• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Delta Petroleum Announces Pricing of 150 Million Share Common Stock Offering

Posted on: Thursday, 7 May 2009, 18:28 CDT

DENVER, May 7 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation (Nasdaq: DPTR) ("Delta"), an independent oil and gas exploration and development company, today announced that it has priced its underwritten registered public offering of common stock. J.P. Morgan Securities Inc., BMO Capital Markets Corp. and Deutsche Bank Securities Inc. are acting as joint book-running managers for the offering. The offering was made pursuant to Delta's effective registration statement and prospectuses filed with the Securities and Exchange Commission.

Delta announced that it has agreed to sell 150 million shares of its common stock at a public offering price of $1.50 per share. The number of shares of common stock being offered was increased from the previously announced 70 million. Delta has also granted the underwriters a 30-day option to purchase up to an additional 22.5 million shares of common stock from Delta on the same terms and conditions to cover over-allotments, if any. The offering is expected to close on May 13, 2009, subject to customary closing conditions.

The aggregate net proceeds to Delta from the offering of common stock will be approximately $214.9 million, exclusive of any proceeds attributable to the underwriters' possible exercise of their over-allotment option. Delta intends to use at least $70.0 million of the net proceeds to reduce amounts outstanding under its credit agreement, and the balance for working capital, primarily for reduction of accounts payable.

Tracinda Corporation, the holder of approximately 39% of Delta's common stock, and another stockholder have committed to purchase shares having an aggregate public offering price equal to approximately $90 million in the offering.

A written prospectus and prospectus supplement relating to the common stock being offered may be obtained from J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, Attn: Chase Distribution and Support Service Northeast Statement Processing, telephone: 718-242-8002, fax: 718-242-8003, BMO Capital Markets Corp., 3 Times Square, 27th Floor, New York, NY 10036, Attn: Lori Begley, telephone: 212-885-4039, fax: 212-885-4174, or Deutsche Bank Securities Inc., 100 Plaza One, Jersey City, NJ 07311, Attn: Prospectus Department, telephone: 800-503-4611 or e-mail at prospectusrequest@list.db.com. You may also get these documents for free by visiting the SEC website at http://www.sec.gov. Before you invest, you should read the prospectus and the prospectus supplement, the registration statement and other documents that Delta has filed with the Securities and Exchange Commission for more complete information about Delta and this offering.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of the shares of common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such states. A registration statement relating to these securities has been filed and is effective.

About Delta

Delta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. Delta's core areas of operations are the Rocky Mountain and Gulf Coast Regions, which comprise the majority of its proved reserves, production and long-term growth prospects.

Forward-Looking Statements

Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, Delta's expectations and estimates about future events, the intended use of the proceeds of the offering and Tracinda Corporation and another stockholder's participation in the offering. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual events or results may differ materially from those contained in the forward-looking statements due to a variety of factors, including without limitation, changes in economic and market conditions, declines in natural gas and crude oil market prices, changes in the price at which shares of Delta's common stock trade, the need to obtain approval to list the securities on The NASDAQ Global Select Market, unanticipated recovery or production problems, and failure to alleviate liquidity constraints. Other risk factors are discussed in the registration statement, prospectus supplement and other Delta's filings with the Securities and Exchange Commission ("SEC"), including Delta's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and Delta's Quarterly Report on Form 10-Q for the three months ended March 31, 2009 (in each case, which may be viewed on the SEC's website at http://www.sec.gov). These documents contain and identify important factors that could cause the actual results for Delta to differ materially from those contained in Delta's forward-looking statements. Although Delta believes that the expectations reflected in the forward-looking statements are reasonable, Delta cannot guarantee future results, levels of activity, performance or achievements. Delta is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

For further information contact the Company at (303) 293-9133 or via email at info@deltapetro.com

or

RJ Falkner & Company, Inc., Investor Relations Counsel, at (800) 377-9893 or via email at info@rjfalkner.com

SOURCE Delta Petroleum Corporation

Source: PR Newswire

More News in this Category