CALGARY, ALBERTA–(Marketwired – Dec. 15, 2016) – Delphi Energy Corp. (TSX:DEE) (“Delphi” or the “Company“) is pleased to announce the closing of its strategic agreement (the “Transaction”) with our existing working interest industry partner (our “Partner“) to accelerate the development of Delphi’s world-class, liquids rich Deep Basin natural gas play at Bigstone in Northwest Alberta (“Bigstone Montney“).
Delphi has received approximately $31.3 million in cash (including closing adjustments) for the Partner’s equalization of certain working interests relating to various transaction assets. In addition, our Partner has paid approximately $10.9 million to Delphi for the Partner’s carried obligation of the joint drilling program that is underway. Total gross proceeds will be used to reduce the Company’s overall bank debt.
“The closing of the Transaction marks a pivotal shift in Delphi’s strategic plan to accelerate our development and production at Bigstone,” said David J. Reid, President and CEO of Delphi. “The Transaction allows Delphi to nearly triple our pace of drilling for 2017 while we concurrently right-size our pace of capitalization and reduce debt. As we focus on accelerating production and cash flow growth, the Company will remain true to our culture of strong capital discipline as demonstrated over the past three years, while noticeably moving faster to best capture the significant value of our Montney inventory for shareholders.”
In consideration of the early closing of the Transaction, the Company expects to provide updated full year guidance for 2016 and initial guidance estimates for 2017 on, or before, December 21, 2016. Delphi has maintained operational readiness to accelerate development in the Montney in anticipation of the Transaction closing.
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.