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8-K - FORM 8-K - PAR PACIFIC HOLDINGS, INC. | d83871e8vk.htm |
Exhibit 99.1
DELTA PETROLEUM CORPORATION
Daniel Taylor, Chairman
Carl Lakey, President and CEO
Kevin Nanke, Treasurer and CFO
Broc Richardson, V.P. Corporate Development and IR
370 17th Street, Suite 4300
Denver, Colorado 80202
Daniel Taylor, Chairman
Carl Lakey, President and CEO
Kevin Nanke, Treasurer and CFO
Broc Richardson, V.P. Corporate Development and IR
370 17th Street, Suite 4300
Denver, Colorado 80202
For Immediate Release
DELTA PETROLEUM CORPORATION RETAINS INDEPENDENT ENGINEERS
AND PROVIDES UPDATED RESERVE AND RESOURCE ESTIMATES
AND PROVIDES UPDATED RESERVE AND RESOURCE ESTIMATES
DENVER, Colorado (July 28, 2011) Delta Petroleum Corporation (Delta or the Company) (NASDAQ
Capital Market: DPTRD), an independent oil and gas exploration and development company, announced
today that it retained Netherland Sewell & Associates, Inc. (NSAI or Netherland Sewell) to provide
independent engineering of the Companys proved, probable and possible reserves and resources in
support of the Companys strategic alternatives process. NSAI has recently concluded its
evaluation and estimates Deltas total proved reserves at 674 billion cubic feet equivalent (Bcfe)
based upon the forward curve of commodity prices as of June 30, 2011, and total proved, probable
and possible reserves to be approximately 2.6 trillion cubic feet equivalent (Tcfe) from the
Williams Fork section. NSAI also estimates an additional unrisked prospective resource of between 6
10 billion cubic feet equivalent (Bcfe) per well from the Niobrara and Mancos shales, assuming
between 80 160 acre spacing. The Company currently has approximately 22,400 net acres in the
Vega Area.
See Reserve/Resource Disclosure below for more explanation with respect to NSAIs reserve and
resource estimates and the assumptions used by NSAI in making such estimates. NSAI utilized the
guidelines and definitions set forth in the 2007 Petroleum Resources Management System as approved
by the Society of Petroleum Engineers.
Carl Lakey, Deltas President and CEO stated, Netherland Sewell is a highly respected reserve
engineering firm with outstanding knowledge of North American shale plays and the Piceance Basin in
particular. The independent engineering estimates validate the Vega Area as an exceptional core
asset with significant upside.
RESERVE/RESOURCE DISCLOSURE
The SEC permits oil and gas companies, in their filings with the SEC, to characterize as
proved reserves only those accumulations of hydrocarbons that a company has demonstrated by actual
production or conclusive formation tests to be economically and legally producible under existing
economic and operating conditions, and that are part of an approved five-year development plan. In
this release, we use the terms proved reserves, proved, probable and possible reserves,
resources and other descriptions of volumes of hydrocarbons potentially recoverable, through
additional drilling or recovery techniques. None of the reserve estimates contained in this
release conform to SEC guidelines. The NSAI reserve estimates presented in this release have been
determined using strip pricing and assume a non-existent Board approved five year development plan
with four rigs in operation, and therefore do not comply with SEC standards. Netherland Sewells
estimates of proved, probable and possible reserves and resources are provided in this release
based on the foregoing assumptions because the Companys management believes it is useful
additional information in the valuation, comparison and analysis of companies and assets. Estimates
of unproved reserves or resources which may potentially be recoverable through additional drilling
or recovery techniques, or under different pricing assumptions, are by their nature much more
uncertain than estimates of proved reserves and accordingly are subject to substantially greater
risk of not actually being realized by the Company.
ABOUT DELTA PETROLEUM
Delta Petroleum Corporation is an oil and gas exploration and development company based in
Denver, Colorado. The Companys core area of operation is the Rocky Mountain Region, where the
majority of its proved reserves, production and long-term growth prospects are located. Its common
stock is listed on the NASDAQ Capital Market System under the symbol DPTRD until on or around
August 10, 2011, when the symbol will return to 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, estimated reserve and resource potential. Readers are
cautioned that all forward-looking statements are based on managements present expectations,
estimates and projections, but involve risks and uncertainty, including without limitation, the
effects of oil and natural gas prices, availability of capital to fund required payments on the
Companys debt obligations and its working capital needs, including drilling and completion
activities, contraction in the demand for natural gas in the United States, uncertainties in the
projection of future rates of production, unanticipated recovery or production problems,
unanticipated results from wells being drilled or completed, the effects of delays in completion of
gas gathering systems, pipelines and processing facilities, regulations that might be adopted in
the future that could, among other things, significantly limit or curtail hydraulic fracturing
techniques used in the Piceance Basin, as well as general economic conditions, market conditions
and competition. Please refer to the Companys report on Form 10-K for the year ended December 31,
2010 and subsequent reports on Forms 10-Q and 8-K as filed with the Securities and Exchange
Commission for additional risks and uncertainties affecting the Company. 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