Delta Petroleum Corporation has entered into a strategic financing agreement with Tracinda Corporation ("Tracinda"), a private investment corporation wholly-owned by Kirk Kerkorian. Under the agreement, Tracinda will invest $684 million to acquire common stock from the Company at $19.00 per share, which represents a 23 percent premium to the price at the market close as of December 28, 2007 and a 26 percent premium to Delta's 30 day trading average.

This transaction will allow Delta Petroleum to accelerate development drilling activities in its core areas, including the Piceance and Paradox Basins. Additional pipeline expansion projects in the Piceance Basin will support Delta's anticipated increased production and reserve growth generated by an accelerated drilling program. Recently announced successes in the Greentown area of the Paradox Basin also justify an accelerated drilling program to exploit the Company's large acreage position.

This transaction will also provide Delta significant financial flexibility to fund the Company's long-term drilling programs and allow for increased acquisition activity, consistent with Delta's strategy to pursue complementary acreage and working interest acquisitions in the Company's core areas.

Roger Parker, Chairman and CEO of Delta, said, "We are very pleased to have Tracinda Corporation as an investor and strategic partner in Delta. This transaction will provide the means to significantly increase the present value of our vast resource potential. The additional capital provides Delta the financial flexibility and wherewithal to grow the Company to new levels. We are very enthusiastic about the future for Delta."

Tracinda Corporation said, "We are very pleased to enter into this long-term partnership with Delta Petroleum and its highly regarded management team. Under Roger's leadership, Delta Petroleum has become a very important company in the industry, with valuable resource plays, a strong asset base and well-positioned exploration projects that we believe hold significant growth potential. Our investment will provide the company with the capital to accelerate its exploration activities, while giving Tracinda and all Delta Petroleum shareholders the ability to realize value from its growth going forward."

Tags: Delta Petroleum Corporation, Tracinda Corporation