2011-06-28-2011-06-17

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$43.2MM
Description

To acquire noncore WI in fields in TX & the DJ Basin.

Privately owned, Houston–based Wapiti Oil & Gas LLC plans to acquire nonoperated interests in various noncore assets in Texas and the DJ Basin held by Delta Petroleum Corp., Denver, (Nasdaq: DPTR) for $43.2 million.

The working interests in the fields constitute the nonoperated portions of these fields that were retained by Delta when Delta sold properties to Wapiti in August 2010.

Delta chief executive Carl Lakey says, "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."

He adds the sale makes Delta essentially a pure Piceance Basin company.

Macquarie Capital (USA) Inc. and Evercore Group LLC are financial advisors to Delta.

The deal is expected to close by the end of June.