DENVER, Dec. 30, 2010 /PRNewswire/ -- Delta Petroleum
Corporation (the "Company" or "Delta") (Nasdaq: DPTR), an
independent oil and gas exploration and development company,
announced today that it has closed on a new senior secured credit
facility with Macquarie Bank Limited ("Macquarie").
As previously announced, the new credit facility is for
$100 million, of which $50 million will be initially available to the
Company. The $50 million is
comprised of a $30 million revolving
line of credit (Tranche A) and a $20
million advancing term loan (Tranche B). The interest
rate is Libor plus 7% or Prime plus 6% for Tranche A borrowings and
Libor plus 9% or Prime plus 8% for Tranche B borrowings, and is
subject to a 2% closing fee on the initial commitment amount.
The credit facility matures on January
31, 2012. The new credit facility replaces Delta's
prior credit facility.
Carl Lakey, President and CEO of
Delta Petroleum, stated, "The closing of this new credit facility
is yet another step in the restoration of the financial flexibility
Delta needs to successfully execute on its focused business plan of
creating greater value from its core asset in the Piceance
Basin."
ABOUT DELTA PETROLEUM
Delta Petroleum Corporation is an oil and gas exploration and
development company based in Denver,
Colorado. The Company's core areas of operations are in the
Rocky Mountain region, where the majority of its operated
properties and long-term growth prospects are located. Its
common stock is listed on the NASDAQ Global Market System under the
symbol "DPTR."
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, the Company's entry into a
new credit facility. Readers are cautioned that all
forward-looking statements are based on management's present
expectations, estimates and projections, but involve risks and
uncertainty, including without limitation, uncertainties in the
Company's ability to obtain additional funding, its ability to
successfully execute on its business plan, downward
fluctuations in commodity prices, the cost and availability of
third party services, as well as general market conditions and
competition. Please refer to the Company's report on Form
10-K for the year ended December 31,
2009 and subsequent reports on Forms 10-Q and 8-K as filed
with the Securities and Exchange Commission for additional
information. The Company 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 investorrelations@deltapetro.com.
SOURCE Delta Petroleum Corporation