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Delphi Energy Corp. Reports 2017 Year End Results and Reserves and Provides Operations Update

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CALGARY, Alberta, March 07, 2018 (GLOBE NEWSWIRE) -- Delphi Energy Corp. ("Delphi" or the "Company") (TSX:DEE) is pleased to announce its financial and operational results, crude oil and natural gas reserves information for the year ended December 31, 2017 and an operations update.

2017 HIGHLIGHTS

  • Produced 8,401 barrels of oil equivalent per day ("boe/d"), a 14 percent increase from 7,392 boe/d in 2016.  Average production in the fourth quarter of 2017 increased 35 percent to 9,588 boe/d compared to 7,127 boe/d in the fourth quarter of 2016;
  • Field condensate production in the fourth quarter of 2017 increased to 2,374 barrels per day ("bbls/d"), a 77 percent increase from 1,338 bbls/d in the fourth quarter of 2016;
  • Field condensate and natural gas liquids ("NGL") accounted for 58 percent of crude oil and natural gas revenues in 2017 and 64 percent in the fourth quarter;
  • Realized a natural gas price of $4.04 per thousand cubic feet ("mcf") as a result of selling approximately 90 percent of our natural gas in Chicago via full-path transportation arrangements on Alliance and a hedging gain of $0.27 per mcf;
  • Cash netbacks per barrel of oil equivalent ("boe") increased by eight percent resulting in adjusted funds flow of $36.7 million, a 23 percent increase over 2016. Cash netbacks per boe in the fourth quarter of 2017 increased 29 percent resulting in adjusted funds flow of $14.1 million, a 74 percent increase over the comparative quarter of 2016.
  • Drilled six (3.9 net) successful delineation wells and eleven (7.1 net) successful in-fill wells in the Company's Bigstone Montney property, as part of a 17 (11.0 net) well drilling program;
  • Acquired 14.5 gross (13.5 net) sections of Montney rights in the greater Bigstone area contiguous to the Company's current Montney lands;
  • Invested $15.0 million in various infrastructure projects to handle additional sales volumes and provide for reduced operating expenses in 2018 and constructed over 21 kilometres of main gathering and associated fuel gas pipelines and over five kilometres of well tie-in and associated fuel gas pipelines;
  • Increased total proved and total proved plus probable reserves by 40 percent and 33 percent, respectively, from a successful delineation drilling program in 2017;
  • Increased the net present value (discounted at ten percent) of total proved and total proved plus probable reserves by 23 percent and 30 percent respectively;
  • Increased field condensate reserves related to the Company's Montney shale gas reserves by 76 percent and 68 percent for total proved and total proved plus probable reserves, respectively; and
  • For the 15 (9.6 net) wells brought on production in 2017, achieved a proved developed producing finding and development cost of $14.37 per boe(1).

(1) Includes capital to drill, complete, equip and tie-in of $86.8 million and proved developed producing reserve "extensions and improved recovery" of 6.04 million barrels of oil equivalent ("mmboe").  Excludes technical revisions associated with other wells.  Includes $5.9 million of 2016 capital and excludes $17.7 million of capital spent in 2017 for drilling and completion of wells not brought on production in 2017.

FINANCIAL AND OPERATIONAL HIGHLIGHTS          
  Three months ended December 31 Twelve months ended December 31
  2017   2016   % Change   2017   2016   % Change  
Financial            
($ thousands, except per share)
           
                         
Oil and natural gas revenues 30,896   20,546   50   101,836   69,134   47  
Net earnings (loss) (1,764 ) (25,461 ) 93   6,902   (41,114 ) -  
Per share – basic and diluted (0.01 ) (0.16 ) 94   0.04   (0.26 ) -  
Adjusted funds flow(1) 14,144   8,120   74   36,670   29,865   23  
Per share – basic and diluted(1) 0.08   0.05   60   0.21   0.19   11  
Net debt(1) 136,421   85,945   59   136,421   85,945   59  
Capital expenditures, net of dispositions 42,156   (30,679 ) -   117,292   (3,427 ) -  
             
Weighted average shares (000s)            
Basic 185,472   155,630     19   173,171   155,540   11  
Diluted 185,472   155,630   19   173,975   155,540   12  
             
Operating            
(boe conversion – 6:1 basis)            
             
Production:            
Field condensate (bbls/d) 2,374   1,338   77   1,968   1,444   36  
Natural gas liquids (bbls/d) 1,315   1,125   17   1,250   1,183   6  
Natural gas (mcf/d) 35,391   27,988   26   31,098   28,595   9  
Total (Boe/d) 9,588   7,127   35   8,401   7,392   14  
             
Average realized sales prices, before financial instruments            
Field condensate ($/bbl) 64.20   57.17   12   59.14   48.64   22  
Natural gas liquids ($/bbl) 47.34   30.42   56   35.42   20.62   72  
Natural gas ($/mcf) 3.39   4.00
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