The investment will allow Delta Petroleum to accelerate development drilling activities in its core areas, including the Piceance and Paradox basins. Additional pipeline expansion projects in the Piceance Basin will support Delta’s anticipated increased production and reserve growth generated by an accelerated drilling program.
The transaction will also provide Delta significant financial flexibility to fund the company’s long-term drilling programs and allow for increased acquisition activity, consistent with Delta’s strategy to pursue complementary acreage and working interest acquisitions in the company’s core areas.
Roger Parker, chairman and CEO of Delta, said: We are very pleased to have Tracinda Corporation as an investor and strategic partner in Delta. This transaction will provide the means to significantly increase the present value of our vast resource potential. The additional capital provides Delta the financial flexibility and wherewithal to grow the company to new levels. We are very enthusiastic about the future for Delta.
