UPDATE 1-Delta Petroleum terminates asset sale deal with Opon

Wed Jul 7, 2010 8:39am EDT

* Delta says Opon unable to obtain financing * Says continues to pursue strategic alternatives

* Names new CEO

July 7 (Reuters) - Oil and gas company Delta Petroleum Corp DPTR.O said it terminated a deal with Opon International to sell its interests in Vega Area assets as Opon was unable to obtain financing for the transaction.

Shares of Delta dropped 55 percent to less than a dollar since the announcement of the deal in March as Opon was seen struggling to get financing.

On March 18, Delta said it struck a deal to sell its 37.5 percent interest in its Vega Area assets in the Piceance Basin to Opon International for $400 million. Delta's shares shot up 43 percent on the day of the announcement. [ID:nSGE62H0G2]

Delta said it will continue to pursue development of its main asset in the Piceance Basin to bolster proved reserves, and strategic alternatives. Delta named Carl Lakey as its Chief Executive Officer, effective immediately.

Shares of the company closed at 79 cents Tuesday on Nasdaq. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Maju Samuel)

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