Delta Petroleum (DPTR)

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include oil and gas reserves, bad debts, oil and gas properties, depletion and impairment, marketable securities, income taxes, derivatives, asset retirement obligations, contingencies and litigation. Actual results could differ from these estimates.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management impact oil and gas reserves, bad debts, oil and gas properties, depletion and impairment, drilling and lease operating expense accruals, income taxes, derivatives, asset retirement obligations, contingencies and litigation. Actual results could differ from these estimates.