4BDELPHI ENERGY REPORTS FIRST QUARTER 2016 RESULTS

CALGARY, ALBERTA - May 11, 2016 - Delphi Energy Corp. ("Delphi" or the "Company") is pleased to announce its financial and operational results for the quarter ended March 31, 2016.

First Quarter 2016 Highlights

• Generated funds from operations of $8.2 million and realized net earnings of $5.3 million;

• Successfully drilled two gross (1.7 net) wells as part of the Company's capital program and completed, tied-in and brought on production two gross (1.5 net) Montney wells in East Bigstone;

• Produced an average of 8,395 barrels of equivalent per day ("boe/d"), a 24 percent decrease from 11,002 boe/d in Q1 2015 as a result of the 2,600 boe/d of dispositions completed in the second half of 2015;

• Increased production from the Montney in East Bigstone by six percent to 7,363 boe/d compared to the fourth quarter of 2015 and 2 percent from the comparative first quarter of 2015;

• Increased Montney natural gas liquids ("NGL") and field condensate yields to 106 barrels per million cubic feet ("bbls/mmcf") in the first quarter of 2016 compared to 95 bbls/mmcf in the first quarter of 2015. Field and plant condensate yield was 72 bbls/mmcf or 68 percent of the total 106 bbls/mmcf;

• Achieved a 19 percent reduction in operating costs to $6.74 per boe in the first quarter of 2016 compared to the same period in 2015. The Montney operating costs continue to trend downward achieving a record low $6.04 per boe in the first quarter of 2016;

• Achieved realized gas prices of $3.08 per mcf, prior to realized risk management gains, as a result of 88 percent of the Company's natural gas sales now being shipped on the Alliance pipeline and sold into the Chicago market. Including realized risk management gains, the Company realized $4.35 per mcf in the first quarter 2016;

• Realized gains of $6.0 million from commodity price risk management contracts; and

• At March 31, 2016, Delphi's risk management contracts had a mark to market value of $23.1 million, up from $18.5 million at December 31, 2015.

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(1) Defined as the sum of long term and subordinated debt plus (minus) the working capital deficit (surplus) excluding the current portion of the fair value of the financial instruments.

Operational Highlights

MESSAGE TO SHAREHOLDERS

Delphi is pleased to report the operating and financial results of the first quarter of 2016 representing the first full quarter subsequent to the significant dispositions in the second half of 2015 and the first full quarter of transporting almost all of its natural gas on the Alliance pipeline to Chicago, avoiding the congested Alberta market and lower realized prices.

The commodity price environment continued to be very challenging with West Texas Intermediate ("WTI") crude oil prices averaging US $33.58 per barrel during the first quarter of 2016, down 31 percent from the comparative quarter of the previous year. NYMEX natural gas prices averaged US $2.04 per mmbtu in the first quarter, down 28 percent from the comparative quarter of 2015.

The Company continues to successfully navigate this lower commodity price environment with a conservative approach to capital spending, with expenditures funded from cash flow generated while improving new well productivity, reducing capital costs and lowering operating costs. All contributing to a sustainable economic business. The Company generated a field operating netback of $14.62 per boe in the first quarter of 2016 while adding new reserves and production at lower well costs than in 2015, which for Montney proved producing reserves, the finding and development costs were $10.12 per boe.

Production volumes in the first quarter of 2016 averaged 8,395 boe/d. Production volumes decreased approximately 2,600 boe/d or 24 percent from the comparative quarter of 2015 due to the disposition of the Company's Wapiti assets in the third quarter of 2015 and the disposition of its Greater Hythe assets in the fourth quarter of 2015. As planned, Montney production at the Company's Bigstone property in the first quarter of 2016 was maintained relatively flat to the comparative quarter of 2015, averaging 7,363 boe/d and representing 88 percent of the Company's production.

Delphi's field condensate weighting as a percentage of first quarter of 2016 production volumes increased to 20 percent, up 39 percent, from 14 percent in the comparative quarter of 2015. The Company`s Montney natural gas liquids and field condensate yields increased to 106 barrels per million cubic feet in the first quarter of 2016, up from 95 bbls/mmcf in the first quarter of 2015. Field and plant condensate yield averaged 72 bbls/mmcf or 68 percent of the total 106 bbls/mmcf.

Delphi's commodity price risk management program continues to be an integral part of its financial strategy to protect funds from operations during periods of price volatility. Despite the drop in crude oil prices, the Company received $56.55 per barrel for its condensate production in the first quarter of 2016, including a realized risk management gain of $14.34 per barrel for maturing contracts in the period. Delphi's realized natural gas price for the first quarter of 2016 was $4.35 per mcf, an increase of 28 percent from the comparative period of 2015. The Company's realized natural gas price was positively influenced by its risk management program as well and includes a gain of $1.27 per mcf for maturing contracts in the period.

Funds from operations in the first quarter of 2016 were $8.2 million or $0.05 per basic and diluted share, compared to $10.8 million or $0.07 per basic and diluted share in the comparative quarter of 2015. The decrease in funds from operations in the first quarter of 2016 as compared to the same quarter in 2015 is due to lower production volumes. Delphi's cash netback

was lower by one percent, relative to the comparative quarter, at $10.72 per boe. The average realized price per boe was up eleven percent due to natural gas sales into the Chicago market and realized risk management gains on both natural gas and field condensate. A reduction in operating costs is largely as a result of the major property dispositions completed during 2015. An increase in transportation costs is due to the shipping of the Company's natural gas production through the Alliance pipeline to Chicago, effective December 1, 2015.

During the first quarter of 2016, Delphi invested $16.7 million primarily on drilling and completions. Delphi drilled two gross (1.7 net) wells and performed completion operations on two gross (1.5 net) wells in its Bigstone area. The Company also completed the installation of a compressor at its 7-11 Montney facility and fuel gas pipelines to deliver higher quality fuel gas to the Montney facilities. In the first quarter, Delphi received proceeds of $4.6 million in exchange for a gross overriding royalty on two gross wells completed during the quarter as part of its latest five well gross overriding royalty arrangement.

At March 31, 2016, the Company had $94.3 million outstanding in the form of bankers` acceptances and $2.0 million drawn under Canadian-based prime loans, $14.1 million outstanding under its subordinated credit facility and a working capital deficit of $16.0 million for net debt of $126.4 million and was in compliance with all covenants of the credit facilities. The Company reduced its net debt by 30 percent to $126.4 million at March 31, 2016 from $180.7 million one year earlier as a result of the dispositions successfully completed during 2015. Delphi's lenders (National Bank of Canada, Bank of Nova Scotia and Alberta Treasury Branches) are in the process of completing their annual review of the Company's senior credit facility and are expected to have it completed by May 25, 2016.

Operations Update

In the first quarter of 2016, Delphi drilled two gross (1.7 net) horizontal Montney wells at Bigstone. The Company also completed and brought on production 2 gross (1.5 net) horizontal Montney wells.

The first well brought on production during the quarter was the 14-27-60-23W5 ("14-27") well (0.88 net). 14-27 was drilled in the fourth quarter of 2015 and completed in early January, utilizing a 37 stage slickwater frac design. This was just the third well to utilize a slickwater only completion by Delphi at Bigstone. Initial production results are very encouraging with IP90 rates of 1,280 boe/d and a field condensate to gas ratio ("CGR") over the same time period of 97 bbls/mmcf sales.

Delphi has recently brought on production the 13-21-60-23W5 ("13-21") well (0.66 net), the western most Montney well drilled and completed with slickwater fracs by the Company to date. The 13-21 well was fraced over 37 stages with the largest slickwater frac for Delphi Montney wells to date. Slickwater frac volumes per metre of horizontal length were increased by 19 percent and proppant pumped per metre of horizontal length was increased by 15 percent over the previous frac at 14-27. Over the first 30 days of production, being restricted to flowing up the tubing only, the well averaged 1,204 boe/d with a field condensate to gas ratio of 252 bbls/mmcf sales, which is 79 percent higher than Delphi's next highest field condensate to gas ratio from its horizontal Montney wells. The closest offset to 13-21 is approximately 800 metres to the east at 15-21-60-23W5 ("15-21"), which came on production in February of 2014. The average field condensate to gas ratio over the first 30 days of production for 15-21 was 130 bbls/mmcf sales and had a total rate of 1,293 boe/d over the same time period.

Delphi has continued to innovate drilling and completion techniques to drive costs lower, improving year over year capital efficiencies. Despite the increasing size of the fracs used to complete the most recent wells, drilling and completion costs for the last three wells averaged $7.0 million, a 15 percent reduction from the average costs for wells drilled in 2015 of $8.3 million and a 33 percent reduction from the average costs for wells drilled in 2014 of $10.4 million.

Innovation of the Company's frac design continues to deliver encouraging results. With higher field condensate yields Delphi will be increasing its drilling activity to the west of the current development trend at Bigstone. Additionally, tighter inter-well spacing is being evaluated to distances as low as 200 metres from the current approximate 400 metres. Industry activity offsetting Delphi's 13-21 well to the west of its current development trends and to the south, offsetting the Company's 12- 17-59-22W5 well, all indicate higher condensate yields are being achieved. The XTO 13-13-59-23W5 well reported a condensate yield of 259 bbls/mmcf from publicly available data. Delphi's results combined with these reported industry successes indicate the area of opportunity to realize increased field condensate yields could be much larger than just the immediate offsets to the 13-21 well.

Initial Production (IP) Rate Well Performance(1)

The following table has been updated to reflect new well production data since it was previously released and continues to illustrate the significant impact the slickwater fracturing technique has had on well performance at Bigstone in comparison to smaller conventional frac methods.

Conventional Fracs (original completion technique)

Slickwater Fracs (new completion technique)