Delphi Energy Corp. announced completion and clean-up test results on its initial exploration well at 11-17-59-22 W5M (11-17) on the South Bigstone Montney farm-in lands, part of the Company's contiguous 122 section land position in the Bigstone area. The 11-17 Montney horizontal well is located approximately 13 kilometres south of the Company's ongoing drilling activity at East Bigstone. The well was drilled as a whipstock operation from the Duvernay stratigraphic drill with a horizontal lateral length in the Montney of 1,848 metres (most similar to the initial East Bigstone slickwater evaluation well at 15-10-60-23 W5M (15-10) with a horizontal lateral length of 1,424 metres). After successfully placing all 26 stages of the fracture stimulation, the well flowed on clean-up over an eight day period, recovering approximately 34% of the initial frac load water. During the last 24 hours of clean-up flow, the well averaged 4.4 million cubic feet per day (mmcf/d) of raw natural gas and 165 barrels per day ("bbls/d") of field condensate (42 bbls/mmcf of sales gas). With estimated natural gas liquids ("NGL") plant recoveries of 35 bbls/mmcf of sales gas, total production over this time period was 962 barrels of oil equivalent per day (boe/d). For comparison purposes, Delphi's 15-10 well produced at an average rate of 957 boe/d, consisting of 4.6 mmcf/d of raw natural gas, approximately 118 bbls/d of wellhead condensate (47 bbls/mmcf of sales gas) and an estimated 151 bbls/d of gas plant recovered NGLs over the final 24 continuous hours of its seven day clean-up test. Total production at 15-10 over the first 30 days was approximately 991 boe/d. The 11-17 well is expected to be pipeline connected and on production in the third quarter of 2014 and consistent with the Company's other slickwater fracture stimulated wells, will continue to recover load water over the next several months of production. The test results at 11-17 validate the reservoir rock quality and liquids-rich nature of the production mix as being consistent with East Bigstone, 13 kilometres to the north. Based on this test result, Delphi expects to begin development of the Montney play in South Bigstone in the latter part of 2014, employing the same 2,500 to 3,000 metre horizontal well lengths and 30 stage fracs as employed in the ongoing Montney development program at East Bigstone. At East Bigstone, Delphi has now drilled a total of ten horizontal Montney wells of which nine are extended-reach horizontal laterals with lengths up to 3,000 metres. Drilling operations continue in East Bigstone with two additional wells now drilled and one to two more wells planned prior to break-up in 2014. The 15-21-60-23 W5M (15-21) Montney well has been drilled to a total depth of 5,875 metres with a horizontal lateral length of 2,886 metres and is in the process of being stimulated with a 30 stage slickwater hybrid completion. The 13- 30-60-22 W5M (13-30) Montney well has recently reached its planned total depth of 5,419 metres in a Company record 27 days, with a horizontal lateral length of 2,593 metres. The 13-30 well is scheduled to be completed in the first two weeks of February.

The company expects corporate production 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%. The company expects 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.