Plan for 2013 and 2014
- Growth from liquids rich natural gas in the Montney at Umbach
- Shallow decline production at Grande Prairie provides cash flow to advance Umbach
- 2013 capital investment is expected to total $40.0 million which includes:
(1) $33.0 million for drilling, completing and tieing in 7 gross horizontal wells at Umbach;
(2) $16.0 million to acquire undeveloped land prospective for the Montney formation at Umbach;
(3) $7.0 million to expand infrastructure at Umbach, primarily gathering pipelines;
(4) $4.5 million to acquire a field compressor at Umbach;
(5) $19.5 million net proceeds from asset dispositions.
2014 capital investment is expected to total $81.0 million and includes:
(1) $55.0 million at Umbach to drill 11 horizontal wells (11.0 net) with 11 horizontal wells
(10.6) being completed and tied in;
(2) $16.0 million to expand infrastructure.
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 2 horizontal wells and 2 vertical wells.