Delta Petroleum Announces The Closing Of The Non-Core Asset Sale And The Initiation Of A Strategic Alternatives Process
DENVER, July 6, 2011 /PRNewswire/ -- Delta Petroleum Corporation (Delta or the Company) (NASDAQ Capital Market: DPTR), an independent oil and gas exploration and development company, announced today the initiation of a strategic alternatives process.
Carl Lakey, Delta's President and CEO stated, "With the June 28 closing of the $43.2 million sale of non-core, non-operated assets located in Texas and the DJ Basin, Delta has now completed the transformation to become essentially a pure Piceance Basin company. Initial production results from the 2C well are expected in the near future, and further information will likely be obtained throughout the strategic alternatives process. These developments and continued expansion of the shale analogs from offset competitor activity coupled with geologic confirmation information expected from the currently drilling 12B-6-14D well, make this the right time to initiate a strategic alternatives process for the transformed Delta to explore the value of our approximately 22,000 net acres of Williams Fork and deeper shale resource."
The Delta Board of Directors has engaged Macquarie Capital ( USA) Inc. and Evercore Group, L.L.C. to act as advisors to the Company in conducting a strategic alternatives process that will be aimed at maximizing shareholder value and dealing with 2012 debt maturities. Through this process, the Board of Directors intends to evaluate all opportunities available, including a potential sale of the Company.
ABOUT DELTA PETROLEUMDelta 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, the strategic alternatives process, anticipated timing of production results and expected drilling and completion activity. 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 commodities prices, future drilling results, future production, regulations that might be adopted in the future that could, among other things, significantly limit or curtail hydraulic fracturing techniques used in the Piceance Basin, as well as general economic conditions, market conditions and competition. Readers are cautioned that no decision on any particular alternative has been reached at this time and there can be no assurance that the review of strategic alternatives will result in the announcement or completion of any specific transaction. In addition, the pursuit of certain strategic alternatives such as a corporate sale may impact the future plans of the Company. 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 risks and uncertainties affecting the Company. 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 firstname.lastname@example.org SOURCE Delta Petroleum Corporation
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