Storm Resources Ltd. announced unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported revenues from product sales of CAD 27,317,000 compared to CAD 13,870,000 a year ago. Funds flow was CAD 11,629,000 or CAD 0.10 per basic and diluted share compared to CAD 5,781,000 or CAD 0.05 per basic and diluted share a year ago. Net income was CAD 9,752,000 or CAD 0.08 per basic and diluted share compared to loss of CAD 20,493,000 or CAD 0.17 per basic and diluted share a year ago.

For the six months, the company reported revenues from product sales of CAD 64,362,000 compared to CAD 29,992,000 a year ago. Funds flow was CAD 29,587,000 or CAD 0.24 per basic and diluted share compared to CAD 13,636,000 or CAD 0.11 per basic and diluted share a year ago. Net income was CAD 30,383,000 or CAD 0.25 per basic and diluted share compared to loss of CAD 25,477,000 or CAD 0.21 per basic and diluted share a year ago.

Production averaged 13,991 Boe per day, a per-share increase of 8% from the second quarter of last year. The year-over-year increase was achieved in spite of approximately 80% of production being shut in for 25 days in June for a planned maintenance turnaround at the McMahon Gas Plant (April and May averaged 18,306 Boe per day). Condensate and NGL production totaled 2,606 barrels per day which was 19% of total production and represented 36% of total revenue. At the end of the quarter, there was an inventory of nine Montney horizontal wells (9.0 net) at Umbach that had not started producing which includes one completed well. One horizontal well (1.0 net) started production in the quarter and six horizontal wells (6.0 net) started production in the first half of the year.

To date in 2017, four Montney horizontal wells (4.0 net) have been completed and the three with enough production history have averaged 4.8 Mmcf per day gross raw gas plus 175 barrels per day of field condensate, or 960 Boe per day sales, over the first 90 calendar days (only 75 producing days as a result of the McMahon Gas Plant turnaround). These wells are approximately 25% longer than wells completed during 2014 to 2016 and are further south in the oil window which increases the field condensate rate (115% higher than the average from all of Storm's wells at Umbach). Controllable cash costs (production, general and administrative, interest and finance) were CAD 8.67 per Boe which is an increase from CAD 7.65 per Boe in the prior quarter. The increase is primarily due to production being reduced by the scheduled maintenance turnaround at the McMahon Gas Plant which increased production costs by CAD 0.90 per Boe. Costs are expected to resume trending lower in the second half of 2017.

The company Provided production guidance for the third quarter of fiscal 2017. For the third quarter the company production is anticipated to be 15,500 to 17,000 Boe per day which includes the effect of the maintenance turnaround at the McMahon Gas Plant from June 5 to July 14. Approximately 80% of production was shut in for 14 days in the third quarter. The duration of the turnaround was 39 days which was longer than the original expectation of 21 days.

The company Revises production guidance for the fourth quarter and full year of fiscal 2017, for the quarter the company production is anticipated to be 19,000 to 21,000 Boe per day.

For the Full year production is anticipated to be 16,500 to 18,000 Boe per day, previously production expectation was 17,000 to 18,000 Boe per day.