821483--3/12/2010--DELTA_PETROLEUM

related topics

{gas, price, oil}

{stock, price, share}

{operation, natural, condition}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{loss, insurance, financial}

{condition, economic, financial}

{stock, price, operating}

{capital, credit, financial}

{acquisition, growth, future}

{personnel, key, retain}

{system, service, information}

Consummation of a strategic transaction, sale of assets, or joint venture or partnership arrangement may be necessary to fund our capital expenditure and working capital needs in the near term. Our level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry and prevent us from meeting our obligations under our indebtedness. Natural gas and oil prices are volatile. Lower prices have adversely affected our financial position, financial results, cash flows, access to capital and ability to grow. Further reduction of our credit ratings, or failure to restore our credit ratings to higher levels, could have a material adverse effect on our business and our ability to attract capital investment. The current financial environment may have impacts on our business and financial condition that we cannot predict. Information concerning our reserves is uncertain. We may not be able to replace production with new reserves. Exploration and development drilling may not result in commercially productive reserves. If oil or natural gas prices decrease or exploration and development efforts are unsuccessful, we may be required to take further writedowns. Lower natural gas and oil prices have negatively impacted, and could continue to negatively impact, our ability to borrow. The exploration, development and operation of oil and gas properties involve substantial risks that may result in a total loss of investment. The marketability of our production depends mostly upon the availability, proximity and capacity of gas gathering systems, pipelines and processing facilities, which are owned by third parties. Prices may be affected by regional factors. Our industry experiences numerous operating hazards that could result in substantial losses. We depend on key personnel. We are exposed to additional risks through our drilling business, DHS. DHS has significant near-term liquidity issues. There is a significant risk that DHS will continue to not be able to meet its debt covenants under its credit facility. Hedging transactions may limit our potential gains or cause us to lose money. We may not receive payment for a portion of our future production. We have no long-term contracts to sell oil and gas. Terrorist attacks aimed at our facilities could adversely affect our business. We own properties in the Gulf Coast Region that could be susceptible to damage by severe weather. We may incur substantial costs to comply with the various federal, state and local laws and regulations that affect our oil and gas operations. Our gas drilling and production operations require adequate sources of water to facilitate the fracturing process and the disposal of that water when it flows back to the well-bore. If we are unable to dispose of the water we use or remove at a reasonable cost and within applicable environmental rules, our ability to produce gas commercially and in commercial quantities could be impaired. We may be unable to draw funds from our existing credit facilities. We are exposed to credit risk as it affects third parties with whom we have contracted. Potential legislative and regulatory actions addressing climate change could increase our costs, reduce our revenue and cash flow from natural gas and oil sales or otherwise alter the way we conduct our business. Risks Related To Our Stock. Our largest stockholder has the power to significantly influence the future of our Company. Sales of a substantial number of shares of our common stock, or the perception that such sales might occur, could have an adverse effect on the price of our common stock. We may issue shares of preferred stock with greater rights than our common stock. There may be future dilution of our common stock. We do not expect to pay dividends on our common stock. The common stock is an unsecured equity interest in our Company.

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821483--3/12/2010--DELTA_PETROLEUM_CORP/CO