CALGARY, ALBERTA--(Marketwire - Nov. 2, 2011) - Delphi Energy Corp. (TSX:DEE) ("Delphi" or "the Company") is pleased to provide the following operations update.

Delphi has accumulated a total of 45 sections (41.5 net) of undeveloped land prospective for liquids-rich natural gas in the Montney formation on two separate blocks at its core area of Bigstone located within the Deep Basin of North West Alberta. The Company has increased its Montney rights on the Bigstone East block from 4.25 gross sections to 13 sections (11.0 net) through Crown land sales. Delphi will earn an additional five gross sections (3.75 net) at Bigstone East through an industry farm-in, with the drilling of its third Montney well, planned to commence drilling prior to year-end. At Bigstone West, the Company holds 27 gross (26.75 net) sections of Montney rights.

Delphi has contracted two drilling rigs to kick off its Bigstone Montney horizontal drilling program. Both rigs are expected to begin drilling operations within the next week.

The first well, located on the East block, will be drilled from a surface location at 1-19-60-22 W5M with a planned total measured depth of 5,700 metres. The second well, on the West block, will be drilled from a surface location at 1-33-60-24 W5M with a planned total measured depth of 6,000 metres. The targeted 2,750 metre "extended-reach" horizontal section in both wells will be completed utilizing multi-stage fracturing technology.

Industry horizontal drilling activity in the greater Resthaven/Bigstone/Simonette/Fir areas remains very busy where more than 33 horizontal wells have either been drilled or are currently being drilled into the Montney formation. Completion results reported to date have yielded strong natural gas test rates of up to 15 mmcf/d, with natural gas liquids content up to 70 bbl/mmcf.

At Bigstone East, the Company's planned 1-19 well is immediately offsetting a recently drilled industry competitor's well with a 1,254 metre horizontal length and reported test rates of approximately 4.3 million cubic feet per day of natural gas and 295 barrels per day of condensate (1,011 barrels of oil equivalent per day).

In the Fir area, located approximately three miles (five kilometres) to the south of Bigstone East, seven horizontal wells have now been drilled. Test rates reported to date range from 3.5 million cubic feet per day of natural gas and 225 barrels per day of condensate (808 barrels of oil equivalent per day), from a well with a 1,200 metre horizontal length, to a high of 15 million cubic feet per day of natural gas and 750 barrels of condensate (3,250 barrels of oil equivalent per day), from a well with over 2,500 metres of horizontal length.

The Company plans to construct compression and field gathering infrastructure in the first quarter of 2012 to connect to existing under-utilized third party infrastructure for transport and final processing at SemCAMS KA and K3 facilities.

Delphi will release its operational and financial results for the quarter ended September 30, 2011 on Wednesday, November 9, 2011. A conference call is scheduled for 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) on Thursday, November 10, 2011. The conference call number is 1-800-355-4959 or 416-695-6616. A brief presentation by David Reid, President and CEO and Brian Kohlhammer, Senior VP Finance & CFO will be followed by a question and answer period.

To view a map of the Bigstone area, click the following link: [ http://media3.marketwire.com/docs/dee_map.jpg ]

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.

Forward-Looking Statements. This management discussion and analysis contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", may", "will", "should", believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.

More particularly and without limitation, this management discussion and analysis contains forward looking statements and information relating to the Company's risk management program, petroleum and natural gas production, future funds from operations, capital programs, commodity prices, costs and debt levels. The forward-looking statements and information are based on certain key expectations and assumptions made by Delphi, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the capital availability to undertake planned activities and the availability and cost of labour and services.

Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. Additional information on these and other factors that could affect the Company's operations or financial results are included in reports on file with the applicable securities regulatory authorities and may be accessed through the SEDAR website ([ www.sedar.com ]). The forward-looking statements and information contained in this press release are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. Delphi undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Basis of Presentation. For the purpose of reporting production information, reserves and calculating unit prices and costs, natural gas volumes have been converted to a barrel of oil equivalent (boe) using six thousand cubic feet equal to one barrel. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with the Canadian Securities Administrators' National Instrument 51-101 when boes are disclosed. Boes may be misleading, particularly if used in isolation.

Non-GAAP Measures. The MD&A contains the terms "funds from operations", "funds from operations per share", "net debt", "cash operating costs" and "netbacks" which are not recognized measures under Canadian generally accepted accounting principles. The Company uses these measures to help evaluate its performance. Management considers netbacks an important measure as it demonstrates its profitability relative to current commodity prices.Management uses funds from operations to analyze performance and considers it a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and to repay debt. Funds from operations is a non-GAAP measure and has been defined by the Company as net earnings plus the addback of non-cash items (depletion, depreciation and accretion, stock-based compensation, future income taxes and unrealized gain/(loss) on risk management activities) and excludes the change in non-cash working capital related to operating activities and expenditures on asset retirement obligations and reclamation.The Company also presents funds from operations per share whereby amounts per share are calculated using weighted average shares outstanding consistent with the calculation of earnings per share. Delphi's determination of funds from operations may not be comparable to that reported by other companies nor should it be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with Canadian GAAP. The Company has defined net debt as the sum of long term debt plus working capital excluding the current portion of future income taxes and risk management asset/liability. Net debt is used by management to monitor remaining availability under its credit facilities. Cash operating costs have been defined as the sum of operating expenses, transportation expenses, general and administrative expenses and interest costs. Operating netbacks have been defined as revenue less royalties, transportation and operating costs. Cash flow netbacks have been defined as operating netbacks less interest and general and administrative costs. Netbacks are generally discussed and presented on a per boe basis.

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