Delphi Energy Corp. DPGYF

Orion : Delphi Energy A "Value Opportunity"

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17.07.2007 18:16:00 - =Delphi Energy A "Value Opportunity"; Orion Starts At Overweight TORONTO (Dow Jones)--Orion Securities initiated coverage of Delphi Energy Corp. (DEE.T) at overweight with a C$3 target, calling it a "value opportunity among the domestic juniors" due to its "strong valuation, improving debt levels, and core asset base." The Calgary oil and gas company is trading at C$1.79 in Toronto Tuesday, up 4 Canadian cents. In a research report, analyst Mark Heim said he believes the current environment represents an opportune time to invest in sares of Delphi, adding that "the company's current valuation and growth momentum provides investors with an excellent opportunity for sare-price appreciation." Heim cited Delphi's continued growth at Bigstone, noting that he believes this area will represent Delphi's primary source of growth in the near term, with significant upside through successful step-out drilling and multi-zone completions. Delphi's core operations are in Alberta and northeast British Columbia. He also said that "one of the more attractive aspects to an investment in Delphi is its strength in reserves." Delphi's 2006 reserves were assessed at 11.4 million barrels of oil equivalent proved and 17.3 million barrels of oil equivalent proved plus probable, and its reserve life index is estimated to be 8.9 years compared with the peer group average of about seven years. Orion Securities doesn't have an investment-banking relationsip with Delphi, nor does Heim own sares of the company.