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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV