Delphi Energy Corp.
TSX: DEE
September
9, 2009
Delphi Energy
Announces Financing
NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE
UNITED STATES
CALGARY, ALBERTA – Delphi Energy
Corp. ("Delphi") announces that it has entered into a financing
agreement with a syndicate of underwriters, led by National Bank Financial,
(the "Underwriters") to issue and sell on a "bought deal"
basis, 12,000,000 common shares of Delphi (the "Common Shares") at an
issue price of $1.25 each, resulting in gross proceeds of $15,000,000. The
Underwriters will have the option to acquire up to an additional 1,200,000
Common Shares at an issue price of $1.25 per Common Share for additional gross
proceeds of up to $1,500,000 for total gross proceeds of up to $16,500.000.
Proceeds of the offering will be used to fund Delphi's ongoing light oil
development program in Hythe and additional potential acquisition
opportunities. The offering is subject to normal regulatory approvals,
including approval of the Toronto Stock Exchange. Closing is expected to occur
on or before September 30, 2009.
Delphi Energy is a Calgary-based company that explores, develops and
produces oil and natural gas in Western Canada. The Company is managed by a
proven technical team. Delphi trades on the Toronto Stock Exchange under the
symbol DEE.
FOR FURTHER INFORMATION PLEASE CONTACT:
Delphi
Energy Corp.
David
J. Reid
President
& CEO
(403)
265-6171
Fax:
(403) 265-6207
or
Delphi
Energy Corp.
Brian
P. Kohlhammer
V.P.
Finance & CFO
(403)
265-6171
Fax:
(403) 265-6207
or
Delphi
Energy Corp.
300,
500 - 4 Avenue S.W.
Calgary,
Alberta T2P 2V6
Email:
info@delphienergy.ca
Website: www.delphienergy.ca
Forward-Looking
Statements.
This release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue",
"estimate", may", "will", "should",
believe", "intends", "forecast", "plans",
"guidance" and similar expressions are intended to identify
forward-looking statements or information.
More
particularly and without limitation, this release contains forward looking
statements and information relating to the Company's risk management program,
petroleum and natural gas production, future funds from operations, capital
programs, commodity prices, costs and debt levels. The forward-looking
statements and information are based on certain key expectations and
assumptions made by Delphi, including expectations and assumptions relating to
prevailing commodity prices and exchange rates, applicable royalty rates and
tax laws, future well production rates, the performance of existing wells, the
success of drilling new wells, the capital availability to undertake planned
activities and the availability and cost of labour and services.
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. Since
forward-looking statements and information address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results may differ 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, the ability to access
sufficient capital from internal and external sources 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 reports on file with the applicable securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com). The
forward-looking statements and information contained in this press release are
made as of the date hereof 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.
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 with the Canadian
Securities Administrators' National Instrument 51-101 when boes are disclosed.
Boes may be misleading, particularly if used in isolation.
Non-GAAP
Measures.
The release contains the terms "funds from operations", "funds
from operations per share", "net debt", "cash operating costs"
and "netbacks" which are not recognized measures under Canadian
generally accepted accounting principles. 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. 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-GAAP measure and has been defined by the Company as
net earnings plus the addback of non-cash items (depletion, depreciation and
accretion, stock-based compensation, future income taxes and unrealized
gain/(loss) on risk management activities) and excludes the change in non-cash
working capital related to operating activities and expenditures on asset
retirement obligations and reclamation. 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 Canadian GAAP. The Company
has defined net debt as the sum of long term debt plus working capital
excluding the current portion of future income taxes and risk management
asset/liability. Net debt is used by management to monitor remaining
availability under its credit facilities. Cash operating costs have been
defined as the sum of operating expenses, transportation expenses, general and
administrative expenses and interest costs.