Delta Petroleum Corporation Announces Strategic Investment in Company by Tracinda Corporation Tracinda to Invest $684 Million to Acquire 35% of Company



    DENVER and LOS ANGELES, Dec. 31 /PRNewswire-FirstCall/ -- Delta
 Petroleum Corporation (Nasdaq:   DPTR), an independent energy exploration and
 development company ("Delta" or the "Company") has entered into a strategic
 financing agreement with Tracinda Corporation ("Tracinda"), a private
 investment corporation wholly-owned by Kirk Kerkorian. Under the agreement,
 Tracinda will invest $684 million to acquire common stock from the Company
 at $19.00 per share, which represents a 23 percent premium to the price at
 the market close as of December 28, 2007 and a 26 percent premium to
 Delta's 30 day trading average.
 
     This transaction will allow Delta Petroleum to accelerate development
 drilling activities in its core areas, including the Piceance and Paradox
 Basins. Additional pipeline expansion projects in the Piceance Basin will
 support Delta's anticipated increased production and reserve growth
 generated by an accelerated drilling program. Recently announced successes
 in the Greentown area of the Paradox Basin also justify an accelerated
 drilling program to exploit the Company's large acreage position.
 
     This transaction will also provide Delta significant financial
 flexibility to fund the Company's long-term drilling programs and allow for
 increased acquisition activity, consistent with Delta's strategy to pursue
 complementary acreage and working interest acquisitions in the Company's
 core areas.
 
     Roger Parker, Chairman and CEO of Delta, said, "We are very pleased to
 have Tracinda Corporation as an investor and strategic partner in Delta.
 This transaction will provide the means to significantly increase the
 present value of our vast resource potential. The additional capital
 provides Delta the financial flexibility and wherewithal to grow the
 Company to new levels. We are very enthusiastic about the future for
 Delta."
 
     Tracinda Corporation said, "We are very pleased to enter into this
 long-term partnership with Delta Petroleum and its highly regarded
 management team. Under Roger's leadership, Delta Petroleum has become a
 very important company in the industry, with valuable resource plays, a
 strong asset base and well-positioned exploration projects that we believe
 hold significant growth potential. Our investment will provide the company
 with the capital to accelerate its exploration activities, while giving
 Tracinda and all Delta Petroleum shareholders the ability to realize value
 from its growth going forward."
 
     Summary of the Tracinda Transaction
 
     Under the agreement, which the Delta board of directors has unanimously
 approved, Tracinda has agreed to purchase 36 million primary shares of
 Delta common stock for $19.00 per share. This investment represents
 approximately 35 percent ownership for Tracinda on a fully-diluted basis.
 Tracinda will have the right to nominate members to Delta's board of
 directors on a pro rata basis reflecting its share ownership, which will
 initially be one-third of Delta's board of directors. The transaction is
 subject to a 30-day due diligence period and will be submitted to Delta
 stockholders for approval at a meeting planned for February 2008.
 
     Morgan Stanley & Co. Incorporated and Merrill Lynch & Co. represented
 Delta in this transaction. Brownstein Hyatt Farber Schreck and Davis Graham
 & Stubbs LLP acted as legal counsel to Delta.
 
     Christensen, Glaser, Fink, Jacobs, Weil & Shapiro, LLP acted as legal
 counsel to Tracinda in the transaction.
 
     Conference Call Today, Monday, December 31st
 
     Delta management will hold a conference call at 11:00 am EST today,
 Monday, December 31, 2007 to discuss the transaction.
 
     Shareholders and other interested parties may participate in the
 conference call by dialing 800-299-7635 (international participants dial
 617-786-2901) and referencing the ID code 65532990, a few minutes before
 11:00 am EST on December 31, 2007. The call will also be broadcast live on
 the Internet through the Company's website at
 http://www.deltapetro.com/eventscalendar.html. A replay of the conference
 call will be available two hours after the completion of the conference
 call from December 31, 2007 until January 7, 2008 by dialing 888-286-8010
 (international participants dial 617-801-6888) and entering the conference
 ID 46631947.
 
     About Delta Petroleum Corporation
 
     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. The Company has a significant drilling inventory that consists
 of proved and unproved locations, the majority of which are located in its
 Rocky Mountain development projects. Its common stock is traded on the
 NASDAQ Global Market under the symbol "DPTR."
 
     About Tracinda Corporation
 
     Tracinda is a privately held Nevada corporation wholly-owned by Mr.
 Kerkorian. Tracinda's principal business is buying, selling and holding
 selected equity securities. Mr. Kerkorian has served as Chief Executive
 Officer, President and sole director and stockholder of Tracinda for more
 than the past five years.
 
     In connection with the proposed transaction, Delta will be filing a
 proxy statement and relevant documents concerning the transaction with the
 Securities and Exchange Commission ("SEC"). SECURITY HOLDERS OF DELTA ARE
 URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED
 WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
 INFORMATION. Investors and security holders can obtain free copies of the
 proxy statement and other documents when they become available by
 contacting Investor Relations, Delta Petroleum Corp. 370 17th Street, Suite
 4300, Denver, CO 80202 (Telephone: 303.293.9133). In addition, documents
 filed with the SEC by Delta are available free of charge at the SEC's web
 site at http://www.sec.gov.
 
     Delta and its directors, executive officers and certain other members
 of its management and employees may, under SEC rules, be deemed to be
 participants in the solicitation of proxies from Delta's stockholders in
 connection with the transaction, and may have interests which may be
 different than those of Delta stockholders generally. Information regarding
 the interests of such directors and executive officers is included in
 Delta's proxy statements and Annual Reports on Form 10-K, previously filed
 with the SEC, and information concerning all of Delta's participants in the
 solicitation will be included in the proxy statement relating to the
 proposed transaction when it becomes available. Each of these documents is,
 or will be, available free of charge at the SEC's web site at
 http://www.sec.gov and from Investor Relations, Delta Petroleum Corp. 370
 17th Street, Suite 4300, Denver CO (Telephone: 303.293.9133).
 
     Forward-looking statements in this announcement are made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act
 of 1995. 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 the projection of future rates of production, unanticipated recovery or
 production problems, unanticipated results from wells being drilled or
 completed, the effects of delays in completion of gas gathering systems,
 pipelines and processing facilities, as well as general market conditions,
 competition and pricing. Please refer to the Company's report on Form 10-K
 for the fiscal year ended December 31, 2006 and subsequent reports on Forms
 10-Q and 8-K as filed with the Securities and Exchange Commission for
 additional information. 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.
 
     Contacts:
 
     For Delta Petroleum:
 
     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 For Tracinda Corporation: Tom Johnson / Winnie Lerner Abernathy MacGregor Group 212/371-5999

SOURCE Delta Petroleum Corporation

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