UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
DELTA PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
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DELAWARE
(State or other jurisdiction of
incorporation or organization)
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0-16203
(Commission
File Number)
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84-1060803
(I.R.S. Employer
Identification Number) |
Registrant’s telephone number, including area code:
(303) 293-9133
No Change
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of
the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 1.01 Entry Into a Material Definitive Agreement.
The
information set forth in Item 2.01 of this Form 8-K that relates
to the entry into a material definitive agreement is
incorporated by reference into this Item 1.01.
ITEM 2.01 Completion of Acquisition or Disposition of Assets
On
February 28, 2008, Delta Petroleum Corporation entered into a definitive agreement with
EnCana Oil & Gas (USA) Inc. to jointly develop a portion of EnCana’s leasehold in the Vega Area of
the Piceance Basin of western Colorado. The effective date of the
transaction was
March 1, 2008.
Under the terms of the agreement, Delta has acquired 95% of EnCana’s interests in certain leases
and wells and 100% of EnCana’s interests in wellbores and production from certain other wells. The
acquisition of these assets has provided Delta with 1,700 drilling locations on approximately
18,250 gross acres with a 95% working interest. The transaction increases
the Company’s working
interest in the North Vega project leasehold to 95% from an average 50% with additional acreage
that includes the Buzzard Creek federal unit (4,300 acres) and approximately 6,000 acres
immediately adjacent to the Buzzard Creek unit.
Under the terms of the agreement, Delta committed to fund $410.5 million to EnCana with $110.5
million funded at closing and three additional $100 million installments due on
November 1, 2009,
2010 and
2011. These funds will be used for the drilling and completion of 228 wells in the Vega
Area and Delta will earn a 5% working interest in these wells. The aggregate $300 million in
future installment payments has been guaranteed by Delta with a letter of credit issued by Delta’s
lenders in favor of EnCana. Delta has secured its obligations under the letter of credit with $300
million in cash to be maintained in a separate account with Delta’s primary lender while the letter
of credit obligations are outstanding.
ITEM 2.02 Results of Operations and Financial Condition.
The
information incorporated by reference in Item 2.02 of this Form 8-K and the
Exhibit 99.1
attached hereto shall not be deemed
“filed” for purposes of Section 18 of the Securities Exchange
Act of 1934 (the
“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall
it be deemed
incorporated by reference in any filing under the Securities Act of 1933 or the
Exchange Act, regardless of any general incorporation language in such filing.
ITEM 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 2.01 of this Form 8-K that relates to the creation of a
direct financial obligation is
incorporated by reference into this Item 2.03.
ITEM 9.01 Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired
(b) Pro Forma Financial Information
The financial statements and financial pro forma financial information, if required, relating
to the transaction described in Item 2.01 of this Form 8-K will be filed by amendment to this Form
8-K on or before
May 15, 2008.
(d) Exhibits
