UPDATE 2-Delta to sell non-core assets for $130 mln; shrs up

* Sells assets to repay loan

* Amends credit facility to reduce borrowing to $35 mln

* Says amendment allows it capex of $28 mln in Q3 and Q4

* Shares up 25 pct (Adds background, updates share movement)

July 26 (Reuters) - Independent oil and gas company Delta Petroleum Corp DPTR.O agreed to sell its various non-core assets to privately held Wapiti Oil & Gas LLC for $130 million, to repay some of its loans.

Shares of the company rose 25 percent to 99 cents before paring gains to trade 14 percent up at 91 cents Monday morning on Nasdaq.

"The immediate use of proceeds will be to pay down the outstanding balance on our senior credit facility," Delta's newly named Chief Executive Carl Lakey said in a statement.

Delta will sell its working interest in Piceance Basin in Colorado, the Baffin Bay field of Texas and Piper Petroleum. It will also sell half of its working interest in DJ Basin fields and some fields in Texas.

Along with the sale of the working interests, Delta said it agreed to allow Wapiti to operate Newton and Midway Loop fields, as well as the other fields of Texas it operated.

The Company also amended its senior credit facility to reduce its borrowing base to $35 million, once the transaction is completed. The amendment also allows the company a capital expenditure of $28 million in the third and fourth quarters.

Since Nov. 2009, the company has been looking at "strategic alternatives", including a possible sale of the company.

Early this month, Delta, which has a market capitalization of $226.2 million, terminated a $400 million deal with Opon International to sell its interests in Vega Area assets as Opon was unable to obtain financing for the transaction. [ID:nSGE6660FE] (Reporting by Arup Roychoudhury and Vinay Sarawagi in Bangalore; Editing by Don Sebastian)