Delta Petroleum Corporation
Delta Petroleum Corporation (Nasdaq:DPTR) soared as high as 43 percent as they agreed to sell their stake in natural gas fields in Colorado for $400 million.
The stock reached as high as $1.95, the highest price for the stock isnce September.
The announcement today, which is a nonbinding agreement at this time, entails selling 37.5 percent of their interests in the Vega area to Opon International, along with selling 5.7 million newly issued shares for $3.50 each. Warrants to acquire another 13.3 million shares at $2.50 each is also part of the proposed agreement.
Delta will still run the Vega project, taking $225 million of the money raised to develop the area over the next 3 years.
The tight credit market severely limited Delta from getting the needed funds to develop the project, with only $10 million in this quarter and $5 million in the second quarter being offered to them.
Delta Petroleum Corporation
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