Although the Acquisition lands are non-producing at this time, it is immediately accretive to the Company's net asset value after giving effect to the undeveloped land value, internally estimated reserve value and the purchase price.
The Acquisition was funded utilizing Delphi's existing borrowing capacity. The Acquisition and a re-allocation of second half 2013 capital expenditures will result in the Company's 2013 net capital program increasing by approximately $5.0 million from previous guidance of $50.0 - $55.0 million. Approximately $3.0 million in minor dispositions were completed during the first quarter of 2013, with additional non-core assets being evaluated for disposition in 2013.
The production from Delphi's two most recent Montney wells, the first wells in the greater Bigstone area to utilize slick water frac techniques, continues at the previously announced levels, with NGL yields averaging 102 bbls/mmcf (74 percent condensate), supporting the robust economic returns with top quartile netbacks and time to payout. The Acquisition lands significantly increase the scale of Delphi's opportunity inventory at Bigstone. The Company is now extremely well positioned to pursue additional capital sources to unlock value from our Montney asset base.
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.
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