Average Quarterly Per-Unit  Realized Price (Cdn$)  Natural Gas  Natural Gas Liquids  Crude Oil  Boe  Q1  $5.63  100%  $84.49  100%  $93.08  100%  $45.62  100%  Q2  $5.20  92%  $80.57  95%  $99.27  107%  $43.66  96%  Q3  $4.48  80%  $73.09  87%  $90.31  97%  $37.80  83%  Q4  $3.85  68%  $56.15  66%  $68.01  73%  $29.99  66%  Commodity Price Declines in 2014  Commodity price declines continued into 2015, although most recent prices have showed some signs of stabilization.  The effect of falling prices on Storm’ s cash flow will be in some degree mitigated by the Company’ s hedging program. At December 31, 2014 the Company had unrealized hedging gains of $12.9 million. In January 2015 the Company  exited its crude oil hedge positions, realizing a cash gain of $5.1 million.  During 2014, in addition to the $88.0 million first quarter land and production acquisition at Umbach, Storm spent  $106.6 million on operations capital. Major spending included $68.1 million on drilling and completions, and $34.3  million on facilities, equipping and tie-ins in the Umbach area. Key to expansion of the Company’ s production base at  Umbach was the commissioning of a second field compression facility during the third quarter. As a result, fourth  quarter production of natural gas and NGL was, respectively, 45% and 39% higher than the third quarter of the year. However, the second facility was full by the end of the fiscal year, and continuing production growth is dependent on  expanding the facility, scheduled to be operational in late March 2015.  Increased production at Umbach resulted in an increase in funds from operations to $45.4 million ($0.42 per share),  up from $21.9 million ($0.30 per share) in 2013.  In February 2014 the Company closed an equity financing for net proceeds of approximately $33.0 million. Storm’ s  bank line at the beginning of 2014 was $65.0 million. The bank line increased to $90.0 million in May and again to  $130.0 million in November in recognition of production growth at Umbach.  The timing of the construction of a third field compression facility, with an initial capacity of 35 Mmcf per day,  expandable to 70 Mmcf per day, originally scheduled for October 2015, is being deferred.  In the fourth quarter of 2014, after review of the year-end independent reserve engineering report, the Company  reduced the carrying amounts of its Alberta properties which exceeded an estimate of the net present value from the  related cash generating units (“ CGUs” ), as more fully described on page 28. The reduction in the net present value  from the properties is primarily due to a decrease in forecasted commodity prices.  The Company reported production from the following areas:  Production and Revenue  Production by Area  Year Ended December 31, 2014  Producing Area  Natural Gas  (Mcf/d) Natural Gas Liquids (Bbls/d) Crude Oil (Bbls/d) Boe/d Umbach –NE BC  27,291 1000 - 5,548 Horn River Basin –NE BC  2,026 - - 338 Grande Prairie –AB 3,750 64 405 1,094 Total  33,067 1,064 405 6,980 21 