CALGARY, Alberta, June 07, 2017 (GLOBE NEWSWIRE) — Delphi Energy Corp. (“Delphi” or the “Company”) is pleased to announce that it has closed its previously announced financing comprised of the sale of (i) 27,559,055 common shares issued at a price of $1.27 per common share; and (ii) 30,000 senior secured Collateralized Exchange Listed™ (“CEL”) Notes, each with a principal amount of $1,000 and a 10% coupon, for gross proceeds of approximately $65.3 million.
A syndicate of agents, led by Raymond James Ltd. and co-led by AltaCorp Capital Inc., sold the common shares and Raymond James, as sole agent, sold the CEL Notes, all on a private placement basis. The common shares and CELTM Notes issued are subject to a statutory hold period of four months plus one day from the date of closing, in accordance with applicable securities legislation. The majority of the financing was subscribed for by a single US-based institutional investor. Delphi is pleased to have a strategic investor who is constructive to Delphi’s accelerated development plan at its Bigstone Montney asset and is supportive of future consolidation opportunities in the area.
Funds from the financing will initially be used to repay bank debt leaving the Company with an undrawn $80 million credit facility. The enhanced liquidity will support Delphi’s planned accelerated capital program and will allow the Company to continue its Bigstone consolidation efforts, following up on its previously announced acquisition of 22.5 net sections of Montney rights.
Delphi plans to add a third rig in the fall and double its planned drilling program for the remainder of 2017 through spring breakup in 2018, increasing the number of wells drilled from 10 to 20 wells. The Company drilled six wells in each of 2015 and 2016. The Company’s field operations remain active after an abbreviated spring break up, with five (3.1 net) wells in various stages of completion.
|Drilling Program (# of wells)||2015||2016||2017||2018|
|Historical and current budgets||6||6||13||14|
|Expanded capital program||–||–||3-5||4-8|
Although the full 2018 capital budget and guidance will not be finalized and approved until the fourth quarter of 2017, Delphi anticipates production in the fourth quarter of 2018 to increase by approximately 40 percent, from its current fourth quarter of 2017 expectation of 11,000 to 11,500 boe/d due to the expanded capital program. Run-rate cash flow in the fourth quarter of 2018 is anticipated to be in the context of $100 million to $110 million (assuming commodity pricing similar to the Company’s 2017 guidance assumptions).Total debt to cash flow ratio is anticipated to remain at or below the Company’s target of 1.5 times through 2018.
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.
|FOR FURTHER INFORMATION PLEASE CONTACT:|
|DELPHI ENERGY CORP.|
|300, 500 – 4 Avenue S.W.|
|Telephone: (403) 265-6171||Facsimile: (403) 265-6207|
|Email: email@example.com||Website: www.delphienergy.ca|
|DAVID J. REID||MARK D. BEHRMAN|
|President & CEO||CFO|