Delphi Concludes Equity Offering

Delphi has closed the sale of 11,000,000 common shares at a price of $2.75 per share for total gross proceeds of $30,250,000.

The Offering was underwritten by a syndicate of underwriters led by National Bank Financial and included RBC Dominion Securities, Scotia Capital, Canaccord Genuity, GMP Securities, Macquarie Capital Markets Canada, Peters & Co. Limited and Thomas Weisel Partners Canada Inc.

As of March 31, 2010, Delphi had net debt of approximately $113.2 million following completion of its successful winter drilling program. In the second quarter, capital expenditures are expected to be less than cash flow due to spring break-up. The Company's net debt is expected to decrease to between $75.0 and $80.0 million by the end of the second quarter, after application of the net proceeds from the Offering, at which time the Company expects to be less than 60 percent drawn on its expanded credit facilities of $135.0 million. Delphi continues to maintain significant financial flexibility to expand the second half 2010 field capital program and pursue strategic acquisitions through its strong balance sheet, realized production growth and increased crude oil and NGL content and a solid natural gas hedge position.

An expanded field capital program will focus on Cardium and Doe Creek light oil development at Bigstone and Hythe and liquids-rich natural gas opportunities at Bigstone and Wapiti/Gold Creek. Capital spending for 2010 is now expected to total between $80.0 and $90.0 million. The Company has adjusted its 2010 production guidance range to 7,900 to 8,200 boe/d. With the expanded program occurring through the second half of 2010 and into the first quarter of 2011, the Company expects to realize the full benefit of the program by mid-year 2011, at which time production is forecast to be approximately 9,300 to 9,700 boe/d, up 22 percent from current levels.

During the second quarter of 2010, the Company expects production of approximately 7,800 boe/d (79 percent natural gas), up 15 percent compared to 6,808 boe/d (87 percent natural gas) in the second quarter of 2009. It is anticipated that oil and NGL production will be approximately 1,650 bbls/d during the current quarter, an increase of 90 percent compared to 870 bbls/d during the second quarter of 2009. Oil and NGL production growth is expected to continue to outpace the Company's natural gas production growth, reaching approximately 30 percent of total production in 2011.

The outstanding securities of Delphi have not been registered in the United States and the Common Shares issued under this Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from such registration. This news release shall not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States nor shall there be any offer or sale of securities in any jurisdiction where such offer, solicitation or sale would be unlawful.