CALGARY, ALBERTA--(Marketwired - April 3, 2017) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES
Delphi Energy Corp. (TSX:DEE) ("Delphi" or the "Company") today announced
that it has appointed Mark Behrman as Chief Financial Officer ("CFO").
Mr. Behrman is an accomplished finance professional with extensive senior leadership, capital markets, entrepreneurial and
field experience. Most recently, Mr. Behrman spent nine years as CFO of Sea NG Corporation of Calgary, a private company involved
in the development and commercialization of technology for marine transportation of compressed natural gas. Before that he served
in senior leadership positions at a number of Western Canadian and international oil and gas exploration and production
companies. From 1995 to 1998, Mr. Behrman served as VP, Corporate Finance for RBC Dominion Securities, providing financial and
advisory services to companies across the Canadian oil and gas sector.
"Mark will be a very strong addition to Delphi's executive team," said David Reid, President and Chief Executive Officer. "We
will benefit from his capital markets experience, entrepreneurial spirit, and engineering and energy technology expertise, as we
accelerate our growth program and work to realize Delphi's full potential."
Added Mr. Behrman, "This is a great time to be joining Delphi. With a strong land position in the Montney Deep Basin offering
the potential for superior returns, I believe that Delphi is poised for significant and profitable growth. I look forward to
helping the company achieve its growth targets while reducing operational costs and enhancing shareholder returns."
Mr. Behrman holds a Masters of Business Administration (MBA) from the Richard Ivey School of Business at the University of
Western Ontario and a BSc in Mechanical Engineering from the University of Saskatchewan.
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.
Forward-Looking Statements . This news release contains forward-looking statements and
forward-looking information within the meaning of applicable Canadian securities laws. These statements relate to future
events or the Company's future performance and are based upon the Company's internal assumptions and expectations. All
statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will",
"should", "believe", "intends", "forecast", "plans", "guidance", "budget" and similar expressions.
More particularly and without limitation, this release contains forward-looking statements and information relating to
petroleum and natural gas production estimates and weighting, projected crude oil and natural gas prices, future exchange rates,
expectations as to royalty rates, expectations as to transportation and operating costs, expectations as to general and
administrative costs and interest expense, expectations as to capital expenditures and net debt, planned capital spending, future
liquidity and Delphi's ability to fund ongoing capital requirements through operating cash flows and its credit facilities,
supply and demand fundamentals for oil and gas commodities, timing and success of development and exploitation activities, cash
availability for the financing of capital expenditures, access to third-party infrastructure, treatment under governmental
regulatory regimes and tax laws and future environmental regulations.
Furthermore, statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied
assessment, based on certain estimates and assumptions that the reserves described can be profitable in the future.
The forward-looking statements and information contained in this release are based on certain key expectations and
assumptions made by Delphi. The following are certain material assumptions on which the forward-looking statements and
information contained in this release are based: the stability of the global and national economic environment, the stability of
and commercial acceptability of tax, royalty and regulatory regimes applicable to Delphi, exploitation and development activities
being consistent with management's expectations, production levels of Delphi being consistent with management's expectations, the
absence of significant project delays, the stability of oil and gas prices, the absence of significant fluctuations in foreign
exchange rates and interest rates, the stability of costs of oil and gas development and production in Western Canada, including
operating costs, the timing and size of development plans and capital expenditures, availability of third party infrastructure
for transportation, processing or marketing of oil and natural gas volumes, prices and availability of oilfield services and
equipment being consistent with management's expectations, the availability of, and competition for, among other things, pipeline
capacity, skilled personnel and drilling and related services and equipment, results of development and exploitation activities
that are consistent with management's expectations, weather affecting Delphi's ability to develop and produce as expected,
contracted parties providing goods and services on the agreed timeframes, Delphi's ability to manage environmental risks and
hazards and the cost of complying with environmental regulations, the accuracy of operating cost estimates, the accurate
estimation of oil and gas reserves, future exploitation, development and production results and Delphi's ability to market oil
and natural gas successfully to current and new customers. Additionally, estimates as to expected average annual production rates
assume that no unexpected outages occur in the infrastructure that the Company relies on to produce its wells, that existing
wells continue to meet production expectations and any future wells scheduled to come on in the coming year meet timing and
production expectations.
Commodity prices used in the determination of forecast revenues are based upon general economic conditions, commodity
supply and demand forecasts and publicly available price forecasts. The Company continually monitors its forecast assumptions to
ensure the stakeholders are informed of material variances from previously communicated expectations.
Financial outlook information contained in this release about prospective results of operations, financial position or
cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on
management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook
information contained in this release should not be used for purposes other than for which it is disclosed.
Although the Company believes that the expectations reflected in such forward-looking statements and information are
reasonable, it can give no assurance that such expectations will prove to be correct and such forward-looking statements should
not be unduly relied upon. Since forward-looking statements and information address future events and conditions, by their very
nature they involve inherent known and unknown risks and uncertainties. Delphi's actual results, performance or achievements
could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance
can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do
so, what benefits Delphi will derive therefrom. Should one or more of these risks or uncertainties materialize, or should
assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those currently
anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil
and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with
respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to
production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental
risks, competition from others for scarce resources, the ability to access sufficient capital from internal and external sources,
changes in governmental regulation of the oil and gas industry and changes in tax, royalty and environmental
legislation. Additional information on these and other factors that could affect the Company's operations or financial
results are included in the Company's most recent Annual Information Form and other reports on file with the applicable
securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking
statements contained in this release are made as of the date of this release for the purpose of providing the readers with the
Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other
purposes. Delphi undertakes no obligation to update publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The
forward-looking statements contained in this release are expressly qualified in their entirety by this cautionary
statement.
Basis of Presentation . For the purpose of reporting production information,
reserves and calculating unit prices and costs, natural gas volumes have been converted to a barrel of oil equivalent (boe) using
six thousand cubic feet equal to one barrel. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion
conforms to the Canadian Securities Administrators' National Instrument 51-101 when boes are disclosed. Boes may be
misleading, particularly if used in isolation.
As per CSA Staff Notice 51-327 initial test results and initial production performance should be considered preliminary
data and such data is not necessarily indicative of long-term performance or of ultimate recovery.
Non-IFRS Measures . The release contains the terms "funds from operations", "funds from
operations per share", "net debt", "net debt to funds from operations ratio", "operating netbacks" "cash netbacks" and "netbacks"
which are not recognized measures under IFRS. The Company uses these measures to help evaluate its
performance. Management considers netbacks an important measure as it demonstrates its profitability relative to current
commodity prices and costs of production. Management uses funds from operations to analyze performance and considers it
a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and to
repay debt. Funds from operations is a non-IFRS measure and has been defined by the Company as cash flow from operating
activities before accretion on long term and subordinated debt, decommissioning expenditures and changes in non-cash working
capital from operating activities. The Company also presents funds from operations per share whereby amounts per share are
calculated using weighted average shares outstanding consistent with the calculation of earnings per share. Delphi's
determination of funds from operations may not be comparable to that reported by other companies nor should it be viewed as an
alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in
accordance with IFRS. The Company has defined net debt as the sum of long term debt and subordinated debt plus/minus working
capital excluding the current portion of the fair value of financial instruments. Net debt is used by management to monitor
remaining availability under its credit facilities. Net debt to funds from operations ratio is defined as net debt to annualized
quarterly funds from operations, based on the most recently completed quarter. This ratio is used to calculate the Company's
compliance with its net debt to funds from operations ratio covenant. Operating netbacks have been defined as revenue less
royalties, transportation and operating costs. Cash netbacks have been defined as operating netbacks less interest and
general and administrative costs. Netbacks are generally discussed and presented on a per boe basis.