May 8, 2009 (FinancialWire) — Delta Petroleum Corp. (NASDAQ: DPTR) said it has priced an offering of 150 million shares of its common stock. J.P. Morgan Securities (NYSE: JPM), BMO Capital Markets and Deutsche Bank Securities (NYSE: DB) are acting as joint book-running managers.

The company has agreed to sell 150 million shares of its common stock at a public offering price of $1.50 per share. The number of shares of common stock being offered was increased from an initially-planned 70 million.

Delta has granted the underwriters a 30-day option to purchase up to an additional 22.5 million shares of common stock on the same terms and conditions to cover over-allotments. The offering is scheduled to close on May 13.

The company expects to see net proceeds of $214.9 million, and it plans to use at least $70 million of the cash to reduce amounts outstanding under its credit agreement. Delta said it would use the balance for working capital, primarily for reduction of accounts payable.

Tracinda, the holder of around 39% of Delta’s common stock, and another stockholder have committed to purchase around $90 million of shares in the offering.

Denver-based Delta Petroleum is an oil and gas exploration and development company whose core areas of operations are the Rocky Mountain and Gulf Coast regions.

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