CALGARY, ALBERTA–(Marketwired – July 15, 2015) – STORM RESOURCES LTD. (“Storm” or the “Company“) (TSX VENTURE:SRX) is pleased to announce the successful closing of the disposition of properties in the Grande Prairie area of northwest Alberta, as announced on May 29, 2015. In the first quarter of 2015, production from these properties averaged 727 Boe per day (52% light oil plus natural gas liquids).
The effective date of the transaction is July 1, 2015. Proceeds from the disposition amounting to $24.0 million, prior to closing adjustments, will be used by the Company to reduce bank indebtedness. In connection with this disposition, the Company’s syndicated bank facility will be reduced to $140.0 million.
Storm’s remaining Alberta asset consists of one property in the Valhalla area which produced 189 Boe per day in Q1 2015 (94% natural gas).
Storm Resources Ltd. began operations in August 2010. Storm is headquartered in Calgary, Alberta and is primarily active in the Umbach and Horn River Basin areas of northeast British Columbia.
Boe Presentation – For the purpose of calculating unit revenues and costs, natural gas is converted to a barrel of oil equivalent (“Boe”) using six thousand cubic feet (“Mcf”) of natural gas equal to one barrel of oil unless otherwise stated. Boe may be misleading, particularly if used in isolation. A Boe conversion ratio of six Mcf to one barrel (“Bbl”) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All Boe measurements and conversions in this report are derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Mboe means 1,000 Boe.
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