Delta Inks Settlement on Offshore California Lease
Delta Petroleum has signed a settlement agreement with the federal government concerning Lease 452 located offshore of California.
Delta has signed a settlement agreement with the federal government concerning offshore California Lease 452, which was in litigation. Under the terms of the agreement, Delta will receive gross proceeds of $65 million, which will result in approximately $50 million net to the Company after all contingent payments to third parties. The settlement agreement fully concludes Delta's offshore California litigation against the federal government.
John Wallace, the Company's President and COO said, "We are very pleased to have reached a settlement with the federal government on this final portion of the litigation. The approximately $50 million in net proceeds to Delta substantially increases our liquidity position, and will allow us to evaluate recommencing our drilling program in the near-term or reduce our leverage. Either use of proceeds would benefit our shareholders."