Delta (DPTR) Loses Ground Following Top Level Changes
Delta Petroleum (NASDAQ: DPTR) yesterday announced the appointment of Carl Lakey as CEO, with immediate effect. He last served as senior vice president of Operations at Delta, and has been with the company since 2007. Delta also announced the resignation of current president and COO John R. Wallace.
Daniel Taylor, chairman of the board of Delta, said that Carl Lakey is a veteran in the oil and gas industry who was instrumental in increasing the net production and proven reserves of Delta during his time in the company. Lakey is considered the best person to take Delta forward, particularly the company’s principal assets in the Piceance Basin.
The company has also announced the termination of discussions to sign a Purchase and Sale agreement with Opon International LLC. The agreement was supposed to be for the sale of a 37.5% non-operated working interest in, and the joint development of the Vega Area assets in the Piceance Basin. The termination occurred due to Opon’s inability to secure financing for the transaction as per agreed terms.
Delta is still in pursuit of new procedures that can improve completion results in the Vega Area. The company has stated that it will continue to pursue strategic alternatives to enhance shareholder value.
The combined effect of the management change and the deal termination was to immediately push Delta’s stock down by 7.5% to 73 cents. The stock has slipped further in today’s session to 70 cents, taking the loss in value to 11.2%. At a current price to book value ratio of 0.3x, the stock is a good value buy for investors interested in the oil and gas industry.
Delta is an independent oil and gas company engaged primarily in the exploration, acquisition, development, production, and sale of, natural gas and crude oil. The company primarily operates in the Rocky Mountains and Gulf Coast regions. These areas comprise the majority of Delta’s proved reserves, production, and growth prospects.
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
