Delta Petroleum Corporation Announces Second Quarter Operating Results

Thursday, August 10th 2006

Delta Petroleum (Nachrichten) Corporation , an independent energy exploration and development company (“Delta” or “the Company”), today reported operating results for the second quarter and first half of 2006.

RESULTS OF OPERATIONS

For the quarter ended June 30, 2006, the Company reported net income of $4.2 million, or $0.08 per fully diluted share, and EBITDAX (defined below) of $21.7 million. These results compare with net income of $1.4 million, or $0.03 per fully diluted share, and EBITDAX of $14.7 million, in the comparable prior-year quarter. Oil and gas revenue increased 49% to $35.7 million (vs. $23.9 million), while contract drilling and trucking revenue increased to $12.9 million (vs. $2.2 million), when compared with the quarter ended June 30, 2005.

For the six months ended June 30, 2006, net income increased to $18.0 million, or $0.34 per fully diluted share, compared with net income of $6.3 million, or $0.15 per fully diluted share, in the corresponding period of the previous year. EBITDAX increased to $40.0 million in the first half of 2006, versus $28.8 million in the six months ended June 30, 2005. Oil and gas revenue increased 49% to $69.0 million (vs. $46.3 million), while contract drilling and trucking revenue increased to $23.0 million (vs. $4.5 million), when compared with the comparable prior-year period.

The increase in oil and gas revenue for the three- and six-month periods reflects a stronger commodity price environment and higher production volumes. Contract drilling and trucking fees have also increased as the Company’s DHS subsidiary has expanded its fleet to 15 rigs as of June 30, 2006.

Production and Cost Information

Total production for the most recent quarter increased 12% to approximately 4.3 billion cubic feet equivalents (Bcfe), compared with total production of 3.9 Bcfe in the prior-year quarter. Production volumes, average prices received and costs per thousand cubic feet equivalent (Mcfe) for the three months ended June 30, 2006 and 2005 are provided below.

Three Months Ended June 30, 2006 2005 Onshore Offshore Onshore Offshore Production – Continuing Operations: Oil (MBbl) 305 38 209 39 Gas (MMcf) 2,191 — 2,002 — Production – Discontinued Operations: Oil (MBbl) 11 — 23 — Gas (MMcf) — – 228 — Average Price – Continuing Operations: Oil (per barrel) $67.79 $53.73 $50.49 $38.55 Gas (per Mcf) $5.91 $– $5.92 $– Costs per Mcfe Hedge effect $(.67) $– $(.06) $– Lease operating expense $1.21 $3.78 $1.08 $4.71 Production taxes $0.51 $0.06 $0.40 $0.66 Transportation costs $0.04 $– $0.09 $– Depletion expense (1) $3.50 $0.82 $2.32 $0.81 Total production for the six months ended June 30, 2006 approximated 8.4 Bcfe, compared with total production of approximately 7.7 Bcfe in the first half of 2005, an increase of 9.3%. Production volumes, average prices received and costs per Mcfe for the six months ended June 30, 2006 and 2005 are provided below. Six months Ended June 30, 2006 2005 Onshore Offshore Onshore Offshore Production – Continuing Operations: Oil (MBbl) 614 85 425 81 Gas (MMcf) 4,064 — 3,931 — Production – Discontinued Operations: Oil (MBbl) 21 — 43 — Gas (MMcf) — – 447 — Average Price – Continuing Operations: Oil (per barrel) $64.28 $50.82 $49.18 $35.84 Gas (per Mcf) $6.22 $– $5.72 $– Costs per Mcfe Hedge effect $(.63) $– $(.08) $– Lease operating expense $1.25 $4.08 $1.01 $4.22 Production taxes $0.50 $0.05 $0.40 $0.35 Transportation costs $0.10 $– $0.06 $– Depletion expense (1) $3.42 $0.81 $1.87 $0.79 (1) The Company’s onshore depletion rate has increased significantly in both 2006 periods, when compared with 2005 due to i) an increasing focus on multi-stage completion projects in which the majority of the well costs are depleted only over the initially completed zones and ii) higher development costs on Gulf Coast properties. OPERATIONS UPDATE – DEVELOPMENT PROJECTS

Newton Field, SE Gulf Coast, TX, 100% WI – The Company reached total depth of 13,800′ on the James Gray #1 well, which is located three miles north of the Newton Field. This well was drilled on a geologic structure that was identified by the 58 square mile 3D seismic survey completed earlier this year. In addition to encountering similar upper Wilcox formation sands that define the Newton Field, the well also found deeper middle Wilcox formation sands. Based on log characteristics these deeper sands appear to have higher porosity and could produce significant reserves. The Company has initiated completion procedures on the well and anticipates drilling several wells on this new feature and the existing Newton Field during the remainder of 2006.

Vega Unit, Piceance Basin, CO, 100% WI – The Company is developing the Vega Unit and surrounding leasehold and expects to add a second rig in anticipation of the completion of the new 60 Mmcf per day pipeline. The field is producing at pipeline restricted rates, but has eight wells drilled, cased and waiting on completion. In a recent written communication, the pipeline company has projected that the pipeline will be operational by the first week of October. Subsequent to pipeline completion the Vega Unit should be producing in excess of 12 Mmcf per day.

Garden Gulch Field, Piceance Basin, CO, 18.50% WI – The Garden Gulch Field has 14 wells producing approximately 15 Mmcf per day and eight wells waiting on completion. The field is currently being developed with two drilling rigs and the operator has indicated it will implement a more aggressive drilling program with four drilling rigs by the end of 2006.

Howard Ranch Area, Wind River Basin, WY, 50-100% WI – In the Howard Ranch Field the Company has three wells producing at a combined rate of approximately 2.5 Mmcf per day. The Company will begin completion operations on a fourth well later this month. Delta is currently participating in a comprehensive artificial fracture completion study that will be finalized in several more weeks. Although completion activity will continue, the Company is postponing further drilling in the Howard Ranch area until the results from this study are known.

Midway Loop Area, SE Gulf Coast, TX, ~ 40% WI – The Company drilled the BP America Delta #1 which offsets the Best Kenneson well to the southeast. The well was approaching total depth, having drilled approximately 3,800 feet in the second horizontal lateral, when the drill string parted due to a failure in the drill pipe. Fishing attempts have been abandoned and the well is being completed through the drill string. The Company also participated with an 11.5% working interest in the Blackstone Simmons A-70 which recently reached total depth and began sales at a rate of 7.5 Mmcf per day and 700 barrels of condensate per day from a single horizontal lateral. The Company expects to spud a third operated well by September 1, 2006.

OPERATIONS UPDATE – NEW DRILLING VENTURES

Paradox Basin, CO and UT, 70% WI – The Company has drilled the Salt Valley State 25-12, a well that exhibited multiple zone potential based on log interpretation and core analysis. Completion activity is underway and should be concluded by the end of the current quarter. The Company is also drilling the Greentown State 36-11 on a separate prospect. Encouraged by initial results thus far, the Company plans to drill additional wells.

Opossum Hollow, Central Gulf Coast, TX, 98% WI – The Morrill Sligo #1 was completed and prepared for sales when the tubing parted above the perforated Sligo producing interval. The Company is now completing the well uphole in the prospective Pearsall Shale and the Edwards Lime formations. The Sligo formation was sufficiently tested to determine its productive capacity and offset drilling will target Sligo development. Additional wells may be drilled in the second half of 2006.

Central Utah Hingeline Project, UT, 65% WI – The Company continues to wait on a permit to begin drilling the first exploration well which is now expected to spud later this summer. The permit is under review by the Bureau of Land Management and will be issued for a Navajo formation test.

Columbia River Basin, WA – The Anderville Farms 1-6 (non-operated) has reached total depth and is being logged. Testing and completion efforts are expected to begin relatively soon. The geologic assumptions that defined this prospect prior to drilling, which included the expectation of numerous stacked, over-pressured gas-charged sands in a basin-centered setting, appear to have been encountered in the drilling of this well. The Anderson 11-5, a second well being drilled in the basin (also non-operated), should reach total depth during the fourth quarter of 2006. The Company has initiated the permitting process to drill two wells on separate geologic structures.

PRODUCTION GUIDANCE AND DIVESTITURES

Production for the third quarter should not differ materially from second quarter levels. For the quarter ending September 30, 2006 the Company anticipates production of 4.2 to 4.4 Bcfe. This estimate includes the sale of properties in Louisiana that closed in June, 2006 and the anticipated sales of other producing properties in the Appalachian Basin and in East Texas during the third quarter. Net production from these divestitures is approximately 3.5 Mmcfe per day with associated proved reserves of 19.5 Bcfe. Total proceeds are expected to be $40.1 million and will be used to reduce the Company’s borrowings under its revolving credit facility and for general corporate purposes. The Company may pursue additional, non-core asset sales in the second half of 2006.

OTHER BUSINESS DHS Drilling Company

During the second quarter, DHS closed on a $100 million credit facility of which $75 million was initially drawn. This debt is non-recourse to Delta. Approximately $61 million of the initial $75 million draw was utilized to repay existing debt and to acquire C&L Drilling Company, which owned two drilling rigs. DHS incurred a pre-payment penalty of $820,000 and expensed deferred financing costs of $431,000 related to existing debt. Subsequent to the end of the second quarter, DHS acquired another 12,500′ rig which increases the DHS fleet to 16 drilling rigs. All Delta operated wells are currently being drilled with DHS rigs.

Castle Energy Corporation Merger

In April 2006, the merger with Castle Energy Corporation was completed. Delta currently carries the oil and gas properties acquired from Castle on its balance sheet as “assets held for sale”. As such, and as required by Statement of Financial Accounting Standards No. 141 “Business Combinations” (“SFAS No. 141″), the Company recorded a $6.1 million after-tax extraordinary gain in the quarter ended June 30, 2006. Although the properties were not sold during the second quarter, the Company expects a transaction to be completed during the third quarter.

Option Inquiry

In response to a third party report, the Company’s Board of Directors created a special committee comprised of independent directors to conduct an independent review of historical stock option practices and related accounting as they pertain to possible backdating of options. The special committee is being assisted by independent legal counsel and advisors. The independent counsel reported its findings to the special committee on August 4, 2006. Results of the independent counsel’s investigation will be provided to the U.S. Attorney in the Southern District of New York and the local office of the Securities and Exchange Commission in Denver, Colorado.

Investor Conference

Delta will host an investor conference in Denver, Colorado at 9:00 a.m. MDT on Thursday, August 17, 2006. Individuals interested in participating in the meeting can register on the Company’s website (http://www.deltapetro.com/). Space at the meeting will be limited.

Earnings Release and Investor Conference Call

A conference call has been scheduled for 12:00 noon EDT on Wednesday, August 9, 2006.

Shareholders and other interested parties may participate in the conference call by dialing 800-938-0653 (international/local participants dial 973-935-2408) and referencing the ID code 7684518, a few minutes before 12:00 noon EDT on August 9, 2006. The call will also be broadcast live on the Internet at http://www.videonewswire.com/event.asp?id=35027 or can be accessed through the Company’s website http://www.deltapetro.com/eventscalendar.html. A replay of the conference call will be available two hours after the completion of the conference call from August 9, 2006 until August 16, 2006 by dialing 877-519-4471 (international/local participants dial 973-341-3080) and entering the conference ID 7684518. The call will also be archived on the Internet through November 9, 2006 at http://www.videonewswire.com/event.asp?id=35027.

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 The NASDAQ Global Market under the symbol “DPTR.”

Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based on management’s present expectations, estimates and projections, but involve risks and uncertainty, including without limitation, uncertainties in the projection of future rates of production, unanticipated recovery or production problems, unanticipated results from wells being drilled or completed, the effects of delays in completion of gas gathering systems, pipelines and processing facilities, as well as general market conditions, competition and pricing. Please refer to the Company’s report on Form 10-KT for the period ended December 31, 2005 as filed with the Securities and Exchange Commission for additional information. The Company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

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 DELTA PETROLEUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, December 31, 2006 2005 (Unaudited) (In thousands, except share amounts) ASSETS Current assets: Cash and cash equivalents $19,797 $5,519 Assets held for sale 24,404 19,215 Trade accounts receivable 22,091 22,202 Prepaid assets 5,118 3,442 Inventory 3,420 3,285 Deferred tax asset 2,946 5,237 Derivative instruments 1,550 89 Other current assets 2,309 2,600 Total current assets 81,635 61,589 Property and equipment: Oil and gas properties, successful efforts method of accounting Unproved 198,430 167,143 Proved 510,996 438,666 Drilling and trucking equipment, including deposits on equipment of zero and $5,000, respectively 115,584 64,129 Other 19,692 12,809 Total property and equipment 844,702 682,747 Less accumulated depreciation and depletion (90,893) (61,593) Net property and equipment 753,809 621,154 Long-term assets: Deferred financing costs 6,790 5,291 Derivative instruments 67 163 Goodwill 7,289 2,341 Other long-term assets 1,231 511 Deferred tax asset — 1,322 Investment in LNG project — 1,022 Total long-term assets 15,377 10,650 $850,821 $693,393 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $824 $7,073 Accounts payable 60,232 67,772 Other accrued liabilities 10,067 19,462 Derivative instruments 8,423 12,465 Total current liabilities 79,546 106,772 Long-term liabilities: 7% Senior notes, unsecured 149,347 149,309 Credit facility 74,000 64,270 Credit Facility/Term loan – DHS 74,250 28,000 Asset retirement obligation 4,122 3,002 Derivative instruments 798 6,009 Deferred tax liability 9,787 — Other debt, net — 80 Total long-term liabilities 312,304 250,670 Minority interest 25,514 15,496 Commitments Stockholders’ equity: Preferred stock, $.01 par value; authorized 3,000,000 shares, none issued — – Common stock, $.01 par value; authorized 300,000,000 shares, issued 52,957,000 shares at June 30, 2006 and 47,825,000 at December 31, 2005 530 478 Additional paid-in capital 427,362 333,054 Accumulated other comprehensive loss (4,370) (4,997) Retained earnings (accumulated deficit) 9,935 (8,080) Total stockholders’ equity 433,457 320,455 $850,821 $693,393 DELTA PETROLEUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, 2006 2005 (In thousands, except per share amounts) Revenue: Oil and gas sales $35,687 $23,889 Contract drilling and trucking fees 12,931 2,164 Realized loss on derivative instruments, net (2,857) (193) Total revenue 45,761 25,860 Operating expenses: Lease operating expense 5,751 4,607 Transportation expense 175 290 Production taxes 2,081 1,454 Depreciation, depletion and amortization – oil and gas 14,709 7,977 Depreciation and amortization – drilling and trucking 3,940 839 Exploration expense 1,493 3,209 Dry hole costs 46 79 Drilling and trucking operations 7,590 1,580 General and administrative 8,785 5,365 Total operating expenses 44,570 25,400 Operating income 1,191 460 Other income and (expense): Other income (expense) 176 (182) Gain on sale of oil and gas properties 47 — Unrealized gain (loss) on derivative instruments, net 1,816 (330) Minority interest (328) 299 Interest and financing costs (7,353) (3,586) Total other expense (5,642) (3,799) Loss from continuing operations before income taxes and discontinued operations (4,451) (3,339) Income tax benefit (1,689) (3,325) Loss from continuing operations (2,762) (14) Discontinued operations: Income from discontinued operations of properties sold, net of tax 261 1,370 Gain on sale of discontinued operations, net of tax 636 — Income before extraordinary gain, net of tax (1,865) 1,356 Extraordinary gain, net of tax 6,075 — Net income $4,210 $1,356 Basic income (loss) per common share: Loss from continuing operations $(.05) $– Discontinued operations .01 .03 Extraordinary gain, net of tax .12 — Net income $.08 $.03 Diluted income (loss) per common share: Loss from continuing operations $(.05) $– Discontinued operations .01 .03 Extraordinary gain, net of tax .12 — Net income $.08 $.03 DELTA PETROLEUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Six Months Ended June 30, 2006 2005 (In thousands, except per share amounts) Revenue: Oil and gas sales $69,021 $46,332 Contract drilling and trucking fees 23,045 4,496 Realized loss on derivative instruments, net (5,227) (537) Total revenue 86,839 50,291 Operating expenses: Lease operating expense 11,757 8,614 Transportation expense 799 403 Production taxes 3,885 2,739 Depreciation, depletion and amortization – oil and gas 27,733 12,912 Depreciation and amortization – drilling and trucking 6,464 1,140 Exploration expense 2,176 4,872 Dry hole costs 1,386 98 Drilling and trucking operations 13,493 3,592 General and administrative 17,196 9,979 Total operating expenses 84,889 44,349 Operating income 1,950 5,942 Other income and (expense): Other income (expense) 312 (343) Gain on sale of oil and gas properties 18,916 — Gain on sale of investment in LNG 1,058 — Unrealized gain (loss) on derivative instruments, net 8,988 (330) Minority interest (859) 702 Interest and financing costs (12,847) (5,722) Total other income (expense) 15,568 (5,693) Income from continuing operations before income taxes and discontinued operations 17,518 249 Income tax expense (benefit) 6,586 (3,325) Income from continuing operations 10,932 3,574 Discontinued operations: Income from discontinued operations of properties sold, net of tax 372 2,722 Gain on sale of discontinued operations, net of tax 636 — Income before extraordinary gain, net of tax 11,940 6,296 Extraordinary gain, net of tax 6,075 — Net income $18,015 $6,296 Basic income per common share: Income from continuing operations $.21 $.09 Discontinued operations .02 .06 Extraordinary gain, net of tax .12 — Net income $.35 $.15 Diluted income per common share: Income from continuing operations $.21 $.09 Discontinued operations .02 .06 Extraordinary gain, net of tax .11 — Net income $.34 $.15 DELTA PETROLEUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2006 2005 (In thousands) Cash flows operations activities: Net income $18,015 $6,296 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion and amortization – oil and gas 27,733 12,798 Depreciation and amortization – drilling and trucking 6,464 1,140 Depreciation, depletion and amortization – discontinued operations 96 496 Accretion of abandonment obligation 97 114 Stock option and non-vested stock compensation 2,099 748 Amortization of deferred financing costs 1,125 415 Unrealized (gain) loss on derivative contracts (8,988) 331 Dry hole costs and impairment 292 — Minority interest 859 (702) Gain on sale of oil and gas properties (19,939) — Gain on sale of investment in LNG (1,058) — Extraordinary gain on Castle acquisition (9,589) — DHS stock granted to management 140 — Deferred income tax expense (benefit) 10,713 (3,045) Other — 394 Net changes in operating assets and operating liabilities: (Increase) decrease in trade accounts receivable 1,519 (1,502) (Increase) decrease in prepaid assets (1,465) 1,305 Increase in inventory (135) (1,781) (Increase) decrease in other current assets 47 (250) Increase (decrease) in accounts payable trade (1,698) 5,872 Increase in other accrued liabilities 2,371 3,184 Net cash provided by operating activities 28,698 25,813 Cash flows from investing activities: Additions to property and equipment (107,234) (134,611) Acquisitions, net of cash acquired (8,564) — Proceeds from sales of oil and gas properties 51,728 — Drilling and trucking capital expenditures (43,394) (30,797) Minority interest holder contributions 9,018 14,800 (Increase) decrease in long-term assets 483 (54) Net cash used in investing activities (97,963) (150,662) Cash flows from financing activities: Stock issued for cash upon exercise of options 2,870 (343) Stock issued for cash, net 33,870 — Proceeds from borrowings 121,000 272,956 Payment of financing fees (2,694) (6,750) Repayment of borrowings (71,503) (140,159) Net cash provided by financing activities 83,543 125,704 Net increase in cash and cash equivalents 14,278 855 Cash at beginning of period 5,519 1,386 Cash at end of period $19,797 $2,241 Supplemental cash flow information – Common stock issued for the acquisition of Castle and oil and gas properties $47,333 $2,035 Common stock issued for drilling and trucking equipment $8,294 $1,432 Cash paid for interest and financing costs $13,459 $10,773 DELTA PETROLEUM CORPORATION RECONCILIATION OF OPERATING EBITDAX (in thousands) (unaudited) THREE MONTHS ENDED: June 30, June 30, 2006 2005 NET INCOME $4,210 $1,356 Income tax expense (benefit) 2,370 (3,045) Interest and financing costs 7,353 3,586 Depletion, depreciation and amortization 18,718 9,155 Gain on sale of oil and gas properties and other investments (1,070) — Unrealized (gains) loss on derivative contracts (1,816) 331 Exploration and dry hole costs 1,539 3,288 Extraordinary gain (9,589) — EBITDAX* $21,715 $14,671 THREE MONTHS ENDED: June 30, June 30, 2006 2005 CASH PROVIDED BY OPERATING ACTIVITIES $21,579 $20,417 Changes in assets and liabilities (6,483) (12,446) Interest net of financing costs 6,537 3,318 Exploration and dry hole costs 1,539 3,288 Other non-cash items (1,457) 94 EBITDAX* $21,715 $14,671 SIX MONTHS ENDED: June 30, June 30, 2006 2005 NET INCOME $18,015 $6,296 Income tax expense (benefit) 10,713 (3,045) Interest and financing costs 12,847 5,722 Depletion, depreciation and amortization 34,390 14,548 Gain on sale of oil and gas properties and other investments (20,997) — Unrealized (gains) loss on derivative contracts (8,988) 331 Exploration and dry hole costs 3,562 4,970 Extraordinary gain (9,589) — EBITDAX* $39,953 $28,822 SIX MONTHS ENDED: June 30, June 30, 2006 2005 CASH PROVIDED BY OPERATING ACTIVITIES $28,698 $25,813 Changes in assets and liabilities (639) (6,828) Interest net of financing costs 11,722 5,307 Exploration and dry hole costs 3,562 4,970 Other non-cash items (3,390) (440) EBITDAX* $39,953 $28,822 * EBITDAX represents net income before income tax expense (benefit), interest and financing costs, depreciation, depletion and amortization expense, gain on sale of oil and gas properties and other investments, unrealized gains (loss) on derivative contracts, exploration and dry hole costs and extraordinary gains. EBITDAX is presented as a supplemental financial measurement in the evaluation of our business. We believe that it provides additional information regarding our ability to meet our future debt service, capital expenditures and working capital requirements. This measure is widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies. EBITDAX is also a financial measurement that, with certain negotiated adjustments, is reported to our lenders pursuant to our bank credit agreement and is used in the financial covenants in our bank credit agreement and our senior note indentures. EBITDAX is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net income, income from operations, or cash flow provided by operating activities prepared in accordance with GAAP.