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 (January 10, 2006) -- Delta Petroleum Corporation (“Delta”) (NASDAQ: DPTR), an independent energy exploration and development company, today announced that it recently transferred its ownership in approximately 427,000 gross acres (64,000 net acres) of non-operated interests in the Columbia River Basin to CRB Partners, LLC, a wholly-owned subsidiary (“CRBP”), and that it has today entered into definitive agreements with a small group of investors to sell a portion of its ownership interest in CRBP using an agreed upon value for the non-operated interest of $75 million. Delta plans to use the proceeds from such sale to initially reduce borrowings under its senior secured debt facility and to later accelerate its rate of development drilling.
Delta will retain the majority ownership in, and will be the manager of, CRBP. This sale does not involve any of Delta’s operated 100% leasehold of approximately 337,000 net acres in the Columbia River Basin.
Delta’s current drilling capital expenditure budget for 2006 approximates $150 million and will increase as a result of this transaction. “Because of our substantial leasehold position in the State of Washington, we decided to divest a minor and non-operated portion of our significant overall interest at an attractive price that, we believe, acknowledges the potential upside value that we see embedded in our Columbia River Basin acreage,” noted Roger Parker, President and Chief Executive Officer of Delta Petroleum Corporation. “The proceeds from the sale will also allow us to increase our drilling capital expenditure program in 2006”.
A second well in the Columbia River Basin, the Anderson 11-5, is currently drilling approximately 25 miles south of the Anderville Farms 1-6 well. In light of the current activity in the basin, the Company expects that meaningful drilling results will be forthcoming in 2006.
Petrie Parkman & Co. acted as Delta’s financial advisor for the transaction.
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.”
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 the forward-looking statements contained in this press release involve risks and uncertainties, including without limitation, uncertainties that are inherent in the appellate process and the attendant risk that the ruling may be modified or reversed on appeal.
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