Storm’s year-end reserve evaluation effective December 31, 2017 was prepared by InSite Petroleum Consultants Ltd. (“InSite”) in a report dated of February 23, 2018. InSite has evaluated all of Storm’s natural gas and NGL reserves. The InSite price forecast at December 31, 2017 was used to determine estimates of net present value (“NPV”). Storm’s Reserves Committee, which is made up of independent and appropriately qualified directors, has reviewed and approved the evaluation prepared by InSite, and the report of the Reserves Committee has been accepted by the Company’s Board of Directors.
Reserves included herein are stated on a company gross basis (working interest before deduction of royalties without including any royalty interests) unless noted otherwise. All reserves information has been prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). In addition to the information disclosed herewith, more detailed information will be included in Storm’s Annual Information Form for the year ended December 31, 2017 (the “AIF”) available at www.sedar.com or www.stormresourcesltd.com.
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INFORMATION REGARDING DISCLOSURE ON OIL AND GAS RESERVES AND RESOURCES
All amounts are stated in Canadian dollars unless otherwise specified. Where applicable, natural gas has been converted to barrels of oil equivalent (“Boe”) based on 6 Mcf:1 Boe. The Boe rate is based on an energy equivalent conversion method primarily applicable at the burner tip and does not recognize a value equivalent at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value. Production volumes and revenues are reported on a company gross basis, before deduction of Crown and other royalties, unless otherwise stated. Unless otherwise specified, all reserves volumes are based on “company gross reserves” using forecast prices and costs. The oil and gas reserves statement for the year ended December 31, 2017, which will include complete disclosure of oil and gas reserves and other information in accordance with NI 51-101, will be contained within the AIF which will be available on SEDAR.
References to estimates of oil and gas classified as DPIIP are not, and should not be confused with, oil and gas reserves.