Storm Resources advises that the disposition of 275 Boe per day of production in the Grande Prairie area of northwest Alberta, as announced on January 23, 2013, has closed.

Proceeds from the disposition of $18 million, prior to normal adjustments, will be applied in reduction of bank debt. Pro forma net debt at December 31, 2012 is estimated to be $24 million after giving effect to this disposition and a smaller asset sale amounting to $2 million announced in January 2013. In addition, in the fourth quarter of 2012, $2 million was received from the sale of the remainder of Storm's shares in Bridge Energy ASA. Net debt includes the Company's working capital deficiency, but does not include the value of Storm's public company investment. Including the value of the public company investment, pro forma net debt at December 31, 2012 is estimated to be approximately $20 million. The disposition will result in Storm's bank credit facility being reduced from $62 million to $52 million.

Tags: Storm Resources Ltd.