Source: Delta Petroleum
Delta Petroleum Corporation (NASDAQ:DPTR) closed on its previously announced transaction with Wapiti Oil & Gas, L.L.C. to sell various non-core assets.
Of the $130 million purchase price, $112 million was received by Delta at closing and used to reduce bank debt and to pay transaction costs. The remaining $18 million will be held in escrow until third party consents are obtained for the assignment of Delta's working interest in certain properties that were a part of the transaction. Delta anticipates receiving the consents and escrowed funds by the end of August.
Carl Lakey, Delta's CEO stated, "The successful closing of this non-core asset sale allows us to significantly reduce our bank debt and to concentrate our capital and personnel on our operated Vega asset. With a stronger liquidity position and a more focused approach on our operations, we can now work towards increasing production and proved reserves in the Piceance Basin."