Storm Resources Ltd.
TSX VENTURE : SRX

Storm Resources Ltd.

May 19, 2015 08:27 ET

Storm Resources Ltd. Announces a $36 Million Equity Financing

CALGARY, ALBERTA--(Marketwired - May 19, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

EQUITY FINANCING

STORM RESOURCES LTD. ("Storm") (TSX VENTURE:SRX) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including GMP Securities Ltd., RBC Capital Markets, Peters & Co. Limited, National Bank Financial Inc. and Raymond James Ltd. (collectively, the "Underwriters") to issue, on a bought deal basis, 8,000,000 common shares ("Common Shares") at a price of $4.55 per Common Share, for aggregate gross proceeds of $36.4 million (the "Bought Deal Financing").

The net proceeds from the offering will be initially used to temporarily reduce indebtedness, partially finance the company's 2015 capital expenditure program and for general corporate purposes. The Common Shares issuable pursuant to the Bought Deal Financing will be offered in all provinces of Canada by way of a short form prospectus.

Closing is expected to occur on or about June 10, 2015 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of Common Shares in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

READER ADVISORIES

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.

Contact Information

  • Storm Resources Ltd.
    Brian Lavergne
    President and CEO
    403-817-6145

    Storm Resources Ltd.
    Donald G. McLean
    CFO
    403-817-6145

    Storm Resources Ltd.
    Carol Knudsen
    Manager, Corporate Affairs
    403-817-6145
    www.stormresourcesltd.com