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 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, 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 investorrelations@deltapetro.com
SOURCE Delta Petroleum Corporation