2009-08-10-2008-08-01

To purchase 35,000 net undeveloped acres, 1.2 MMBOE proved, 650 BOE/d.

Delphi Energy Corp., Calgary, (Toronto: DEE) plans to acquire oil and gas properties in the Peace River Arch area of Alberta from an undisclosed seller for approximately C$38.5 million. The deal is valued at C$49,900 per producing barrel equivalent, C$26.43 per proved barrel equivalent and C$20.38 per proved and probable barrel equivalent, according to Delphi. The assets include 35,000 net undeveloped acres that are adjacent to Delphi's Hythe area property. Production is 650 barrels equivalent per day. Proved reserves are 1.2 million barrels equivalent, and proved and probable reserves are 1.6 million barrels equivalent. The assets also include 100% working interest in the Clayhurst gas plant, which features 10 million cubic feet per day of capacity, and 5.8% working interest in the Progress gas plant, which features 142 million cubic feet per day of capacity. Approximately 250 barrels equivalent per day of the vendor's working-interest production is subject to right of first refusal. Pro forma, Delphi's undeveloped land position will increase 39% and production is expected to be up to 8,300 barrels equivalent per day, assuming no right of first refusal is exercised. Delphi will partially fund the acquisition with C$30 million in equity raised through a private placement led by RBC Capital Markets and Macquarie Capital Markets Canada Ltd.