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A summary of reference prices for 2014 and 2013 is as follows: 

<img src='content_image/260626.jpg'>

A portion of Storm’ s natural gas is sold at the AECO monthly index price to align with the Company’ s natural gas hedges which are based on the monthly index. 

Storm’ s realized price for the year was $4.58 per Mcf, with the price higher than index prices as a result of sales gas at Umbach and Grande Prairie having a higher heat content. The Station 2 daily index price for the year averaged $3.90 per GJ, the AECO monthly index price was $4.19 per GJ and the AECO daily index price was $4.27 per GJ. 

The realized price for NGL was largely the same year over year. The NGL stream contains a high proportion of condensate and pentanes which are generally priced with reference to crude oil prices. Correspondingly, realized prices in the fourth quarter of 2014 and into 2015 fell in response to lower crude oil prices. As Storm continues to increase natural gas production at Umbach, higher value condensate and pentane production should continue to increase, both in total and as a percentage of product mix. 

For the year, WTI averaged US$93.00 per barrel and Edmonton light oil was Cdn$94.57 per barrel, resulting in an exchange rate adjusted differential between WTI and Edmonton light oil of Cdn$8.13 per barrel, compared to Cdn$7.78 per barrel in 2013. Due to quality and gravity differentials, Storm’ s average crude oil sales price for 2014, prior to the inclusion of hedging losses, was $6.47 per barrel lower than the Edmonton light oil reference price. 

## Revenue from Product Sales (1) 

<img src='content_image/260627.jpg'>

(1) Excludes hedging gains and losses. 

The year-over-year increase in total revenue of 93% was a result of natural gas driven Boe production growth of 92%, combined with a marginal increase in Boe pricing. When converting natural gas into Boe, a rate of six Mmcf of natural gas to one Boe is the conversion convention based on energy content. In 2014, a sales value conversion rate from Mmcf to Boe, using prices realized by the Company during the year, was 19 Mmcf of natural gas to one Boe. As long as the disparity between a conversion based on energy content and a conversion based on pricing continues, increased natural gas production as a percentage of total production will have the effect of reducing the average selling price per Boe. 

The year-over-year increase in total revenue is due to production having more than doubled at Umbach supported by a 26% increase in the yearly average price for natural gas. However, this price improvement benefited the first three quarters of 2014 only: in the fourth quarter of 2014 prices for all commodities had fallen considerably with natural gas prices being almost identical to the fourth quarter of 2013 and NGL and crude oil prices being much lower. 

A reconciliation of year-over-year revenue changes is as follows: 

<img src='content_image/260628.jpg'>

