Delta Petroleum Corporation, an independent energy exploration and development company, has entered into an agreement to purchase Piper Petroleum Company, a privately owned oil and gas company headquartered in Fort Worth, Texas. Terms of the proposed transaction call for Delta to (1) issue up to 1,431,000 restricted shares of its common stock to Piper shareholders and (2) pay off approximately $1,180,000 in Piper debt.
Piper owns working and royalty interests in over 300 oil and gas wells located primarily in Texas, Oklahoma and Louisiana, along with a 5 percent interest in the Comet Ridge coalbed methane gas project in Queensland, Australia.
Following the closing of the transaction, which is scheduled for February 15, 2002, Piper will be merged into a wholly owned subsidiary of Delta Petroleum Corporation.
Delta Petroleum also announced that on November 15, 2001, it purchased certain producing properties from three unaffiliated parties in exchange for $412,427 in cash and 137,476 restricted shares of common stock. The properties are located in six fields in the Edwards Reef Trend in Lavaca, DeWitt, Karnee, Live Oak and McMullen counties in the State of Texas and consist of non-operated minority interests in 34 gas wells and associated undeveloped acreage. This transaction has been previously disclosed in a Form 8-K filing with the Securities and Exchange Commission dated December 20, 2001.