2009-09-24-2009-08-21

To buy company with assets in Alberta, gaining 872,000 BOE proved, 330 BOE/d.

Delphi Energy Corp., Calgary, (Toronto: DEE) plans to acquire Fairmount Energy Inc., Calgary, (Toronto Venture: FMT) for C$14.5 million in stock and debt assumption. Delphi will pay 0.3571 share per Fairmount share. The deal value includes approximately $7.3 million of debt. As of the end of November 2008, Fairmount held 3,553 net acres in Gold Creek, Alberta, 1,280 net acres in Thorsby, and 640 acres in Lomond. The assets include proved reserves of 872,000 barrels of oil equivalent (1.6 billion barrels proved plus probable). Production is 330 barrels of oil equivalent per day. Delphi estimates it will pay C$14.49 barrel proved (C$7.92 proved plus probable) and C$38,300 per flowing barrel. Peters & Co. Ltd. is advisor to Fairmount. RBC Capital Markets is advisor to Delphi.