Company Also Completes Tipperary Exchange and Other Strategic Transactions
DENVER, June 3 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation
(Nasdaq: DPTR; Frankfurt: DPE), an independent energy exploration and
development company, today announced that the Company has closed on a number
of strategic transactions during the past week, including purchase of the
domestic oil and gas properties of Castle Energy Corporation. In addition,
the previously announced property exchange with Tipperary Corporation
(Amex: TPY) has been completed, the Company has closed on a new Credit
Agreement with the Bank of Oklahoma and Local Oklahoma Bank, and an office
building in Ft. Worth, Texas has been sold.
Shareholders approved the Company's purchase of the domestic oil and gas
properties of Castle Energy Corporation at Delta Petroleum's annual meeting on
May 30, 2002, and the transaction was completed on May 31, 2002. The
properties acquired from Castle consist of interests in approximately
525 producing wells located in fourteen (14) states, plus associated
undeveloped acreage, with proved reserves of approximately 62 billion cubic
feet of gas equivalent (Bcfe), of which proved developed producing reserves
total approximately 32 Bcfe. The Company issued 9,566,000 new shares of
Common Stock to Castle Energy Corporation as part of the purchase price. "The
Castle acquisition more than doubles Delta's daily production to approximately
22 million cubic feet of gas equivalent per day comprised of approximately
45% oil and 55% natural gas," noted Roger Parker, President and
Chief Executive Officer of Delta Petroleum Corporation.
"At current commodity prices and current daily production rates, Delta's
oil and gas revenue could be in excess of $27 million for the fiscal year
ending June 30, 2003, and cash flow from operations could exceed $13 million.
Following the acquisition, our proved natural gas equivalent reserves
approximate 80 billion cubic feet, compared with 18 billion cubic feet prior
to the Castle purchase. We expect to immediately initiate workover,
recompletion and drilling activities on certain of the Castle properties in
order to further increase daily production," continued Parker.
The Company has also completed the sale of its undivided interests in an
Authority to Prospect (ATP) covering lands in Queensland, Australia, to
Tipperary Corporation, in exchange for Tipperary's producing properties in the
West Buna Field (Hardin and Jasper counties, Texas), $0.7 Million in cash, and
250,000 unregistered shares of Tipperary common stock. The West Buna Field
properties contain proved natural gas equivalent reserves totaling
approximately 4.3 billion cubic feet (Bcf). Net daily production from the
West Buna Field approximates 900,000 cubic feet equivalent.
Also during the past week, Delta Petroleum closed on a new $20 million
Credit Agreement with the Bank of Oklahoma and Local Oklahoma Bank.
Approximately $19 million of the credit facility was utilized to close the
Castle Energy transaction and to pay off Delta's existing loan with US Bank.
The Company's total debt now approximates $25 million. "The new revolving
credit facility and net cash increases from the recent transactions will
provide substantial working capital from which we can conduct more meaningful
development activities on our existing property base," stated Parker.
Delta Petroleum generated $417,000 in cash through the sale of its
Ft. Worth, Texas commercial office building. "The sale of the building was
consistent with our strategy of divesting assets that are not necessary for
achievement of our strategic goals as a domestic exploration and development
company," concluded Parker.
Delta Petroleum Corporation is an oil and gas exploration and development
company based in Denver, Colorado. The Company has producing properties in
numerous states and interests in one producing federal unit and four
undeveloped units located in federal waters offshore California near
Santa Barbara. Its common stock is listed 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 affecting 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 firstname.lastname@example.org
RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893
or via email at email@example.com
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SOURCE Delta Petroleum Corporation
/CONTACT: Aleron H. Larson, Jr., Chairman, Roger A. Parker, President and
CEO, or Kevin K. Nanke, CFO, of Delta Petroleum Corporation, +1-303-293-9133,
or firstname.lastname@example.org; or RJ Falkner & Company, Inc., Investor Relations
Counsel, +1-800-377-9893, email@example.com, for Delta Petroleum Corporation/
CO: Delta Petroleum Corporation; Tipperary Corporation; Castle Energy
Corporation; Bank of Oklahoma; Local Oklahoma Bank
ST: Colorado, Texas, Oklahoma
IN: OIL MNG FIN OTC
SU: TNM ERP
-0- Jun/03/2002 17:34 GMT
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