Delta Petroleum Corp.

Transaction Type
Sellers
Basin
Piceance Basin, Paradox Basin, Wind River Basin, the Denver-Julesburg Basin, the Central Utah Hingeline, Columbia River Basin, East Texas
Post Date
Estimated Price
MM
Description

Rockies-focused Delta Petroleum Corp., Denver, (Nasdaq: DPTR) has retained Morgan Stanley and Evercore Partners to seek strategic alternatives including the sale of some or all of the company's assets, partnerships and joint-venture opportunities, or the sale of the company. The Rocky Mountain region comprises approximately 95% of Delta's proved reserves as of year-end 2008. In the Piceance Basin, Delta holds a 95% to 100% working interest in approximately 22,150 net acres in Mesa County, Colorado, primarily in the Vega Unit involving more than 2,000 net drilling locations on 10-acre spacing. Proved reserves are approximately 719.9 billion cubic feet equivalent. Production year-end 2008 was approximately 48 million cubic feet per day. In the Paradox Basin, Delta has five prospect areas at Greentown, Salt Valley, Fisher Valley, Gypsum Valley and Cocklebur Draw, with additional interests in the Wind River Basin, the Denver-Julesburg Basin, the Central Utah Hingeline, and the Columbia River Basin in Washington and Oregon. In the Gulf Coast Region, Delta's primary areas of operation are the Newton and Midway Loop fields in Texas. Newton Field is in Newton County, Texas, in which Delta holds a 92% working interest in 21,000 net acres with production from the Wilcox formation. At year end 2008, proved reserves were 11.6 billion cubic feet equivalent. Midway Loop Field is in Polk and Tyler counties, Texas, involving a 28% working interest in 21,400 gross acres with production from the Austin chalk. Proved reserves year-end 2008 were 16.2 billion cubic feet equivalent. Delta additionally holds some 20,000 acres in Atascosa and McMullen counties, Texas, with potential in the Wilcox sands, Eagle Ford shale, Sligo formation and Cotton Valley sands, and 16,000 gross acres in the Haynesville shale concentrated in Caddo Parish, Louisiana, and Harrison, Shelby and Nacogdoches counties, Texas. In its third-quarter report Delta signaled doubts about its ability to continue as a going concern. Contact the company at 303-293-9133.