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Delta Petroleum credit line rises to $250 million

By Associated Press
May 20, 2008 | Comments (0)

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Independent crude oil and natural gas producer Delta Petroleum Corp. said Tuesday its credit line increased to $250 million from $140 million.

The increase in borrowing base is driven by the growth in the company's production and proved reserves, Delta said.

Earlier this year, Tracinda Corp., the investment arm of billionaire Kirk Kerkorian, paid $684 million for a 35 percent stake in Delta.

At the time, Delta said the cash infusion would help it speed drilling in the gas-rich Piceance and Paradox basin regions in Colorado and Utah. The added funds will also give Delta "significant financial flexibility" to pay for long-term drilling projects and possible acquisitions, the company said.

Wachovia Capital Markets analyst David Tameron said the deal alleviates concerns about how Delta will pay for its $250 million 2008 capital spending plan.

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