Delphi Energy Provides Operations Update

CALGARY, ALBERTA--(Marketwired - Oct. 23, 2014) - Delphi Energy Corp. (TSX:DEE) ("Delphi" or the "Company") is pleased to provide the following update.

BIGSTONE MONTNEY

Delphi has successfully completed its sixth Montney horizontal well of 2014 at 3-26-59-23 W5M ("3-26") in East Bigstone. The 3-26 well (100 percent working interest) was drilled to a total depth of 5,593 metres with a horizontal lateral length of 2,601 metres and stimulated with a 30 stage slickwater hybrid completion. The well is currently being equipped to produce through the Company's 100 percent owned compression and dehydration facility and is expected to be on-stream in the next two weeks.

Delphi has also finished drilling its seventh Montney well of 2014 at 13-23-60-23 W5M ("13-23"). The 13-23 well (100 percent working interest) was drilled to a total depth of 4,995 metres with a horizontal lateral length of 2,161 metres in 25 days. Completion operations are expected to commence in the next two weeks. The 13-23 well will be the twelfth well completed using a 30 stage slickwater hybrid fracture stimulation technique in East Bigstone.

Delphi has now commenced drilling operations at its eighth Montney well of 2014 at 16-27-60-23 W5M (87.5 percent working interest).

Since February 2013, the Company has brought on-stream ten Montney horizontal wells completed with the 30 stage slickwater hybrid fracture stimulation technique at East Bigstone. Three of the wells have achieved payout with another three expected to reach payout by December 31, 2014. At payout, the average production rate of the three wells was approximately 730 barrels of oil equivalent per day ("boe/d") generating cash operating income (revenues less royalties, operating costs and transportation) at payout of approximately $2.0 million per month from the three wells.

During the month of September 2014, corporate production averaged approximately 11,000 boe/d with production from the Montney formation at East Bigstone averaging approximately 7,700 boe/d, an eleven-fold increase from 700 boe/d in February 2013. Over that same time period, the Company spent approximately $143.0 million on drilling, completions and infrastructure at East Bigstone. The cash operating income generated from the Montney production for September 2014 was approximately $6.2 million, equivalent to an annual run-rate of approximately $75.0 million.