Storm Resources Ltd. reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2014. For the quarter, the company reported revenue from product sales of CAD 20,807,000 against CAD 9,048,000 for the same period in the last year. Funds from operations were CAD 8,660,000 or CAD 0.08 per diluted share against CAD 3,227,000 or CAD 0.05 per diluted share for the same period in the last year. The increase in funds from operations was the result of growth at Umbach where the field operating netback was CAD 27.03 per Boe which is higher than the corporate average. Net income was CAD 206,000 against net loss of CAD 261,000 for the same period in the last year. Capital investment was CAD 110.4 million in the first quarter which included CAD 88.0 million for an asset acquisition at Umbach.

Production in the 2014 first quarter was 5,068 Boe per day (22% oil plus NGL), an increase of 104% from 2,488 Boe per day the same period last year and 6% from the prior quarter. On a per-share outstanding at quarter end basis, the year-over-year increase was 15%. The increase resulted from growth at Umbach where first quarter production was 3,559 Boe per day which represents growth of 565% from the first quarter of 2013. NGL production was 725 barrels per day in the first quarter, a year-over-year increase of 178%. NGL production increased as a result of production growth from the liquids-rich Montney formation at Umbach.

Production in April averaged 5,350 Boe per day based on field estimates.

For the 2014 second quarter production is forecast to be 5,200 to 5,500 Boe per day. Corporate production will increase when the new field compression facility is operational at Umbach in September 2014.

As a result of a higher forecast natural gas price and the recent changes to British Columbia's Deep Well Royalty Credit Program, Storm is increasing 2014 capital investment from CAD 78.0 million to CAD 97.0 million. The incremental capital will be invested at Umbach to drill an additional four Montney horizontal wells (4.0 net) and complete four Montney horizontal wells (3.6 net).

The company expects average annual production of 6,000 Boe/d to 6,700 Boe/d against previous expectations of 5,500 Boe/d to 6,500 Boe/d.

Forecast production for the fourth quarter of 2014 increases to 8,900 to 9,200 Boe per day which represents 90% growth on a year-over-year basis (55% growth on a per-share basis). The previous average production guidance was 7,500 to 7,900 Boe/d. Adjusted net debt at the end of 2014 is forecast to be CAD 57.0 million (including public company investments), which would be approximately 0.9 times annualized funds from operations in the fourth quarter of 2014 (assumes fourth quarter AECO CAD 3.75 per GJ and Edmonton Par CAD 87.00 per barrel).