Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - PAR PACIFIC HOLDINGS, INC. | c26706e8vk.htm |
Exhibit 99.1
| Transaction Background Delta Petroleum Corporation and certain of its affiliates ("Delta") have filed Chapter 11 cases pending in the United States Bankruptcy Court for the District of Delaware Evercore Partners has been retained to help facilitate a full, open and fair bidding process ("Sale Process") to maximize the value of Delta's assets for the benefit of Delta's creditors, stakeholders and bankruptcy estate The Sale Process is being conducted in accordance with section 363 of title 11 of the U.S. Bankruptcy Code whereby a successful bidder will acquire the assets of Delta free and clear of all Encumbrances other than Permitted Encumbrances (both terms defined in the "Bid Procedures") Delta's assets are primarily focused in the Vega area of Mesa County, Colorado, with current production of ~25 MMcfed and total proved reserves of 750 Bcfe (14% PDP, 70% gas, 82 R/P) Asset Sale A Chapter 11 Section 363 Auction Process Key Dates for Potential Bidders Delta has filed detailed Bid Procedures with the Bankruptcy Court (all public bankruptcy documents are available on www.epiq.com) An online data room is now available for interested parties after executing the confidentiality agreement A summary of key Sale Process dates are detailed below: Date Time (EST) Description February 13, 2012 5:00 p.m. Parties must provide the following:Confidentiality AgreementIdentification of Potential BidderNon-Binding Expression of Interest March 21, 2012 5:00 p.m. Due Date for Bid and Deposit March 23, 2012 5:00 p.m. Auction Notice Deadline March 26, 2012 9:00 a.m. Auction March 28, 2012 1:30 p.m. Sale Hearing Evercore Process Contacts Doug Rogers Vice President (713) 427-5138 doug.rogers@evercore.com Shane Sealy Vice President (713) 427-5149 shane.sealy@evercore.com Tim Carlson Senior Managing Director (713) 427-5153 tim.carlson@evercore.com Jerry Smith Vice President (713) 427-5147 jerry.smith@evercore.com Shaun Finnie Senior Managing Director (713) 427-5151 shaun.finnie@evercore.com |
| Key Asset Details Core asset located in the Vega Area of the Piceance Basin in Colorado 22,121 net acres in Mesa County Minimal capital required to hold ~95% of the acreage by production Nearly 100% working interest and ~82% net revenue interest Booked development potential in the Williams Fork formation Non-operated interests in a number of nearby fields, mostly operated by Encana Other Assets Non-operated interest with PXP in Point Arguello, offshore California, producing ~200 bopd net Additional acreage in New Mexico, Oregon, Utah and Washington Investment Highlights Opportunity to acquire control of a nearly 3 Tcfe resource base Ability to dramatically increase production and asset value based on leverage to current gas price Over 2,000 low-risk drilling locations with substantial, high-quality pad and gathering infrastructure in place Demonstrated unbooked potential associated with the Mancos, Niobrara and Frontier formations Company Statistics Proved reserves of 750 Bcfe (14% PDP, 70% gas) December 2011 net production of ~25 MMcfed (82 R/P) Vega Overview Note: Assumes 5-year Henry Hub and WTI pricing of: Gas: $3.33, $4.03, $4.39, $4.64, $4.83 ($5.28 flat after 2016) Oil: $98.63, $95.60, $92.65, $90.98, $90.29 ($90.18 flat after 2016) VEGA Delta reserves the right, following consultation with its advisors to modify the bid procedures in any manner that will best promote the goals of the bidding process. By receiving this document, the recipient acknowledges that it has relied solely upon its own independent review, investigation and/or inspection of any documents and/or Delta , and that it did not rely upon any written or oral statements, representations, warranties, or guaranties, express, implied, statutory or otherwise, regarding Delta, the financial performance of Delta or the physical condition of Delta, the liabilities, or the completeness of any information provided in connection therewith or the process. Estimates of unproved resources which may potentially be recoverable through additional drilling or recovery techniques are by their nature more uncertain than estimates of proved reserves and accordingly are subject to substantially greater risk of not actually being realized. None of the reserve estimates set forth above conform to SEC guidelines in that they have been determined using strip pricing and assume a non-existent board-approved five-year development plan with four rigs in operation. |