CALGARY, ALBERTA–(Marketwire – Jan. 12, 2012) –
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STORM RESOURCES LTD. (“Storm“) (TSX VENTURE:SRX) is pleased to announce the successful closing of the previously announced acquisition of Storm Gas Resource Corp. (“SGR“) by way of a plan of arrangement in accordance with the provisions of the Business Corporations Act (Alberta) (the “Arrangement“). Pursuant to the Arrangement, Storm issued an aggregate of 11,761,190 common shares of Storm (“Storm Shares“), at a deemed issuance price of $3.73 per Storm Share, for the acquisition of all of the issued and outstanding common shares of SGR that were previously not held by Storm. After the completion of the Arrangement, there are 38,138,160 Storm Shares issued and outstanding on a non-diluted basis.
The Arrangement has been conditionally accepted by the TSX Venture Exchange. Final acceptance of the TSX Venture Exchange is subject to the satisfaction of a number of customary conditions.
The acquisition of SGR adds approximately 360 Boe per day of current production (100% natural gas) and 81,400 net acres of undeveloped land which includes 58,400 net acres in the Horn River Basin (“HRB”) of north eastern British Columbia. Storm’s undeveloped land holdings in the HRB now total 88,600 net acres at a 100% working interest.
Using the evaluation by InSite Petroleum Consultants Ltd. of contingent resources for the Muskwa and Otter Park formations in Storm and SGR’s HRB lands dated October 31, 2011, Storm acquired contingent resources of 305 Bcf net sales in the low case estimate, 421 Bcf net sales in the best case estimate and 552 Bcf net sales in the high case estimate.
Storm Resources Ltd. began operations in August 2010. Storm is headquartered in Calgary, Alberta and is active in the Horn River Basin and Umbach areas of north eastern British Columbia, and at Red Earth in north central Alberta.
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.
Certain information in this press release contains forward-looking information that involves risk and uncertainty. For this purpose, any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as “may”, “will”, “should”, “anticipate”, “expects” and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Storm assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
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 RELEASE.