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Friday, 05 December, 2008, 16:50 GMT | more >>

Delta picks up Utah acres



By Upstream staff 

US independent Delta Petroleum is set to acquire a majority working interest in 88,000 acres in Utah in a cash and stock deal valued at $44.5 million.

The deal with Armstrong Resources includes acreage around a recent discovery at the Covenant field.

The field is estimated to have the potential for reserves in excess of 1 billion barrels of oil.

Armstrong will retain the remaining 35% working interest in the acreage. As part of the transaction, Delta will pay 100% of the drilling costs for the first three wells in the project.

Delta will be the operator of the majority of the acreage, and drilling is expected to begin late in the second quarter.

The Covenant project is expected to boost Delta’s production, which had lagged behind the company’s expectations during the fourth quarter of 2005.

Delta reaffirmed its production forecast of 4.6 to 4.8 billion cubic feet equivalent for the first quarter of 2006.

Production for the month of January is estimated at 1.5 Bcfe, and the current daily rate of production is about 53 million cubic feet equivalent.


Wednesday, 01 February, 2006, 17:46 GMT  | last updated: Wednesday, 01 February, 2006, 19:23 GMT

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