Delphi Energy Corp. has successfully drilled, completed and brought on production eight Montney horizontal wells at East Bigstone. The most recent five wells were stimulated utilizing slickwater hybrid frac techniques rather than the smaller conventional gelled oil frac designs used on the first three wells. The first well completed with the new frac technique was drilled across one section and stimulated with 20 stages with the subsequent four wells drilled with extended reach laterals and completed using 30 stage slickwater hybrid fracture stimulations. Production from the Montney is expected to average approximately 5,300 boe/d during the month of December, 2013, a 600% increase since bringing on-stream the first well completed with the new completion technique in March of 2013. The ninth Montney well at 15-21-60-23W5M (surface location at 16-9-60-23W5M) has been drilled to a total depth of 5,875 metres with a horizontal lateral length of 2,886 metres. The 15-21 well (97.5% working interest) will be completed with a 30 stage slickwater hybrid frac program in early January, 2014. The drilling rig has commenced operations at the 13- 30 -60-22W5M (surface location at 03-19-60-22W5M). This tenth well represents an early start to the 2014 drilling program as spud to spud cycle times continue to decrease. The most recent well (well number eight) to be stimulated with 30 stages using the slickwater hybrid fracturing technique at 15- 30 -60-22W5M was brought on production in early December through the company's 100% owned Montney 7-11 compression and dehydration facility. Over the first 15 days of production, the well averaged 8.6 mmcf/d raw natural gas (7.7 mmcf/d sales) and 713 bbls/d of field condensate. Including estimated plant recovered NGL production of 36 bbls/mmcf sales, total sales production averaged 2,276 boe/d. Consistent with Delphi's existing Montney production in Bigstone, the field condensate liquid yields are expected to stabilize over the next three to four months. Given the exceptional well performance to date, Delphi plans to re-evaluate its base type curve assumptions in the first quarter of 2014, with a larger data set of more production history and additional wells on production. To handle the rapidly growing Montney production volumes, the Company has also commenced construction to expand its 7-11 facility to handle 45 mmcf/d of raw gas as well as increased produced field condensate volumes with the installation of larger inlet separation and increased condensate storage tank capacity.

The company provided production guidance for the Year of 2014. For the period, the company's Corporate production is forecast to grow 20% compared to 2013, predominantly from a Montney focused capital program with its superior netbacks, resulting in expected cash flow growth of 49%. Delphi is estimating production to average 9,500 to 10,000 boe/d on a net capital program of $67 to $72 million, drilling a total of seven Montney horizontal wells at Bigstone. The company's total debt at year end 2014 is expected to be between $145.0 and $150.0 million.