Delta Closes Strategic Investment by Tracinda
Delta Petroleum Corporation reported the close of the previously approved strategic investment by the Tracinda Corporation. As agreed, Tracinda invested $684 million to acquire 36 million shares of Delta's common stock from the company, or the equivalent of $19 per share. On February 19, 2008 Delta announced that both the sale of the shares to Tracinda and the increase in the size of the Board of Directors of Delta from 11 to 15 were approved by an overwhelming majority of the Company's shareholders.
Tracinda will have the ability to nominate an additional three members to the Company's Board at a later date.
Roger A. Parker, Chairman and CEO commented, "With the closing and funding of the transaction today, Delta is positioned to deliver substantial reserve, production and cash flow growth. We look forward to having Mr. Kerkorian and his leadership team at Tracinda as a significant shareholder and supporter of Delta. We believe the acceleration of our drilling inventory will provide for many years of shareholder value creation. 2008 should be an exciting year for Delta and its shareholders."
Delta would like to further express its appreciation to Edward "Tiger" Mike Davis for his participation in introduction between the company and Mr. Kerkorian.
Tracinda Corporation said, "We are extremely pleased to formally enter into our long-term partnership with Delta Petroleum and its management team. Since first announcing our intention to invest, we have grown even more confident in the company's long-term strategy and ability to achieve significant growth from its well-positioned exploration projects. We look forward to lending our support and benefiting from that strategy alongside the Company's other shareholders."