FOR IMMEDIATE RELEASE, FRIDAY DECEMBER 3, 2004

Storm Announces $14.4 million Bought Deal Financing

Storm Exploration Inc. (TSX – SEO) Storm Exploration Inc. is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including Tristone Capital Inc., Peters & Co. Limited, First Associates Investments Inc. and Salman Partners Inc. Pursuant to the terms of the agreement, 3.0 million subscription receipts for common shares will be issued on a bought deal private placement basis at a price of $3.35 per receipt for gross proceeds of $10.05 million. In a separate concurrent transaction , 1.0 million subscription agreements for flow-through common shares will be issued on a bought deal private placement basis for gross proceeds of $4.35 million, for total proceeds of $14.4 million. Storm Exploration Inc. will apply the proceeds of the issues towards the funding of the asset acquisition announced December 1, 2004 and for exploration and development activities. The asset acquisition is expected to close on December 21, 2004. The subscription receipts and subscription agreements convert to common shares and flow-through common shares of Storm upon closing of the asset acquisition. A total of 4.0 million common shares will be issued at a blended price of $3.60/share after the subscription receipts are converted to 3.0 million common shares and the subscription agreements are converted to 1.0 million flow-through common shares.

Salman Partners Inc. acted as strategic adviser to Storm Exploration Inc. in connection with the asset acquisition agreement that was announced December 1st, 2004.

Storm Exploration Inc. began oil and gas operations effective July 1, 2004. The Company is headquartered in Calgary, Alberta and is active at Red Earth in northern Alberta, Brazeau-Pembina in west central Alberta, and at Parkland and Cabin in the Peace River Arch area of North East British Columbia.

For further information: Brian Lavergne, President & CEO; Donald McLean, Chief Financial Officer, Telephone: (403) 264-3520, Fax: (403) 264-3552.

This news release is not for dissemination in the United States or to any United States news services. The common shares of Storm have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

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