Storm Gas Resource Corp.

July 12, 2011 03:00 ET

Storm Gas Resource Corp. Initiates Review of Strategic Alternatives

CALGARY, ALBERTA--(Marketwire - July 12, 2011) - Storm Gas Resource Corp. ("SGR" or the "Company") is pleased to announce a decision by its board of directors (the "Board") to enter into a review of strategic alternatives in order to maximize shareholder value. The process of reviewing strategic alternatives will be overseen by a special committee (the "Special Committee") comprised of the independent directors of the Board.

Such strategic alternatives may include, but are not limited to: a sale of a material portion of the assets of the Company; a sale of the Company, either in one transaction or in a combination of transactions; a merger or other business combination; or a farm-out or joint venture.

SGR has retained Peters & Co. Limited and RBC Rundle as its exclusive financial advisors to assist the Company in connection with this process.

The Company has not set a definitive schedule to complete its review and no decision on any particular alternative has been reached at this time. There can be no assurance that the process will result in a transaction of any form or, if a transaction is undertaken, as to its terms or timing. SGR does not intend to make any further announcements regarding the process unless and until the Board has approved a specific transaction or other course of action or otherwise deems disclosure of developments is appropriate.

Further information related to the process can be found on the websites of Peters & Co. Limited (www.petersco.com) and RBC Rundle (www.rundleenergy.com).

Storm Gas Resource Corp. is the operator and ~60% working interest owner of approximately 105,000 gross acres (~61,000 net acres) in the Horn River Basin including 15 sections held 100%. SGR has drilled two vertical test wells and two horizontal wells to assess the Horn River shales to date that demonstrate the potential of the eastern flank of the basin.

Forward-Looking Statements

Certain information in this press release contains forward-looking information that involves risk and uncertainty. For this purpose, any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. Specific forward-looking statements contained in this press release include, among others, statements regarding the strategic alternatives review process and the potential outcomes thereof. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Contact Information

  • Storm Gas Resource Corp.
    Kevin Hall
    President and Chief Executive Officer
    403-817-6173
    403-817-6146 (FAX)

    Storm Gas Resource Corp.
    Suite 800, 205 - 5th Avenue SW
    Calgary, Alberta
    T2P 2V7