Delphi Energy Corp. has closed a strategic land acquisition in the heart of its Bigstone Montney acreage. Levering off of the positive results of our last five successful Montney wells in the area the Company has acquired an additional 30 gross (26.8 net) sections of Montney rights directly offsetting our existing acreage and wells (the "Acquisition").

The land was acquired for a purchase price of $13.65 million ($796 per acre) and fills in the gap between the Company's existing lands in East and West Bigstone and Montney lands to the south of Bigstone East acquired pursuant to our previously announced farm-in (the "Previous Farm-in") (detailed in our December 12, 2012 press release).

The Acquisition has several key benefits to Delphi:

•The Company's land position in the Bigstone Montney play (subsequent to the potential full earning of the Previous Farm-in) grows by 40 percent to 108 gross (93 net) sections from 78 gross (66.2 net). •An independent evaluation report effective February 1, 2013 and prepared by Seaton-Jordan & Associates Ltd. assigned a "fair value" to the acquired lands of $26.95 million. •The Company's inventory of drilling locations in the Bigstone Montney play increases by 54 locations or 40 percent to 140 net potential two-mile horizontal drilling locations. •The Company anticipates the assignment of reserves on certain of the Acquisition lands immediately offsetting existing producing wells. •Significantly enhances the efficiency of future capital spending related to infrastructure and development drilling due to a very large contiguous land base.

Tags: Delphi Energy