Delta Petroleum Corporation Announces Change in Ownership of DHS Drilling Company

DENVER, May 16 /PRNewswire-FirstCall/ -- Delta Petroleum Corporation (Nasdaq: DPTR; Frankfurt: DPE), an independent energy exploration and development company, today announced a new investor in its majority-owned subsidiary, DHS Drilling Company ("DHS").

Chesapeake Energy Corporation ("Chesapeake") has agreed to an equity investment in DHS and will own 45% of the company following such investment. Subsequent to the investment by Chesapeake, other owners of DHS will include Delta Petroleum Corporation ("Delta") at 49.5%, and Bill Sauer, Jr. and Harold Hastings with a combined ownership of 5.5%.

DHS is a contract drilling operator managed by Bill Sauer, Jr. and Harold Hastings, formerly the managers of Sauer Drilling Company. DHS will initially have a fleet of ten drilling rigs with depth capacities ranging from 7,500 feet to 20,000 feet (525 hp to 2,000 hp).

The owners of DHS expect to increase the number of drilling rigs owned by the company and will remain focused in the Rocky Mountain region. Delta will continue to have a preferential call upon the services of each DHS drilling rig, three of which are currently working on development projects for Delta.

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 National Market under the symbol "DPTR" and on the Frankfurt Stock Exchange under the symbol "DPE."

Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. Please refer to the Company's Securities and Exchange Commission filings for additional information.

For further information contact the Company at (303) 293-9133 or via email at info@deltapetro.com or RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or via email at info@rjfalkner.com