| Key Asset Details Core asset located in the Vega Area of the Piceance Basin in Colorado 22,121 net acres in Mesa County Minimal capital required to hold ~95% of the acreage by production Nearly 100% working interest and ~82% net revenue interest Booked development potential in the Williams Fork formation Non-operated interests in a number of nearby fields, mostly operated by Encana Other Assets Non-operated interest with PXP in Point Arguello, offshore California, producing ~200 bopd net Additional acreage in New Mexico, Oregon, Utah and Washington Investment Highlights Opportunity to acquire control of a nearly 3 Tcfe resource base Ability to dramatically increase production and asset value based on leverage to current gas price Over 2,000 low-risk drilling locations with substantial, high-quality pad and gathering infrastructure in place Demonstrated unbooked potential associated with the Mancos, Niobrara and Frontier formations Company Statistics Proved reserves of 750 Bcfe (14% PDP, 70% gas) December 2011 net production of ~25 MMcfed (82 R/P) Vega Overview Note: Assumes 5-year Henry Hub and WTI pricing of: Gas: $3.33, $4.03, $4.39, $4.64, $4.83 ($5.28 flat after 2016) Oil: $98.63, $95.60, $92.65, $90.98, $90.29 ($90.18 flat after 2016) VEGA Delta reserves the right, following consultation with its advisors to modify the bid procedures in any manner that will best promote the goals of the bidding process. By receiving this document, the recipient acknowledges that it has relied solely upon its own independent review, investigation and/or inspection of any documents and/or Delta , and that it did not rely upon any written or oral statements, representations, warranties, or guaranties, express, implied, statutory or otherwise, regarding Delta, the financial performance of Delta or the physical condition of Delta, the liabilities, or the completeness of any information provided in connection therewith or the process. Estimates of unproved resources which may potentially be recoverable through additional drilling or recovery techniques are by their nature more uncertain than estimates of proved reserves and accordingly are subject to substantially greater risk of not actually being realized. None of the reserve estimates set forth above conform to SEC guidelines in that they have been determined using strip pricing and assume a non-existent board-approved five-year development plan with four rigs in operation. |
