Delphi Energy Corp. (“
Delphi” or
the “
Company”) announces that Delphi has obtained
orders from the Court of Queen’s Bench of Alberta (the
“
Court”) today in connection with its
restructuring efforts under the Companies’ Creditors Arrangement
Act (the “
CCAA”) and its previously announced
proposed plan of arrangement and compromise (the
“
Plan”) under the CCAA. Copies of these orders are
available on the monitor’s website at http://www.pwc.com/ca/delphi.
Pursuant to an order of the Court, virtual
meetings (the “Meetings”) of beneficial holders of
the Company’s senior secured notes due 2023 (“Second Lien
Notes”) and General Unsecured Creditors (as such term is
defined in the Plan) are scheduled to be held on September 9, 2020
at 9:30 a.m. and 9:45 a.m. (Calgary time), respectively. The record
date for beneficial holders of Second Lien Notes entitled to vote
at such Meetings, as applicable, has been set at 5:00 p.m. (Calgary
time) on July 17, 2020.
Additional information with respect to the Plan
and the Meetings, including instructions on how to vote at the
Meetings, will be set forth in an information circular and proxy
statement (the “Information Circular”), which is
expected to be mailed or otherwise made available in late July to
early August 2020 to beneficial holders of Second Lien Notes and
General Unsecured Creditors. A copy of the Information Circular
will also be made available on SEDAR under the Company’s
profile.
The implementation of the Plan is conditional
upon, among other things the approval by the required majorities of
each class of creditors at the Meetings and, if the Plan is
approved at the Meetings, an order of the Court sanctioning the
Plan under the CCAA.
Delphi also obtained an order today extending
the time by which the Company must hold its next annual meeting of
shareholders to no later than December 31, 2020.
Additional Information
Delphi and certain of its subsidiaries were
granted an initial order and protection under the CCAA on April 14,
2020. PricewaterhouseCoopers Inc. has been appointed by the
Court as monitor in the CCAA proceedings. Materials publicly filed
in the CCAA proceedings, including copies of the initial order of
the Court, are available on the monitor’s website at
http://www.pwc.com/ca/delphi. Delphi will continue to provide
updates regarding its restructuring as developments warrant.
About Delphi Energy Corp.
Delphi Energy Corp. is a junior E&P producer
of liquids-rich natural gas. The Company has achieved top decile
operational results through the development of its high quality
Montney property, uniquely positioned in the deep basin of
northwest Alberta. Delphi continues to improve its operational
efficiencies through the development of its dominant land position
at Bigstone. Delphi is headquartered in Calgary, Alberta.
FOR FURTHER INFORMATION PLEASE
CONTACT:
DELPHI ENERGY CORP.2300 - 333 –
7th Avenue S.W.Calgary, AlbertaT2P 2Z1Telephone: (403)
265-6171 Facsimile: (403) 265-6207Email:
info@delphienergy.ca Website:
www.delphienergy.ca
DAVID J. REIDPresident &
CEO
Forward-Looking Statements.
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
Canadian securities laws. These statements relate to future events
or the Company’s future performance and are based upon the
Company’s internal assumptions and expectations. All statements
other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of any of the words “expect”,
“anticipate”, “continue”, “estimate”, “may”, “will”, “should”,
“believe”, "intends”, “forecast”, “plans”, “guidance”, “budget” and
similar expressions.
More particularly and without limitation, this
release contains forward-looking statements and information
relating to the implementation of the Plan and the anticipated
results thereof; timing for mailing or other delivery of the
Information Circular; timing of the Meetings; and required
approvals for the Plan. The forward-looking statements and
information contained in this release are based on certain key
expectations and assumptions made by Delphi. The following are
certain material assumptions on which the forward-looking
statements and information contained in this release are based,
including: satisfaction of the conditions to implementation of the
Plan and the transactions contemplated in the Plan and in related
agreements, including approval of the Plan by the required
majorities at the Meetings and by the Court; the ability of the
Company to operate in the ordinary course during the CCAA
proceedings, including with respect to satisfying obligations to
service providers, suppliers, contractors and employees; the
ability of the Company to continue as a going concern; the
Company’s future liquidity position, and access to capital, to fund
ongoing operations and obligations; the ability of the Company to
stabilize its business and financial condition; the ability of the
Company to implement and successfully achieve its business
priorities; the ability of the Company to comply with its
contractual obligations, including, without limitation, its
obligations under debt arrangements; the general regulatory
environment in which the Company operates; the tax treatment of the
Company and the materiality of any legal and regulatory
proceedings; the stability of the global and national economic
environment, the stability of and commercial acceptability of tax,
royalty and regulatory regimes applicable to Delphi, exploitation
and development activities being consistent with management’s
expectations, production levels of Delphi being consistent with
management’s expectations, the absence of significant project
delays, the stability of oil and gas prices, the absence of
significant fluctuations in foreign exchange rates and interest
rates, the stability of costs of oil and gas development and
production in Western Canada, including operating costs, the timing
and size of development plans and capital expenditures,
availability of third party infrastructure for transportation,
processing or marketing of oil and natural gas volumes, prices and
availability of oilfield services and equipment being consistent
with management’s expectations, the availability of, and
competition for, among other things, pipeline capacity, skilled
personnel and drilling and related services and equipment, results
of development and exploitation activities that are consistent with
management’s expectations, weather affecting Delphi’s ability to
develop and produce as expected, contracted parties providing goods
and services on the agreed timeframes, Delphi’s ability to manage
environmental risks and hazards and the cost of complying with
environmental regulations, the accuracy of operating cost
estimates, the accurate estimation of oil and gas reserves, future
exploitation, development and production results and Delphi’s
ability to market oil and natural gas successfully to current and
new customers. Additionally, estimates as to expected average
annual production rates assume that no unexpected outages occur in
the infrastructure that the Company relies on to produce its wells,
that existing wells continue to meet production expectations and
any future wells scheduled to come on in the coming year meet
timing and production expectations.
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 and such forward-looking
statements should not be unduly relied upon. Since forward-looking
statements and information address future events and conditions, by
their very nature they involve inherent known and unknown risks and
uncertainties. Delphi’s actual results, performance or achievements
could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits Delphi will derive therefrom. Should one or more of these
risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual
results may vary 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 from others
for scarce resources, the ability to access sufficient capital from
internal and external sources, changes in governmental regulation
of the oil and gas industry 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 the Company’s most recent Annual
Information Form and other reports on file with the applicable
securities regulatory authorities and may be accessed through the
SEDAR website (www.sedar.com).
Readers are cautioned that the foregoing list of
factors is not exhaustive. Furthermore, the forward-looking
statements contained in this release are made as of the date of
this release 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. The forward-looking
statements contained in this release are expressly qualified in
their entirety by this cautionary statement.