CALGARY, Alberta, Jan. 15, 2019 (GLOBE NEWSWIRE) — Storm Resources Ltd. (“Storm” or the “Company“) (TSX:SRX) is providing an operational update which includes estimated production for the fourth quarter of 2018 and an estimate of the anticipated effect of an ongoing unplanned outage at the McMahon Gas Plant that started January 2, 2019.
Production in the fourth quarter of 2018 is estimated to have averaged approximately 22,300 Boe per day which includes 4,100 barrels per day of liquids (condensate plus NGL). This is higher than guidance for 19,000 to 21,000 Boe per day which was provided on November 13, 2018. Production was increased in mid-November in response to an improvement in natural gas prices in Chicago and averaged approximately 24,000 Boe per day in December based on field estimates.
The McMahon Gas Plant has been shut-in since January 2nd as a result of a failure on flare system piping. Enbridge Inc. initially estimated that the pipe repair would be complete within 11 days. However, as a result of difficulties completing the repair work, Enbridge Inc. provided updated guidance on January 12th that the outage may extend for up to an additional seven days. Updates regarding the outage are being provided by Enbridge Inc. at https://noms.wei-pipeline.com/ under the heading ‘Critical Notices’.
The outage has resulted in the shut-in of approximately 19,500 Boe per day. Production is averaging approximately 4,500 Boe per day based on field estimates during the outage and, assuming the outage is limited to a total of 18 days, production in the first quarter of 2019 is forecast to be 17,500 to 20,000 Boe per day. At this time, there is no change to guidance for 2019 which was previously provided on November 13, 2018.
Storm began operations in August 2010, is headquartered in Calgary, Alberta and is focused on development of its liquids-rich resource in the Montney formation in northeast British Columbia.