Storm Resources Ltd. provided production guidance for the first quarter, second quarter, third quarter, fourth quarter and year 2019. For the first quarter of 2019, production is forecast to be 17,500 to 20,000 Boe per day. As was previously communicated on January 15, 2019, the McMahon Gas Plant was shut in for 17 days starting January 2nd to repair a failure on the flare system piping. During this time, production was reduced to 4,500 Boe per day. Production to date has averaged 18,000 Boe per day based on field estimates.

Production in the second and third quarters of 2019 is expected to be approximately 20,000 to 21,000 Boe per day based on current indications for Western Canadian natural gas prices during this period ($0.75 per GJ at Station 2 and $1.25 per GJ at AECO). This level of production is the minimum that would fulfill firm transportation commitments and assumes interruptible service on the Alliance Pipeline is not available.

Forecast fourth quarter production to be 23,000 Boe/d – 25,000 Boe/d from previous guidance of 23,000 Boe/d- 25,000 Boe/d.

Forecast annual production to be 21,000 Boe/d- 24,000 Boe/d from previous guidance of 21,000 Boe/d- 24,000 Boe/d.

The company reported audited consolidated production results for the fourth quarter and year ended December 31, 2018. For the quarter, the company's production increased to a record of 22,432 Boe per day which represents growth of 25% on a per-share basis from the prior year and also exceeded guidance of 19,000 to 21,000 Boe per day (production was rapidly increased in mid-November in response to a strengthening natural gas price at Chicago). Liquids production (field condensate plus gas plant NGL) grew by 24% year over year with liquids representing 19% of total production and 25% of production revenue.

For the year, the company's Production averaged 20,538 Boe per day which was consistent with guidance and represents growth of 28% on a per-share basis from last year. Liquids production grew by 26% (condensate by 27%) with liquids representing 18% of total production and 35% of production revenue.