Storm Resources Ltd. ("Storm" or the "Company") Is Pleased to Announce Its Financial and Operating Results for the Three and ...

Storm Resources Ltd. (TSX VENTURE:SRX) - 

Storm has also filed its unaudited condensed interim consolidated financial
statements as at June 30, 2013 and for the three and six months then ended along
with Management's Discussion and Analysis ("MD&A") for the same period. This
information appears on SEDAR at www.sedar.com and on Storm's website at
www.stormresourcesltd.com.


Selected financial and operating information for the three and six months ended
June 30, 2013, appears below and should be read in conjunction with the related
financial statements and MD&A.




Highlights                                                                  
                                                                            
                                                                            
                                         Three     Three       Six       Six
Thousands of Cdn$, except volumetric Months to Months to Months to Months to
and per-share amounts                 June 30,  June 30,  June 30,  June 30,
                                          2013      2012      2013      2012
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FINANCIAL                                                                   
 Gas sales                               5,436     1,647     8,483     2,803
 NGL sales                               2,982     1,205     4,561     1,781
 Oil sales                               3,556     6,591     7,978     8,249
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Revenue from product sales(1)           11,974     9,443    21,022    12,833
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Funds from operations(2)                 5,077     3,669     8,304     3,606
 Per share - basic ($)                    0.07      0.06      0.12      0.07
 Per share - diluted ($)                  0.07      0.06      0.12      0.07
Net income (loss)                          661       947       400     (668)
 Per share - basic ($)                    0.01      0.03      0.01    (0.01)
 Per share - diluted ($)                  0.01      0.03      0.01    (0.01)
Field capital expenditures              16,729     7,223    36,865    10,439
Proceeds on disposition of oil and                                          
 gas properties                           (19)         -  (19,518)   (1,009)
Debt including working capital                                              
 deficiency, net of investments         22,671    53,667    22,671    53,667
Weighted average common shares                                              
 outstanding (000s)                                                         
 Basic                                  72,097    61,824    66,989    50,247
 Diluted                                72,477    61,847    67,177    50,247
Common shares outstanding (000s)                                            
 Basic                                  77,383    61,824    77,383    61,824
 Fully diluted                          81,280    64,547    81,280    64,547
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OPERATIONS                                                                  
Oil equivalent (6:1)                                                        
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 Barrels of oil equivalent (000s)          315       235       539       347
 Barrels of oil equivalent per day       3,460     2,584     2,977     1,906
 Average selling price (Cdn$ per                                            
  Boe)(1)                                38.02     40.16     39.01     36.99
Gas Production                                                              
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Thousand cubic feet (000s)               1,374       809     2,254     1,324
Thousand cubic feet per day             15,098     8,895    12,453     7,277
Average selling price (Cdn$ per Mcf)      3.96      2.04      3.76      2.12
NGL production                                                              
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 Barrels (000s)                             44        17        68        24
 Barrels per day                           484       186       373       132
 Average selling price (Cdn$ per                                            
  barrel)                                67.68     71.22     67.47     74.38
Oil Production                                                              
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 Barrels (000s)                             42        83        96       102
 Barrels per day                           460       915       528       562
 Average selling price (Cdn$ per                                            
  barrel)(1)                             84.96     78.97     83.46     80.54
Wells drilled                                                               
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 Gross                                       -         -       3.0       1.0
 Net                                         -         -       2.6       1.0
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(1) Excludes hedging gains.                                                 
(2) Funds from operations and funds from operations per share are non-GAAP  
measurements. See discussion of Non-GAAP Measurements on page 9 of the MD&A 
and the reconciliation of funds from operations to the most directly        
comparable measurement under GAAP, "Cash Flows from Operating Activities",  
on page 18 of the MD&A.                                                     



President's Message 

SECOND QUARTER 2013 HIGHLIGHTS 



--  Production increased 39% from the previous quarter to average 3,460 Boe
    per day (27% oil plus NGL) which leaves Storm on track to meet guidance
    for fourth quarter production of 4,500 to 5,000 Boe per day. Compared to
    the same period a year ago, the increase is 34%, or 14% on a per-share
    basis. Increased production was the result of growth at Umbach where
    production averaged 1,792 Boe per day in the second quarter, an increase
    of 1,268 Boe per day from the first quarter and 1,479 Boe per day from a
    year ago.

--  NGL production averaged 484 barrels per day, an increase of 85% from the
    first quarter and 160% from the year earlier period. The increase is the
    result of production growth from the Montney formation at Umbach. The
    NGL price was $67.68 per barrel which was 73% of the average Edmonton
    Par price for the quarter. 

--  Funds from operations was $5.1 million, or $0.07 per basic share, an
    increase of 57% from the first quarter and 38% from the year ago period.
    The increase in funds from operations is largely the result of higher
    natural gas prices and from increased production levels. 

--  The field operating netback was $20.12 per Boe excluding hedging gains,
    with operating costs of $11.08 per Boe. Operating costs decreased by
    $2.46 per Boe from the first quarter primarily due to production growth
    at Umbach where operating costs were $8.79 per Boe in the second
    quarter.

--  Capital investment totaled $16.7 million with major expenditures
    including $4.5 million to acquire a field compressor at Umbach with
    capacity of 19 Mmcf per day and $7.8 million to acquire undeveloped land
    also at Umbach. Through the first half of 2013, $15.0 million has been
    invested to acquire 27.2 net sections with Montney rights at Umbach. 

--  Field activity in the quarter was focused on the Montney formation at
    Umbach where one horizontal well (1.0 net) was drilled and one
    horizontal well (0.6 net) was completed in June with both horizontal
    wells being pipeline connected in August. 

--  Net income was $0.7 million or $0.01 per basic share, a decrease from
    net income of $0.03 per basic share a year earlier. The decrease was
    primarily due to a year-over-year decrease in the unrealized gain on
    hedges in place at quarter end and from the issuance of additional
    common shares. 

--  Debt plus working capital deficiency, net of investments, ended the
    quarter at $22.7 million which is one times annualized second quarter
    cash flow. Storm's bank credit line is $52.0 million.

--  Equity financings were closed on May 1st whereby Storm issued 15.6
    million shares priced at $1.88 per share for net proceeds of $27.7
    million. The related financings comprised a bought deal financing under
    a short form prospectus for 12.6 million shares and a non-brokered
    financing where 3.0 million shares were issued to certain directors,
    officers and employees of Storm. 



OPERATIONS REVIEW

Storm has a focused asset base with large land positions in resource plays at
Umbach and in the Horn River Basin ("HRB") which have multi-year drilling upside
while the Grande Prairie Area, with its shallower decline, provides cash flow
available for investment. 


Umbach, North East British Columbia

Storm's land position at Umbach is prospective for liquids-rich natural gas from
the Montney formation and totals 112 net sections (140 gross sections), or
79,000 net acres. There are two project areas, one area consisting of 79 net
sections of land at a 100% working interest, while the other area consists of 33
net sections of jointly owned lands (61 gross sections with an average Storm
working interest of 55%). Year-to-date, Storm has invested $15.2 million to
acquire 27.2 net sections (29 gross). 


Second quarter production grew to 1,792 net Boe per day (22% liquids) as a
result of reduced downtime plus the start of production from 1.6 net Montney
horizontal wells in April, including Storm's first 100% working interest
horizontal well. NGL recovery averaged 48 barrels per Mmcf sales for the quarter
which comprises approximately 54% condensate/pentanes, 24% butane and 22%
propane. The operating netback in the second quarter was $19.50 per Boe with
revenue of $33.22 per Boe, a royalty rate of 15%, and operating costs were $8.79
per Boe. Operating costs decreased $2.75 per Boe from the first quarter because
of reduced downtime and the start of production through a recently acquired
field compression facility where operating costs are lower because fees are no
longer paid for third party field compression. The field compression facility
has capacity of 19 Mmcf per day and was purchased for $4.5 million on April 1st.


On the joint lands, nine horizontal wells (5.4 net) have been drilled since 2010
in the Montney formation with eight horizontals (4.8 net) having been completed
and tied in through third party field compression to the Stoddart Gas Plant
where NGL recovery was 60 barrels per Mmcf sales in the second quarter and
processing shrinkage was 20%. NGL recovery declined from 72 barrels per Mmcf
sales in the first quarter due to a scheduled turnaround at the Stoddart Gas
Plant which resulted in production being re-directed to the McMahon Gas Plant
for three weeks in May. The remaining standing horizontal well (0.6 net) will be
completed and tied in during the fourth quarter of 2013 as field compression
capacity becomes available with normal production declines. 


On the 100% working interest lands, the first horizontal well began producing
April 2nd into the Storm-owned field compression facility. Production from this
facility is directed to the McMahon Gas Plant for processing where NGL recovery
averaged 34 barrels per Mmcf sales in the second quarter with processing
shrinkage of 12%. Although NGL recovery is lower than on the joint lands, the
field netback is forecast to be $2.00 per Boe higher as a result of lower
operating costs (third party fees for field compression are eliminated). Five
additional horizontal wells (5.0 net) will be drilled on the 100% working
interest lands in 2013 and will be tied in to this facility with the first
coming on production in August, the next two in September, one in the fourth
quarter, and the last one in the first quarter of 2014.


Production rates per well over the first 90 days have averaged 3.2 Mmcf per day
gross raw gas on an operating day basis (approximately 590 Boe per day sales)
for the most recent four horizontal wells (2.8 net) that started production
since October 2012. This is an increase of approximately 35% when compared to
earlier horizontal wells. Operating day rates were used for comparison as
downtime due to capacity constraints at a third party facility in the fourth
quarter of 2012 and first quarter of 2013 reduced production from horizontal
wells on the joint lands. Several changes were made to recent horizontal wells
including drilling the wellbore lower in the Montney formation and increasing
the number of fracture stimulation stages in the completion. Initial declines
are very similar for all of the horizontal wells which implies that first year
average rates for the last four horizontal wells will improve to approximately
2.0 Mmcf per day gross raw gas (370 Boe per day sales) per well, a 35% increase
from 1.5 Mmcf per day gross raw gas for earlier horizontal wells. Additional
fracture stimulation stages will be added on future horizontal wells to try and
further improve production rates and ultimate reserves. More information on
production rates and declines is provided in the presentation on Storm's website
www.stormresourcesltd.com.


Cost reductions are being realized as a result of the transition to development
in 2013 (activity in 2012 was focused on resource delineation). Most of the
horizontal wells to be drilled in 2013 will be on common pads or will be drilled
from existing pads which reduces the cost of rig moves and lease construction.
Since mid-June, three horizontal wells (3.0 net) have been drilled at an average
cost of $2.0 million with drilling times averaging 14 days and two horizontal
wells (1.6 net) have been completed at an average cost of $2.3 million. Tie-in
costs are expected to average $0.6 million per horizontal well (not including
cost of longer gathering pipelines to connect multi-well pads to field
compression facilities). Total cost to drill, complete, equip and tie in a
horizontal well is now estimated to be $4.9 million.


Total investment in infrastructure at Umbach in 2013 is expected to be $11.0
million which includes the acquisition on April 1st of field compression for
$4.5 million and construction of large diameter field gathering pipelines. This
strategic investment provides Storm with operational control and will result in
reduced operating costs plus significant low cost growth in production into
2014.


Horn River Basin, North East British Columbia

Storm has a 100% working interest in 135 sections in the HRB (87,700 net acres)
which is prospective for natural gas from the Muskwa, Otter Park and Evie/Klua
shales. Production in the second quarter averaged 332 Boe per day at an
operating netback of $11.63 per Boe and was reduced by approximately 40 Boe per
day due to the scheduled 14-day turnaround at the Fort Nelson Gas Plant.
Production is from one horizontal well with 12 fracture stimulations that began
producing in March 2011 and is currently producing 2.7 Mmcf per day gross raw
gas with cumulative production of 3.4 Bcf gross raw gas. 


A resource evaluation completed by InSite Petroleum Consultants Ltd. effective
December 31, 2011 estimates that the best estimate of DPIIP in the core
producing area is 3.1 Tcf gross raw gas with the best estimate of contingent
resources being 616 Bcf. The area that was evaluated includes 30 sections at a
100% working interest and represents 22% of Storm's total land holdings in the
HRB. Commerciality has been proven across the core producing area with a
horizontal well that has been producing for 30 months plus two vertical wells
that were completed and tested with final test rates of 900 Mcf per day over the
final 24 hours of each flow test. 


Grande Prairie Area, North West Alberta and North East British Columbia

Production in the second quarter averaged 1,336 Boe per day (41% oil plus NGL)
at an operating netback of $23.10 per Boe. Based on field estimates, July
production averaged approximately 1,375 Boe per day (42% oil plus NGL). No
drilling activity is planned in this area in 2013. This area has a relatively
shallow decline which allows Storm to re-invest the cash flow to grow production
at Umbach. 


OUTLOOK

Production in the third quarter of 2013 is expected to be 3,600 to 4,000 Boe per
day depending on the timing of completing and pipeline connecting new horizontal
wells at Umbach. Based on field estimates, July production averaged
approximately 3,500 Boe per day. Production growth in 2013 will come from Umbach
where two new horizontal wells (1.6 net) are expected to begin producing in
August and an additional two horizontal wells (2.0 net) are currently being
completed with production expected in early September. Fourth quarter production
is forecast to increase to 4,500 to 5,000 Boe per day with the completion and
tie-in of one more horizontal well (1.0 net) which is currently being drilled.
Guidance for 2013 has not been changed since the update on May 15, 2013 and is
provided below: 




                                                              Guidance
----------------------------------------------------------------------
Year-end adjusted debt plus working              $36.0 - $40.0 million
 capital deficiency (1)                                               
Average operating costs                        $10.00 - $11.00 per Boe
Average royalty rate (on production                          13% - 14%
 revenue before hedging)                                              
Operations capital, excluding                            $62.0 million
 dispositions                                                         
Asset dispositions                                       $19.5 million
Asset acquisitions                                        $4.5 million
Cash G&A                                                  $3.7 million
Exit or fourth quarter average                     4,500 - 5,000 Boe/d
 production                                                           
                                                       (25% oil + NGL)
----------------------------------------------------------------------
                                                                      
(1) Includes value of publicly listed securities.                           



Major expenditures in the 2013 capital investment program include:



--  $33.0 million at Umbach to drill 6.6 net horizontal wells (7 gross) with
    6.2 net horizontal wells (7 gross) being completed and tied in; 
--  $16.0 million to acquire undeveloped land prospective for the Montney
    formation at Umbach; 
--  $7.0 million to expand infrastructure at Umbach which is primarily
    constructing gathering pipelines; 
--  $4.5 million to acquire a field compressor at Umbach on April 1st; and 
--  $19.5 million net proceeds from asset dispositions which closed in the
    first quarter. 



Storm's 2013 budget assumes an average natural gas price at AECO of $2.95 per GJ
and an Edmonton Par oil price of Cdn $95.00 per barrel. Assumed commodity prices
reflect year-to-date prices plus forward strip pricing as of August 5, 2013.
Adjusted net debt is forecast to be $36.0 million to $40.0 million at the end of
2013 (including public company investments) which would be approximately 1.5
times annualized fourth quarter funds from operations. 


A large proportion of capital investment in 2013 (25% of operations capital) is
being directed towards acquiring undeveloped land in the Montney formation at
Umbach. To date, 27.2 net sections (29 gross sections) have been acquired for
$15.2 million with most of this land being further west in an area with vertical
well control where log response is similar to vertical wells that offset Storm's
horizontal wells producing from the upper Montney. In addition, there is a lower
Montney interval that appears to be productive based on results from other
operators in the area. This is a large investment in undeveloped land that is
based on what Storm has learned in the area since drilling and completing the
first horizontal well in 2010. 


Since 2010, Storm has accumulated 112 net sections in the Montney at Umbach and
approximately 25% has been delineated to date with vertical and horizontal wells
while reserves have been assigned on just 5% of this land position in the upper
Montney only. Using flat pricing of $3.00 per GJ for natural gas and Cdn $92.00
per barrel for Edmonton Par (WTI US $95.00/bbl), Storm management estimates that
rates of return for horizontal wells are 25% on an unrisked basis. This assumes
a field netback of $19.00 per Boe, a first year average rate of 2.0 Mmcf per day
gross raw gas, ultimate reserves of 4.0 Bcf gross raw gas per horizontal well
and $4.9 million to drill, complete and tie in a horizontal well. The cost to
add production is approximately $13,000 per Boe per day using the first year
average sales rate of 370 Boe per day. Based on results to date, it is likely
that production rates and ultimate reserves could be further improved with
additional enhancements to completion methods. In addition, operating costs will
continue to decline as production through Storm's owned infrastructure
increases. With ownership and control of field infrastructure and improving
production rates from recent Montney horizontal wells, growth from Storm's 100%
working interest lands at Umbach is expected to result in corporate production
volumes increasing to 5,500 to 6,000 Boe per day over the next 12 to 18 months. 


Storm's land position in the HRB continues to be a core, long term asset which
provides significant leverage to increased natural gas prices or to LNG
development on Canada's west coast. 


Respectfully,

Brian Lavergne, President and Chief Executive Officer

August 14, 2013

Discovered-Petroleum-Initially-in-Place ("DPIIP") - is defined in the Canadian
Oil and Gas Evaluation Handbook ("COGEH") as the quantity of hydrocarbons that
are estimated to be in place within a known accumulation. DPIIP is divided into
recoverable and unrecoverable portions, with the estimated future recoverable
portion classified as reserves and contingent resources. There is no certainty
that it will be economically viable or technically feasible to produce any
portion of this DPIIP except for those portions identified as proved or probable
reserves.


Contingent Resources - are those quantities of petroleum estimated, as of a
given date, to be potentially recoverable from known accumulations using
established technology or technology under development, but which are not
currently considered to be commercially recoverable due to one or more
contingencies. Contingencies may include factors such as economic, legal,
environmental, political and regulatory matters, or a lack of markets. It is
also appropriate to classify as contingent resources the estimated discovered
recoverable quantities associated with a project at an early stage of
development. Estimates of contingent resources are estimates only; the actual
resources may be higher or lower than those calculated in the independent
evaluation. There is no certainty that the resources described in the evaluation
will be commercially produced.


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.


Forward-Looking Information - 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 "will", "expect", "anticipate",
"intend", "believe", "plan", "potential", "outlook", "forecast", "estimate" and
similar expressions are intended to identify forward-looking statements or
information. More particularly, and without limitation, this press release
contains forward-looking statements and information concerning: production;
drilling plans; reserve volumes; capital expenditures; royalties; financing;
commodity prices; and production, operating and general and administrative
costs.


The forward-looking statements and information in this press release are based
on certain key expectations and assumptions made by Storm, including: prevailing
commodity prices and exchange rates; applicable royalty rates and tax laws;
future well production rates; reserve and resource volumes; the performance of
existing wells; success to be expected in drilling new wells; the adequacy of
budgeted capital expenditures to carrying out planned activities; the
availability and cost of services; and the receipt, in a timely manner, of
regulatory and other required approvals. Although the Company 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
these forward-looking statements and information because of their inherent
uncertainty. In particular, there is no assurance that exploitation of the
Company's undeveloped lands and prospects will result in the emergence of
profitable operations.


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 of petroleum and natural gas and loss of markets;
environmental risks; competition; ability to access sufficient capital from
internal and external sources; stock market volatility; and changes in
legislation, including but not limited to tax laws, royalty rates and
environmental regulations.


Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect the
operations or financial results of the Company are included or are incorporated
by reference in the company's MD&A for the three and six months ended June 30,
2013.


The forward-looking statements and information contained in this press release
are made as of the date hereof and the Company 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 press release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Storm Resources Ltd.
Brian Lavergne
President & CEO
[phone]


Storm Resources Ltd.
Donald McLean
Chief Financial Officer
[phone]


Storm Resources Ltd.
Carol Knudsen
Manager, Corporate Affairs
[phone]
www.stormresourcesltd.com