Delta Petroleum Corporation has signed agreements for two separate transactions in the Columbia River Basin ("CRB") of Washington and Oregon. The first is a transaction with EnCana USA, Inc., through which Delta has acquired all of EnCana's net leasehold position and interest in wells in the CRB of Washington. This transaction brings the Company's total leasehold ownership to approximately 844,000 acres.
Secondly, the Company has entered into a joint venture agreement with a major Canadian energy company ("partner") to sell a 50% working interest participation in all CRB leasehold and wells. Under the terms of the agreement, Delta and its partner currently plan to drill at least three wells in the CRB, including the Gray 31-23 well. Upon closing of these two transactions, the Company's position in the CRB will approximate 422,000 net acres, which is unchanged relative to the Company's pre-transactions position.
Roger Parker, Delta's Chairman and CEO commented, "We are very pleased to have signed agreements for these two important transactions, which combined will serve to diversify some of our exploration risk, while preserving significant exposure to the vast upside potential that we believe exists in the CRB. With the execution of the joint venture agreement with our new partner, along with an agreement to drill three wells, we can ensure to further test the merits of the basin. Having a large partner that shares our enthusiasm of the CRB and believes in its potential is a significant step for the project."
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