Delta Ends Strong in 2Q11

- Delta Ends Strong in 2Q11

Thursday, August 04, 2011
Delta Petroleum Corp.

Delta announced its financial and operating results for the second quarter 2011.

Carl Lakey, Delta's CEO and President stated, "We are pleased to provide our shareholders with another solid operating quarter coupled with the accomplishment of some very important strategic steps. We sold our remaining non-core assets, which reduced our leverage and provided sufficient liquidity to continue our deep shale evaluation and development in the Vega Area. While the strategic alternatives process, the 2C well results, and the Netherland Sewell report were all announced subsequent to the end of the quarter, much of the efforts that went into those steps occurred in the second quarter. The 2B and 2C well results and Netherland Sewell's report are very important contributions that support Delta's intrinsic value and aid our strategic alternatives process."

VEGA AREA SHALE EVALUATION UPDATE

As previously announced, the Delta 2C well began producing hydrocarbons on Wednesday, July 20, at a rate of 5.4 million cubic feet of gas per day (MMcf/d), which was choke-restricted with a 7/64 of an inch choke and 8,360 psi of flowing tubing pressure. Gas sales from the well began on Thursday, July 21 from the Niobrara and Frontier formations only. The well is currently producing between 2.5 – 3.5 MMcf/d with 6,100 psi of flowing tubing pressure. The well choke is currently set at 9/64 of an inch. The Mancos shale, Corcoran and Williams Fork formations remain uncompleted.

The Delta 2B well in the Vega Area of the Piceance Basin drilled through a portion of the Mancos formation and reached total depth of 10,700 feet. Below the Williams Fork the well was completed in 1,200 feet of shale in the Corcoran and the upper portion of the Mancos formation. Gas production began on April 24 and sales commenced on April 29. As announced on May 10, the 2B well experienced sustained production of 3.3 MMcf/d from only the Mancos and Corcoran formations. The well is currently producing 0.6 MMcf/d. The information available indicates that the natural fractures in the 2B well may have prematurely closed by the high flow rate (6 MMcf/d) during initial flowback activities, which has subsequently hindered production. The Company is currently evaluating refracturing the well in the Mancos and Corcoran formations to reestablish higher production levels in the well.

The Company is currently drilling the 12B well. The current depth is approximately 8,500 feet with a target depth of 13,000 feet. It is expected that the target depth will reach the Frontier formation. Total depth is expected to be reached during September. Once completed, this well will hold the acreage of the federal Sheep Creek Unit and bring the Company's Vega leasehold up to 95% held by production.

STRATEGIC ALTERNATIVES UPDATE

On July 6, 2011, Delta announced that it had engaged Macquarie Capital (USA) Inc. and Evercore Group, L.L.C. to act as advisors to the Company in conducting a strategic alternatives process aimed at maximizing shareholder value and dealing with the Company's 2012 debt maturities. Through this process, the Board of Directors is evaluating all opportunities available, including a potential sale of the Company. The process is in its early stages and the Company does not expect to make further public comment regarding the process until the Board of Directors has approved a specific transaction or otherwise determines that disclosure of significant developments, if any, is appropriate.

OPERATIONS UPDATE

Current production of the Company approximates 28 million cubic feet equivalent per day (MMcfe/d) net.

2011 CAPITAL EXPENDITURES AND PRODUCTION GUIDANCE

Delta will focus its current available capital for the remainder of 2011 on drilling and completing the 12B well and completing the remaining two previously drilled Williams Fork wells. The completions of the remaining two previously drilled wells have been postponed to the fourth quarter of 2011; however, these plans could be altered depending on shale well results, with capital potentially being reallocated to additional shale activity. Developments related to the strategic alternatives process may also affect current capital spending plans.

Production for the third quarter 2011 is expected to be between 2.6 Bcfe and 2.7 Bcfe.

RESULTS FOR THE SECOND QUARTER 2011

For the quarter ended June 30, 2011, the Company reported total production of 3.2 Bcfe. Production from continuing operations was 2.8 Bcfe, remaining flat when comparing second quarter 2011 to the prior year period. Revenue from oil and gas sales was $16.9 million, an increase of 14% when compared to the prior year period of $14.8 million. The average natural gas price received during the quarter ended June 30, 2011 increased to $5.31 per thousand cubic feet (Mcf) compared to $4.92 per Mcf for the prior year period. The average oil price received during the quarter ended June 30, 2011 increased to $86.87 per barrel compared to $58.29 per barrel for the prior year period.

The Company reported a second quarter net loss attributable to Delta common stockholders of ($963,000), or ($0.03) per diluted share, compared to a net loss attributable to Delta common stockholders of ($149.8 million), or ($5.43) per diluted share, in the second quarter of 2010. The decrease in net loss is primarily due to a decrease in dry hole costs and impairments and a decrease in operating expenses, as well as discontinued operations.

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Delta Airlines Q2 Misses Earnings Estimates Due To Costly Fuel Prices

- Delta Airlines Q2 Misses Earnings Estimates Due To Costly Fuel Prices



Jul 27, 2011

Delta Airlines (NYSE:DAL) reported a Q2 loss of $0.43, narrower than analyst estimates for a loss of $0.46 per share. Revenues for the quarter rose 12.1% year-over-year to $9.15 billion, missing consensus estimates of $9.16 billion.

Richard Anderson, Delta's chief executive officer said, "High fuel prices are putting significant pressure on the industry, but the benefits of Delta's strategic actions and the dedication of Delta employees are evident in the solid profit we produced despite more than $1 billion in higher fuel expense. Our revenue momentum, coupled with the capacity reductions we are making in September and actions to get our non-fuel costs to 2010 levels, will generate the margins we need to hit our return targets."

Delta Air Lines (NYSE:DAL) has a potential upside of 80.1% based on a current price of $8.02 and an average consensus analyst price target of $14.44.

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Delta Petroleum Announced Ten-For-One Reverse Stock Split

- Delta Petroleum Announced Ten-For-One Reverse Stock Split



Jul 12, 2011

Delta Petroleum (NASDAQ:DPTR) announced that its shareholders have approved an amendment of the company's certificate of incorporation to affect a reverse stock split at an exchange ratio of one-for-ten, and to reduce the number of authorized shares of common stock from 600 million to 200 million.

The reverse stock split will be effective at the opening of trading on July 13. Upon effect of the reverse stock split, the stock will trade with a "D" next to the symbol "DPTR" for 30 calendar days to signify the reverse stock split has occurred. With the effect of the reverse stock split, the company expects to satisfy NASDAQ's continued listing requirements.

Delta Petroleum is currently below its 50-day moving average (MA) of $0.63 and below its 200-day MA of $0.77.

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Delta to Sell Remaining Assets to Wapiti

- Delta to Sell Remaining Assets to Wapiti

Friday, June 17, 2011
Delta Petroleum Corp.

Delta Petroleum has entered into a Purchase and Sale Agreement (PSA) with Wapiti to sell its remaining non-operated interests in various non-core assets for $43.2 million. The transaction is expected to close by the end of June.

The non-operated, non-core assets to be sold to Wapiti consist of Delta's remaining working interests in the fields of the DJ Basin and Texas. The working interests being sold in this transaction constitute the non-operated portions of these fields that were retained by Delta when Delta sold properties to Wapiti in August of 2010.

Carl Lakey, Delta's CEO, commented, "As we discussed on our last conference call, the expected proceeds from the sale of these non-core assets will allow us to fund current and future drilling activity in the Vega Area and reduce our senior secured debt balances. Our borrowing base with Macquarie will decrease by $22 million to $33 million as a result of the sale. The sale of the remaining non-core assets makes Delta essentially a pure Piceance Basin company. The Vega Area has been and will remain the focus of the Company's capital and efforts."

Macquarie Capital (USA) Inc. and Evercore Group, L.L.C. acted as financial advisors to Delta in connection with this transaction.

The Company also announced that it has recently finished completion activities on the 2C well and is transitioning to flow-back activities.

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Energy XXI Granted Operatorship on West Delta Fields

- Energy XXI Granted Operatorship on West Delta Fields

Thursday, June 16, 2011
Energy XXI

Energy XXI provided an operational update, including results of the first recompletion at the South Pass 89 field and drilling of the Onyx prospect at the Main Pass 73 field.

In addition, the company announced it has been granted operatorship of the West Delta 30 and West Delta 73 fields obtained in the ExxonMobil asset acquisition in December 2010. "Gaining control of these fields allows us to move forward with our production optimization and capital programs," Chairman and Chief Executive Officer John Schiller said. "We expect to have the last field, South Timbalier 54, under our control by the end of the month."

Exploration and Development Activity

Within the company's core producing properties, located offshore Louisiana, the first of a six-well recompletion program at the South Pass 89 field has been successful. The A-15 well is currently flowing 18 million cubic feet per day and 300 barrels of condensate per day, with 3,100 pounds of flowing tubing pressure. The well, forecast to deliver 800 barrels of oil equivalent per day (BOE/d) net, is producing 2,500 BOE/d net. These production levels equal the company's pre-work estimate for the entire six-well program.

At the Grand Isle 16 field, the company perforated a prospective natural gas zone in the J 21 well, which instead tested mostly oil at approximately 1,200 BOE/d. That well has been shut in until a platform rig is mobilized to complete work. In addition, the Rowan EXL 3 rig, previously working for McMoRan, will be mobilized to Grand Isle 16 to perform three recompletions that have been identified to optimize production.

Quarter-to-date, production has averaged approximately 42,500 BOE/d, benefitting from the success at South Pass 89 and other previously announced recompletions. Current production exceeds 46,500 BOE/d. This production level has been achieved despite the fact Energy XXI did not have operational control over the West Delta 73 and South Timbalier 54 fields, which are the largest fields added in the December 2010 acquisition.

Near-term production also should be augmented by two successful wells at the Main Pass 73 field. The Onyx well was drilled to 5,635 feet and encountered two pay zones that were previously modeled as salt. The well was completed and initial testing is beginning today. The rig currently is being moved to begin completion operations on the Ashton well which, as previously announced, encountered seven pay zones. Combined initial production from Ashton and Onyx is expected to approximate 1,500 BOE/d within the next 30 days.

Within the shallow-water, ultra-deep Gulf of Mexico shelf program, the McMoRan-operated partnership (in which Energy XXI has various interests) has continued activity at the Blackbeard East and Lafitte exploratory wells and the offset appraisal well at Davy Jones.

The Davy Jones offset well, located on South Marsh Island Block 234 in 20 feet of water, has been drilled and cased to 30,450 feet. Logging operations have been completed and the logs are being evaluated. As previously announced, wireline logs indicated over 200 feet of gross sand and approximately 100 net feet of sand, based on porosity data available, in multiple Wilcox zones that appear to be hydrocarbon bearing. Below the identified Wilcox section the well encountered Upper Cretaceous, Tuscaloosa and Lower Cretaceous sections. The well is being readied for production once equipment has been procured, with expected first production to occur during the second quarter of calendar 2012. Energy XXI has a 15.8 percent working interest and 12.6 percent net revenue interest in Davy Jones.

The Blackbeard East exploration well, located in 80 feet of water on South Timbalier Block 144, was drilled to 32,559 feet before encountering mechanical issues. McMoRan is continuing to make progress recovering drill pipe and tools stuck in the hole. After recovering 1,866 feet of stuck pipe, the remaining 1,374 feet of pipe and tools appear to have slipped further down the wellbore. The operator has washed and reamed the wellbore to a depth of 29,227 feet and has yet to reencounter the top of the stuck pipe. Progress to date provides encouragement that the wellbore may be preserved to the previous depth and deepened to the permitted depth of 34,000 feet. Energy XXI has an 18 percent working interest and 14.35 percent net revenue interest in Blackbeard East.

The Lafitte exploration well commenced drilling on Oct. 3, 2010 towards a proposed total depth of 29,950 feet, targeting Miocene objectives below the salt weld. A liner has been run below the salt to 22,982 feet and the well is currently drilling at 23,645 feet.. Lafitte is located on Eugene Island Block 223 in 140 feet of water. Energy XXI has an 18 percent working interest and a 14.6 percent net revenue interest.

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Delta Air Lines Reports Generally Higher May Traffic, Surpassing American Airlines

- Delta Air Lines Reports Generally Higher May Traffic, Surpassing American Airlines



Jun 7, 2011

Delta Air Lines (DAL) today posted its May traffic results, with system traffic up 2.2% from the year-ago month on a 2.2% increase in capacity making it the world's largest carrier by traffic, surpassing American Airlines. Load factor is still at 83.9%, which is flat with last year.

Domestic traffic also increased by 1.9% versus last year on a 0.4% increase in capacity. Load factor for domestic increased to 85.1%. International traffic is up 2.6% versus last year on a 5% capacity increase, with load factor down 2 points to 82.2%.

The higher traffic is due to the consolidation of Delta's subsidiary Northwest Airlines, which was completely integrated into Delta network in January of 2010.

DAL shares are down slightly 0.21% to $9.60.

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Delta Marine Technologies Inks Agency Agreement with Ampelmann

- Delta Marine Technologies Inks Agency Agreement with Ampelmann

Monday, May 16, 2011
Delta Marine Technologies Inc.

Delta Marine Technologies and its affiliates announced the signing of an Agency Agreement with Ampelmann Operations BV of The Netherlands as sole agent throughout much of the Western Hemisphere excluding Brazil for the rental and hire of the Ampelmann Offshore Access System.

This system is designed to address the requirement for personnel transfer in the offshore environment where active compensation of wave-induced vessel motions of marine vessels brings safety and efficiency to new levels of performance unmatched by the more conventional conveyances currently employed in the offshore energy industries of Oil and Gas, Wind and Wave Power.

Future applications for the Ampelmann system include but are not limited to the following:

• Floatel accommodation support
• Offshore hook-up and commissioning
• Platform decommissioning
• Platform jacket installations
• Brownfield re-development
• Production operations for unmanned facilities
• Ship-to-Ship personnel transfer
• Wind Energy installation projects
• Wave Energy installation projects

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Delta Reports Better Than Expected Q1, Loses $0.38 Per Share

Delta Reports Better Than Expected Q1, Loses $0.38 Per Share



Apr 26, 2011

Delta Air Lines (NYSE:DAL) reported a Q1 loss of $0.38, a narrower loss than the $0.50 per share consensus estimate. Revenue was up 13% year-over-year to $7.7 billion, beating the consensus estimate for $7.6 billion.

Richard Anderson, Delta's chief executive officer said, "Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings. These actions would not be possible without the dedication and determination of Delta people worldwide, who are working every day to build the best airline in the world for our shareholders, our employees and our customers."