Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Business

Storm Resources Ltd. Announces Asset Dispositions


Print article Print article
© Marketwire 2013
2013-01-23 23:32:55 -

CALGARY, ALBERTA -- (Marketwire) -- 01/23/13 -- STORM RESOURCES LTD. ("Storm") (TSX VENTURE:SRX) has entered into a purchase and sale agreement in relation to the disposition of approximately 275 Boe per day in the Grande Prairie area of northwest Alberta. Details of the disposition are provided below.


--  Disposition price is $18 million. 
--  Closing date is February 12, 2013 with an effective date of January 1,
    2013. 
--  In the third quarter of 2012, production averaged 275 Boe per day (80%
    light oil plus natural gas liquids) and the field netback approximated
    $32.00 per Boe.  
--  The asset contains an estimated 870 Mboe total proved and 1,140 MBoe of
    proved plus probable reserves based on an independent reserve report
    dated March 31, 2012 prepared by InSite Petroleum Consultants Ltd. in
    accordance with National Instrument 51-101. Future development capital
    assigned to the properties was $1.7 million. 



In addition, on January 18, 2013, Storm closed the sale of a minor property, producing 30 Boe per day, for proceeds of $2.1 million. Total proceeds of $20.1 million from these two dispositions will initially be used to reduce Storm's bank debt. At December 31, 2012, Storm's adjusted net debt, which includes working capital deficiency, is forecast to be $40 million. This amount includes the value of Storm's public company investments. Giving pro forma effect to the dispositions above, adjusted net debt at December 31, 2012 would approximate $20 million. Storm's bank credit facility is expected to be reduced from $62 million to $52 million as a consequence of these dispositions.



These dispositions reflect Storm's commitment to maintaining debt levels at an acceptable multiple of cash flow and to preserve financial flexibility to pursue growth opportunities, or to accelerate capital investment on development activities at existing properties if results are supportive of so doing.


Storm Resources Ltd. began operations in August 2010. Storm is headquartered in Calgary, Alberta and is active in the Horn River Basin and Umbach areas of northeast British Columbia, and at Grande Prairie in northwest Alberta.


FirstEnergy Capital Corp. of Calgary, Alberta, acted as sole agent to Storm for these dispositions.


READER ADVISORIES


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 press release 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.


This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning the company's working capital and bank facility, reserves, undeveloped land holdings and anticipated benefits from the disposition. The forward-looking statements and information are based on certain key expectations and assumptions made by Storm, including: expectations and assumptions concerning prevailing commodity prices and exchange rates, applicable royalty rates and tax laws; future well production rates and reserve volumes; the timing of receipt of regulatory and shareholder approvals; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services.


Although Storm believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Storm can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions and dispositions; failure to realize the anticipated benefits of acquisitions and dispositions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. There are risks also inherent in the nature of the proposed disposition, including failure to realize anticipated production or reserve increases and decreases; and incorrect assessments of values or future capital and operating costs.


This press release also contains forward-looking statements and information concerning the anticipated timing for completion of, and the effective date of the disposition. Storm has provided these anticipated dates in reliance on certain assumptions believed to be reasonable at this time. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these dates. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Storm's financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and on Storm's website (www.stormresourcesltd.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Storm undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.


Contacts:

Storm Resources Ltd.

Brian Lavergne

President and Chief Executive Officer

(403) 817-6145


Storm Resources Ltd.

Donald McLean

Chief Financial Officer

(403) 817-6145


Storm Resources Ltd.

Carol Knudsen

Manager, Corporate Affairs

(403) 817-6145

www.stormresourcesltd.com



Press Information:




Contact Person:


Disclaimer: (c) 2014 Market Wire. All of the press releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Market Wire's, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com