Delta Petroleum posts smaller Q2 loss

Tue Aug 10, 2010 7:07am EDT

* Q2 loss $0.54 vs $0.89/shr a yr ago

* Q2 revenue up 73 pct

* Sees H2 production of 6.9-7.2 bcfe

* Sees $29.4 mln Q3 gain from sale of assets

Aug 10 (Reuters) - Independent oil and gas company Delta Petroleum Corp DPTR.O posted a smaller second-quarter loss on higher rig utilization and pricing.

The company now expects production of 6.9 billion cubic feet equivalent (bcfe) to 7.2 bcfe in the second half of the year, after accounting for the sale of certain non-core assets to privately held Wapiti Oil & Gas LLC in July.

For the latest second quarter, the company posted a net loss of $149.8 million, or 54 cents a share, compared with $172.3 million, or 89 cents a share, a year ago.

The latest results include a $96.1 million impairment loss related to the sale of assets, Delta said in a release late Monday.

Revenue for the quarter surged 73 percent to $36 million.

Analysts on average expected a loss of 9 cents a share, before items, on revenue of $34.2 million, according to Thomson Reuters I/B/E/S.

The company said it expects a gain of $29.4 million in the third quarter from the sale of assets to Wapiti.

Shares of the company closed at 84 cents Monday on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Gopakumar Warrier)

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