CALGARY, Alberta, May 02, 2017 (GLOBE NEWSWIRE) — Delphi Energy Corp. (“Delphi” or the “Company”) is pleased to announce the acquisition of 22.5 sections of Montney rights at Bigstone, contiguous to its current land holdings. In addition, the success of the 2017 capital program has increased corporate production to average approximately 10,000 barrels of oil equivalent per day (“boe/d”) for the month of April based on field estimates.
The Company is pleased to announce it has acquired 22.5 sections of Montney rights in the greater Bigstone area contiguous to the Company’s current Montney lands. This acquisition essentially replaces the 23.1 net sections of undeveloped land that were disposed of in the Partner Transaction that closed in December 2016, bringing current total land holdings in the Montney at Bigstone to 165.5 gross (109.6 net).
The Company is pleased to report initial production results on the first three (2.0 net) wells of the 2017 capital program. Initial results of the 15-08-60-23W5 (“15-08”), 15-11-60-23W5 (“15-11”) and 13-15-60-23W5 (“13-15”) wells have all met or exceeded Delphi’s expectations.
15-08: Over the first 30 days on production 15-08 (65 percent working interest), averaged a total of 1,243 boe/d with a field condensate to sales gas ratio of 216 barrels per million cubic feet (“bbl/mmcf”). Total liquid production, including estimated natural gas liquids of 46 bbl/mmcf sales, accounted for 61 percent or 759 bbl/d of the total sales production rate.
15-11: Over the first 30 days on production 15-11 (65 percent working interest), averaged a total of 1,375 boe/d with a field condensate to sales gas ratio of 80 bbl/mmcf. Total liquid production, including estimated natural gas liquids of 46 bbl/mmcf sales, accounted for 43 percent or 593 bbl/d of the total sales production rate.
13-15: Over the first 30 days on production 13-15 (65 percent working interest), averaged a total of 1,579 boe/d with a field condensate to sales gas ratio of 106 bbl/mmcf. Total liquid production, including estimated natural gas liquids of 46 bbl/mmcf sales, accounted for 48 percent or 751 bbl/d of the total sales production rate.
Delphi’s fourth well of the 2017 program at 15-09-60-23W5 (“15-09”) (61.8 percent working interest) was drilled to a total depth of 5,912 metres with a horizontal lateral in the Montney of 2,864 metres. A 40 stage completion liner was installed with fracturing operations scheduled to commence after spring break-up. The Company’s fifth and six wells of the 2017 program at 13-17-59-22W5 (“13-17”) and 13-09-60-23W5 (“13-09”) have both been drilled with a 40 stage completion liner installed in each. The 13-17 well (65 percent working interest) was drilled to a total depth of 6,018 metres with a horizontal lateral in the Montney of 2,876 metres. The 13-09 well (61.8 percent working interest) was drilled to a total depth of 5,974 metres with a horizontal lateral in the Montney of 2,813 metres. Ensign 220 and 225 are both continuing to drill wells seven and eight of the 2017 program through spring break-up from the 13-17 and 13-09 wellsite pads.
Completion operations for these five wells are scheduled to commence after spring break-up. Industry access to pressure pumping services continues to be restricted, however Delphi’s long working relationship with Trican Well Service (“Trican”), along with access to Trican’s innovative suite of stimulation technologies has enabled Delphi to continue to execute and innovate completion designs. This continued innovation combined with delineation of the Montney play to the west has resulted in significant increases in field condensate production.
Progress on Delphi’s Amine plant to sweeten a portion of the Company’s Montney natural gas is ongoing. This project will enable up to 20 million cubic feet per day (“mmcf/d”) of sweetened Montney gas to be processed at the Bigstone Gas Plant where Delphi owns a 25 percent working interest and ample capacity remains. Regulatory applications are anticipated to be submitted in May with commissioning of the Amine plant planned for the first quarter of 2018.
AMENDMENT TO INFORMATION CIRCULAR
Delphi has amended its Information Circular dated April 18, 2017 sent to shareholders in respect of the Annual General Meeting of shareholders to be held May 18, 2017 to add disclosure regarding a principal holder of its outstanding common shares that was inadvertently omitted. On July 26, 2016 Mason Hill Advisors LLC filed under the Alternative Monthly Reporting System of National Instrument 62-103 indicating that it owned or controlled 16,033,213 common shares of the Company representing 10.17% of the outstanding common shares as of April 18, 2017. Mason Hill Advisors LLC and its affiliates and related parties have advised that they are supportive of the Company and continue to hold such securities for investment purposes. A Revised and Restated Management Information Circular is being filed on SEDAR today.
Q1 2017 REPORTING, CONFERENCE CALL AND WEBCAST INFORMATION
Delphi will release its first quarter of 2017 financial and operational results after market close on May 10, 2017. The Company’s first quarter 2017 financial statements and management’s discussion and analysis will be available on the Company’s website and SEDAR at www.SEDAR.com in due course.
A conference call and webcast to review first quarter 2017 results is scheduled for 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) on Thursday, May 11, 2017. The conference call number is 1-844-358-8760. A brief presentation by David J. Reid, President and CEO and Mark D. Behrman, CFO, will be followed by a question and answer period. The conference call will also be broadcast live on the internet and may be accessed through Delphi’s website at www.delphienergy.ca or by entering http://edge.media-server.com/m/p/qmudsd6g in your web browser. A rebroadcast will also be available on Delphi’s website or at http://edge.media-server.com/m/p/qmudsd6g on your web browser.
This news release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended and will not be offered or sold in the United States absent an exemption from the registration requirements thereof.
About Delphi Energy Corp.
Delphi Energy Corp. is an industry-leading producer of liquids-rich natural gas. The Company has achieved top decile results through the development of our high quality Montney property, uniquely positioned in the Deep Basin of Bigstone, in northwest Alberta. Delphi continues to outperform key industry players by improving operational efficiencies and growing our dominant Bigstone land position in this world-class play. Delphi is headquartered in Calgary, Alberta and trades on the Toronto Stock Exchange under the symbol DEE.