S&P: Delta Petroleum unaffected

Standard & Poor's said the ratings on Delta Petroleum Corp. (B-/stable/--) would be unaffected by the announcement that the U.S. Court of Federal Claims has awarded $1.1 billion to 12 companies that had purchased federal leases but were unable to drill on them.

Delta's share of the judgment will be $121 million. The potential for such a judgment has been factored into the current ratings, S&P said.

The 12 exploration and production companies, including Delta through its subsidiary Amber Resources Co., had purchased 36 federal leases to drill offshore California, but later faced stiff requirements imposed by the federal government that prevented drilling on the leases. The ruling remains subject to appeal and no payments will be made until the appeal process is complete, S&P said.

S&P said any proceeds Delta receives are expected to be used to repay debt and help fund reserve and production growth.

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