|By Marketwired .||
|January 31, 2014 01:58 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 01/31/14 -- Storm Resources Ltd. ("Storm") (TSX VENTURE:SRX) is pleased to announce the successful closing of the previously announced acquisition of a 100% working interest in 29 sections of land in the Umbach-Nig area prospective for liquids rich natural gas from the Montney formation (the "Acquisition"). Included in the Acquisition are two horizontal wells producing from the Montney formation. The total cost of the Acquisition was approximately $87.9 million, which consisted of approximately $30.0 million in cash and 13.6 million common shares ("Common Shares") of Storm with a deemed value of $4.25 per Common Share, being the closing price of the Common Shares on the TSX Venture Exchange on January 30, 2014.
Closing of the previously announced bought deal financing and non-brokered private placement of Common Shares is still expected to occur on or about February 14, 2014.
Forward-Looking Statements - The information in this press release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. In particular, and without limitation, forward looking statements in this press release includes, but is not limited to: working capital, debt, average production, reserves, undeveloped land holdings, ultimate recover factors, planned drilling and development activities, the potential number of drilling locations at Storm's properties, estimated 2014 exit rate production, estimated 2014 capital expenditures, anticipated benefits from the Acquisition, the use of proceeds of the financings, the anticipated closing date of the Acquisition and financings, shareholder meeting dates, Storm's facilities and expansions and timing thereof, capital efficiencies, the receipt of required regulatory and third party approvals, Storm's capital program, production, production guidance, drilling plans and commodity prices. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Storm's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities, including the approval of the TSX Venture Exchange. The intended use of proceeds of the financings by Storm may change if the board of directors of Storm determines that it would be in the best interests of Storm to deploy the proceeds for some other purpose.
Storm's actual results, performance or achievement could differ materially from those expressed in, or implied by such forward-looking statements and, accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits Storm will derive from them.
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 Storm are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.SEDAR.com) and on Storm's website (www.stormresourcesltd.com). The forward-looking statements contained in this press release are made as of the date hereof and Storm undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Storm Resources Ltd.
President and CEO
Storm Resources Ltd.
Donald G. McLean
Storm Resources Ltd.
Manager, Corporate Affairs