Delphi Energy Corp. recently completed 15-24-60-23W5M Montney well drilling during the third quarter of 2013 to a total depth of 5,211 meters with a horizontal lateral length of 2,328 meters and stimulated with a 30 stage slickwater hybrid completion. The well was produced on clean-up over a six day period, recovering approximately 25% of the initial load frac water and is now shut-in to equip and pipeline connect the well for production. After running production tubing, the well produced over the final 2.7 days at an average rate of approximately 5.2 million cubic feet per day of raw gas, 635 barrels per day of wellhead condensate and approximately 660 bbls/d of load frac water. With an expected plant NGL yield of 33 bbls/mmcf of raw gas, total production over the flow period was approximately 1,585 barrels of oil equivalent per day. The well is expected to commence production before the end of October and consistent with the three previous slick water fracture stimulated wells will continue to recover load frac water over the next few months. The follow-up location to the successful 15-24 well at 15-30-60-22W5M has been drilled to a total depth of 5,834 meters with a horizontal length of 3,014 meters, making it the longest horizontal Montney lateral Delphi has drilled to date. Completion operations at 15-30 are scheduled to begin in early November after the drilling rig has moved to its next location at 15-21-60-23W5M. The company continues to improve its drilling time and costs on its extended reach horizontal wells with the most recent 15-30 well reaching its total depth in 30 days, a 36% reduction in drilling time and a 20% decrease in cost, from the Company's initial Montney wells. The first three Montney wells at East Bigstone in 2013, stimulated with the new slickwater hybrid fracturing technique, continue to exceed the Company's expectations. The 10-27 well has produced approximately 245,000 boe, at an average rate of 1,364 boe/d over the first 180 days of production. The 16-23 well has produced approximately 168,000 boe (35% NGL's) at an average rate of 1,395 boe/d over the first 120 days of production. At payout, the 16-23 and 10-27 wells are forecast to still be producing approximately 500 to 700 boe/d each, contributing significant free cash flow for the continued development of the Bigstone Montney project. Delphi's second drilling rig has been rig released after completing drilling operations at 14-17-59-22W5M where a Duvernay vertical strat test well with a subsequent Montney horizontal whipstock was successfully drilled. The Company has now earned a working interest in 21 sections and will earn a 75% interest in all 32.5 sections of the farm-in, for the Montney and Nordegg rights, upon the Montney horizontal well being completed, equipped and pipeline connected in 2014.

The company provided net capital spending guidance for 2013 of $78.0 to $82.0 million with production for the year to average approximately 8,000 to 8,400 boe/d. Total debt at year end is expected to be between $130.0 and $135.0 million.

For 2014, Delphi continues to estimate production to average 9,500 to 10,000 boe/d on a gross capital program of $80.0 to $90.0 million.