Delta Plans Strategic Investment in Company by Tracinda

Delta Petroleum Corporation, an independent energy exploration and development company has entered into a strategic financing agreement with Tracinda Corporation, a private investment corporation wholly-owned by Kirk Kerkorian. Under the agreement, Tracinda will invest $684 million to acquire common stock from the Company at $19.00 per share, which represents a 23 percent premium to the price at the market close as of December 28, 2007 and a 26 percent premium to Delta's 30 day trading average.

This transaction will allow Delta Petroleum to accelerate development drilling activities in its core areas, including the Piceance and Paradox Basins. Additional pipeline expansion projects in the Piceance Basin will support Delta's anticipated increased production and reserve growth generated by an accelerated drilling program. Recently announced successes in the Greentown area of the Paradox Basin also justify an accelerated drilling program to exploit the Company's large acreage position.

This transaction will also provide Delta significant financial flexibility to fund the Company's long-term drilling programs and allow for increased acquisition activity, consistent with Delta's strategy to pursue complementary acreage and working interest acquisitions in the Company's core areas.

Roger Parker, Chairman and CEO of Delta, said, "We are very pleased to have Tracinda Corporation as an investor and strategic partner in Delta. This transaction will provide the means to significantly increase the present value of our vast resource potential. The additional capital provides Delta the financial flexibility and wherewithal to grow the Company to new levels. We are very enthusiastic about the future for Delta."

Tracinda Corporation said, "We are very pleased to enter into this long-term partnership with Delta Petroleum and its highly regarded management team. Under Roger's leadership, Delta Petroleum has become a very important company in the industry, with valuable resource plays, a strong asset base and well-positioned exploration projects that we believe hold significant growth potential. Our investment will provide the company with the capital to accelerate its exploration activities, while giving Tracinda and all Delta Petroleum shareholders the ability to realize value from its growth going forward."

Under the agreement, which the Delta board of directors has unanimously approved, Tracinda has agreed to purchase 36 million primary shares of Delta common stock for $19.00 per share. This investment represents approximately 35 percent ownership for Tracinda on a fully-diluted basis. Tracinda will have the right to nominate members to Delta's board of directors on a pro rata basis reflecting its share ownership, which will initially be one-third of Delta's board of directors. The transaction is subject to a 30-day due diligence period and will be submitted to Delta stockholders for approval at a meeting planned for February 2008.

Delta management will hold a conference call at 11:00 am EST today, Monday, December 31, 2007 to discuss the transaction.

Shareholders and other interested parties may participate in the conference call by dialing 800-299-7635 (international participants dial 617-786-2901) and referencing the ID code 65532990, a few minutes before 11:00 am EST on December 31, 2007. The call will also be broadcast live on the Internet through the Company's website at A replay of the conference call will be available two hours after the completion of the conference call from December 31, 2007 until January 7, 2008 by dialing 888-286-8010 (international participants dial 617-801-6888) and entering the conference ID 46631947.