DELTA PETROLEUM CORPORATION
Roger A. Parker, President, CEO and Chairman
Kevin K. Nanke, CFO
Dave Donegan, VP Corporate Communications
370 Seventeenth Street, Suite 4300
Denver, Colorado 80202
DENVER, Colorado (September 29, 2005) -- Delta Petroleum Corporation (NASDAQ: DPTR); (FRANKFURT STOCK EXCHANGE: DPE), an independent energy exploration and development company, today reported that it has closed on a previously announced private placement that raised approximately $95 million in net proceeds to the Company. The proceeds were used to fund the $85 million acquisition of assets from Savant Resources, LLC in the Columbia River Basin in Washington and Piceance Basin in Colorado. The balance of the proceeds will be used to accelerate drilling activities on the Company’s oil and gas properties. JP Morgan Securities, Inc. and Coker, Palmer, Phillips & Mullen, Inc. advised the Company and acted as placement agents for the equity offering.
The shares that were sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be reoffered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements. The Company has agreed to file a registration statement with the SEC covering resales of the shares sold in the private placement. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
On September 27, 2005, Delta completed a transaction in which the holders of $150 million principal amount of the Company’s 7% Senior Subordinated Notes due 2015 exchanged those notes for a like principal amount of new 7% Senior Subordinated Notes due 2015 that have been registered under the Securities Act of 1933. The original notes were issued without registration in a private offering in March 2005.
Delta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. The Company’s core areas of operations are the Gulf Coast and Rocky Mountain Regions, which comprise the majority of its proved reserves, production and long term growth prospects. Its common stock is traded on NASDAQ under the symbol ``DPTR'' and on the Frankfurt Stock Exchange under the symbol ``DPE.''
Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. Please refer to the Company’s Securities and Exchange Commission filings for additional information.
For further information contact the Company at (303) 293-9133 or via email at info@deltapetro.com
OR
RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or via email at info@rjfalkner.com
SOURCE: Delta Petroleum Corporation