Storm Exploration Inc' Corporate Presentation November 2004

1
Storm Exploration Inc.Corporate
PresentationNovember 2004
2
Corporate Overview

• TSX listed, symbol is SEO
• 34.7 million shares (37.3 MM FD)
• Market capitalization 112 million (3.25/share)
• Management and board ownership 27 (33 FD)
• Holds exploratory assets of Storm Energy Ltd.
  (SEM) after sale of SEM to Harvest Energy Trust
• Currently 1,570 boe/d (7.4 mmcf/d, 340 blpd)

3
Management

• Continuity of Management with previous Storm
  companies
• Matt Brister, Chairman of the Board
• (President CEO of Storm Energy since Nov/98)
• Brian Lavergne, President CEO
• (VP Operations COO with Storm Energy, joined
  Dec/98)
• Don McLean, VP Finance CFO
• (VP Finance and CFO with Storm Energy, joined
  Sep/01)
• Eric Blakely, VP Exploration
• (Mgr, Exploration with Storm Energy, joined
  Dec/98)
• Rob Tiberio, VP Operations COO
• (VP Production with Storm Energy, joined Dec/01)
• Harry Ediger, VP Land
• (VP Land with Storm Energy, joined May/99)

4
Business Fundamentals

• Growth through concurrent exploration,
  exploitation and acquisition activities
• Focus on core areas where our knowledge/experience
  will be used to gain a competitive advantage
• Maximize value of existing undeveloped land
  (289,000 net acres)
• Cash flow used to fund exploration and
  exploitation
• Debt used to finance acquisitions
• Hedge to protect investment payout if required
• Growth rate will offset commodity price
  volatility

5
Reserves and Net Asset Value

• Reserves at July 1, 2004 (based on report from
  Paddock Lidstrom)
• Proved Producing 2,418 mboe
• Total Proved 3,306 mboe
• Total Proved plus probable 4,133 mboe
• Net Asset Value at July 1, 2004
• 1.27/share 44.05 mm reserves (10 BTAX,
  forecast prices)
• 0.33/share 11.48 mm undeveloped land
• 0.28/share 9.76 mm cash
• 0.08/share 2.60 mm 27 ownership SVI
• 0.09/share 3.00 mm tax losses
• 2.05/share 70.89 mm

6
Activity Areas

• Total undeveloped land is 289,000 net acres
• 1. Brazeau/Pembina/Tomahawk, Alberta - 13,700
  net undeveloped acres (55 WI)
• 2. Parkland, NE B.C.
• - 28,300 net undeveloped acres (65 WI)
• 3. Cabin/Kotcho NE B.C.
• - 12,500 net undeveloped acres (68 WI)
• 4. Red Earth, Alberta
• - 121,000 net undeveloped acres (90 WI)
• 5. 113,500 net undeveloped acres in other areas
  (60 WI)
• - Pouce Coupe, Alberta (4,000 net acres)
• - Windfall/Kaybob, Alberta (13,700 net acres)
• - Morse, Alberta (50,000 net acres)
• - Umbach, NE BC (2,200 net acres)
• - Tommy Lakes, NE BC (7,800 net acres)

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Brazeau/Pembina/Tomahawk

• light crude and natural gas
• Nisku, Rock Creek,
• Nordegg, Ostracod
• 13,700 acres undeveloped land
• 3-D Seismic coverage
• Typical well
• 50 1000 boe/d production
• 75 to 750 Mboe reserves
• 650 BOE/d current production
• 2004 activity
• 2 wells (25 WI)
• 3 workovers (30 WI)

8
Parkland, NE BC

• natural gas
• Charlie Lake, Doig,
• Halfway, Kiskatinaw
• 28,300 acres undeveloped land
• 3-D seismic coverage
• Typical well
• 100 150 boe/d production
• 75 to 500 Mboe reserves
• 350 BOE/d current production
• 2004 activity
• 1 well (100 WI)
• 4 workovers (75 WI)
• 2005 activity

9
Cabin/Kotcho

• natural gas
• Slave Point
• 12,500 acres undeveloped land
• 3-D seismic coverage
• Typical well
• 300 500 boe/d production
• 500 800 Mboe reserves
• 500 boe/d current production
• Q4, 2004 activity
• 2 wells (50 WI)
• Q1, 2004 activity
• 1 well (50 WI)

10
Red Earth

• light crude and natural gas
• Slave Point, Granite Wash, Basal Cretaceous
• 121,000 acres undeveloped land
• Typical well
• 25 to 150 boe/d production
• 75 to 250 Mboe reserves
• 50 BOE/d current production
• 2004 activity
• 10 wells (90 WI)
• 2005 activity
• 4 wells (70 WI)

11
2004 Capital Budget (Jul Dec)

• Parkland tie in existing gas wells, workovers
  (4), 10.3 mm
• drilling (1 well)
• Red Earth shallow gas program (6 wells)
  3.2 mm
• Granite Wash/Slave Point
• drilling (4 wells)
• Brazeau drilling (2 wells) 0.8 mm
• completion of uphole zones (3 wells),
• land disposition
• Cabin/Kotcho drilling (2 wells), acquisition
  4.0 mm
• Other land, seismic, misc. projects 1.2
  mm
• 19.5 mm
• 16 wells (9.6 net)

12
2005 Capital Budget (projects identified to
date)

• Parkland workovers (1), drilling (4 wells)
  3.6 mm
• Red Earth Granite Wash/Slave Point 1.9 mm
• drilling (4 wells)
• Cabin/Kotcho drilling (1 well), facility
  4.6 mm
• 3-D seismic
• Brazeau/Pembina drilling (2 wells), workover (1
  well) 1.5 mm
• facility
• Other land, seismic, follow up projects
  4.3 mm
• 15.9 mm
• 12 wells (8.0 net)
• Subject to approval by Board of Directors

13
Projections

• 2004 (6 months) 2005
• Average Production 1,200 boe/d 2,100 boe/d
• 1,600 boe/d exit
• Operating Costs 7.00 / boe 6.50 / boe
• Royalties 30 30
• GA 3.50 / boe 1.95 / boe
• Cash flow estimate 4,500,000 13,000,000
• 44/bbl WTI, 6.00/GJ AECO
  38/bbl WTI, 5.75/GJ AECO
• 
  FX0.82

14
Summary

• high level of insider ownership
• significant undeveloped land base
• strong balance sheet
• over 100 million tax pools / losses
• portfolio of medium and high risk opportunities
• owns 27 of Storm Ventures International
• experience in areas of focus

15
Forward-Looking Statements

• Certain information regarding Storm set forth in
  this presentation, including
• managements assessment of future plans and
  operations, contains forward-
• looking statements. These forward-looking
  statements are subject to
• numerous risks and uncertainties, certain of
  which are beyond Storms control,
• including the impact of general economic
  conditions, industry conditions,
• volatility of commodity prices, currency
  fluctuations, imprecision of reserve
• estimates, environmental risks, competition from
  other producers, the lack of
• available personnel or management, stock market
  volatility and ability to
• access sufficient capital from internal and
  external sources. Storms actual
• results, performance or achievement could differ
  materially from those
• expressed in, or implied by, these
  forward-looking statements and, accordingly,
• no assurance can be given that any events
  anticipated by the forward-looking
• statements will transpire or occur, or if any of
  them do so, what benefits Storm
• will derive therefrom.

Storm Exploration Inc. November, 2004
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For More Information - Contact

• Brian Lavergne,
• President and Chief Executive Officer
• Donald McLean,
• Vice President and Chief Financial Officer

Phone [phone] Fax [phone] Email
donm_at_stormexploration.com www.stormexploration.
com
Storm Exploration Inc. November, 2004