Formed in April 2005 by Delta Petroleum Corporation (NASDAQ: “DPTR”), Harold Hastings and Bill Sauer, Jr., DHS Drilling Company (DHS) is a new contract drilling company with extensive management expertise and operating experience throughout the producing basins in the western United States. In May 2005 Chesapeake Energy Corporation (NYSE: “CHK”), became a significant equity partner in DHS providing further financial strength. DHS entered the second quarter of 2005 with two drilling rigs.

In just over three years, DHS has significantly expanded its land drilling fleet. The Company currently operates eighteen rigs, and plans call for continued growth. Capabilities of the present fleet range from 2,000 horsepower rigs with depth ratings of 20,000’, to 700-hp rigs that can drill to depths of 10,000’.

Geographically, while the Rocky Mountain region will serve as the Company’s primary area of operation, DHS operates rigs in Texas, the Columbia River Basin in Washington and geothermal drilling in Nevada.

In November 2005, DHS acquired Chapman Trucking Company, Inc. When combined with vehicles already owned by DHS, this acquisition expanded the Company’s fleet to 30 trucks and 37 trailers. The transaction also positioned DHS’ Chapman Trucking subsidiary to respond quickly to operators that need to move rigs from location to location on relatively short notice.

DHS achieved profitability in the third quarter 2005. The Company’s success, to dates, can be attributed to management’s emphasis upon the highest levels of customer service; a strong commitment from equity partners; experienced, safe, dedicated and loyal crews; and a rig utilization rate in excess of 85%.

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