Delta Petroleum Corporation Announces a Settlement on the California Offshore Lease Litigation
DENVER, Dec. 17 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation (Nasdaq: DPTR), an independent oil and gas exploration and development company, announces the signing of a settlement agreement with the federal government concerning Lease 452 located offshore of California.
Delta has signed a settlement agreement with the federal government concerning offshore California Lease 452, which was in litigation. Under the terms of the agreement, Delta will receive gross proceeds of $65 million, which will result in approximately $50 million net to the Company after all contingent payments to third parties. The settlement agreement fully concludes Delta's offshore California litigation against the federal government.
John Wallace, the Company's President and COO said, "We are very pleased to have reached a settlement with the federal government on this final portion of the litigation. The approximately $50 million in net proceeds to Delta substantially increases our liquidity position, and will allow us to evaluate recommencing our drilling program in the near-term or reduce our leverage. Either use of proceeds would benefit our shareholders."
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, estimates of the net proceeds of the settlement and the possible use of such proceeds for drilling activities or debt repayment. 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 year ended December 31, 2008 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
DELTA PETROLEUM CORPORATION
Daniel Taylor, Chairman
John Wallace, President and COO
Kevin Nanke, Treasurer and CFO
Broc Richardson, V.P. Corporate Development and IR
370 17th Street, Suite 4300
Denver, Colorado 80202
SOURCE Delta Petroleum Corporation
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