Laramie, Delta plan joint Piceance venture
Laramie Energy II and Delta Petroleum are pursuing a joint venture to pool their resources in the Piceance Basin under a bankruptcy reorganization plan to be proposed by Delta.
A U.S. Bankruptcy Court judge this week approved Delta’s choice of Laramie Energy II as sponsor of its reorganization plan.
The two Denver companies have come to non-binding terms under which they would form Piceance Energy LLC, with would be made up of the two companies’ Piceance Basin assets.
Laramie would own two-thirds of the company, and Delta one-third. Piceance Energy also would distribute $75 million to Delta to pay its bankruptcy expenses and repay secured debt.
Delta filed for bankruptcy late last year, listing $375.5 million in assets and $310.7 million in debts. It had lost $429.4 million in the third quarter of last year and had close to $150 million in debt coming due this year when it filed for bankruptcy.
Delta holds oil and gas leases for the equivalent of about 22,000 acres in the Collbran area. Under the proposal, it would retain certain assets, including offshore California holdings and a Mesa County oil and gas lease with Buzzard Creek Elk Ranch. Laramie would keep assets including oil and gas holdings outside Garfield and Mesa counties. Its operations currently are focused on the two counties.