SECURITIES AND EXCHANGE COMMISSION

                    Washington, D.C.  20549



                            FORM 8-K


              Pursuant to Section 13 or 15(d) of
              The Securities Exchange Act of 1934


                       SEPTEMBER 7, 2000


           DELTA PETROLEUM CORPORATION
     (Exact name of registrant as specified in its charter)



Colorado                    0-16203                  84-1060803
(State of                  Commission              (I.R.S. Employer
Incorporation)             File  No.               Identification No.)



        Suite 3310
        555 17th Street
        Denver, Colorado                                 80202
        (Address of principal executive offices)      (Zip Code)


Registrant's telephone number, including area code: (303)  293-9133


ITEM 5.   OTHER EVENTS

     Delta  Petroleum Corporation ("Delta" or the "Company")  has
entered  into  an  agreement ("Agreement")  with  Saga  Petroleum
Corporation and related entities ("Saga") giving Delta an  option
to purchase Saga's interests in approximately 680 producing wells
and  associated  acreage in the Permian Basin  located  in  eight
counties   in  West  Texas  and  Southeastern  New   Mexico   for
$49,500,000.   A  copy  of the agreement and supplemental  letter
agreement   are  incorporated  herein  as  Exhibit  10.1.    This
agreement replaces and supercedes the letter agreement referenced
in  Form 8-K dated August 3, 2000.  Delta has issued Saga 133,423
shares  of  Delta's restricted common stock as  payment  for  the
option.   If Delta elects to exercise the option it must make  an
additional  deposit consisting of $500,000 in  cash  and  289,583
shares of its restricted common stock on October 2, 2000 and will
be  required  to close and pay the bulk of the remainder  of  the
purchase  price by December 1, 2000.  Included in  the  potential
acquisition  is  the  operating entity,  Saga  Petroleum  Limited
Liability  Company, which operates 599 of the wells.   Under  the
Agreement,  Delta has the option to pay up to $6,000,000  of  the
purchase price in the form of Delta common stock with the balance
of  any stock delivered under this provision priced at $5.00  per
share.

     Delta   has  not  secured  the  financing  and/or   industry
participants that would be necessary to acquire these  properties
and there is no assurance that it will be able to do so.


ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS.

     10.1 Purchase and Sale Agreement and supplemental Letter Agreement
          dated September 6, 2000 between Saga  Petroleum Corporation,
          et al and Delta  Petroleum Corporation.

      Pursuant to the requirements of the Securities and Exchange
Act  of  1934, the Registrant has duly caused this report  to  be
signed on its behalf by the undersigned hereunto duly authorized.


                                  DELTA PETROLEUM CORPORATION
                                   (Registrant)

Date:  September 8, 2000         By: s/Aleron H.  Larson, Jr.
                                       Aleron H. Larson, Jr.
                                          Chairman/C.E.O.


                        INDEX TO EXHIBITS

(1)  Underwriting Agreement.  Not applicable.

(2)  Plan    of    Acquisition,   Reorganization,    Arrangement,
     Liquidation or Succession.  Not applicable.

(3)  (i)  Articles of Incorporation. Not applicable.
     (ii) Bylaws. Not applicable.

(4)  Instruments   Defining  the  Rights  of  Security   Holders,
     including Indentures.  Not applicable.

(5)  Opinion: re: Legality.  Not applicable.

(6)  Opinion: Discount on Capital Shares.  Not applicable.

(7)  Opinion: re: Liquidation Preference. Not Applicable.

(8)  Opinion: re: Tax Matters.  Not Applicable.

(9)  Voting Trust Agreement.  Not Applicable.

(10) Material Contracts.

     10.1  Purchase  and Sale Agreement and supplemental Letter Agreement
           dated September  6,  2000 between Saga Petroleum Corporation,
           et al and Delta Petroleum Corporation.

(11) Statement re: Computation of Per Share Earnings.
      Not Applicable.

(12) Statement re: Computation of Ratios.  Not Applicable.

(13) Annual Report to Security Holders, etc. Not Applicable.

(14) Material Foreign Patents.  Not Applicable.

(15) Letter re: Unaudited Interim Financial Information. Not Applicable.

(16) Letter re: Change in Certifying Accountant.  Not applicable.

(17) Letter re: Director Resignation.  Not applicable.

(18) Letter re: Change in Accounting Principles.  Not Applicable.

(19) Report Furnished to Security Holders.  Not Applicable.

(20) Other Documents or Statements to Security Holders. Not applicable.

(21) Subsidiaries of the Registrant.  Not Applicable.

(22)  Published  Report Regarding Matters Submitted  to  Vote  of
Security Holders.  Not Applicable.

(23) Consents of Experts and Counsel.  Not applicable.

(24) Power of Attorney. Not applicable.

(25) Statement of Eligibility of Trustee.  Not Applicable.

(26) Invitations for Competitive Bids.  Not Applicable.

(27) Financial Data Schedule.  Not Applicable.

(99) Additional Exhibits. Not Applicable.