Delphi Energy Corp.
TSX: DEE
May 6, 2009
Delphi Energy
Continues Drilling Success at Hythe
CALGARY, ALBERTA �� Delphi Energy Corp.
(“Delphi�� or “the Company��) is pleased to
announce its financial and operational results for the quarter ended March 31,
2009.
First Quarter 2009 Highlights
- Achieved record production of 6,762 barrels of oil
equivalent per day (boe/d) in the first quarter of 2009, marking the
eighth consecutive quarter of production growth.�
- Generated funds from operations of $10.0 million
($0.13 per basic share).
- Production volumes at Hythe, Alberta have grown
over 400 percent to approximately 2,100 boe/d since acquiring the property
in September 2007.
- Drilled 5 (3.8 net) wells with an overall success
rate of 100 percent.
- Increased the Company’s natural gas hedge
position to 52 percent of current production at an average floor price of
$7.35 per mcf for the remainder of 2009.
Financial Highlights ($ thousands except per unit amounts)
����������������������������������������������� Three Months Ended March 31
�������������������������������������������������� 2009��� ��2008� % Change
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Petroleum and natural gas sales����������������� 24,205��� 32,212������ (25)
Per boe����������������������������������������� 39.77���� 58.45������ (32)
Funds from operations��������������������������� 10,017��� 17,059������ (41)
Per boe����������������������������������������� 16.47���� 30.95������ (47)
Per share - Basic�������������������������������� 0.13����� 0.25������ (48)
Per share - Diluted������������ ������������������0.13����� 0.25������ (48)
Net earnings (loss)����������������������������� (3,320)���� (739)����� 349
Per boe����������������������������������������� (5.45)��� (1.34)����� 307
Per share - Basic������������������������������� (0.04)��� (0.01)����� 300
Per share - Diluted����������������������������� (0.04)��� (0.01)����� 300
Capital invested�������������������������������� 14,092��� 26,498������ (47)
Disposition of properties������������������������� (151)������� -������ 100
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Net capital invested���������������������������� 13,941��� 26,498������ (47)
Acquisition of properties���������������������������� -�������� -�������� -
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Total capital����������������������������������� 13,941��� 26,498������ (47)
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����������������������������������������������� Mar. 31�� Dec. 31
�������������������������������������������������� 2009����� 2008� % Change
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Debt plus working capital deficiency (1)������� 113,162�� 109,237�������� 4
Total assets����������������������������������� 363,069�� 364,538�������� -
Shares outstanding (000's)
Basic������������������������������������������ 79,067��� 79,067�������� -
Diluted�� ��������������������������������������85,875��� 83,798�������� -
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(1) excludes risk management asset and the related current future income tax
��� liability.
Operational Highlights
����������������������������������������������� Three Months Ended March 31
Production���������������������������������������� 2009����� 2008� % Change
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Natural gas (mcf/d)����������������������������� 34,813��� 31,777������� 10
Crude oil (bbl/d)���������������������������������� 475������ 387������� 23
Natural gas liquids (bbl/d)������������������������ 485������ 372������� 30
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Total (boe/d)������������������������������������ 6,762���� 6,056������� 12
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MESSAGE TO SHAREHOLDERS
Delphi enjoyed a successful first quarter to start 2009, accomplishing
operational growth, strong capital efficiencies and continued financial
flexibility to ensure the Company remains well positioned for sustainable
long-term, organic growth in any business environment.� The global recession continues with commodity
prices remaining under pressure, however, Delphi believes it can operate
effectively in these challenging times and is in a position of relative
strength to many of its peer group.� Over
the past eight quarters, Delphi has delivered 56 percent growth in production,
with 75 percent of this growth coming from the drill bit, funded internally
through cash flow.� The remaining 25
percent of production growth has been derived from strategic acquisitions.� In addition, net debt has been reduced by $5.0
million over this time period.
During the first quarter, the Company drilled five gross (3.8 net) gas
wells with a drilling success rate of 100 percent. Four of the five wells
drilled in the first quarter and one well (0.5 net), which was drilled during
the fourth quarter of 2008, were completed and commenced sales prior to the end
of the first quarter.� The remaining well
(0.05 net) drilled in the first quarter will be completed and tied in to sales
during the second half of 2009.� In
total, 14 separate intervals were completed during the first quarter for an
average completion rate of 2.8 zones per well resulting in an average first
month production rate per well of approximately 325 boe/d net to Delphi.� The focus of the first quarter program was
directed towards the Hythe and Bigstone properties to take advantage of the
multi-zone nature of these assets, low operating costs and quick on-stream
capability associated with owned gathering and processing infrastructure.� Total net capital associated with the program
for the first quarter was $14.0 million.�
For the full
release, please visit www.delphienergy.ca.
CONFERENCE CALL
A conference call is scheduled for 9:00 a.m. Mountain Time (11:00 a.m.
Eastern Time) on Thursday, May 7, 2009.�
The conference call number is 1-866-300-4047 or 416-641-6137. A brief
presentation by David Reid, President and CEO and Brian
Kohlhammer, VP Finance & CFO will be followed by a question
and answer period.
If you are unable to participate in the conference call, a taped
broadcast will be available until May 14, 2009. To access the replay,
dial 1-800-408-3053 or 416-695-5800. The passcode is 5524855.� Delphi's first quarter 2009 financial
statements and management’s discussion and analysis are available on
Delphi’s website at www.delphienergy.ca and will be available on SEDAR at www.sedar.com within 24 hours.
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.
300, 500 – 4 Avenue S.W.
Calgary, Alberta
T2P 2V6
Telephone: (403) 265-6171��������
Facsimile: (403) 265-6207
Email: info@delphienergy.ca����� Website: www.delphienergy.ca
DAVID J. REID������������ BRIAN P.
KOHLHAMMER
President & CEO��������� V.P.
Finance & CFO