Delta Petroleum Corporation Announces Closing Of Non-Core Asset Sale To Wapiti Oil & Gas
DENVER, Aug. 2 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation (The "Company" or "Delta") (Nasdaq: DPTR), an independent oil and gas exploration and development company, announced today that it has closed on its previously announced transaction with Wapiti Oil & Gas, L.L.C. ("Wapiti") to sell various non-core assets. Of the $130 million purchase price, $112 million was received by the Company at closing and used to reduce bank debt and to pay transaction costs. The remaining $18 million will be held in escrow until third party consents are obtained for the assignment of the Company's working interest in certain properties that were a part of the transaction. The Company anticipates receiving the consents and escrowed funds by the end of August.
Carl Lakey, the Company's CEO stated, "The successful closing of this non-core asset sale allows us to significantly reduce our bank debt and to concentrate our capital and personnel on our operated Vega asset. With a stronger liquidity position and a more focused approach on our operations, we can now work towards increasing production and proved reserves in the Piceance Basin."
The Company will update the details of the transaction, as well as provide financial results for the second quarter, in its investor conference call scheduled for Tuesday, August 10, 2010 at 12:00 noon Eastern Time, 10:00 am Mountain Time. Shareholders and other interested parties may participate in the conference call by dialing 877-317-6789 (international callers dial 412-317-6789) and referencing the ID code "Delta Petroleum call," a few minutes before 12:00 noon Eastern Time on August 10, 2010. The call will also be broadcast live and can be accessed through the Company's website at http://www.deltapetro.com/eventscalendar.html. A replay of the conference call will be available one hour after the completion of the conference call from August 10, 2010 until August 19, 2010 by dialing 877-344-7529 (international callers dial 412-317-0088) and entering the conference ID 443139.
Morgan Stanley & Co. Incorporated and Evercore Group L.L.C. acted as financial advisors to Delta in connection with this transaction.
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