Delta Petroleum Corporation (NASDAD: DPTR) is one of the top market gainers today on news that the independent oil and gas exploration and development company entered into a non-binding letter of intent for a partial sale.  The agreement is with Opon International LLC to sell a 37.5% non-operated working interest, in the Vega Area assets in the Piceance Basin.  The total consideration was $400 million, but this was larger than the company’s entire market capitalization.

If you want to know why the stock is not up even more, it is because the ‘value’ is not able to entirely be put back to holders.  Delta said that it expects $225 million of the total consideration to be used to fund the development of the Vega Area over the next three years. On top of that, there is a stock transaction here.  Delta agreed to issue open warrants to purchase 13.3 million shares of Delta common stock at $1.50 per share and then for 5.7 million shares at $3.50 per share, upon closing of the deal.  In short, there is going to be some share dilution here.  Dilution at lower prices.

Delta also noted that it intends to use the rest of the total consideration for its balance sheet obligations and general working capital purposes.  Enough of telling the news.  Delta has divested some of its non-core property interest.  What we really want to see is what else the company has up its sleeve.  Its full list of properties is here and we wanted to look into these.  Just keep in mind that these are listed as 2008 levels, so some may be different and some or portions of some may have been divested.