Of the $130m purchase price, $112m was received by Delta at closing and used to reduce bank debt and to pay transaction costs. The remaining $18m will be held in escrow until third party consents are obtained for the assignment of the company’s working interest in certain properties that were a part of the transaction. Delta anticipates receiving the consents and escrowed funds by the end of this month.

Carl Lakey, CEO of Delta, said: “The successful closing of this non-core asset sale allows us to significantly reduce our bank debt and to concentrate our capital and personnel on our operated Vega asset.

“With a stronger liquidity position and a more focused approach on our operations, we can now work towards increasing production and proved reserves in the Piceance Basin.”