Delta Petroleum Corp. reported that it had signed an agreement to sell a group of assets to a private oil and gas company.
Delta Petroleum Corporation will receive $130 million from the Wapiti Oil & Gas, L.L.C. for various properties located in Texas, Wyoming, Colorado and Nebraska. The company said that it considers the assets to be non-core to the company’s future growth and development. The sale is expected to close in August 2010.
One of the reasons Delta Petroleum entered the transaction was so that it could reduce its leverage and increase liquidity. The company will now focus its energy and capital on the Vega Area, located in the Piceance Basin.
“This asset sale is an important step for Delta and allows us to continue to reduce our overall leverage and meaningfully strengthen our liquidity position. We will be selling Wapiti our interest in assets that we increasingly considered non-core as we continue to focus on our main asset, the Vega Area, of the Piceance Basin,” said Carl Lakey, the CEO of Delta Petroleum Corporation.
Delta Petroleum Corporation sold the company’s 31% working interest in the Garden Gulch area of the Piceance Basin in Colorado, and several acreage positions located in the Denver Julesburg basin in Wyoming, Colorado and Nebraska.
In Texas, Delta Petroleum Corporation sold 50% of the company’s working interests in the Midway Loop, Caballos Creek, Newton, Choke Canyon and Norian Fields. The company also sold its entire working interest in the Baffin Bay Field.
For more information on the company, go to www.deltapetro.com