Delta to Sell Remaining Assets to Wapiti
Delta Petroleum has entered into a Purchase and Sale Agreement (PSA) with Wapiti to sell its remaining non-operated interests in various non-core assets for $43.2 million. The transaction is expected to close by the end of June.
The non-operated, non-core assets to be sold to Wapiti consist of Delta's remaining working interests in the fields of the DJ Basin and Texas. The working interests being sold in this transaction constitute the non-operated portions of these fields that were retained by Delta when Delta sold properties to Wapiti in August of 2010.
Carl Lakey, Delta's CEO, commented, "As we discussed on our last conference call, the expected proceeds from the sale of these non-core assets will allow us to fund current and future drilling activity in the Vega Area and reduce our senior secured debt balances. Our borrowing base with Macquarie will decrease by $22 million to $33 million as a result of the sale. The sale of the remaining non-core assets makes Delta essentially a pure Piceance Basin company. The Vega Area has been and will remain the focus of the Company's capital and efforts."
Macquarie Capital (USA) Inc. and Evercore Group, L.L.C. acted as financial advisors to Delta in connection with this transaction.
The Company also announced that it has recently finished completion activities on the 2C well and is transitioning to flow-back activities.