Delta Petroleum, Alpine Resources reach deal on 140 Bcfe of reserves

Ray Tyson

Petroleum News Houston correspondent

Denver-based Delta Petroleum has agreed to buy more than 140 billion cubic feet of natural gas reserves from Alpine Resources, Delta said June 16.

Specific terms of the transaction were not disclosed, but Delta said it is paying about $1.40 per thousand cubic feet of gas equivalent for the reserves. The deal is expected to close by June 30.

Alpine’s properties currently produce about 20 million cubic feet of gas equivalent per day. Alpine operates properties that account for 95 percent of proved reserves that exceed 90 million cubic feet of equivalent. Total reserves were pegged at over 140 billion cubic feet of equivalent.

About 50 percent of current daily production is natural gas and 50 percent oil, with oil representing about 55 percent of total proved reserves.

Financing arrangements are expected to include an increase in bank debt and the possible sale of non-core properties, Delta said, adding that other alternatives also are being explored.