By OGJ editors
HOUSTON, Jan. 2 -- Delta Petroleum Corp., Denver, said Tracinda Corp., a private investment firm owned by Kirk Kerkorian, agreed to invest $684 million for 35% of Delta's stock.
The deal will allow Delta to accelerate development drilling in its core areas, including the Rocky Mountain Piceance and Paradox basins. Shareholders will be asked to approve the deal in February.
Delta said, "This transaction will also provide Delta significant financial flexibility to fund the company's long-term drilling programs and allow for increased acquisition activity, consistent with Delta's strategy to pursue complementary acreage and working interest acquisitions in the company's core areas."
Delta said pipeline expansion projects in the Piceance basin will support its anticipated increased production and reserve growth generated by accelerated drilling. Recent success in the northern Paradox Greentown area also justify a quickened drilling program.
