DEE - UPDATE TO STRATEGIC TRANSACTION & EXTENSION OF CREDIT DELPHI ENERGY CORP. ANNOUNCES UPDATE TO STRATEGIC TRANSACTION AND EXTENSION OF CREDIT FACILITY REVIEW
CALGARY, ALBERTA – November 30, 2016 – Delphi Energy Corp. (TSX:DEE) (“Delphi” or the “Company”) is pleased to provide an update to its previously announced letter of intent dated November 8, 2016. Delphi expects to execute a definitive agreement in connection with that strategic arrangement (the “Transaction”) with the existing working interest industry partner (the “Partner”) in the coming days. It is anticipated that the closing of the Transaction will be on, or about, December 22, 2016.
Given the positive impact of the Transaction, the Company’s current bank syndicate has agreed to extend the deadline of the semi-annual review of Delphi’s $85 million revolving credit facility from November 30, 2016 to December 31, 2016.
Activity Update
Delphi is also pleased to provide an update regarding its current drilling and completion activities. Prolonged wet ground conditions have now subsided, giving way to winter weather that allows field operations to significantly ramp up. Completion operations at 16-9-60-23W5M (“16-9”) are currently underway and the Company’s 14-21-60-23W5M well is now finished drilling and awaiting completion, following 16-9 completions operations. The Company’s primary drilling rig has moved and commenced drilling a well at 16-21-60-23W5M, with a second rig scheduled to arrive in the field at 15-8-60-23W5M within the next seven to ten days to begin drilling. At the closing of the Transaction, drilling and completion costs relating to these wells are expected to be included in the carried drilling portion of the Transaction.
“As major deal terms have been agreed to and due diligence with respect to the Transaction is largely complete, we look forward to developing an enhanced relationship with our Partner that allows Delphi to accelerate our growth,” said David J. Reid, Delphi President and CEO. Mr. Reid added, “Delphi has expanded drilling operations in the final months of 2016, drilling as many wells during the 4th quarter as we drilled in the first nine months.”
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.