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

Storm Resources Ltd.  (TSX VENTURE:SRX)

Storm has also filed its unaudited condensed interim consolidated financial
statements as at March 31, 2013 and for the three months then ended along with
the 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 months ended March
31, 2013, appears below and should be read in conjunction with the related
financial statements and MD&A.




Highlights                                                                  
                                                 Three Months  Three Months 
                                                        Ended         Ended 
Thousands of Cdn$, except volumetric and per-       March 31,     March 31, 
 share amounts                                           2013          2012 
----------------------------------------------------------------------------
                                                                            
FINANCIAL                                                                   
 Gas sales                                              3,047         1,155 
 NGL sales                                              1,579           576 
 Oil sales                                              4,422         1,659 
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Revenue from product sales(1)                           9,048         3,390 
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Funds from operations(2)                                3,227           (63)
 Per share - basic ($)                                   0.05          0.00 
 Per share - diluted ($)                                 0.05          0.00 
Net income (loss)                                        (261)       (1,615)
 Per share - basic ($)                                   0.00         (0.04)
 Per share - diluted ($)                                 0.00         (0.04)
Field capital expenditures                             20,136         3,216 
Proceeds on disposition of oil and gas                                      
 properties                                           (19,499)       (1,009)
Debt including working capital deficiency              42,106        50,300 
Weighted average common shares outstanding                                  
 (000s)                                                                     
 Basic                                                 61,824        38,670 
 Diluted                                               61,824        38,670 
Common shares outstanding (000s)                                            
 Basic                                                 61,824        61,824 
 Fully diluted                                         65,791        63,942 
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OPERATIONS                                                                  
Oil equivalent (6:1)                                                        
----------------------------------------------------------------------------
 Barrels of oil equivalent (000s)                         224           112 
 Barrels of oil equivalent per day                      2,488         1,229 
 Average selling price (Cdn$ per Boe)(1)                40.37         30.31 
Gas production                                                              
----------------------------------------------------------------------------
 Thousand cubic feet (000s)                               880           515 
 Thousand cubic feet per day                            9,780         5,659 
 Average selling price (Cdn$ per Mcf)                    3.46          2.24 
NGL Production                                                              
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 Barrels (000s)                                            24             7 
 Barrels per day                                          261            77 
 Average selling price (Cdn$ per barrel)                67.08         81.96 
Oil Production                                                              
----------------------------------------------------------------------------
 Barrels (000s)                                            54            19 
 Barrels per day                                          597           208 
 Average selling price (Cdn$ per barrel)(1)             82.21         87.44 
Wells drilled                                                               
----------------------------------------------------------------------------
 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 8 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 17 of the MD&A.                                    



President's Message

FIRST QUARTER 2013 HIGHLIGHTS



--  First quarter production averaged 2,488 Boe per day with 34% being oil
    plus NGL. This is a year-over-year increase of 102%, or 33% on a per-
    share basis, resulting from growth at Umbach plus the acquisitions of
    Storm Gas Resource Corp. ("SGR") and Bellamont Exploration Ltd.
    ("Bellamont") which closed during the first quarter of 2012. Compared to
    the previous quarter, production declined by 327 Boe per day as a result
    of first quarter asset dispositions and from production at Umbach being
    shut in for a total of 20 days. In addition, three completed and tied in
    horizontal wells (1.8 net) at Umbach were shut in for most of the first
    quarter due to capacity constraints with third party field compression.
    Production in April increased to average 3,400 Boe per day with the
    start-up of three Montney horizontal wells (2.2 net) at Umbach and after
    completing the acquisition of capacity in an existing facility. 
    
--  The field operating netback was $20.14 per Boe excluding hedging gains,
    with operating costs of $13.54 per Boe being $1.86 per Boe higher than
    the previous quarter. The increase in operating costs was due to repair
    costs associated with downhole equipment failures on wells in the Grande
    Prairie area and downtime at Umbach. 
    
--  Funds from operations was $3.2 million, or $0.05 per basic share, an
    increase from funds flow of $0.00 per basic share in the year ago
    period. The increase in funds from operations is the result of
    production growth at Umbach and from production added in the Grande
    Prairie area through the Bellamont transaction which closed March 23,
    2012. 
    
--  Net capital investment was $0.6 million which includes investment in
    operations of $20.1 million which was mostly offset by net proceeds of
    $19.5 million from two asset dispositions that closed in the first
    quarter. The majority of operations capital expenditures were at Umbach
    with $9.5 million invested in drilling and completions and $2.4 million
    to expand infrastructure. 
    
--  First quarter activity was focused on the Montney formation at Umbach
    where two horizontal wells (1.6 net) were drilled and two horizontal
    wells (1.6 net) were completed and pipeline connected. A six kilometer
    gathering pipeline was constructed at Umbach to connect Storm's first
    100% working interest horizontal well to a facility where Storm acquired
    20 Mmcf per day of capacity ($4.5 million purchase closed April 1,
    2013). 
    
--  Net loss was $0.3 million or $0.00 per basic share, an improvement from
    the net loss of $0.04 per basic share a year earlier. The improvement
    was primarily due to a gain on the disposal of oil and gas properties
    plus increased production from growth at Umbach and from the
    acquisitions of Bellamont and SGR in the first quarter of 2012. 
    
--  Debt plus the working capital deficiency was $42.1 million which is a
    quarter-over-quarter decrease of $2.6 million. The adjusted net debt at
    the end of the first quarter was $38.6 million after including the
    market value of $3.5 million for Storm's investment in a publicly listed
    company at the end of the quarter. Storm's bank credit line is $52.0
    million. 
    
--  Subsequent to the quarter end, two equity financings were completed
    whereby Storm issued 15.6 million shares at a price of $1.88 per share
    for gross proceeds of $29.3 million. This included 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. Estimated net proceeds from
    both financings is approximately $28.0 million. Including the net
    proceeds from the equity financing completed on May 1, 2013, pro-forma
    adjusted net debt decreases to $10.7 million. 



OPERATIONS REVIEW

Storm has a focused asset base with large land positions in resource plays at
Umbach and in the Horn River Basin ("HRB") each of which has 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 totals 108 net sections (134 gross section) or
76,000 net acres and is split into two project areas with one consisting of 73
sections of land at a 100% working interest and the other with 61 gross sections
of jointly owned lands (35 net sections with an average Storm working interest
of 57%). First quarter production averaged 534 Boe per day (30% liquids) and was
impacted by 20 days of total downtime including a two week shut-in in order to
repair a third party field compression facility. NGL recovery was 72 barrels per
Mmcf sales which included 45% condensate plus pentanes recovered during
processing, 27% butane and 28% propane. The first quarter operating netback was
$16.54 per Boe with revenue of $32.62 per Boe, a royalty rate of 14% and
operating costs were $11.55 per Boe. Operating costs were $1.75 per Boe higher
than the previous quarter primarily because of downtime. Production in April
increased to approximately 1,600 Boe per day.


On the joint lands, nine horizontal wells have been drilled with seven of those
having been completed and tied in through third party field compression to the
Stoddart Gas Plant where NGL recovery was 72 barrels per Mmcf sales gas in the
first quarter. Three horizontal wells (1.8 net) were shut in for most of the
first quarter because of capacity constraints with third party field
compression. In April, two of the shut-in horizontal wells were brought on at
restricted rates after pipeline modifications were completed which increased
capacity from 7 to 10 Mmcf per day gross raw gas. One completed and tied-in
horizontal well with sustainable production capability of 400 net Boe per day is
still shut-in and there are also two standing horizontal wells awaiting
completion and tie-in. In the near term, capacity constraints are expected to
result in production from the joint lands being restricted to 1,000 to 1,200 net
Boe per day. A pipeline to interconnect three of the joint horizontal wells to
Storm-owned field compression will be constructed during June or July and is
expected to increase production from the joint lands to 1,500 net Boe per day.
The remaining two standing horizontal wells are expected to be completed and
tied in during the second half of 2013 as production declines and field
compression capacity becomes available.


On the 100% working interest lands, one horizontal well has been drilled,
completed and began producing April 2nd into a field compression facility where
20 Mmcf per day of capacity was acquired by Storm for $4.5 million on April 1st.
A six kilometer gathering pipeline was constructed in the first quarter to
connect this well to the facility and this pipeline will also be used to connect
future horizontal wells. Production through this facility is directed to the
McMahon Gas Plant for processing with NGL recovery forecast to be 40 to 45
barrels per Mmcf sales. Although NGL recovery is lower than on the joint lands,
the field netback is forecast to be $4 to $5 per Boe higher as a result of lower
operating costs (primarily from eliminating third party fees for field
compression). In the second half of 2013, four additional horizontal wells are
expected to be drilled on the 100% working interest lands and will be tied in to
this facility.


The gross cost to drill and complete horizontal wells in the first quarter
averaged $4.9 million and the pipeline tie-ins were $0.5 million. Drilling and
completion costs are expected to decrease in the second half of 2013 as activity
transitions from resource delineation to development on Storm's 100% working
interest lands.


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

Production in this area comes from properties acquired through the transaction
with Bellamont which closed in the first quarter of 2012. Production in the
first quarter averaged 1,584 Boe per day (44% oil plus NGL) at an operating
netback of $24.22 per Boe. During the first quarter, the Rycroft property was
sold January 18th (30 Boe per day) and the Saddle Hills and Gold Creek
properties were sold February 15th (275 Boe per day) with net proceeds from both
transactions totaling $19.5 million. Production in April averaged approximately
1,400 Boe per day (34% oil plus NGL).


There was minimal activity in the first quarter. Downhole failures on four wells
were repaired in the Grimshaw Montney and Grande Prairie Montney pools which
increased operating costs by $190,000. At Grimshaw, initial response from water
injection into the Montney A pool has been very encouraging with no decline in
pool production since injection began in August 2012.


Horn River Basin, North East British Columbia

Storm's 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. First quarter production in the HRB averaged 370 Boe per day
at an operating netback of $8.42 per Boe. Production is from a 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
3.1 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. This area includes 30 sections at a 100% working
interest and represents 22% of Storm's total land holdings in the HRB.
Productivity has been proven across the core producing area with one horizontal
well that has been producing for 27 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.


OUTLOOK

Guidance for 2013 is being revised to reflect increased capital investment in
the Umbach area, higher natural gas prices and the net proceeds received from
the equity financing completed May 1, 2013. Capital investment will increase to
$47 million net of asset acquisitions and dispositions, an increase of $22
million from previous guidance provided February 28, 2013. Updated guidance is
provided below:




                                         Revised 2013                       
                                             Guidance              Previous 
----------------------------------------------------------------------------
Year-end adjusted debt plus                                                 
 working capital deficiency (1)   $        37 million   $        44 million 
Average operating costs           $  10 - $11 per Boe   $  10 - $11 per Boe 
Average royalty rate (on                                                    
 production revenue before                                                  
 hedging)                                    13% - 14%             11% - 12%
Operations capital, excluding                                               
 dispositions                     $      62.0 million   $      40.0 million 
Asset dispositions                $      19.5 million   $      20.0 million 
Asset acquisitions                $       4.5 million   $       4.5 million 
Cash G&A                          $       3.7 million   $       3.9 million 
Exit or fourth quarter average          4,500 - 5,000         4,000 - 4,500 
 production                                     Boe/d                 Boe/d 
                                       (25% oil + NGL)       (25% oil + NGL)
----------------------------------------------------------------------------
(1) Includes value of publicly listed securities.                           



Production in the second quarter of 2013 is expected to be 3,200 to 3,500 Boe
per day which includes the effect of shutting in the horizontal well in the HRB
for the month of June due to a turnaround at the Fort Nelson Gas Plant.


Major expenditures in the 2013 capital investment program include:



--  $15 million to drill seven horizontal wells (6.2 net) at Umbach which
    includes five horizontal wells at a 100% working interest; 
--  $19 million to complete and tie in seven horizontal wells (6.2 net) at
    Umbach which includes five horizontal wells on 100% working interest
    lands and two horizontal wells (1.2 net) on joint lands; 
--  $6 million to expand infrastructure at Umbach. 



Storm's 2013 budget assumes an average natural gas price at AECO of $3.25 per GJ
and an Edmonton Par oil price of $87 per barrel. Adjusted net debt is forecast
to decrease to $37 million at the end of 2013 (including public company
investments) which is well within Storm's current bank line of $52 million and
would be approximately 1.5 times funds from operations for the year.


In 2013, we are focused on growing production and cash flow at Umbach in order
to validate the large scale and economics of exploiting the liquids-rich natural
gas resource in the Montney formation. The recent purchase of 20 Mmcf per day of
capacity in a field compression facility at Umbach was a critical first step in
providing Storm with access to Company-owned and controlled infrastructure as
cost effectively as possible. Results from recent horizontal wells at Umbach
where completion techniques have been modified are encouraging as evidenced by
production to date in the second quarter averaging 1,700 net Boe per day, a
significant increase from 534 net Boe per day in the first quarter.
Approximately 32% of Storm's land position at Umbach has been delineated with
well control, and reserves at the end of 2012 were assigned on 5% of Storm's
land position (10 gross sections or 6 net sections) in the upper Montney only.
Based on results in the area, the mid/lower Montney is also likely productive
and represents an additional layer of future development. At the end of 2012, no
reserves were assigned to Storm's 100% working interest lands. If results at
Umbach are supportive of doing so, development may be accelerated later in 2013
with funding being provided by additional asset sales or from Storm's bank line
and growing cash flow.


Total cash costs of $20.81 per Boe in the first quarter are recognized as being
relatively high and will be reduced during 2013. Cash G&A costs are fixed and
will decrease on a per-Boe basis as production grows during the year. Operating
costs will decline with production growth from new horizontal wells on Storm's
100% working interest lands at Umbach which will be directed through
Company-owned field compression where operating costs are expected to be $4 to
$5 per Boe lower than on the joint lands.


Storm's land position in the HRB remains a core, long term asset. The large
scale and productivity of the resource provides significant leverage to any
sustained increase in natural gas prices or to LNG development on Canada's west
coast.


Respectfully,

Brian Lavergne, President and Chief Executive Officer

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 months ended March 31, 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.


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