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, 2014 and for the three 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 months ended March
31, 2014, appears below and should be read in conjunction with the related
financial statements and MD&A.


Highlights



                                                Three Months   Three Months 
Thousands of Cdn$, except volumetric                   Ended          Ended 
and per-share amounts                         March 31, 2014 March 31, 2013 
----------------------------------------------------------------------------
                                                                            
FINANCIAL                                                                   
  Gas sales                                           12,017          3,047 
  NGL sales                                            5,511          1,579 
  Oil sales                                            3,279          4,422 
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Revenue from product sales(1)                         20,807          9,048 
----------------------------------------------------------------------------
                                                                            
Funds from operations(2)                               8,660          3,227 
  Per share - basic ($)                                 0.09           0.05 
  Per share - diluted ($)                               0.08           0.05 
Net income (loss)                                        206           (261)
  Per share - basic ($)                                 0.00           0.00 
  Per share - diluted ($)                               0.00           0.00 
Operations capital expenditures                       22,343         20,133 
Acquisitions and dispositions                         88,051        (19,496)
Debt including working capital deficiency             22,176         42,106 
Weighted average common shares outstanding                                  
 (000s)                                                                     
  Basic                                              100,668         61,824 
  Diluted                                            102,413         61,824 
Common shares outstanding (000s)                                            
  Basic                                              109,612         61,824 
  Fully diluted                                      115,251         65,791 
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OPERATIONS                                                                  
Oil equivalent (6:1)                                                        
----------------------------------------------------------------------------
  Barrels of oil equivalent (000s)                       456            224 
  Barrels of oil equivalent per day                    5,068          2,488 
  Average selling price (Cdn$ per Boe)(1)              45.62          40.37 
Gas Production                                                              
----------------------------------------------------------------------------
  Thousand cubic feet (000s)                           2,134            880 
  Thousand cubic feet per day                         23,711          9,780 
  Average selling price (Cdn$ per Mcf)                  5.63           3.46 
NGL production                                                              
----------------------------------------------------------------------------
  Barrels (000s)                                          65             24 
  Barrels per day                                        725            261 
  Average selling price (Cdn$ per barrel)              84.49          67.08 
Oil Production                                                              
----------------------------------------------------------------------------
  Barrels (000s)                                          35             54 
  Barrels per day                                        391            597 
  Average selling price (Cdn$ per barrel)(1)           93.08          82.21 
Wells drilled                                                               
----------------------------------------------------------------------------
  Gross                                                  5.0            3.0 
  Net                                                    5.0            2.6 
----------------------------------------------------------------------------
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(1) Excludes hedging gains and losses.                                      
(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 19 of the MD&A.                                    



President's Message

FIRST QUARTER 2014 HIGHLIGHTS 



--  Production in the first quarter was 5,068 Boe per day (22% oil plus
    NGL), an increase of 104% from the same period last year and 6% from the
    prior quarter. On a per-share outstanding at quarter end basis, the
    year-over-year increase was 15%. The increase resulted from growth at
    Umbach where first quarter production was 3,559 Boe per day which
    represents growth of 565% from the first quarter of 2013. 

--  NGL production was 725 barrels per day in the first quarter, a year-
    over-year increase of 178%. NGL production increased as a result of
    production growth from the liquids-rich Montney formation at Umbach. The
    first quarter NGL price of $84.49 per barrel was 84% of the average
    Edmonton Par light oil price.  

--  Activity in the first quarter of 2014 was focused on Storm's 100%
    working interest lands at Umbach South where four Montney horizontal
    wells (4.0 net) plus one Montney vertical delineation well (1.0 net)
    were drilled and two horizontal wells (2.0 net) were completed and
    pipeline connected. As the existing facility is at capacity, only one of
    the completed Montney horizontal wells started producing in late
    February with the average rate in March and April being restricted to
    4.3 Mmcf per day gross raw gas. The remaining Montney horizontal wells
    will start producing in September when Storm's new facility at Umbach is
    operational.  

--  Funds from operations for the quarter totaled $8.7 million or $0.09 per
    basic share, a year-over-year increase of 80% on a per-share basis. The
    increase in funds from operations was the result of growth at Umbach
    where the field operating netback was $27.03 per Boe which is higher
    than the corporate average. 

--  The funds from operations netback was $18.99 per Boe in the quarter, an
    increase of $4.58 per Boe or 32% from the prior year. The year-over-year
    improvement was primarily the result of lower operating costs and the
    first quarter natural gas price increasing to $5.63 per Mcf from $3.46
    per Mcf in the prior year period. These gains were partially offset by a
    hedging loss of $3.10 per Boe.  

--  The field operating netback, excluding hedging gains or losses, was
    $25.47 per Boe for the quarter, an increase of 26% from $20.14 per Boe
    in the previous year. The first quarter operating cost was $10.88 per
    Boe, a decrease of 20% from the prior year. Operating costs are
    improving due to growth at Umbach where the first quarter operating cost
    was $7.78 per Boe.  

--  Controllable cash costs (operating, transportation, cash G&A, interest
    expense) were $15.97 per Boe in the quarter which is a decrease of $4.84
    per Boe, or 23%, from $20.81 per Boe in the prior year.  

--  Capital investment was $110.4 million in the first quarter which
    included $88.0 million for an asset acquisition at Umbach. Operations
    capital expenditures totaled $22.3 million and included $3.4 million for
    facilities and pipelines plus $17.8 million for drilling and
    completions.  

--  Debt plus working capital deficiency, net of investments, at the quarter
    end totaled $22.2 million which is 0.6 times annualized first quarter
    cash flow. In May 2014, Storm's banker, ATB Financial, increased the
    revolving bank facility to $90.0 million. 

--  On January 31, Storm closed the acquisition of a 100% working interest
    in 29 sections of land in the Umbach-Nig area, prospective for liquids-
    rich natural gas from the Montney formation. The acquisition included
    two horizontal wells producing 359 Boe net per day (19% NGL) from the
    Montney formation. The total cost of approximately $88.0 million
    consisted of $30.0 million in cash and 13.6 million common shares of
    Storm with a deemed value of $4.25 per common share (closing price on
    the TSX Venture Exchange January 30, 2014). 

--  On February 14, a bought deal financing and non-brokered private
    placement of common shares were completed with 8.5 million common shares
    being issued at a price of $4.10 per common share. Aggregate gross
    proceeds of $34.9 million were used to fund the cash portion of the
    acquisition of land and production in the Umbach-Nig area that closed
    January 31, 2014. 



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
inventories while the Grande Prairie area, with its shallow decline, provides
cash flow available for investment.


Umbach, Northeast British Columbia

Storm's land position at Umbach is prospective for liquids-rich natural gas from
the Montney formation and currently totals 140 net sections (168 gross
sections), or 98,000 net acres. Including the lands acquired in January 2014,
Storm has invested $108.0 million to acquire this land position ($2,750 per
hectare or $1,100 per acre) since entering the area in 2010. There are three
project areas at Umbach:




--  Umbach South with 87 net sections at a 100% working interest (includes
    the 29 sections recently acquired) where first quarter production
    averaged 2,676 Boe per day; 

--  Umbach North with 33 net sections of jointly owned lands (61 gross
    sections with Storm's working interest being 60% on most of the lands)
    where first quarter production averaged 883 Boe per day; 

--  Nig with 20 net sections at a 100% working interest. 



To date, Storm has been focused on exploiting the upper Montney, although the
middle and lower Montney may also be productive. 


First quarter production at Umbach was 3,559 net Boe per day (18% NGL), a
year-over-year increase of 565%. NGL recovery was 38 barrels per Mmcf sales or
656 barrels per day with approximately 60% being higher priced condensate plus
pentanes. The operating netback was $27.03 per Boe with revenue, after deducting
transportation costs, of $42.32 per Boe ($5.56 per Mcf sales and $81.65 per
barrel of NGL), a royalty rate of 18%, and operating costs of $7.78 per Boe.
Operating costs at Umbach have improved significantly from $11.48 per Boe in the
first quarter of 2013. Notably, on the 100% working interest lands at Umbach
South where Storm owns field compression, the operating cost was $6.55 per Boe. 


Activity in the first quarter included drilling four Montney horizontal wells
(4.0 net) at Umbach South, drilling one Montney vertical delineation well (1.0
net) at Nig and completing two Montney horizontal wells (2.0 net). One Montney
horizontal well commenced production in late February with the rate being
restricted to 4.3 Mmcf per day gross raw gas in March and April as the existing
facility is full. This horizontal well has averaged 6.0 Mmcf per day gross raw
gas to date in May as a result of facility upgrades completed in early May. The
vertical delineation well at Nig was cored in the upper, middle, and lower
Montney and, after the core data has been analyzed, the wellbore will be
re-entered and a horizontal well will be drilled into one of the three Montney
intervals (likely in 2015). To date in the second quarter, an additional three
Montney horizontal wells (3.0 net) have been drilled and two Montney horizontal
wells (2.0 net) have been completed. 


The existing Umbach South field compression facility has been full since
December 2013 with throughput of approximately 17 Mmcf per day gross raw gas. As
a result, a second field compression facility is being constructed with initial
capacity of 24 Mmcf per day which is expected to be operational in September
2014. Cost of the new field compression facility is $14.0 million and it is
designed to be expandable to 48 Mmcf per day for an additional investment of
$9.0 million, with this expected to occur in mid-2015. Investment in
infrastructure at Umbach in 2014 will also include installing 12 kilometers of
larger diameter gathering pipelines at a cost of $5.0 million.


Currently, there are 16 horizontal wells producing from the Montney formation at
Umbach. Production performance of the most recent horizontal wells (Umbach South
hz's 10 - 15) is significantly improved from earlier wells and is exceeding
management's forecasts. Following is a comparison of calendar day rates for all
of the producing Montney horizontal wells.




----------------------------------------------------------------------------
                                                    30 Cal   90 Cal 1st Year
                                                       Day      Day  Cal Day
                                                     Gross    Gross    Gross
             Working            Start of     Frac Raw Mmcf Raw Mmcf Raw Mmcf
            Interest          Production   Stages  Per Day  Per Day  Per Day
----------------------------------------------------------------------------
Hz's 1 - 5        60%  Umbach   Mar/11 -   7 - 11      2.8      1.8      1.3
                        North     Oct/12            Mmcf/d   Mmcf/d   Mmcf/d
                                                    5 hz's   5 hz's   5 hz's
----------------------------------------------------------------------------
Hz's 6 - 8        60%  Umbach   Nov/12 -  14 - 16      3.3      2.3      1.5
                        North     Aug/13            Mmcf/d   Mmcf/d   Mmcf/d
                                                    3 hz's   3 hz's   2 hz's
----------------------------------------------------------------------------
Hz's 10 - 15     100%  Umbach   Apr/13 -  17 - 18      4.2      3.6      2.8
                        South     Nov/13            Mmcf/d   Mmcf/d   Mmcf/d
                                                    6 hz's   5 hz's     1 hz
----------------------------------------------------------------------------



Horn River Basin, Northeast British Columbia

Storm has a 100% working interest in 123 sections in the HRB (81,000 net acres)
which is prospective for natural gas from the Muskwa, Otter Park and Evie/Klua
shales. First quarter production averaged 380 Boe per day at an operating
netback of $17.03 per Boe. Production is from one horizontal well with 12
fracture stimulations which currently produces 2.5 Mmcf per day gross raw gas
with cumulative production of 4.0 Bcf gross raw gas since start-up in March
2011. 


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 evaluated area includes 30 sections at a 100%
working interest and represents 24% 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 38 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, Northwest Alberta and Northeast British Columbia

Production in the first quarter averaged 1,129 Boe per day (41% oil plus NGL) at
an operating netback of $23.43 per Boe. Production was reduced by approximately
115 Boe per day as a result of equipment failures on seven wells. The cost of
repairing the wells increased the first quarter operating cost to $21.10 per Boe
(2013 average operating cost was $14.72 per Boe). Production in April recovered
to 1,260 Boe per day based on field estimates. Cash flow from this area
continues to be re-invested to grow production at Umbach. 


HEDGING UPDATE

Current commodity price hedges, which comprise both swaps and collars, for the
remainder of 2014 include 11,800 Mcf per day (14,200 GJ per day) of natural gas
with an average floor price of approximately $4.16 per Mcf and an average
ceiling price of $4.38 per Mcf (AECO monthly index $3.38 per GJ for the floor
and $3.56 per GJ for the ceiling). In addition, an oil price of WTI Cdn$102.43
per barrel (WTI price in $US per barrel converted to $Cdn per barrel) has been
fixed on 450 barrels per day. 


In the first quarter of 2015, the price of 5,800 Mcf per day (7,000 GJ per day)
of natural gas has been hedged with an average floor price of approximately
$4.92 per Mcf and an average ceiling price of $6.25 per Mcf (AECO monthly index
$4.00 per GJ for floor and $5.08 per GJ for ceiling).


The purpose of Storm's commodity price hedges is to ensure that a decrease in
commodity prices does not have a significant impact on capital investment and
growth over the next 12 to 18 months. 


OUTLOOK

Production in April averaged 5,350 Boe per day based on field estimates, and
second quarter production is forecast to be 5,200 to 5,500 Boe per day.
Corporate production will increase when the new field compression facility is
operational at Umbach in September 2014.


As a result of a higher forecast natural gas price and the recent changes to
British Columbia's Deep Well Royalty Credit Program, Storm is increasing 2014
capital investment from $78.0 million to $97.0 million. The incremental capital
will be invested at Umbach to drill an additional four Montney horizontal wells
(4.0 net) and complete four Montney horizontal wells (3.6 net). Forecast
production for the fourth quarter of 2014 increases to 8,900 to 9,200 Boe per
day which represents 90% growth on a year-over-year basis (55% growth on a
per-share basis). Revised guidance is set forth below.




                                     January 23, 2014          May 14, 2014 
                                    Original Guidance      Revised Guidance 
----------------------------------------------------------------------------
AECO natural gas price                   $3.35 per GJ          $4.25 per GJ 
----------------------------------------------------------------------------
Edmonton Par light oil price          Cdn $89 per bbl       Cdn $94 per bbl 
----------------------------------------------------------------------------
Estimated year-end debt plus                                                
 working capital deficiency(1)          $50.0 million         $57.0 million 
----------------------------------------------------------------------------
Estimated average operating                                                 
 costs                          $8.00 - $9.00 per Boe $8.00 - $9.00 per Boe 
----------------------------------------------------------------------------
Estimated average royalty rate                                              
 (on production revenue before                                              
 hedging)                                    14% - 15%             15% - 16%
----------------------------------------------------------------------------
Estimated operations capital,                                               
 excluding acquisitions &                                                   
 dispositions                           $78.0 million         $97.0 million 
----------------------------------------------------------------------------
Estimated acquisitions                  $88.0 million         $88.0 million 
----------------------------------------------------------------------------
Estimated cash G&A net of                                                   
 recoveries                              $4.0 million          $4.0 million 
----------------------------------------------------------------------------
Forecast fourth quarter average                                             
 production                       7,500 - 7,900 Boe/d   8,900 - 9,200 Boe/d 
                                       (20% oil + NGL)       (20% oil + NGL)
----------------------------------------------------------------------------
Forecast average annual                                                     
 production                       5,500 - 6,500 Boe/d   6,000 - 6,700 Boe/d 
                                       (21% oil + NGL)       (21% oil + NGL)
----------------------------------------------------------------------------
Umbach horizontal wells drilled    10 gross (10.0 net)   14 gross (14.0 net)
Umbach horizontal wells                                                     
 completed & tied in                 9 gross (9.0 net)   13 gross (12.6 net)
----------------------------------------------------------------------------



(1) Includes value of publicly listed securities.

Adjusted net debt at the end of 2014 is forecast to be $57.0 million (including
public company investments), which would be approximately 0.9 times annualized
funds from operations in the fourth quarter of 2014 (assumes fourth quarter AECO
$3.75 per GJ and Edmonton Par Cdn$87.00 per barrel). 


The recently announced changes to British Columbia's Deep Well Royalty Credit
Program provides a royalty credit of approximately $0.6 million for a Montney
horizontal well with a 1,200 metre lateral drilled at Umbach after April 1,
2014. The royalty credit reduces the royalty rate to 6% until the credit is used
up which is forecast to be approximately 14 months at an AECO natural gas price
of $3.75 per GJ. Eight of Storm's Montney horizontal wells being drilled at
Umbach in 2014 will benefit from the royalty credit which will be re-invested to
drill and complete additional horizontal wells at Umbach.


At Umbach, one drilling rig has been working since early December 2013 and has
drilled eight Montney horizontal wells (8.0 net) with seven horizontal wells
drilled as part of the 2014 program. Drilling operations have continued through
spring break-up and the remaining seven Montney horizontal wells (7.0 net) in
the 2014 program are expected to be drilled by the end of August. Four Montney
horizontal wells (4.0 net) have been completed so far in 2014 with one well
commencing production in late February. Horizontal well performance is exceeding
management's forecast which has moderated declines. As a result, the existing
facility is full and most of the newly drilled Montney horizontal wells will
commence production once construction of the new 24 Mmcf per day field
compression facility is completed in September 2014. The decision to expand the
new facility to 48 Mmcf per day 


will likely be made in the fourth quarter of 2014 with approximately six to
eight months being required to order equipment and for construction of the
expansion. With a growing inventory of horizontal wells to be turned on when the
second field compression facility is completed, significant growth is expected
at Umbach in the second half of 2014. 


Storm's land position in the HRB continues to be a core, long-term asset with
significant leverage to improving natural gas prices. 


Respectfully,

Brian Lavergne, President and Chief Executive Officer

May 14, 2014

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, 2014.


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