Delta Petroleum Corporation To Acquire 90% of DHS Drilling Company

DENVER, April 6 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation (Nasdaq: DPTR; FRANKFURT STOCK EXCHANGE: DPE), an independent energy exploration and development company, today announced that DHS Drilling Company ("DHS") will become a 90%-owned subsidiary engaged in the drilling business.

Delta recently purchased all of Edward Mike Davis' ("Davis") ownership in Big Dog Drilling Co., LLC's Rig #2 and Rig #3 in exchange for 100,000 shares of Delta's common stock and Delta's interest in Shark Trucking Co., LLC. Delta has agreed to contribute both of these rigs to DHS in exchange for its 90% ownership interest.

In addition, DHS has agreed to acquire Big Dog Drilling Co., LLC's Rig #1 from Davis and three other rigs with depth ratings of 12,500 feet to 18,000 feet. These acquisitions are anticipated to expand DHS' fleet to six working rigs by approximately June 15, 2005. Delta will have a call on all of the rigs, although half will initially work for third party operators. At the outset, all of the rigs will operate in the Rocky Mountain basins.

The managers of DHS will include Bill Sauer, Jr., Harold Hastings and certain officers of Delta Petroleum Corporation. Bill Sauer, Jr. and Harold Hastings were most recently with Sauer Drilling Company ("Sauer") during which time Sauer was primarily owned by Tom Brown, Inc.

"The acquisition of a 90% interest in DHS Drilling Company will provide Delta with access to these rigs for the development of our oil and gas properties and, as importantly, an alliance with a very experienced drilling management team in Bill Sauer and Harold Hastings," stated Roger Parker, President and Chief Executive Officer of Delta Petroleum Corporation. "We believe our ownership of rigs will allow Delta to more efficiently manage the drilling process, from both time and cost perspectives."

DHS will operate out of Casper, Wyoming and will locate its principal office at 675 N. 3rd Avenue in Casper (telephone number: 307-473-5377).

Delta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. The Company's core areas of operations are the Gulf Coast and Rocky Mountain Regions, which comprise the majority of its proved reserves, production and long term growth prospects. Its common stock is traded on NASDAQ under the symbol "DPTR" and on the Frankfurt Stock Exchange under the symbol "DPE."