Horn River Basin, Northeast British Columbia  Grande Prairie Area, Northwest Alberta and Northeast British Columbia  GLYPH<1>GLYPH<11> GLYPH<14>GLYPH<16> GLYPH<20> GLYPH<19> GLYPH<15> GLYPH<20> GLYPH<1>GLYPH<8> GLYPH<23>GLYPH<16> GLYPH<13> GLYPH<10>GLYPH<14>GLYPH<1> At the end of 2014, the unrealized gain on the 2015 commodity prices hedges was $12.9 million.  The purpose of Storm’ s commodity price hedges is to reduce the effect of commodity price fluctuations on capital  investment and growth over the next 12 months. A maximum of 50% of current production (most recent monthly or  quarterly average), before royalties, will be hedged; anticipated production growth is not hedged.  For 2015, commodity price hedges include both fixed price swaps and collars with:  In mid-January 2015, approximately 150 Boe per day was shut in as a result of the recent decline in the natural gas  price.  Production in the fourth quarter was 1,091 Boe per day (41% oil plus NGL), a year-over-year decline of 5%. The  operating netback was $19.96 per Boe with revenue of $41.35 per Boe, a transportation cost of $3.14 per Boe, an  operating cost of $12.04 per Boe and a royalty of $6.20 per Boe, or 15% of revenue. Cash flow from this area  continues to be re-invested to grow production at Umbach.  Storm has a 100% working interest in 123 sections in the HRB (81,000 net acres) which are prospective for natural  gas from the Muskwa, Otter Park and Evie/Klua shales. Fourth quarter production averaged 307 Boe per day (100%  natural gas), a year-over-year decline of 15%. The operating netback was $5.91 per Boe with revenue of $18.41 per  Boe, transportation costs of $0.66 per Boe, an operating cost of $9.95 per Boe and a royalty of $1.89 per Boe, or  10% of revenue. • 22,500 Mcf per day (27,900 GJ per day) of natural gas from January to December at an average floor price  of approximately $4.28 per Mcf and an average ceiling price of $4.54 per Mcf (AECO monthly index $3.45  per GJ for floor and $3.66 per GJ for ceiling);  • 533 barrels per day of oil from January to September at a price of WTI Cdn$98.43 per barrel. This hedge  was sold in January 2015 for net proceeds of $5.1 million.  6 