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 September 30, 2013 and for the three and nine 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 nine months ended
September 30, 2013, appears below and should be read in conjunction with the
related financial statements and MD&A.


Highlights 



                                        Three     Three      Nine      Nine
                                    Months to Months to Months to Months to
Thousands of Cdn$, except            Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 volumetric and per-share amounts        2013      2012      2013      2012
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FINANCIAL                                                                  
                                                                           
  Gas sales                             4,729     1,835    13,212     4,638
  NGL sales                             4,082     1,088     8,642     2,869
  Oil sales                             4,366     6,145    12,344    14,394
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Revenue from product sales(1)          13,177     9,068    34,198    21,901
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Funds from operations(2)                6,144     4,765    14,448     8,371
  Per share - basic ($)                  0.08      0.08      0.20      0.15
  Per share - diluted ($)                0.08      0.08      0.20      0.15
Net loss                               (1,429)   (3,586)   (1,029)   (4,254)
  Per share - basic ($)                 (0.02)    (0.07)    (0.01)    (0.08)
  Per share - diluted ($)               (0.02)    (0.07)    (0.01)    (0.08)
Field capital expenditures             23,694    11,741    60,559    22,720
Proceeds on disposition of oil and                                         
 gas properties                            23    (2,370)  (19,495)   (3,379)
Debt including working capital                                             
 deficiency                            40,968    42,511    40,968    42,511
Weighted average common shares                                             
 outstanding (000s)                                                        
  Basic                                77,383    61,824    70,492    54,134
  Diluted                              77,383    61,824    70,492    54,134
Common shares outstanding (000s)                                           
  Basic                                77,383    61,824    77,383    61,824
  Fully diluted                        81,279    64,547    81,279    64,547
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OPERATIONS                                                                 
                                                                           
Oil equivalent (6:1)                                                       
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  Barrels of oil equivalent (000s)        350       219       888       566
  Barrels of oil equivalent per day     3,800     2,380     3,255     2,065
  Average selling price (Cdn$ per                                          
   Boe)(1)                              37.69     43.96     38.49     40.33
Gas Production                                                             
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  Thousand cubic feet (000s)            1,514       741     3,768     2,065
  Thousand cubic feet per day          16,458     8,058    13,803     7,539
  Average selling price (Cdn$ per                                          
   Mcf)                                  3.12      2.49      3.51      2.25
NGL production                                                             
---------------------------------------------------------------------------
  Barrels (000s)                           55        18       123        42
  Barrels per day                         600       199       450       154
  Average selling price (Cdn$ per                                          
   barrel)                              73.98     59.44     70.40     67.90
Oil Production                                                             
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  Barrels (000s)                           42        77       138       179
  Barrels per day                         458       838       504       655
  Average selling price (Cdn$ per                                          
   barrel)(1)                          103.70     86.75     89.65     85.31
Wells drilled                                                              
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  Gross                                   5.0       3.0       8.0       4.0
  Net                                     5.0       2.2       7.6       3.2
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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

THIRD QUARTER 2013 HIGHLIGHTS 



--  Production averaged 3,800 Boe per day (28% oil plus NGL), an increase of
    10% from the previous quarter. Compared to the same period a year ago,
    production was 60% higher, or 28% on a per-share basis. Forecast
    production for the fourth quarter remains at 4,500 to 5,000 Boe per day.
    Production increased as a result of growth at Umbach where production
    averaged 2,170 Boe per day (57% of total corporate production), an
    increase of 21% from the previous quarter and 425% from a year ago. 

--  Crude oil and NGL production averaged 1,058 barrels per day, an increase
    of 12% from the previous quarter. NGL production was 600 barrels per
    day, an increase of 24% from the previous quarter and 200% from the year
    earlier period. The increase in NGL production was the result of growth
    at Umbach where NGL recovery from the liquids-rich natural gas produced
    from the Montney formation was 521 barrels per day, or 53 barrels per
    Mmcf sales gas. The third quarter NGL price was $73.98 per barrel which
    was 70% of the average Edmonton Par light oil price. 

--  Funds from operations was $6.1 million, or $0.08 per basic share, an
    improvement of 21% from the previous quarter and 27% from the year ago
    period. Although natural gas prices decreased 22% from the previous
    quarter, the funds flow netback increased to $17.56 per Boe from $16.09
    per Boe in the prior quarter as a result of a decrease in controllable
    cash costs (operating, transportation, cash G&A, interest expense).
    Controllable cash costs improved to $14.27 per Boe in the quarter from
    $16.38 per Boe in the prior quarter and $18.58 per Boe in the same
    period one year ago. 

--  The field operating netback was $20.39 per Boe excluding a hedging loss
    of $0.24 per Boe with operating costs decreasing by 6% from the previous
    quarter to $10.36 per Boe. At Umbach, operating costs were $8.60 per Boe
    and the operating netback was $19.14 per Boe. 

--  Capital investment totaled $23.7 million and major expenditures included
    $3.0 million to construct field gathering pipelines at Umbach and $19.3
    million, also at Umbach, to drill five horizontal wells (5.0 net) and to
    complete and tie in four horizontal wells (3.6 net). 

--  Horizontal well performance at Umbach continues to improve with the
    first three horizontals on Storm's 100% working interest lands averaging
    4.4 Mmcf per day gross raw gas (800 Boe per day sales) over the first 30
    days (operated day rates), an increase of 60% when compared to the first
    four horizontal wells that came on production in 2011 and 2012. 

--  Net loss was $1.4 million or $0.02 per basic share, an improvement from
    net loss of $0.07 per basic share a year earlier. The net loss was
    primarily due to non-cash mark-to-market losses on an investment and
    commodity price hedges. 

--  Debt plus working capital deficiency, net of investments, ended the
    quarter at $41.0 million which is 1.7 times annualized third quarter
    cash flow. In early November, Storm's bank credit line was increased to
    $65.0 million from $52.0 million. 

--  Commodity price hedges were added subsequent to quarter end in order to
    ensure that commodity price fluctuations do not have a significant
    effect on capital investment and growth in 2014. For all of 2014, a
    natural gas volume of 9,000 GJ per day (approximately 7,500 Mcf per day)
    has a floor price of $3.31 per GJ (approximately $4.00 per Mcf). For
    January to June of 2014, the price of 375 barrels per day of oil was
    fixed at WTI Cdn $102.00 per barrel (WTI price in $US per barrel
    converted to $Cdn per barrel). 

--  Equity financings were announced October 28, 2013 whereby Storm will
    issue 10.1 million common shares priced at $3.35 per share for net
    proceeds of approximately $32.0 million. Proceeds will be used to expand
    2014 capital investment and accelerate growth at Umbach. The related
    financings comprise a bought deal financing under a short form
    prospectus for 9.0 million shares and a non-brokered financing where 1.1
    million shares will be issued to certain directors, officers and
    employees of Storm. The expected closing date for both financings is
    November 19, 2013. 



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 with one area consisting of 79 net
sections of land at a 100% working interest and the other area consisting of 33
net sections of jointly owned lands (61 gross sections with Storm's working
interest being 60% on most of the lands). Since entering the area in 2010, Storm
has invested $29.0 million to acquire this land position ($810 per hectare or
$325 per acre) which includes the cost of the first horizontal well that was
drilled as part of a farm-in to earn the initial 11.6 net sections.


Third quarter production grew to 2,170 net Boe per day (24% liquids) with the
start of production from three horizontal wells (2.6 net) in August and
September. Production in October was 2,750 Boe per day and has increased to a
current level of approximately 3,600 Boe per day. NGL recovery averaged 53
barrels per Mmcf sales, or 521 barrels per day, in the third quarter with
approximately 56% being condensate plus pentanes. The operating netback in the
third quarter was $19.14 per Boe with revenue, after deducting transportation
costs, of $31.85 per Boe ($3.14 per Mcf and $73.09 per barrel), a royalty rate
of 13%, and operating costs of $8.60 per Boe. Continuing production growth from
the 100% working interest lands is expected to result in operating costs
decreasing by approximately $1.00 per Boe over the next six months.


Activity in the third quarter included drilling five horizontal wells (5.0 net),
completing four horizontal wells (3.6 net) and installing six kilometres of
10-inch gathering pipeline. The four completed horizontal wells began producing
on August 5, August 25, September 12 and October 19 respectively. To date in the
fourth quarter, one horizontal well (1.0 net) has been completed and is being
pipeline connected.


Storm has drilled 15 horizontal wells at Umbach (11.4 net) and has 12 producing
horizontal wells (8.8 net). There are nine horizontal wells (5.4 net) on the
joint lands where Storm has a 60% working interest and six horizontal wells on
the 100% working interest lands. Several changes have been made to recent
horizontal wells including targeting different intervals in the Montney
formation and modifying the completion technique. Production performance has
improved with the first three horizontals on Storm's 100% working interest lands
averaging 4.4 Mmcf per day gross raw gas (800 Boe per day sales) over the first
30 days using operated day rates (excludes days where the wells were shut in due
to capacity constraints). This is an improvement of 60% when compared to the
first four horizontal wells drilled on the joint lands that started producing in
2011 and 2012. Additional production history is required in order to estimate
first year average rates and ultimate recovery for the most recent horizontal
wells.


As a result of the transition to development in 2013 (activity in 2012 was
focused on resource delineation), the total cost to drill, complete, equip and
tie in a horizontal well has decreased to approximately $5.0 million from
approximately $6.2 million for the first four horizontal wells. The five
horizontal wells (5.0 net) drilled in third quarter of 2013 were on common pads
or were drilled from existing pads and this reduced the average drill cost to
$2.0 million with drilling times averaging 14 days. Four horizontal wells (3.6
net) were completed in the third quarter at an average cost of $2.4 million.
Tie-in costs were $0.6 million per horizontal well (not including cost of longer
gathering pipelines to connect multi-well pads to field compression facilities).
Further cost reductions are expected in 2014 with a larger drilling program and
with more horizontal wells being drilled from common pads which will reduce the
completion cost as well as the cost to equip and tie in new wells.


Total investment in infrastructure at Umbach is forecast to be $12.0 million in
2013 which includes the acquisition of field compression for $4.5 million on
April 1st and construction of 20 kilometres of larger diameter 8 inch and 10
inch field gathering pipelines. Preliminary guidance for 2014 includes investing
an additional $16.0 million for infrastructure which would include $12.0 million
to construct a second field compression facility with initial capacity of 12.5
Mmcf per day expandable to 48 Mmcf per day. An additional investment of $2.0
million would be required for expansion to 24 Mmcf per day and a further $9.0
million for expansion to 48 Mmcf per day (total $11.0 million to expand to 48
Mmcf per day). This strategic investment in infrastructure provides Storm with
operational control, enables significant low cost production growth into 2015,
and will reduce operating costs by eliminating fees for using third party field
compression.


Assuming a field netback of $20 per Boe, NGL recovery of 35 barrels per Mmcf
sales (10% shrinkage), a first year average rate of 2.4 Mmcf per day gross raw
gas (430 Boe per day), ultimate recovery of 4.3 Bcf gross raw gas per horizontal
well and $5.0 million to drill, complete and tie in a horizontal well, Storm's
management estimates that rates of return for horizontal wells exceed 30% on an
unrisked basis. This is based on flat pricing of $3.35 per GJ for natural gas
and Cdn $89.00 per barrel for Edmonton Par (WTI US $93.00/Bbl). Additional
enhancements to completion methods could result in further improvements to
horizontal well production rates and ultimate recovery.


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 third quarter averaged 335 Boe per day at an operating
netback of $7.43 per Boe. Production is from one horizontal well with 12
fracture stimulations that began producing in March 2011 and is currently
producing 2.4 Mmcf per day gross raw gas with cumulative production of 3.5 Bcf
gross raw gas. Since the start of production, the flow rate has been restricted
by the high operating pressure of the gathering pipeline (approximately 6,000
kPa). As a result, in early November, field compression was installed at a cost
of approximately $0.5 million. A second horizontal well was also drilled in 2011
and is awaiting completion with the timing dependent on the natural gas price.


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 third quarter averaged 1,294 Boe per day (41% oil plus NGL) at
an operating netback of $25.16 per Boe. This is a decline of approximately 3%
from the previous quarter. There was no capital invested in this area in the
third quarter and no activity is planned for the fourth quarter. As a result of
the relatively shallow decline, cash flow from this area will continue to be
re-invested to grow production at Umbach. 


OUTLOOK

Production in October was approximately 4,260 Boe per day and guidance for 2013
exit or fourth quarter production is unchanged at 4,500 to 5,000 Boe per day.
The remainder of Storm's 2013 guidance is also unchanged. Guidance for 2014 has
been reviewed and approved by Storm's Board of Directors and is provided below.




                                      2013 Guidance                        
                               (excluding impact of           2014 Guidance
                             equity financings that  (including $32 million
                                  close November 19,      net proceeds from
                                               2013)      equity financings)
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Year-end adjusted debt plus                                                
 working capital                                                           
 deficiency(1)                        $40.0 million   $50.0 - $55.0 million
Average operating costs     $10.00 - $11.00 per Boe  $8.00 - $10.00 per Boe
Average royalty rate (on                                                   
 production revenue before                                                 
 hedging)                                       14%               14% - 15%
Operations capital,                                                        
 excluding dispositions               $62.0 million           $81.0 million
Asset dispositions                    $19.5 million                       -
Asset acquisitions                     $4.5 million                       -
Forecast exit or fourth                                                    
 quarter average production     4,500 - 5,000 Boe/d     7,300 - 7,800 Boe/d
                                     (25% oil + NGL)         (21% oil + NGL)
Forecast average annual                                                    
 production                     3,560 - 3,690 Boe/d     5,200 - 6,450 Boe/d
                                     (24% oil + NGL)         (21% oil + NGL)
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(1) Includes value of publicly listed securities.



Major expenditures in the 2014 capital investment program include:



--  $55.0 million at Umbach to drill 11 horizontal wells (11.0 net) with 11
    horizontal wells (10.6 net) being completed and tied in; and 
--  $16.0 million to expand infrastructure at Umbach, which includes $12.0
    million to construct a new field compression facility expandable from
    initial capacity of 12 Mmcf per day to 48 Mmcf per day. 



The preliminary 2014 budget assumes an average natural gas price at AECO of
$3.35 per GJ and an Edmonton Par oil price of Cdn $89 per barrel. Assumed
commodity prices generally reflect forward strip pricing as of October 23, 2013
and commodity price hedges are being added for 2014 so that a decrease in
commodity prices does not have a significant effect on growth and guidance.
Adjusted net debt is forecasted to be $50 million to $55 million at the end of
2014 (including public company investments), which would be approximately 1.0
times annualized funds from operations in the fourth quarter of 2014.


The decision to issue equity to accelerate capital investment at Umbach was
primarily based on the improvement in horizontal well performance and the size
of the opportunity that has been delineated to date on Storm's 112 net sections
of Montney lands. Approximately 35% of this land position has been delineated
with vertical wells and 15 horizontal wells (11.4 net). With spacing of four
horizontal wells per section, 140 horizontal locations remain to be drilled on
the lands that have been delineated to date. In the 2012 year-end reserve
report, reserves were assigned to 11.4 net horizontal drilling locations with no
reserves assigned to the 100% working interest lands.


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


Although Storm is still in the early stages of delineating a large resource in
the Montney formation at Umbach, a sizable multi-year drilling opportunity has
already been identified. The NGL recovered from the liquids-rich natural gas in
the Montney formation provides Storm with a competitive advantage at the current
natural gas price by increasing revenue and the operating netback. In addition,
the relatively shallow depth (1,400 to 1,600 metres) results in a lower drilling
and completion cost.


The recently announced equity issues provide funding to accelerate development
at Umbach in 2014 which is forecast to result in corporate production volumes
increasing by 60% over the next 12 months to 7,300 to 7,800 Boe per day.
Constructing a second field compression facility expandable to 48 Mmcf per day
positions Storm for further growth into 2015.


Respectfully,

Brian Lavergne, President and Chief Executive Officer

November 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 nine months ended September
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 & Chief Executive Officer
[phone]


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


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