Delphi Energy Corp. Reports 44% Increase in Cash Flow on Record Production by 24hgold

Delphi Energy Corp.

TSX: DEE

November 5, 2008

Delphi Energy Reports 44% Increase in Cash Flow on Record Production

Calgary, Alberta � Delphi Energy Corp. (�Delphi� or the �Company�) is pleased to announce its financial and operational results for the three and nine months ended September 30, 2008.

Third Quarter 2008 Highlights

� Achieved record production of 6,409 barrels of oil equivalent per day (boe/d), marking the sixth consecutive quarter of production growth and a 28 percent increase in production per share over the same period.

� Generated funds from operations (cash flow) of $18.2 million ($0.24 per share), a 44 percent increase over $12.6 million ($0.19 per share) in the comparative quarter of 2007. Funds from operations for the first nine months of 2008 of $55.2 million exceeded total funds from operations generated in 2007 of $48.5 million.

� Achieved record production of 1,600 boe/d at Hythe, Alberta, a 300 percent increase since acquiring the asset in September 2007. The growth was achieved through continued drilling success within multiple play types, including a light oil discovery in the Doe Creek formation. Drilling inventory at Hythe is estimated to be six to ten years.

� Acquired producing crude oil and natural gas properties at the end of July 2008 in the Peace River Arch area of North West Alberta and North East British Columbia for $37.9 million, after closing adjustments.

� Increased the Company�s undeveloped land position by 25 percent from 89,726 net acres to 112,153 net acres.

Financial Highlights ($ thousands except per unit amounts)

                                                                  Three Months Ended      Nine Months Ended
                                        September 30           September 30
                                                   %                      %
                               2008     2007 Change    2008    2007 Change
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Petroleum and natural gas
sales                       34,461   24,548      40 105,242 71,301    48
Per boe                      59.09    46.81      26   61.72   50.82    21
Funds from operations        18,160   12,600      44 55,184 34,734    59
Per boe                      31.45    24.02      31   32.36   24.75    31
Per share - Basic             0.24     0.19      26    0.77    0.52    48
Per share - Diluted           0.23     0.18      28    0.76    0.52    46
Net earnings (loss)           6,744   (1,348)      -   6,053 (12,204)    -
Per boe                      12.09    (2.57)      -    3.55   (8.69)    -
Per share - Basic             0.09    (0.02)      -    0.08   (0.18)    -
Per share - Diluted           0.09    (0.02)      -    0.08   (0.18)    -
Capital invested             27,132   14,626      86 61,119 34,933    75
Disposition of properties    (5,500) (15,502)    (65) (8,450)(15,502) (45)
Net capital invested         21,632     (876)      - 52,669 19,431   171
Acquisition of properties    34,096        -     100 37,946 10,871   249
Total capital                55,728     (876)      - 90,615 30,302   199
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Financial Highlights ($ thousands)

                                                                                  Sept. 30, Dec. 31,        %
                                                   2008      2007    Change
Debt plus working capital deficiency (1)        106,532   100,658         6
Total assets                                    366,006   311,735        17
Shares outstanding (000's)
Basic                                           79,067    68,070        16
Diluted                                         83,808    73,551        14
----------------------------------------------------------------------------
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(1) Excludes risk management asset or liability and the related current
future income taxes.

Operational Highlights
                                  Three Months Ended      Nine Months Ended
                                        September 30           September 30
                                                   %                      %
Production                     2008     2007 Change    2008    2007 Change
----------------------------------------------------------------------------
Natural gas (mcf/d)          33,691   28,196      19 32,460 25,631     27
Crude oil (bbls/d)              372      579     (36)    376     457    (18)
Natural gas liquids (bbls/d)    421      422       -     436     410      6
----------------------------------------------------------------------------
Total (boe/d)                 6,409    5,700      12   6,223   5,139     21
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Message to Shareholders

Delphi Energy continued to achieve production growth in the third quarter of 2008. The Company realized record average daily production of 6,409 barrels of oil equivalent per day (boe/d), an increase of three percent from 6,202 boe/d in the second quarter of 2008 and 12 percent greater than the comparative period in 2007. Production restrictions due to scheduled facility maintenance during the third quarter of 2008 were offset by the initial benefits of Delphi�s $37.9 million acquisition of producing properties on July 24.

Natural gas prices declined significantly in the third quarter of 2008 from the highs reached at the end of the second quarter. While partially influenced by the strength of crude oil price changes, natural gas price changes are predominantly based on supply and demand fundamentals in the North American market. The continuing increase in crude oil prices through the end of the second quarter had a positive effect on the rise in natural gas prices, reaching a high of $11.77 per mcf for AECO near the end of the second quarter. In the third quarter, the collapse of all commodity prices began on the heels of financial and economic turmoil in the credit and capital markets. In the case of natural gas, hurricane activity in the Gulf of Mexico was minimal, storage levels increased as domestic U.S. natural gas production continued to grow and summer temperatures were moderate, resulting in lower demand for electricity through natural-gas fired power plants to operate air conditioners. During the third quarter, the AECO average daily spot price declined from $11.83 per mcf early in the quarter to $5.79 per mcf at the end of the third quarter.

Crude oil prices experienced a significant drop from the peak in mid July for West Texas Intermediate (WTI) of more than U.S. $145.00 per barrel to a range of between U.S. $60.00 to $70.00 per barrel in late October. For the three months ended September 30, 2008, WTI averaged $117.97 per barrel.

Funds from operations in the third quarter of 2008 were $18.2 million, or $0.24 per basic share, compared to $12.6 million, or $0.19 per basic share in the third quarter of 2007. This increase in cash flow was a result of higher cash netbacks from an improved oil and natural gas price environment and growth in production volumes. For the three months ended September 30, 2008, Delphi recognized approximately $200,000 in realized losses on Canadian dollar denominated physical contracts included in natural gas revenue and recognized a realized gain of approximately $100,000 on financial contracts and U.S. dollar denominated physical contracts. For the nine months ended September 30, 2008 the Company has recognized approximately $1.8 million in realized losses on financial and physical hedging contracts. Delphi recorded net earnings of $6.7 million in the third quarter of 2008, primarily due to an unrealized gain on risk management activities of $5.4 million after taxes.

Outlook

Delphi continues to expect production for the fourth quarter of 2008 to average between 6,800 and 7,000 boe/d, an 18 percent increase over the fourth quarter 2007.

Based upon an average realized natural gas price of approximately $8.25 per mcf, funds from operations (cash flow) for 2008 are forecast to be between $71.5 million ($0.97 per share) and $74.0 million ($1.01 per share), a 49 percent increase from $48.5 million ($0.72 per share) in 2007 as a result of increased production volumes and higher commodity prices. The Company expects its debt to cash flow ratio to be approximately 1.4 to 1 at December 31, 2008, with debt plus working capital of approximately $100.0 million on credit facilities of $140.0 million.

Upon closing of the acquisition in July, Delphi provided production guidance of 7,700 to 8,300 boe/d for 2009 based on an average AECO natural gas price of $8.00 per mcf, generating approximately $75.0 to $80.0 million of cash flow with the capital program for 2009 in the context of the cash flow generated. A lower average AECO price would result in reduced cash flow and capital program leading to a potential decrease in production guidance.

Positive drilling results and continued production growth, coupled with secure financial resources continue to favorably influence Delphi's capital investment decisions. The Company looks forward to reporting further positive results for the fourth quarter as part of its annual operational and financial results release in mid March 2009.

Conference Call

A conference call is scheduled for 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) on Thursday, November 6, 2008. 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 November 13, 2008. To access the replay, dial 1-800-408-3053 or 416-695-5800. The passcode is 3272784.

For the full release, please visit Delphi's website at: http://www.delphienergy.ca

Additional Information

Additional information about Delphi is available on the Canadian Securities Administrators� System for Electronic Distribution and Retrieval (SEDAR) at www.sedar.com, at the Company�s website at www.delphienergy.ca or by contacting the Company at Delphi Energy Corp. Suite 300, 500 � 4th Avenue S.W., Calgary, Alberta, T2P 2V6 or by e-mail at info@delphienergy.ca.

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