Delphi Energy Corp. Announces Closing of $30 Million Public Offering

CALGARY, ALBERTA–(EMWNews – July 17, 2008) –

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.

Delphi Energy Corp. (“Delphi” or the “Company”) (TSX:DEE) is pleased to announce the closing of the sale of 6,316,000 common shares (“Common Shares”) at a price of $2.85 per share and 3,530,000 Common Shares issued on a “flow-through basis” under the Income Tax Act (Canada) (“Flow-Through Shares”) at a price of $3.40 per share (the “Offering”) for total gross proceeds of approximately $30 million.

The Offering was underwritten by a syndicate of underwriters jointly led by RBC Capital Markets, Macquarie Capital Markets Canada Ltd., and which included Dundee Securities Corporation, GMP Securities L.P., Scotia Capital Inc., Acumen Capital Finance Partners Limited, Genuity Capital Markets, Maison Placements Canada Inc. and National Bank Financial Inc.

The proceeds from the Offering will be used by the Company to incur Canadian Exploration Expense, as defined in the Income Tax Act (Canada), as part of its 2008-2009 capital program and to fund the previously announced acquisition of oil and gas properties in the Peace River Arch area of Alberta. If the acquisition should fail to close, the net proceeds of this Offering will be used for the Company’s ongoing capital program.

The outstanding securities of Delphi have not been registered in the United States and the Common Shares and Flow-Through 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.

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.

This press release 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 press release contains forward looking statements and information relating to the Company’s risk management program, petroleum and natural gas production, future funds flow from operations, capital programs, natural gas prices 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.