Overview TSX symbol SRX, started Sept 2010 o fourth Storm since Nov 1998, disciplined with capital investment o officer + director ownership 13% (16% FD) Market cap 770 MM (6.28/share) o 122.4 MM shares + 9.3 MM stock options Nov 9/21…
Production 2021 estimated exit 33 35,000 boe/d with 11.0 net hzs starting prodn Nov-Dec/21 plus 1.5 net wells in Jan/22 Fireweed 3,300 boe/d net after start-up Nov 4 with 45% condensate based on field estimates Nig Creek Gas…
Funds Flow & Debt increasing funds flow from recovering commodity prices which is amplified by prodn growth forecast debt end of 2021 is 80 - 90 MM at fwd strip pricing 2020 funds flow reduced by low prices & McMahon GP…
Netback Q1 - Q3/21 funds flow reduced by hedging loss -4.24/boe STORMRESOURCESLTD.COM 5
Costs focus on continuing to reduce cost per Boe; increases asset value Nig Creek Gas Plant op cost 1.30/boe, filling plant reduces corporate op cost STORMRESOURCESLTD.COM 6
Profit PDP FD&A is simplest way to measure profitability (not distorted by non-cash adjustments to FDC) 3 yr PDP FD&A 6.19/Boe represents full cycle cost (includes building Nig Creek Gas Plant) high profitability at current…
Umbach, Nig Creek, Fireweed Areas (NE BC) Montney liquids rich gas 0.1% - 1.2% H2S o raw gas 1,200 1,300 btu/scf requires processing at 20% liquids (1/2 condensate) sour gas plant Drilled 90 hzs (83 net) McMahon GP accesses 3…
Large Land Position map shows owners of Montney rights Storm lands in yellow o 206 gross sections of Montney o 170 net sections o 120,000 net acres growing booked future drilling inventory (increases asset value) 1P net 2P net…
Umbach & Nig Creek attractive half-cycle ROR with unused facility capacity majority production is 100% working interest Nig Creek GP capacity 70 mmcf/d (0.4% H2S) o Q3/21 was 54 mmcf/d raw o Oct/21 was 62 mmcf/d raw Umbach…
Nig Creek Gas Plant (start-up Feb/ 20) long life asset with attractive ROR payout 3 years using 2022 fwd strip pricing & 70 mmcf/d raw o 93 MM cost incl inlet comp o op cost reduced 21 MM/yr o incremental gas/liquids adds 9…
Fireweed 50% working interest o JV with privateco avg 3,300 boe/d net since start-up Nov 4 (Nov 4 Dec 4) strong test rates after completion attractive full-cycle ROR from higher % condensate (CGR 2 5 X Umbach & Nig Crk)…
Well Results vs Type Curves Monthly Avg Rates type curve used to forecast production for guidance Nig Creek hzs continue to exceed expectations Umbach 8 Bcf type curve is based on historical results; adding length, wider…
Nat Gas Rates - Daily daily rates provide better perspective on newer wells (ie, Fireweed) STORMRESOURCESLTD.COM 14
Field Condensate Rates - Daily Fireweed offers attractive ROR given higher proportion of field condensate plus higher gas rates (higher gas rate + higher CGR) steep initial decline on field condensate rates; prodn history is…
Fireweed Type Curve Nat Gas Storm mgmt avg type curve is based on adjacent producing hzs at Fireweed (south) & Birch (north) type curve is forecast average across Storms lands for a 2500 m hz [varies for individual wells]…
Fireweed Type Curve Field Condensate Storm mgmt avg type curve is based on adjacent producing hzs at Fireweed (south) & Birch (north) type curve is forecast average across Storms lands for a 2500 m hz [varies for individual…
Comparing Results results show Storm has higher quality Montney asset data to Nov/21 for Storm wells, to Aug/21 for other wells STORMRESOURCESLTD.COM 18
Corporate Decline prodn growth since 2018 from 7 9 hzs per year maintenance capex reduced by improving hzs & flattening decline forecast 2021 corporate decline 25% STORMRESOURCESLTD.COM 19
Recoveries by Area Estimated Liquids Condensate Lifetime Raw Gas Sales (Cond + NGL) (Field + Plant) Average BCF/hz(1) Gas Plant Mboe Mbbls Mbbls CGR(2) Umbach upper 8.0 McMahon(4) 1,430 260 [18%] 140 11 Nig Creek upper 14.0 Nig…
Well Costs Umbach & Nig Creek includes all costs (roads, lease construction & water handling) modifying wellbore design to reduce cost per meter & improve rates/reserves (increases asset value) 2021 drill & complete 4.8 MM/hz…
Guidance & Results 2021 Guidance Nov 10/21 2020 2019 2018 2017 162 MM invested in facilities, Average Boe/d 27 28,000 23,219 20,182 20,538 16,017 equipping, pipelines Per MM shares 225 191 167 169 132 since 2017 % liquids 21% 20% 19%…
Forecast Production 12.5 net hzs start prodn Oct/21 Jan/22 2021 guidance 27,000- 28,000 boe/d (21% liquids) & capex 115 - 120 MM estimate for 2022 assumes capex 100 MM facility capacity supports growth to 40,000 Boe/d…
Capital Investment low maintenance capex, majority of capex invested in growth opportunities offering attractive ROR (Nig Creek Gas Plant, Fireweed development) STORMRESOURCESLTD.COM 24
Current 3 Year Plan Estimate Estimate Estimate Guidance 2024 2023 2022 2021 2022 24 pricing is approx forward Average Boe/d 39,200 37,200 34,700 27 28,000 strip Sep 17/21 Per MM shares 321 305 284 225 % liquids 22% 22% 22% 21% 2022 24…
Processing & Transportation 2022 Processing (firm commitments + Nig Creek Gas Plant capacity) Nig Creek Gas Plant 70 mmcf/d raw owned capacity, 100% working interest McMahon GP - Umbach 65 mmcf/d raw 10 mmcf/d to Dec 2022, 55 mmcf/d to…
Natural Gas Prices & Sales Split Sales split 2022 2021 estimate estimate Chicago 42% 46% BC Stn 2 44% 36% Alliance ATP 6% 7% AECO/Empr 4% 11% Iroquois 4% diversifying physical sales to mitigate regional price risks high heat…
Summary Declining cost structure Low maintenance capex as hzs improve and decline flattens Continue growing asset/reserve value, forecast 33,000 35,000 Boe/d exiting 2021 o fill Nig Creek Gas Plant (from inlet compression & lower Montney…
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: 600, 215 2nd Street…
Advisory Reserves All reserves in this presentation are, unless indicated otherwise, as at December 31, 2020 as evaluated by Insite Petroleum Consultants Ltd. in accordance with the definitions, standards and procedures contained in the…
APPENDIX STORMRESOURCESLTD.COM 31
Blueberry Claim Area Blueberry Claim Area is referenced in the BC Supreme Court Judgement June 29, 2021 with respect to Yahey v. British Columbia Judgement references the cumulative effects of all industrial development including…
Estimated Payouts Umbach & Nig Creek estimated payouts assume: o drill, compl, equip 5.2 MM/hz (achieving lower costs) o flat pricing Stn 2 2.70/GJ WTI US55/bbl at current forward strip prices, payouts under 1 year for all…
Field Condensate Rates Monthly Avg lower Montney at Nig Creek has higher CGR, economics more sensitive to WTI price Field Condensate - Gas Ratio or CGR (bbls/mmcf raw) 1st est year life avg Umbach 14 11 Nig Crk upper 19 13…
Regional Geology to date, focused on exploiting upper Montney, future activity to test mid and lower Montney STORMRESOURCESLTD.COM 35
Umbach & Nig Creek Completion Intensity compln hzs length fracs t/m m3/frac 2018 10 2110 m 38 1.0 360 2019 4 2250 m 42 1.1 420 2020 7 2410 m 38 0.9 440 2021 3 2120 m 37 1.1 300 all ball-drop completions to date, possibly switch to…
Hedging (to Nov 10/ 21) Q4/21 2022 growth is Natural Gas Hedges not hedged % Current Production(1) 46% 39% hedging loss Collars 11,300 Mcf/d(2) 15,500 Mcf/d(2) 55 60 MM Floor Cdn4.02/Mcf(3) Floor Cdn3.78/Mcf(3) in 2021 at Ceiling…
BC & Storm GHG Emissions BC 2018 GHG emissions: 17% oil & gas 21% heat/combustion 42% transport 20% remainder Storms ESG summary on website Storms BC carbon tax payments totaled 5.6 MM in 2020 Storms direct + indirect GHG…
US Natural Gas Supply/ Demand US demand supply 1.7 Bcf/d YTD (to Nov 24): o prod +1.1 Bcf/d o net exports +3.4 Bcf/d o consumption -0.6 Bcf/d [pwr burn -1.0, indust/res +0.4] rising US demand supporting AECO & Stn 2 prices o…
US Natural Gas Supply/ Demand rate of change in US storage is indicator of supply vs demand; storage deficit has widened through summer injection season (market is undersupplied) Nov 17/21 Apr 2/21 vs last year -310 Bcf -235 Bcf…
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