This information appears on SEDAR at www.sedar.com and on Storm's website at www.stormresourcesltd.com.
Selected financial and operating information for the three and six months ended
2021 SECOND QUARTER HIGHLIGHTS
Improving commodity prices continue to provide a 'tail wind' with funds flow exceeding capital investment for the second consecutive quarter which resulted in debt being reduced by
Production was 26,862 Boe per day which is a 12% increase year over year and a 4% increase from the previous quarter. This was consistent with guidance for an average of 25,000 to 27,000 Boe per day.
Liquids production (condensate plus NGL) totaled 5,166 barrels per day which was 19% of total production and 35% of total revenue. Liquids production increased 7% from last year.
During the quarter, one new horizontal well started production in early June at Umbach and, year to date, three new horizontal wells started production, all at Umbach.
Performance of recent wells continues to be strong with the
Revenue net of transportation was
Production, general and administrative, and interest and finance costs totaled
Realized hedging loss was
Funds flow was
The net loss was
Cash return on capital employed (CROCE) was 19% and return on capital employed (ROCE) was 2% with both calculated on a 12-month trailing basis. ROCE was reduced by non-cash hedging losses of
Capital investment was
Total debt including working capital surplus was
Commodity price hedges protect revenue on approximately 47% of current production for the remainder of 2021 and on approximately 33% of current production for 2022. The financial liability for future hedging contracts totaled
Forward-Looking Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words 'will', 'would', 'expect', 'anticipate', 'intend', 'believe', 'plan', 'potential', 'outlook', 'forecast', 'estimate', 'budget' and similar expressions are intended to identify forward-looking statements or information. More particularly, and without limitation, this press release contains forward-looking statements and information concerning: current and future years' guidance in respect of certain operational and financial metrics, including, but not limited to, commodity pricing, estimated average production costs, estimated average royalty rate, estimated operations capital, estimated general and administrative costs, estimated quarterly and annual production and estimated number of horizontal wells drilled, completed and connected, capital investment plans, infrastructure plans, anticipated
The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Storm, including: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; success to be expected in drilling new wells; the adequacy of budgeted capital expenditures to carry out planned activities; the availability and cost of services and the receipt, in a timely manner, of regulatory and other required approvals. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on these forward-looking statements and information because of their inherent uncertainty. In particular, there is no assurance that exploitation of the Company's undeveloped lands and prospects will result in the emergence of profitable operations.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the oil and gas industry in general such as: general economic conditions in
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of the Company are included or are incorporated by reference in the Company's Annual Information Form dated
The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Contact:
Tel: (403) 817-6145
Web: www.stormresourcesltd.com
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