CORE AREA REVIEW

NORTH EAST BRITISH COLUMBIA

Umbach/Nig Creek/Fireweed 120,000 net acres (189 gross sections, 170 net sections) / approximately 25,910 Boe/d*

Horn River Basin 68,000 net acres / Boe/d not material

*Average daily production Q1 2021

Storm’s land position is prospective for liquids-rich natural gas from the Montney formation and totals approximately 120,000 net acres (189 gross sections, 170 net sections) with 90 horizontal wells (83.4 net) drilled to the end of the first quarter.

Field activity in the first quarter at Umbach included the completion and tie-in of three wells (3.0 net) and, at Fireweed, included drilling three wells (1.5 net) plus constructing 19 kilometres of large diameter gathering and sales pipelines.

Expected field activity in the second quarter will include drilling a lower Montney well (1.0 net) at Nig Creek, delivery of the inlet compressor for the Nig Creek Gas Plant which will be installed in early July, and finishing pipeline construction at Fireweed.

At the end of the first quarter, there were eight Montney horizontal wells (5.0 net) that had not started producing which included two wells (2.0 net) at Umbach and six wells (3.0 net) at Fireweed.

At Umbach, produced raw natural gas contains 1.2% H2S, field compression capacity totals 150 Mmcf raw per day, and firm processing commitments total 80 Mmcf raw per day.  First quarter gross raw gas averaged 85 Mmcf per day (Storm working interest approximately 98%) while net sales were 15,020 Boe per day (73.6 Mmcf per day, 1,365 barrels per day condensate, 1,380 barrels per day NGL).  Activity in the remainder of 2021 is expected to include drilling and completing the remaining three wells (3.0 net) on a six-well pad.

At Nig Creek (100% working interest), produced raw natural gas contains up to 0.5% H2S and is directed to Storm’s 100% working interest sour gas plant.  Gas plant inlet volumes in the first quarter averaged 54 Mmcf per day raw, sales were 10,530 Boe per day (48.8 Mmcf per day, 1,030 barrels per day condensate, 1,365 barrels per day NGL), and the production cost was $1.35 per Boe.  Capacity of the gas plant is estimated to be 70 Mmcf per day at current average H2S of 0.3% (versus design capacity of 50 Mmcf per day at 0.5% H2S).  Activity in the remainder of 2021 will be focused on filling the gas plant which will come from adding inlet compression in July and drilling and completing four wells (4.0 net) this summer in the lower Montney where H2S is below 0.1% based on results to date.

Recent wells at Nig Creek and Umbach continue to meet or exceed expectations:

  • the four most recent wells at Nig Creek started producing in late October 2020 from the upper Montney with the IP180 averaging 9.5 Mmcf per day raw which is approximately 1,950 Boe per day sales (8.9 Mmcf per day, 230 barrels per day condensate, 240 barrels per day NGL).
  • the two most recent wells at Umbach started producing in late March 2021 from the upper Montney, were restricted until late-April due to downtime at the facility, and have averaged 7.4 Mmcf per day raw over the last 20 days which is approximately 1,400 Boe per day sales (6.5 Mmcf per day, 200 barrels per day condensate, 120 barrels per day NGL).

At Fireweed (50% working interest), activity in the remainder of 2021 is expected to include construction of a 50 Mmcf raw per day field compression facility, completion and testing of the recently installed 19 kilometres of gathering and sales pipelines, drilling two wells (1.0 net), and completing three wells (1.5 net).  First production is expected in the fourth quarter of 2021 from five wells (2.5 net).

Through a predecessor company Storm began acquiring undeveloped land in the Horn River Basin of northeast British Columbia in 2008. As at December 2020, Storm had 100% working interest in 101 sections (68,000 net acres) which are prospective for natural gas from the Muskwa, Otter Park and Evie/Klua shales. Storm has one producing horizontal well in this area with cumulative production of 6 Bcf raw which was shut in for the majority of 2019 and produced intermittently in 2020 in response to improved commodity prices in the second half of the year. A core area totaling 30 sections has been proven to be productive through drilling of this well plus two vertical wells that were completed with final test rates of 900 Mcf per day over the final 24 hours of each flow test. Lands within the 30 section area have been continued through drilling and are not subject to expiry. The remaining 71 sections may be subject to expiry over a period of several years beginning in 2021.

ALBERTA

The majority of the properties in this area were sold on July 15, 2015 and there remains only one property with no associated production or reserves.  No capital was invested on this property by Storm from 2017 to 2020 and no activity is planned for 2021.

LATEST REPORT

DOWNLOAD OUR LATEST REPORT [PDF]

CORPORATE PRESENTATION

DOWNLOAD OUR FULL PRESENTATION [PDF]