As per the terms of the agreement, Delta will receive gross proceeds of $65m, which will result in approximately $50m net to the company after all contingent payments to third parties. The settlement agreement fully concludes Delta’s offshore California litigation against the federal government.
John Wallace, president and COO of Delta Petroleum, said: “We are very pleased to have reached a settlement with the federal government on this final portion of the litigation.
“The approximately $50m in net proceeds to Delta substantially increases our liquidity position, and will allow us to evaluate recommencing our drilling program in the near-term or reduce our leverage. Either use of proceeds would benefit our shareholders.”
