Delta Petroleum Corporation Announces Update on Transaction with Opon

Jun 01, 2010, 08:00 ET from Delta Petroleum Corporation

DENVER, June 1 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation (Delta) (Nasdaq: DPTR), an independent oil and gas exploration and development company, announced today an extension to the expected time frame to sign a definitive Purchase and Sale Agreement with Opon International LLC (Opon).  Delta continues to work with Opon in its financing efforts and both parties are working towards signing a definitive Purchase and Sale Agreement.  Delta does not intend to make further public comment with respect to the status of the transaction until such time as it believes disclosure is warranted and will not speculate as to the timing of any such communication. 

Delta's financial advisors on this transaction are Morgan Stanley and Evercore Partners.  Opon's financial advisor is Deutsche Bank Securities Inc.

As previously announced on March 18, 2010, Delta has entered into a non-binding letter of intent with Opon to sell a 37.5% non-operated working interest in its Vega Area assets located in the Piceance Basin for total consideration of $400 million.  The letter of intent also contemplates that Delta would issue to Opon, at closing, warrants to purchase 13.3 million shares of Delta common stock at $1.50 per share and 5.7 million shares at $3.50 per share.  Delta will provide further details of the transaction upon the execution by Delta and Opon of definitive agreements.  The letter of intent is subject to customary due diligence, negotiation and execution of definitive binding agreements as well as Opon's ability to arrange financing.

ABOUT DELTA PETROLEUM

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 Rocky Mountain and Gulf Coast Regions, which comprise the majority of its proved reserves, production and long-term growth prospects.  Its common stock is listed on the NASDAQ Global Market System under the symbol "DPTR."

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995  Such forward-looking statements include, without limitation, anticipated transaction structure and terms of the transaction, use of proceeds, adequacy of capital provided by transaction and status of the Company's strategic alternatives process.  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 negotiation of definitive agreements, the due diligence process, the prospective buyer's ability to arrange financing on terms acceptable to it, the ability to obtain necessary third party complaints, as well as general market conditions, competition and pricing.  Please refer to the Company's report on Form 10-K for the year ended December 31, 2009 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.

For further information contact the Company at (303) 293-9133 or via email at info@deltapetro.com

SOURCE Delta Petroleum Corporation



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