Delphi Energy Concludes Operations on Area 1 in British Columbia
Delphi Energy reports that earning operations have been completed on Area 1 at Bigfoot in North East British Columbia. Delphi has earned a 100 percent working interest in two wells and a 50 percent working interest in 18 wells, along with a 50 percent working interest in 75,000 gross acres fully covered with 3D seismic, 30 kilometers of a 12-inch natural gas transmission pipeline, and a 54 kilometer all-season road providing access to Area 1 lands. Discussions are ongoing with Delphi's joint-venture industry partner regarding further development drilling in Area 1 for the 2006/07 winter season.
In light of the current weakness in the natural gas market, coupled with the elevated cost of services, Delphi has elected not to proceed with the Area 2 development under the original terms of the farm-in contract. The Company is encouraged with the prospectivity of the Area 2 lands based upon the ongoing interpretation of the 3D seismic program that was acquired this past winter and therefore remains in discussions with its joint-venture partner regarding future potential development of the Area 2 lands. Delphi will communicate the outcome of these discussions once completed.
Delphi Energy is a Calgary-based company that explores, develops and produces oil and natural gas in Western Canada. The Company is managed by a proven technical team. Delphi trades on the Toronto Stock Exchange under the symbol DEE.