Delta Petroleum, Tracinda Complete Due Diligence Process
Delta Petroleum Corporation and Tracinda Corporation reported that Tracinda has completed the due diligence process for its strategic investment in Delta. As a result, Tracinda has waived its due diligence condition and will proceed with its planned investment in the Company. As previously announced, Tracinda has agreed to purchase 36 million shares of the Company's common stock for $684 million.
Roger Parker, the Company's Chairman and CEO stated, "With the completion of Tracinda's due diligence, we look forward to welcoming Tracinda as a shareholder and strategic partner in Delta. I am very confident that this transaction will allow Delta to significantly increase proved reserves, production and cash flow on a per share basis, thereby creating value for all of our shareholders. We look forward to receiving shareholder approval and closing the transaction."
Tracinda Corporation said, "We are very pleased to move one step closer to finalizing our investment in Delta and beginning our strategic partnership with the Company. After our in-depth review, we remain impressed by the strength of the management team and the value of the Company's identified oil and natural gas resources, as well as its significant upside potential."
As previously announced, the Company will hold a special meeting of its shareholders at its offices in Denver, Colorado at 10:00 a.m. Mountain Time on February 19, 2008 to vote on the Tracinda transaction. Proxy materials were mailed to shareholders on or about January 29, 2008. The closing of the transaction is expected to occur promptly after shareholder approval is obtained.