Delta Petroleum Corporation to Buy Interest in Point Arguello Unit - Offshore California
DENVER--(BUSINESS WIRE)--June 9, 1999--Delta Petroleum Corporation (NASDAQ: DPTR) (FRANKFURT STOCK EXCHANGE: DPE) has entered into an agreement with Whiting Petroleum Corporation, a wholly owned subsidiary of Alliant Energy, which gives Delta the opportunity to purchase Whiting's 6.07% working interest in the producing Point Arguello Unit, its onshore facilities, and Whiting's leasehold interest in the adjacent non-producing Rocky Point Unit.
Delta has paid Whiting $1,000,000, has agreed to pay an additional $5,000,000 by December 1, 1999 and has also agreed to issue 300,000 shares of its common stock. The effective date of the purchase will be April 1, 1999. In addition, Whiting will retain all of its proportionate share of future abandonment liability associated with the Point Arguello project for both onshore and offshore facilities. Currently, the Point Arguello Unit platforms are producing a combined 24,000 barrels of oil per day. Although the project is experiencing positive cash flow, Delta and Whiting have agreed that if development and operating expenses are not covered by production revenues, at Delta's election, until December 31, 2000, Whiting will invest up to $2,000,000 in Delta through the purchase of Delta preferred stock to cover costs.
Delta also owns interest in four other undeveloped Federal offshore units in the Santa Barbara Channel and Northern Santa Maria Basin area.
Delta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. Delta's areas of production and activity include Oklahoma's Anadarko Basin, Wyoming's Wind River Basin, Colorado's Piceance Basin, South Texas, and California's Sacramento Basin. Delta is also preparing for the development of its undeveloped federal units located offshore California. To request a copy of the Company's current Form 10-KSB and Form 10-QSB and for further information contact the Company at (303) 293-9133.
CONTACT:
Delta Petroleum Corporation
Aleron H. Larson, Jr., Chairman
Roger A. Parker, President
303/293-9133 |
