Plan for 2014
- Growth from liquids-rich natural gas in the Montney at Umbach
- Shallow decline production at Grande Prairie provides cash flow to advance Umbach
- Major expenditures included in operations capital investment for 2014 include:
(1) $47.0 million at Umbach to drill 10 horizontal wells (10.0 net) with 9 horizontal wells
(9.0 net) being completed and tied in; and
(2) $19.0 million to expand infrastructure at Umbach, including a new field compression
facility, expandable from initial capacity of 24 Mmcf per day to 48 Mmcf per day
(expansion expected to occur in 2015).
Storm's land position in the Horn River Basin (shale gas) continues to be a long-term asset which provides significant leverage to increased natural gas prices or to LNG development on Canada's west coast (core project area DPIIP 2.8 to 3.4 Tcf)
- Best estimate DPIIP 3.1 Tcf with 616 Bcf contingent resources.
- Commerciality proven with 1 horizontal well on production and 2 vertical wells completed and tested.