Delphi offers the following characteristics:

Internally funded growth from robust cash generating capability

  • High-quality revenue stream from liquids-rich natural gas and light oil production
  • Low operating cost structure maintained through ownership of infrastructure and operatorship of production and capital programs
  • Sustainable operating netback of $24 per boe with 30% NGL/Oil production, yielding a 3 year average ratio of 1.9

Sustainable and consistent production and reserve growth

  • Doubled reserve growth over the past 3 years
  • “Deep Basin” expertise with geologically and geographically concentrated areas
  • Large land base with multiple zones per well and multiple wells per section
  • Low risk drill-bit growth with a 500+ drilling inventory
    (risked to ≈ 1 well per section)
  • Ten-fold ratio of unbooked to booked upside representing > $7.00 per share

Key operational successes defining sustainable future growth

  • Multi-zone drilling continues to provide low-risk/low-cost growth
  • Drilling success continues to expand a large 500+ well drilling inventory
  • Successful 2011 drilling program further validates growth potential
  • Industry rapidly de-risking Montney and Duvernay plays

Solid operating and financial results proving up self-funded growth

  • Achieved 26% growth in reserves and 19% growth in production in 2010
  • Continued strong field netbacks with increasing NGL/Oil mix and
    cost reductions
  • 2011 cash netback (excl. hedging) forecast to be up 73% since 2009
  • 2011 cash flow per share (excl. hedging) forecast to be up 92% since 2009
  • Continued benefit from hedging with 51% natural gas hedged for the remainder of 2011 at $4.88/mcf

Delphi's Growth Strategy

“Control | Core Strengths | Focus | Discipline”

  • Disciplined field capital program internally generated and protected through active commodity hedging program

Control and Execution

  • Operatorship and ownership of infrastructure, production, capital and lands

Core technical strengths

  • Complementary conventional multi-zone deep basin asset base

Focused on growth through the drill bit complemented with strategic acquisitions within core areas

  • Significant inventory of robust “conventional” and “resource play” opportunities targeting large OGIP with existing and emerging technologies

Delphi's Assets

Properties

  • Q4 2010 record production of 8,086 boe/d
    • "A solid foundation with predictable performance"
  • Multi-zone conventional deep basin assets at medium depths:
    • "Fewer wells drilled – multiple completions per well"
    • Wells consistent with pre-drill expectations
  • Concentrated in two active core regions of NW Alberta and NE British Columbia
  • Horizontal drilling and frac technology offers significant upside

People

  • Experienced management team and board of directors
  • Competitive advantage with seasoned technical / operational expertise
  • Continuing to expand the technical teams ahead of the growth curve
  • All our shareholders are committed to efficient per share growth
(Updated December 2010)
 
 
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