Today, Delta Petroleum Corp. (NASDAQ:DPTR) announced the Commencement of a strategic alternatives process.
Delta’s President and CEO, Carl Lakey stated that with the closing of June 28 at $43.2 million sale of non-core, non-operated assets located in Texas and the DJ Basin, the Company has now completed the transformation to become essentially a pure Piceance Basin company. He added that the initial production results from the 2C well are anticipated in the near future, and further information will likely be obtained throughout the strategic alternatives process and these developments and continued expansion of the shale analogs from offset competitor activity coupled with geologic confirmation information expected from the currently drilling 12B-6-14D well, makes this the correct time to start a strategic alternatives process for the transformed Delta to explore the value of our approximately 22,000 net acres of Williams Fork and deeper shale resource.
The Company’s Board of Directors has involved Macquarie Capital (USA) Inc. and Evercore Group, L.L.C. by engaging them to act as advisors to the Company in conducting a strategic alternatives process which shall be aimed at increasing the shareholder value to the possible peak, while also dealing with 2012 debt maturities.
The Board of Directors seeks to evaluate all opportunities available, which includes a potential sale of the Company by capitalizing this process.
Delta Petroleum Corporation is an independent oil and gas company engaged primarily in the exploration for, and the acquisition, development, production, and sale of, natural gas and crude oil.
At 2:50 PM EDT on Wednesday, the shares of the Company trades at $0.471 after rising 4.58% or $0.021. As of now the shares have ranged at $0.44 – $0.49, creating a 52-Week lowest at $0.44. The Company’s market cap amounted to $134.49 million.
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