Storm Exploration Inc.

Storm Exploration Inc.

April 01, 2009 19:38 ET

Storm Exploration Inc.: Banking Agreement

CALGARY, ALBERTA--(Marketwire - April 1, 2009) -


Storm Exploration Inc. ("Storm") (TSX:SEO) is pleased to announce the extension of its revolving bank facility until April 30, 2010. The amount of the renewed facility is $120 million, an increase of $10 million over the expiring facility. The facility is provided by a syndicate of banks with the Canadian Imperial Bank of Commerce acting as agent. Other members of the banking syndicate are the Bank of Montreal, Union Bank of California and Alberta Treasury Branches, with the latter two institutions joining the syndicate for the first time. No changes to security provided by Storm or loan conditions were made. An additional amount of $10 million, which would have brought the total facility to $130 million, was considered but not accepted, as the interest costs associated with the incremental $10 million were significantly higher than those applicable to the rest of the facility.

The increased bank line, coupled with the recently completed common share offering for a net amount of $18.8 million, provides Storm with the financial capacity to execute its 2009 capital program in a period of low and volatile prices for natural gas. It also gives Storm the ability to respond promptly to opportunistic situations in an evolving merger and acquisition market.

Forward-Looking Statements - Certain information set forth in this press release, including management's assessment of Storm's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Storm's control, including the effect of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are advised that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Storm's actual results, performance or achievement, could differ materially from those expressed in, or implied by, these forward-looking statements. Storm disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under securities law.

The Toronto Stock Exchange has not reviewed, not does it accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Storm Exploration Inc.
    Brian Lavergne
    President and Chief Executive Officer
    (403) 264-3520
    Storm Exploration Inc.
    Donald McLean
    Chief Financial Officer
    (403) 264-3520