Storm Resources Ltd. Announces Asset Disposition and Operations Update

CALGARY, ALBERTA--(Marketwire - Sept. 6, 2012) - STORM RESOURCES LTD. ("Storm") (TSX VENTURE:SRX) has entered into a purchase and sale agreement in relation to the disposition of 150 Boe per day in the Mica area of northeast British Columbia. Details of the disposition are provided below.

• Disposition price is $13.5 million for Storm's 100% working interest in the property.
• Closing date is October 18, 2012 with an effective date of September 1, 2012.
• In the first half of 2012, production averaged 148 Boe per day (64% light oil plus natural gas liquids) and the field netback was $42.70 per Boe.
• The asset contains an estimated 630 Mboe total proved and 722 MBoe of proved plus probable reserves (68% light oil plus natural gas liquids) based on an independent reserve report dated December 31, 2011 prepared by InSite Petroleum Consultants Ltd. in accordance with National Instrument 51-101. There was no future development capital assigned to the property.

In mid-August, Storm sold 1.5 million shares of Chinook Energy Inc. for net proceeds totaling $2.2 million. This results in Storm's public company investments currently totaling 3.0 million shares of Chinook Energy Inc. plus 1.05 million shares of Bridge Energy ASA with an estimated value of $6.9 million based on closing share prices on September 6, 2012.

With the disposition of Mica, Storm's bank credit facility will be reduced from $70 million to $62 million. The disposition of Mica ($13.5 million), sale of Chinook Energy Inc. shares ($2.2 million) and the previously disclosed disposition of the Red Earth property on July 24, 2012 ($2.4 million) will result in an $18.1 million reduction to net debt which was $53.7 million at the end of the second quarter. Net debt includes the working capital deficiency but does not including the value of Storm's public company investments. Including the value of Storm's public company investments, net debt exiting 2012 is forecast to be approximately $37 million. This is based on guidance previously provided in the release of second quarter results on August 13, 2012 and after accounting for the disposition of the Mica property effective September 1, 2012.

On August 22, 2012, the fourth Montney horizontal well (0.6 net) at Umbach began producing with the average rate to date being 3.9 Mmcf per day gross raw gas or 450 Boe per day net sales to Storm (25% natural gas liquids). A fifth Montney horizontal well (0.6 net) which included a vertical pilot hole was cased in August and will be completed and tied in by early October. Log response over the Montney in the vertical pilot hole was similar to pre-existing well control (approximately 25 meters net pay in the upper plus 20 metres net pay in middle). The drilling rig is currently being moved to drill the sixth Montney horizontal well (0.6 net).

Excluding the Mica property, production is currently approximately 2,600 Boe per day and is expected to average approximately 2,400 Boe per day in the third quarter. Fourth quarter production is now forecast to average 2,500 to 2,600 Boe per day (40% oil plus natural gas liquids) which assumes 500 Boe per day at Grande Prairie continues to be shut-in due to low natural gas prices.

The disposition of Mica and sale of Chinook Energy Inc. shares reflects Storm's commitment to maintaining debt levels at a reasonable multiple of cash flow in order to preserve financial flexibility to pursue growth opportunities or to accelerate capital investment on development activities at existing properties if results are supportive of doing so.

Storm Resources Ltd. began operations in August 2010. Storm is headquartered in Calgary, Alberta and is active in the Horn River Basin and Umbach areas of northeast British Columbia, and at Grande Prairie in northwest Alberta.

READER ADVISORIES

Boe Presentation - For the purpose of calculating unit revenues and costs, natural gas is converted to a barrel of oil equivalent ("Boe") using six thousand cubic feet ("Mcf") of natural gas equal to one barrel of oil unless otherwise stated. Boe may be misleading, particularly if used in isolation. A Boe conversion ratio of six Mcf to one barrel ("Bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All Boe measurements and conversions in this report are derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Mboe means 1,000 Boe.

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning the combined company's working capital and bank facility, reserves, undeveloped land holdings and anticipated benefits from the disposition. The forward-looking statements and information are based on certain key expectations and assumptions made by Storm, including expectations and assumptions concerning prevailing commodity prices and exchange rates, applicable royalty rates and tax laws; future well production rates and reserve volumes; the timing of receipt of regulatory and shareholder approvals, the performance of existing wells; the success obtained in drilling new wells; and the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services. Although Storm believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Storm can give no assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions and dispositions; failure to realize the anticipated benefits of acquisitions and dispositions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. There are risks also inherent in the nature of the proposed disposition, including failure to realize anticipated production or reserve increases and decreases; and incorrect assessments of values or future capital and operating costs.

This press release also contains forward-looking statements and information concerning the anticipated timing for completion of, and the effective date of the disposition. Storm has provided these anticipated dates in reliance on certain assumptions believed to be reasonable at this time. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these dates. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Storm's financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Storm's website (www.stormresourcesltd.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Storm undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.