California

Delta Petroleum Corp., Denver, signed a settlement agreement with the US government concerning nonoperated Lease 452, which was in litigation, in the Santa Barbara Channel off California.

By OGJ editors
HOUSTON, Dec. 17
– Delta Petroleum Corp., Denver, signed a settlement agreement with the US government concerning nonoperated Lease 452, which was in litigation, in the Santa Barbara Channel off California.

Delta Petroleum and others alleged that the Minerals Management Service, after accepting lease bonuses, declined to allow the leases to be developed.

Delta Petroleum will receive gross proceeds of $65 million, which will result in $50 million net to the company after all contingent payments to third parties. The settlement concludes the company’s offshore California litigation against the federal government.

The company said the net proceeds will allow it to evaluate resuming its drilling program in the near term or reducing its borrowings.

More in Home