It is expected that $225m of the total consideration will be used by Delta for the development of the Vega area over the next three years. The company intends to use the remainder of the total consideration for its balance sheet obligations and general working capital purposes.
The LOI is subject to customary due diligence, negotiation and execution of definitive binding agreements. Delta has granted Opon a 60-day exclusive period to finalize the transaction, which is expected to close on or before June 1, 2010.
Delta will retain operations of the Vega area subject to a joint venture agreement with Opon. Delta’s financial advisors on this transaction are Morgan Stanley and Evercore Partners.
