cost per metre decreasing & rate/reserves increasing which reduces FD&A actual accounting system costs, incl everything (lease & road construction, water handling) royalty credits…
path to 42,000 boe/d while increasing GROWTH PLAN liquids % and reducing op cost current net capacity Nig & Fireweed full-cycle ROR 25% at Stn 2 1.25 Umbach 16,000 boe/d 27,000 boe/d & WTI US60 Nig 5,000 boe/d 10,000 boe/d growth from…
GROWTH PLAN INCREASES % LIQUIDS Large liquids rich land position; future growth from Nig & Fireweed where liquids recovery is higher Total field CGR Liquids cond/C5+ lifetime avg avg 2017 hz Mbbls Mbbls bbls/mmcf raw Umbach 8.5…
ECONOMICS STN 2 1.25/GJ & WTI US60 incremental nat gas Umbach - McMahon GP Nig - Storm gas plant sold at Stn 2 8.5 Bcf(1) - avg 2017 hz 11 Bcf(1) Flat Pricing Stn 2 1.25/GJ WTI US60/bbl FX 0.78 Ultimate Sales 1,510 Mboe, 17% liquids…
GUIDANCE 11 bcf type curve for future hzs assumes Nig GP starts Jan/20 D&C 5.8 MM/hz for longer hzs corp decline 32% Dec/16 to Dec/17 19
DIVERSIFIED NATURAL GAS SALES diversified sales mitigate price volatility (Q3/18 was 61% Chicago, 27% Western Canada, 12% Sumas) W Cdn prices weak since mid-2017 from prodn growth (1 bcf/d YOY) Stn 2 improving vs AECO; pipeline…
BC NATURAL GAS FLOWS Enbridge T-south failure Oct 9/18, restore to Q4/18 to date 1.3 Bcf/d end of Nov, Stn 2 0.67/GJ estimating spring 2019 for complete repair impact on Stn 2 price uncertain, receipts & deliveries must balance incl…
SUMMARY Converting large Montney resource into per share growth in prodn & funds flow large land position, liquids rich multi-year hz drilling inventory supports growth Financial results continuing to improve prodn growth, cost…
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 CUM GAS VS TIME
UMBACH CUM CONDENSATE VS TIME
BC OGC INTERIM SURFACE ACCESS RULES intention is to reduce/minimize Announced July 16, 2018 surface disturbance interim measures for drilling & facility applications designed to address concerns regarding development in Blueberry…
2018 f/c prodn +25% YOY & funds flow +45% YOY FINANCIAL GUIDANCE growing prodn & funds flow on per share basis 2019 Guidance 2018 Forecast (prices actual to date 2017 2016 2015 & future Nov 5/18) Average Boe/d 21,000 24,000 19,500…
HEDGING (to Nov 12/18) Hedging to support growth growth is not hedged target 50% of prodn for 1 to 12 months, 25% for 13 to 24 months Q4/18: 45,500 mmbtu/d Chicago Cdn3.42/mmbtu 38.4 mmcf/d 4.05/mcf 11,500 mmbtu/d Sumas Cdn2.92/mmbtu…
PROCESSING & TRANSPORTATION Firm processing totals 80 mmcf/d raw avoid overcommitting, reduces flexibility H1/18 105 mmcf/d raw McMahon GP 65 mmcf/d raw & Stoddart GP 15 mmcf/d raw Transportation commitments provide sales…
PLANTGATE NAT GAS PRICE AT 2019 FWD STRIP 2019 FWD STRIP (Aug 10/18) Sell in Chicago (Alliance pipeline) NYMEX US2.81/mmbtu Chicago price US2.65/mmbtu NYMEX - Chicago diff - US0.16/mmbtu Chicago price Cdn3.26/GJ Alliance fuel…
US NAT GAS DEMAND SUPPLY LAST 12 MONTHS Increasing US prodn offset by rising demand/exports LNG export capacity to 9 bcf/d by end 2019 near term price risk with prodn growth 3.5 bcf/d by end of 2018 from Rover, Atlantic Sunrise, Nexus…
MARCELLUS/UTICA growth needs outside capital (capex funds flow) Data from AR, CNX, COG, ECR, EQT, GPOR, REXX, RICE, RRC, SWN, ASCENT Netback comparison for H1/18 Marcellus/Utica Storm Marcellus pricing discounted to NYMEX for…
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