DENVER, June 17, 2011 /PRNewswire/ -- Delta Petroleum
Corporation (Delta or the Company) (NASDAQ Capital Market: DPTR),
an independent oil and gas exploration and development company,
announced today that it has entered into a Purchase and Sale
Agreement (PSA) with Wapiti Oil & Gas, L.L.C. (Wapiti) to sell
its remaining non-operated interests in various non-core assets for
$43.2 million. The transaction
is expected to close by the end of June.
The non-operated, non-core assets to be sold to Wapiti consist
of Delta's remaining working interests in the fields of the DJ
Basin and Texas. The working
interests being sold in this transaction constitute the
non-operated portions of these fields that were retained by Delta
when Delta sold properties to Wapiti in August of 2010.
Carl Lakey, Delta's CEO,
commented, "As we discussed on our last conference call, the
expected proceeds from the sale of these non-core assets will allow
us to fund current and future drilling activity in the Vega Area and reduce our senior secured debt
balances. Our borrowing base with Macquarie will decrease by
$22 million to $33 million as a
result of the sale. The sale of the remaining non-core assets
makes Delta essentially a pure Piceance Basin company. The
Vega Area has been and will remain the focus of the Company's
capital and efforts."
Macquarie Capital (USA) Inc.
and Evercore Group, L.L.C. acted as financial advisors to Delta in
connection with this transaction.
The Company also announced that it has recently finished
completion activities on the 2C well and is transitioning to
flow-back activities.
ABOUT DELTA PETROLEUM
Delta Petroleum Corporation is an oil and gas exploration and
development company based in Denver,
Colorado. The Company's core area of operation is the
Piceance Basin of Colorado, which
comprises the majority of its proved reserves, production and
long-term growth prospects. Its common stock is listed on the
NASDAQ Capital Market System under the symbol "DPTR."
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this announcement are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking
statements include, without limitation, expected closing date, use
of proceeds, adequacy of capital provided by the transaction,
anticipated maximum commitment amount under our credit facility and
the Company's strategic plans and focus. Readers are
cautioned that all forward-looking statements are based on
management's present expectations, estimates and projections, but
involve risks and uncertainty, including without limitation,
uncertainties in the closing process under the definitive
agreements, the ability to obtain necessary third party consents,
as well as general market conditions, competition and pricing.
Please refer to the Company's report on Form 10-K for the
year ended December 31, 2010 and
subsequent reports on Forms 10-Q and 8-K as filed with the
Securities and Exchange Commission for additional information.
The Company is under no obligation (and expressly disclaims
any obligation) to update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
For further information contact the Company at (303) 293-9133 or
via email at info@deltapetro.com
SOURCE Delta Petroleum Corporation