Delphi Energy Corp. (TSX: DEE) continues to grow its land position in Canada and expects to ramp up drilling in 2011.

Delphi's total net land position, which is a measure of its future growth prospect inventory, including developed, under-developed and undeveloped lands has more than doubled over the past three years to 349,177 net acres (545 sections). Delphi's undeveloped land position grew 42% in 2010 to 244,475 net acres (382 sections). The company has regulatory approval to drill up to four natural gas wells per pool per section on its lands at its three core properties of Bigstone, Hythe and Wapiti/Gold Creek.

Outlook

In 2011, Delphi will focus on numerous liquids-rich natural gas development projects utilizing conventional vertical well techniques as well as horizontal drilling and multistage fracing techniques. The company will also continue to direct capital to its light oil plays in both the Cardium and Doe Creek.

Delphi expects to spend an estimated $70 to $80 million in 2011, drilling 30 gross wells (23 net) with significant field capital directed towards conventional vertical well opportunities in the "ultra" liquids-rich natural gas (up to 120 barrels per million cubic feet) core area of Wapiti/Gold Creek where up to 45% of the production are NGL's and F&D costs are under $8.00 per BOE. Wells will also be drilled at Bigstone and Hythe core areas pursuing both light oil and liquids-rich natural gas. The first half 2011 capital program has a forecast crude oil and NGL production mix of approximately 55%. Delphi anticipates that at least 85% of the capital will be focused on light oil and liquids-rich natural gas projects. The planned capital program is expected to result in average 2011 production volumes of 8,800 to 9,200 BOE/d with a liquids weighting of approximately 27%.