Storm Resources Ltd. (“Storm” or the “Company”) is Pleased to Announce Its Financial and Operating Results for the Three Months Ended March 31, 2020

CALGARY, Alberta, May 12, 2020 (GLOBE NEWSWIRE) — Storm Resources Ltd. (TSX:SRX)Storm has also filed its unaudited condensed interim consolidated financial statements as at March 31, 2020 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, 2020 appears below and should be read in conjunction with the related financial statements and MD&A.
Highlights    Excludes gains and losses on risk management contracts.Certain financial amounts shown above are non-GAAP measurements. See discussion of Non-GAAP Measurements on page 28 of the MD&A. CROCE and ROCE are presented on a 12-month trailing basis.Excludes the fair value of risk management contracts, decommissioning liability and lease liability.PRESIDENT’S MESSAGE 2020 FIRST QUARTER HIGHLIGHTSFunds flow was largely unchanged from the first quarter of last year with higher production and lower production costs offset by lower NGL and natural gas prices.  Production was 23,946 Boe per day, an increase of 7% from the previous quarter and an increase of 21% year over year.  This was consistent with guidance (24,000 to 25,000 Boe per day) with the increase resulting from the start-up of the Nig Gas Plant plus a full quarter of production from a four-well pad at Nig.  
 Liquids production (field condensate plus gas plant NGL) totaled 4,621 barrels per day, an increase of 8% from the previous quarter and an increase of 24% year over year.  
 Production from the most recent four wells in the Nig area continue to meet expectations since start-up in November 2019 with the IP150 averaging approximately 1,500 Boe per day sales (8% field condensate) for the three upper/mid Montney wells and approximately 1,000 Boe per day sales (30% field condensate) for the lower Montney well.     
 Revenue net of transportation was $14.27 per Boe, a decline of $11.27 per Boe, or 44% from last year, mainly due to lower NGL and natural gas prices. The NGL price declined 90% as a result of lower propane prices and from larger pricing deductions during the current marketing year ending March 2020. The natural gas price declined 43% as a result of lower pricing in the Chicago and Sumas markets (60% of sales).  
 Liquids represented 19% of sales volumes and 36% of production revenue (versus 19% and 30% respectively in the prior year period).
 Production, general and administrative, and interest and finance costs were $6.77 per Boe, a year-over-year decline of $1.53 per Boe.  Production cost decreased $0.92 per Boe with start-up of the Nig Gas Plant and the previous year was higher due to an unplanned outage at the McMahon Gas Plant.
 Hedging provided a realized gain of $2.7 million versus a realized loss of $9.6 million in the prior year.  The gain was from contracts for Chicago natural gas and WTI oil while the prior year loss was mainly from contracts for Sumas natural gas that were entered into before a failure on the Enbridge T-south pipeline in October 2018.
 Funds flow was $16.9 million or $0.14 per share which was largely unchanged from last year with higher production and lower costs offsetting lower commodity prices.      
 Net income was $10.5 million compared to $0.6 million in the prior year with the improvement primarily from a non-cash hedging gain of $10.5 million on the mark-to-market value of future hedging contracts which was partially offset by the deferred income tax expense of $3.9 million. 
 Capital investment was $26.5 million (below guidance of $30 million) and included $11 million for the Nig Gas Plant project plus $9 million to complete and tie in a three-well pad at Umbach.
 Total debt including working capital deficiency was $139 million or 2.1 times annualized quarterly funds flow and, including letters of credit, represents 73% utilization of the $205 million bank line.
 Commodity price hedges have increased and during the remainder of 2020 protect approximately 42% of forecast production using the mid-point of guidance.  Hedges provide floor prices of approximately Cdn$2.90 per Mcf (15% higher than the first quarter average price) and WTI Cdn$64.00 per barrel in 2020 with approximately half of the hedges being collars which provide exposure to higher prices.OPERATIONS REVIEWUmbach, Nig and Fireweed Areas, Northeast British Columbia