Storm Resources Ltd. Reports Production Results for the Month and Third Quarter Ended September 2013; Provides Production Guidance for the Fourth Quarter and Full Year 2013 and Net Debt Guidance for 2014
Production in the third quarter of 2013 was approximately 3,800 Boe per day based on field estimates. Capital investment during the third quarter of 2013 was approximately $23.5 million which included drilling five horizontal wells (5.0 net) at Umbach and completing three horizontal wells (3.0 net) which began producing on August 25, September 12 and October 19 respectively.
Production guidance for 2013 is unchanged with exit or fourth quarter production forecasted to be 4,500 to 5,000 Boe per day with the completion and tie-in of one additional standing horizontal well (1.0 net). The remainder of Storm's guidance is unchanged from that provided with the release of second quarter results on August 14, 2013.
Adjusted net debt is forecasted to be $50 million to $55 million at the end of 2014 (including public company investments), which would be approximately 1.0 times annualized funds from operations in the fourth quarter of 2014.