Delta Terminates Talks for Vega Area Assets
Delta has terminated discussions to sign a definitive Purchase and Sale Agreement with Opon International to sell a 37.5% non-operated working interest in, and jointly develop, its Vega Area assets in the Piceance Basin. Delta terminated the discussions after Opon was unable to obtain financing for the $400MM transaction on the agreed-upon terms. Delta will continue to pursue disciplined development of its main asset in the Piceance Basin to bolster proved reserves. In the Vega Area, Delta is taking a balanced approach to employing new procedures that are improving completion results while preserving liquidity. Delta is also continuing to pursue strategic alternatives to enhance shareholder value.
Daniel Taylor, Chairman of the Board, commented, "While Opon was unable to arrange financing for a transaction on terms acceptable to us, we remain confident in the value of our Vega Area asset, and intend to further delineate that value as we consider the Company's other strategic alternatives."