Mondo Visione  Apr 15  Comment 
The Securities and Exchange Commission today charged a prominent Denver-based businessman with insider trading based on confidential information he obtained from the CEO of an oil and gas company that was about to secure a huge...
Mondo Visione  Oct 26  Comment 
The Securities and Exchange Commission today charged an insurance company CEO with insider trading based on confidential information he obtained in advance of a private investment firm acquiring a significant stake in a Denver-based oil and gas...
OilVoice  Sep 3  Comment 
Delta Petroleum Corporation now renamed Par Petroleum Corporation as described below announced that as of today the Company has consummated its third amended plan of reorganization the quotPlanq
Globe Newswire  Jun 16  Comment 
NEW ORLEANS, June 16, 2012 (GLOBE NEWSWIRE) -- Kahn Swick & Foti, LLC ("KSF") and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have only until June 18, 2012 to file lead plaintiff
MarketWatch  Dec 16  Comment 
Delta Petroleum on Friday filed for Chapter 11 bankruptcy protection, with $58 million in financing to allow it to continue to operate. The Denver firm named John Young Jr. of Conway MacKenzie Inc. as its chief restructuring officer. Delta...
Reuters  Nov 9  Comment 
Delta Petroleum Corp swung to a third-quarter loss, hurt by a sixteen-fold jump in operating costs, and the gas focused company said it may file for bankruptcy protection.
Forbes  Aug 22  Comment 
In trading on Monday, oil & gas refining & marketing shares were relative laggards, down on the day by about 1. 3%.
Marketwire  Aug 10  Comment 
NEW YORK, NY -- (Marketwire) -- 08/10/11 -- Natural Gas stocks are taking a beating this month as moderating weather forecasts in the US, large supplies and concerns over the economic outlook dragged down gas prices. Several natural gas explorers
StreetInsider.com  Aug 4  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Delta+Petroleum+Corp+%28DPTRD%29+Reports+Q2+Loss+from+Cont.+Ops+of+%240.31/6685439.html for the full story.


Company Overview

Delta Petroleum Corporation (NASDAQ: DPTR) and its subsidiaries engage in the exploration, acquisition, development, production, and sale of natural gas and crude oil primarily in the Rocky Mountain and onshore Gulf Coast regions. The company owns interests in developed and undeveloped oil and gas properties in federal units offshore California, near Santa Barbara; and developed and undeveloped oil and gas properties in the continental United States. It also engages in contract drilling operations, as well as providing moving services for third party drilling rigs in the Casper, Wyoming area. As of December 31, 2009, the company’s proved reserves were comprised of approximately 126.7 billion cubic feet of natural gas, and 4.5 Mmbbls of crude oil. Delta Petroleum Corporation was founded in 1984 and is based in Denver, Colorado. [1]

Trends and Forces

Sale Of Assets To Wapiti Oil & Gas

Delta Petroleum Corp. (NASDAQ: DPTR) has agreed to sell $130 million in “non-core assets” to privately held Wapiti Oil & Gas L.L.C. The company plans to use the funds to pay down debt on its senior credit facility. As part of the deal, Delta was forced to reduce its credit line to $35 million. Last December, Delta reduced its credit facility from $225 million to $185 million. In April, the company’s borrowing limit was $145 million.[2]

Recent Difficulties and Capital Shortage

In its quarterly report, Delta included the dreaded “going concern” statement, noting that it “does not currently have the capital on hand necessary to repay its credit facility borrowings due on January 15, 2011 or develop its properties at the pace desired based on current commodity prices.” Since that filing, on May 10th, Delta’s shares have fallen 57%, from around $1.40/share to $0.80.

Delta had entered an agreement with Opon International LLC to sell a 37.5% working interest in Delta’s Vega Area asset in the Piceance Basin to Opon for $400 million. Unfortunately for Delta, the deal was called off in early July when Opon failed to secure financing. The deal was never popular with investors, who sent Delta’s shares down 18% on the day it was announced.

Delta’s problems really started when the company took a $50 million charge in the third quarter of 2009 due to a dry hole in the Columbia River Basin. The stock fell to a 52-week low in December before Exxon Mobil Corp. (NYSE: XOM) announced its purchase of XTO Energy for $40 billion. That breathed new life into all natural gas stocks, including Delta, which jumped more than 20%. But the company’s lack of liquid capital and its ever-diminishing line of credit weighed too heavily.

Delta’s remaining assets, mostly in the Piceance Basin, are proved but undeveloped. The cost of developing the assets makes it unlikely that a buyer will come forward unless that buyer is willing to just sit on the assets until natural gas prices rise and make development economically viable.[3]


  1. http://finance.yahoo.com/q/pr?s=DPTR
  2. http://247wallst.com/2010/07/26/delta-petroleum-sells-more-assets-dptr-xom/
  3. http://247wallst.com/2010/07/26/delta-petroleum-sells-more-assets-dptr-xom/
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