Storm Resources Ltd. announced that on August 22, 2012, the fourth Montney horizontal well (0.6 net) at Umbach began producing with the average rate to date being 3.9 Mmcf per day gross raw gas or 450 Boe per day net sales to Storm (25% natural gas liquids). A fifth Montney horizontal well (0.6 net) which included a vertical pilot hole was cased in August and will be completed and tied in by early October. Log response over the Montney in the vertical pilot hole was similar to pre-existing well control (approximately 25 meters net pay in the upper plus 20 metres net pay in middle). The drilling rig is currently being moved to drill the sixth Montney horizontal well (0.6 net). Excluding the Mica property, production is currently approximately 2,600 Boe per day.

The company provided production guidance for the third quarter and fourth quarter of 2012. The company expects average production of approximately 2,400 Boe per day in the third quarter.

Fourth quarter production is now forecast to average 2,500 to 2,600 Boe per day (40% oil plus natural gas liquids) which assumes 500 Boe per day at Grande Prairie continues to be shut-in due to low natural gas prices.