-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T2/5LNTAuCGC4iAJl7MzkQGqBZqEsHyloD0yfmTNF7iUXDUf1QndP5My9Esy7zwk fjj24x6ES9MhIraJwxWD5g== 0000948830-02-000177.txt : 20020515 0000948830-02-000177.hdr.sgml : 20020515 ACCESSION NUMBER: 0000948830-02-000177 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20020430 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELTA PETROLEUM CORP/CO CENTRAL INDEX KEY: 0000821483 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 841060803 STATE OF INCORPORATION: CO FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-16203 FILM NUMBER: 02647907 BUSINESS ADDRESS: STREET 1: 555 17TH ST STE 3310 CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 3032939133 MAIL ADDRESS: STREET 1: 555 17TH STREET STREET 2: SUITE 3310 CITY: DENVER STATE: CO ZIP: 80202 8-K/A 1 delta8ka.txt DELTA PETROLEUM CORPORATION 8-K/A (4-30-02) SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 April 30, 2002 --------------------------------- (Date of earliest event reported) 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 1400 475 17th Street Denver, Colorado 80202 ------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (303) 293-9133 N/A ------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 5. OTHER EVENTS Delta Petroleum Corporation has agreed to sell all of its undivided interests in the Authorities to Prospect covering lands in Queensland, Australia to a subsidiary of Tipperary Corporation for a cash consideration of $4.8 million, 250,000 unregistered shares of Tipperary common stock, and the assumption by Tipperary of certain other obligations relating to the property up to a maximum amount of $600,000. Closing of the transaction is expected to occur on or before May 24, 2002. At the time of closing, Delta will purchase from Tipperary all of its interests in the West Buna Field, in Hardin and Jasper counties, Texas, for $4.1 million in cash. According to a reserve report filed by Tipperary as of December 31, 2002, the West Buna Field properties contained total proved natural gas equivalent reserves of approximately 4.3 billion cubic feet, with a reserve value, discounted at 10%, of approximately $5.8 million. Included as exhibits to this Report are copies of Delta's agreement with Tipperary, Delta's press release dated May 8, 2002 and Delta's letter to shareholders dated April 30, 2002. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. Listed below are the exhibits filed as a part of this Report. EXHIBITS: Exhibit Number Description 10.1 Purchase and Sale Agreement with Tipperary Oil & Gas Corporation 99.1 Letter to shareholders dated April 30, 2002 99.2 Press release dated May 8, 2002 SIGNATURE Pursuant to the requirements of the Securities 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: May 9, 2002 By: /s/ Roger A. Parker ---------------------------------- Roger A. Parker Chief Executive Officer 2 EX-10 3 ex101.txt DELTA PETROLEUM CORPORATION 8-K/A (4-30-02) EX 10.1 EXHIBIT 10.1 May 8, 2002 Mr. Roger A Parker DELTA PETROLEUM CORPORATION 475 Seventeenth St., Ste. 1400 Denver, CO 80202 Re: Simultaneous purchase and sale of undivided interests owned by Tipperary Oil & Gas Corporation ("TOGC") and by Delta Petroleum Corporation ("Delta") Dear Mr. Parker: This letter sets forth the material terms of our agreement with respect to the simultaneous (a) sale by TOGC, and purchase by Delta, of all of TOGC's undivided interests in certain oil & gas leases and mineral interests covering lands in Jasper and Hardin Counties, Texas as more particularly described on Exhibit A hereto ("West Buna Field") and (b) sale by Delta, and purchase by TOGC or its nominee, of all of Delta's undivided interests in certain Authorities to Prospect and Petroleum Leases covering lands in Queensland, Australia as more particularly described on Exhibit B hereto ("Queensland Properties", the West Buna Field and the Queensland Properties sometimes collectively referred to herein as the "Properties"). 1. TOGC will pay Delta an aggregate purchase price of USD $5,250,000.00 for all of Delta's undivided interests in the Queensland Properties, which shall be paid as follows: (a) total cash consideration of (USD) $4,800,000.00; and (b) 250,000 unregistered shares of Tipperary Corporation stock, which for purposes of this transaction shall be valued at USD $450,000.00 regardless of any change in the market price which may occur before Closing (as hereafter defined). 2. Delta will pay TOGC a purchase price of USD $4,100,000.00 for all of TOGC's undivided interests in the West Buna Field. 3. Both purchase and sale transactions shall be completed, and the purchase prices paid in full, at a single closing to take place no later than 10:00 o'clock a.m. on May 24, 2002, at TOGC's offices in Denver, Colorado or at such other location as the parties may agree ("Closing"). At the Closing TOGC and Delta shall each deliver to the other assignments, bills of sale and other conveyances ("Assignments") as may be reasonably necessary to convey the Queensland Properties and the West Buna Field under the laws of the jurisdiction in which each of the Properties are situated. The Assignments shall contain a special warranty of title obligating the assignor to defend the assignee against any liens or encumbrances arising by, through or under the assignor, but not otherwise and such additional terms and conditions as TOGC and Delta may mutually agree. The effective date of both transactions shall be April 1, 2002 for accounting purposes, except that Tipperary will assume actual unpaid billings and cash calls up to a maximum of $600,000 of payables to the joint accounts of the properties acquired. 4. Upon Closing the assignee of each Property shall: (i) waive, release, remise, acquit and forever discharge, (ii) release and relinquish any right of contribution, reimbursement, indemnification, or other rights of a similar nature, (iii) assume all liability for, and (iv) shall protect, defend, indemnify, and hold harmless, the assignor of that Property (together with the assignor's affiliates, and their respective shareholders, directors, officers, employees, agents, successors and assigns) from and with respect to any and all Claims and Damages (including Corrective Action Costs (hereinafter defined), monitoring costs (including reasonable capital and operating costs), remediation studies, and natural resource damages) that may at any time arise on account of, or in any way arising out of, or in connection with: (I) the known or unknown environmental condition of the Queensland Properties or the West Buna Field, as the case may be, including any Releases (hereinafter defined), and (II) any violation of any administrative or judicial decision, statute, regulation or rule ("Law") relating to the protection of health or the environment, whether or not attributable to the assignor's activities or the activities of third parties, regardless of whether or not the assignor was or is aware of such activities, and regardless of whether or not the condition (including any Release) or violation occurred before or after the Closing. a. THE INDEMNIFICATION, RELEASE, WAIVER, AND ASSUMPTION PROVISIONS OF THIS SECTION APPLY REGARDLESS OF WHETHER THE ASSIGNOR (AND ITS AFFILIATES, AND THEIR SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS) CAUSED, IN WHOLE OR IN PART, AN INDEMNIFIED CLAIM OR DAMAGES, INCLUDING INDEMNIFIED CLAIMS ARISING OR RESULTING, IN WHOLE OR IN PART, FROM, OUT OF, OR IN CONNECTION WITH THE CONDITION OF THE ASSETS OR THE SOLE, JOINT, COMPARATIVE, OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR FAULT OF THE ASSIGNOR OR ITS AFFILIATES AND THEIR SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS. THE PARTIES ACKNOWLEDGE THAT THIS PROVISION COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS. b. As used in this Agreement, the following definitions shall apply: (i) "Hazardous Substances" means any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, hazardous or toxic substance, or other similar term, by any Law relating to the protection of health or the environment of the jurisdiction in which each of the Properties is situated (which Laws include, without limitation, the Federal Resource Conservation and Recovery Act of 1976; Federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980; the Superfund Amendment and Reauthorization Act of 1986; Federal Clean Air Act; Federal Clean Water Act; Federal Water Pollution Control Act; Federal Insecticide, Fungicide, and Rodenticide Act; and similar state Laws in effect as of the relevant dates, as such Laws were or are amended from time to time). (ii) "Releases" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, depositing, placing, releasing, escaping, leaching, dumping or disposing of Hazardous Substances or non-hazardous substances (to the extent the Law requires the removal of the same) into the atmosphere, soil, surface water, subsurface strata, groundwater, or otherwise into the environment, including the abandonment or discarding of barrels, containers, tanks, or other receptacles containing or previously containing Hazardous Substances. (iii) "Corrective Action" means, to the extent required by Law, any expenditures or activities taken to monitor and, if required, abate, clean up, remove, treat, cover or in any other way remediate a Release at, from, or emanating to either of the Properties. (iv) "Corrective Action Costs" includes any and all: (A) costs or expenses that arise directly from or in connection with the performance of Corrective Action, including removal, remediation or cleanup costs, site investigation and assessment costs, consultants costs, attorneys fees and expert fees, government oversight and response costs, penalties, liens, interests, fines, assessments, and charges, and (B) any payment of any third party Claims or Damages (including any federal, state or local government agency) arising out of or relating to a Release at or from either of the Properties. 5. As partial consideration for this agreement, TOGC and Delta represent and warrant to the other, as of the date of this agreement and the Closing date, as follows: a. TOGC represents and warrants to Delta that (i) it has the full right, power and authority to convey the West Buna Field to Delta as contemplated hereby; (ii) the West Buna Field is not burdened by any liens or similar encumbrances; and (iii) to the best of TOGC's knowledge, all of the oil and gas leases composing the West Buna Field are valid and subsisting and are presently in force according to their respective terms. b. Delta represents and warrants to TOGC that (i) it has the full right, power and authority to convey the Queensland Property to TOGC as contemplated hereby; (ii) the Queensland Property is not burdened by any liens or similar encumbrances; and (iii) to the best of Delta's knowledge, all of the Authorities to Prospect and Petroleum Leases composing the Queensland Properties, are valid and subsisting and are presently in force according to their respective terms. THE PARTIES ACKNOWLEDGE THAT THE FOREGOING REPRESENTATIONS AND WARRANTIES AND THE SPECIAL WARRANTY OF TITLE TO BE INCLUDED IN THE ASSIGNMENT ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL SUCH OTHER REPRESENTATIONS AND WARRANTIES. WITHOUT LIMITING THE FOREGOING, EACH OF THE PROPERTIES WILL BE CONVEYED: (1) "AS IS" "WHERE IS" AND "SUBJECT TO ALL FAULTS": (2) WITHOUT ANY OTHER REPRESENTATION OR WARRANTY WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, THE CONDITION, QUANTITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO THE MODELS OR SAMPLES OF MATERIALS OR MERCHANTABILITY OF ANY EQUIPMENT OR ITS FITNESS FOR ANY PURPOSE: AND (3) EXCEPT THE SPECIAL WARRANTY OF TITLE, WITHOUT ANY OTHER EXPRESS, IMPLIED, STATUTORY OR OTHER WARRANTY WHATSOEVER. 6. TOGC and Delta shall cooperate with each other, and act in good faith, to amend, supplement and restate this agreement with purchase and sale agreements containing such terms and conditions as each of the parties may reasonably agree. 7. Each party's obligation to sell and purchase the other party's property as provided in this agreement is conditioned on a simultaneous closing at which TOGC conveys the West Buna Field to Delta, and Delta conveys the Queensland Properties to TOGA, as provided herein. a. Neither party shall during the period before Closing, directly or indirectly through its affiliates: (i) encourage, initiate, publicly or privately list, or solicit any inquires, offers, proposals or any other communications from any third person relating to the Property it has agreed to sell to the other party pursuant to this agreement, including any acquisition or other transaction structured as a consolidation, merger or exchange of equity interests; (ii) encourage, permit, participate in or support any agreements, communications, discussions or negotiations with, or any deliveries, disclosures or transfers of any information to, any third person relating to the Property it has agreed to sell to the other party pursuant to this agreement, including any acquisition or other transaction structured as a consolidation, merger or exchange of equity interests; or (iii) agree to, conditionally commit to, or execute and deliver (or offer to execute and deliver) any agreements which would in any way diminish, impair, interfere with or negate the other party's acquisition, exploration, development, ownership or enjoyment and use of the Property it has agreed to sell to the other party pursuant to this agreement. b. If either party fails or refuses to sell and convey the Property they currently own, or purchase and accept the Property that the other party currently owns, the other party shall have the right to either: (i) obtain specific performance of the other party's agreement to deliver the Assignment the Property it agreed to sell and convey hereunder or (ii) terminate this agreement, whereupon neither party shall have any further obligation to the other with respect to their Property or this agreement. 8. Confidentiality. (a) The terms of this Agreement, and all data, reports, records, and other information of any kind whatsoever developed or otherwise obtained in connection with the performance of this Agreement (collectively, "Information") shall be the exclusive property of the parties, shall be treated as confidential, and except as provided in subsection (b), shall not be disclosed to any third party or the public without the prior written consent of the other party, which consent shall not be unreasonably withheld. (b) The confidentiality obligations of subsection (a) shall not apply to: (i) Information that at the time of disclosure by one party to the other was developed by the other party and was already in its possession, provided that it provides competent evidence of its possession of such Information within two (2) days following its disclosure to it by the other party; (ii) Information that at the time of disclosure by one party to the other was in the public domain or which after disclosure becomes a part of the public domain through no action or failure to act on the part of the other party; or (iii) Information that at the time of disclosure was or is thereafter lawfully acquired by the other party from a source other than the disclosing party, provided such source was not under an obligation of confidence with respect thereto, and provided further that the other party provides competent evidence of his possession of such Information within two (2) days following its disclosure to him by the disclosing party. (iv) A disclosure to any of the following; provided however, that in any case to which this subsection is applicable, the disclosing party shall give notice to the other party concurrently with the making of such disclosure and, as to any disclosure pursuant to this subsection, only such confidential information as such third party shall have a legitimate business need to know shall be disclosed. (A) To an affiliate, legal or financial advisor, consultant, or contractor that has a bona fide need to be informed; (B) To any third party to whom the disclosing party contemplates a transfer of all or any part of its interest; or (C) To a governmental agency, or to the public which the disclosing party believes in good faith is required by pertinent Laws or the rules of any stock exchange or securities regulatory authority. The text of a stock exchange announcement shall be communicated to the other party prior to its release and in time to enable the other party to comment thereon, unless upon advice of counsel there is insufficient time to await comment from the other party; otherwise, the disclosing party shall give due consideration to comments received. (c) If a party asserts that information is not subject to the confidentiality obligations hereof, it shall have the burden of proof of substantiating such assertion. (d) The provisions of this Section shall apply for so long thereafter as the Information remains confidential or proprietary. (e) Each party agrees that if it breaches its confidentiality obligations, the other party would be irreparably damaged and any remedy at law may be inadequate, and therefore, without limiting (and in addition to) any other remedy available at law or in equity, an injunction, specific performance, or other forms of equitable relief or any combination thereof shall be available to the other party to the fullest extent permitted by law. The parties do not intend that this provision regarding remedies be construed as a limitation on the nature of the rights and remedies to which they may be entitled under this Agreement with respect to a breach of other provisions of this Agreement. This agreement will be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall constitute the same agreement. Your signature as provided below shall constitute your agreement to the terms set forth herein. Very Truly Yours, /s/ David L. Bradshaw David L. Bradshaw President. Tipperary Oil & Gas Corporation AGREED TO: /s/ Roger A. Parker Roger A. Parker President, Delta Petroleum Corporation Date: May 8, 2002 Exhibit A West Buna Field {To Come} Exhibit B Queensland Properties All undivided interests in all Authorities to Prospect and Petroleum Leases issued by the State of Queensland, Australia that are owned legally, equitably or beneficially by Delta and cover lands in Queensland, Australia including, without limitation: (1) Authorities to Prospect 526, 592, 606, 623, 631 and 701; and (2) Any and all Petroleum Leases issued covering lands excised from these ATP's. EX-99 4 ex991.txt DELTA PETROLEUM CORPORATION 8-K/A (4-30-02) EX 99.1 EXHIBIT 99.1 April 30, 2002 Dear Shareholders: We have just completed the necessary SEC review of our proxy materials and have set the date of May 30, 2002 for our shareholders' meeting. This year's meeting will include a vote to approve the issuance of 9,566,000 new shares to Castle Energy Corporation. The newly issued shares are part of the purchase price consideration being given to Castle to acquire all of its domestic oil and gas properties. If the Castle transaction is approved by a majority of the voting shareholders we intend to close with Castle the following day, May 31, 2002. We cannot over-emphasize the importance of each vote. During the past fiscal year we have made numerous positive strides in growth. Highlights include our previously announced acquisition of Piper Petroleum Company, the agreement to buy all of the domestic oil and gas properties of Castle and the commencement of litigation against the Federal Government seeking compensation related to our Offshore leases. Piper Acquisition ----------------- The acquisition of Piper was closed February 19, 2002 and is reflected in our reports filed with the SEC. The properties acquired through Piper have very good long term value. The assets include interests in over 300 producing wells primarily located in the onshore gulf coast region, a 5% working interest in a significant coalbed methane project in Queensland, Australia and other lesser value real estate properties in Fort Worth, Texas. Castle Transaction ------------------ On January 15, 2002 we entered into an agreement to purchase all of the domestic oil and gas properties of Castle for $20 million in cash and 9,566,000 shares of our common stock. The properties to be acquired from Castle consist of interests in approximately 525 producing wells in fourteen (14) states, plus associated undeveloped acreage. The acquisition will approximately triple our proved producing reserves, more than double our daily production, balance our production to about 50% oil and 50% natural gas and generally provide a strong base upon which we can build a much larger company and enhance shareholder value. Under the terms of the agreement the cash portion of the purchase price will be reduced by the cash flow generated by the properties between October 1, 2001 and closing, which we estimate will accumulate to about $5 million leaving a cash payment of approximately $15 million to Castle. The terms of the transaction also permit us to repurchase up to 3,188,667 of the Delta shares issued to Castle for a price of $4.50 per share for a period of one year after closing. The transaction contemplated by our agreement with Castle is described in more detail in the proxy materials which accompany this letter. Offshore California Litigation ------------------------------ Also in January of this year, Delta, together with most of the other companies owning interests in forty (40) undeveloped federal Outer Continental Shelf leases located several miles off the coast of California, filed a lawsuit against the U.S. Government. The companies claim that the U.S. Government has materially breached their leases. These leases are located in the Offshore Santa Maria Basin and in the Santa Barbara Channel off the coast of Santa Barbara, San Luis Obispo and Ventura counties, California. The suit seeks compensation for lease bonuses and rentals paid to the Federal Government and for exploration costs and related expenses. The total amount claimed by all the companies for bonuses and rentals exceeds $1.2 billion, with additional amounts for exploration costs and related expenses. Delta's claim (including the claim of its subsidiary, Amber Resources Company) for lease bonuses and rentals paid by Delta and its predecessors is in excess of $152 million. In addition, our claim for exploration costs and related expenses will also be substantial. We believe we have a valid and compelling claim. The lawsuit and related issues are described in more detail in the Form 10-Q/A and Form 10-KSB/A which accompany this letter. We cannot guarantee the timing of any eventual resolution of our claim in court nor can we guarantee if or when there might be an earlier settlement or other resolution of the issue. We can simply say that the companies involved (which include several major oil companies and large independents) believe we have secured the best and most experienced legal team to represent what the group maintains is a strong claim. We urge you to cast your vote and we thank you for your continuing interest in Delta. Very truly yours, Roger A. Parker President & CEO EX-99 5 ex992.txt DELTA PETROLEUM CORPORATION 8-K/A (4-30-02) EX 99.2 EXHIBIT 99.2 DELTA PETROLEUM CORPORATION Aleron H. Larson, Jr., Chairman Roger A. Parker, President and CEO Kevin K. Nanke, CFO 475 17th Street, Suite 1400 Denver, Colorado 80202 For Immediate Release DELTA PETROLEUM CORPORATION AND TIPPERARY CORPORATION TO SELL EACH OTHER PROPERTIES DELTA SCHEDULES SHAREHOLDER MEETING FOR VOTE ON CASTLE ACQUISITION DENVER, Colorado (May 8, 2002) - Delta Petroleum Corporation (NASDAQ: "DPTR"); (FRANKFURT STOCK EXCHANGE: "DPE"), an independent energy exploration and development company, today announced that the company has agreed to sell all of its undivided interests in the Authorities to Prospect (ATPs) covering lands in Queensland, Australia to Tipperary Corporation (AMEX: "TPY") for a cash consideration of $4.8 million, 250,000 unregistered shares of Tipperary common stock, and the assumption by Tipperary of certain other obligations relating to the property (not to exceed $600,000). Closing of the transaction is expected to occur on or before May 24, 2002. At the time of closing, Delta will purchase from Tipperary all of its interests in the West Buna Field, in Hardin and Jasper counties, Texas, for $4.1 million in cash. According to a reserve report filed by Tipperary as of December 31, 2002, the West Buna Field properties contained total proved natural gas equivalent reserves of approximately 4.3 billion cubic feet, with a reserve value, discounted at 10%, of approximately $5.8 million. "We believe the sale of our interests in the Australian coalbed methane play is consistent with our strategy of building Delta Petroleum into a sizeable domestic exploration and development company," commented Roger Parker, Chief Executive Officer of Delta Petroleum Corporation. "As a near-term result of this transaction, our operating cash flows are expected to improve by approximately $150,000 per month based upon current prices. Longer term, we believe that additional value can be achieved from the West Buna properties through the drilling of additional wells." Delta Petroleum also announced that the necessary SEC review of its proxy materials has been completed, and the Company has set a date of May 30, 2002 for a shareholder's meeting. At the meeting, shareholders will vote upon approval of the issuance of 9,566,000 new shares to Castle Energy Corporation as part of the purchase price consideration being given to Castle to acquire all of its domestic oil and gas properties. If the Castle transaction is approved by a majority of voting shareholders, Delta will close on the purchase of Castle's properties on May 31, 2002. The properties to be acquired from Castle consist of interests in approximately 525 producing wells in fourteen (14) states, plus associated undeveloped acreage, with proved reserves of approximately 62 BCF of gas equivalent (BCFE), of which proved developed producing reserves approximate 32 BCFE. "Following the anticipated completion of our purchase of the Castle Energy properties, Delta's proved reserves will increase to approximately 80 BCFE" noted Parker. "The acquisition of Castle's domestic oil and gas properties will more than double Delta's daily production, to approximately 3,400 barrels of oil equivalent (BOE), with the actual daily production approximately 50% oil and 50% gas. We believe this provides Delta with a broad, strong base upon which we can build a much larger company in coming years," concluded Parker. Delta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. The Company has producing properties in California, Colorado, New Mexico, North Dakota, Oklahoma, Texas, Wyoming and interests in one producing federal unit and four undeveloped units located in federal waters offshore California near Santa Barbara. Its common stock is traded on NASDAQ under the symbol "DPTR" and on the Frankfurt Stock Exchange under the symbol "DPE". Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. Please refer to the Company's Securities and Exchange Commission filings for additional information. For further information contact the company at (303) 293-9133 or via email at info@deltapetro.com OR RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or via email at info@rjfalkner.com SOURCE: Delta Petroleum Corporation -----END PRIVACY-ENHANCED MESSAGE-----