Denver-based Delta Petroleum said it is buying all of Alpine Resources’ proved reserves, which total about 90 Bcfe, for about $1.40/Mcf. No further financial details were provided. Alpine currently produces about 20 MMcf/d and holds estimated total reserves of about 140 Bcfe.

Delta CEO Roger Parker said the deal would increase Delta’s daily production by 65%. “There is significant undeveloped potential in the properties, including 37 ‘behind pipe’ and 65 proved undeveloped opportunities. Additional probable locations have also been identified. We expect to begin developing the asset in the near future and believe it is possible to increase daily output from the Alpine properties by 25% or more in the upcoming fiscal year.”

Delta said it is in the process of completing its due diligence review of the properties and finalizing its financing arrangements for the transaction. Financing is expected to include an increase in bank debt and possible sales of non-core properties. Other alternatives are also being explored. Alpine is being represented by Petroleum Place Energy Advisors. The effective date of the transaction is June 1.

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