Storm Resources Ltd. reported unaudited consolidated earnings results and operating results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported revenue from product sales of CAD 24,100,000 compared to CAD 21,047,000 a year ago. Funds from operations were CAD 13,170,000 compared to CAD 8,759,000 a year ago. Basic and diluted funds from operations per share were CAD 0.11 compared to CAD 0.07 a year ago. Net income was CAD 682,000 or CAD 0.01 per basic and diluted share compared to loss of CAD 85,000 a year ago.
Operations capital expenditures were CAD 23,895,000 compared to CAD 7,580,000 a year ago.

For the nine months, the company reported revenue from product sales of CAD 88,462,000 compared to CAD 51,038,000 a year ago. Funds from operations were CAD 42,757,000 compared to CAD 22,395,000 a year ago. Basic and diluted funds from operations per share were CAD 0.35 compared to CAD 0.19 a year ago. Net income was CAD 31,065,000 or CAD 0.26 per basic and diluted share compared to loss of CAD 25,562,000 or CAD 0.21 per basic and diluted share a year ago. Operations capital expenditures were CAD 55,559,000 compared to CAD 32,139,000 a year ago.

For the quarter, revenue from product sales per BOE was CAD 17.23 compared to CAD 17.22 a year ago. Production per BOE was CAD 6.03 compared to CAD 6.69 a year ago. Funds from operations per BOE were CAD 9.41 compared to CAD 7.17 a year ago. Barrels of oil equivalent per day were 15,193 compared to CAD 13,285 a year ago. Natural gas production was 74,318 thousand cubic feet per day compared to 65,914 thousand cubic feet per day a year ago. NGL production
were 1,206 barrels per day compared to 1,089 barrels per day a year ago. Condensate production were 1,600 barrels per day compared to 1,210 barrels per day a year ago.

For the nine months, revenue from product sales per BOE was CAD 21.08 compared to CAD 14.13 a year ago. Production per BOE was CAD 6.17 compared to CAD 6.72 a year ago. Funds from operations per BOE were CAD 10.20 compared to CAD 6.21 a year ago. Barrels of oil equivalent per day were 15,371 compared to CAD 13,185 a year ago. Natural gas production was 75,537 thousand cubic feet per day compared to 65,245 thousand cubic feet per day a year ago. NGL production
were 1,173 barrels per day compared to 1,033 barrels per day a year ago. Condensate production were 1,608 barrels per day compared to 1,278 barrels per day a year ago.

The company revised production guidance for the fourth quarter and full year of 2017. For the quarter, the company now expects production of 18,000 to 19,000 Boe per day compared to 19,000 to 21,000 Boe per day previous guidance.

For the year 2017, the company now expects annual production of 16,200 Boe per day compared to 16,500 to 18,000 Boe per day previous guidance.

For the fourth quarter, the company expected capital investment is expected to be CAD 26.0 million which includes drilling seven horizontal wells plus completing three horizontal wells at Umbach.

For the year 2017, the company expected capital investment will be reduced to CAD 82.0 million (lower end of the range previously indicated) and year-end debt is expected to be at or below 1.5 times fourth quarter funds flow.