Exhibit 10.3
J.P.Morgan
April 14, 2009
Delta Petroleum Corporation
370 17th Street, Suite 4300
Denver, Colorado 80202
Attention:
  Mr. Kevin K. Nanke
 
  Chief Financial Officer

     
Re:
  Second Amended and Restated Credit Agreement dated as of November 3, 2008 (as
amended prior to the date hereof, including pursuant to that certain First
Amendment to Second Amended and Restated Credit Agreement dated March 2, 2009
(the “First Amendment”), the “Credit Agreement”) between, among others, Delta
Petroleum Corporation (“Borrower”) and JPMorgan Chase Bank, N.A. as
administrative agent for the Banks (as defined in the Credit Agreement) (in such
capacity, the “Administrative Agent”); capitalized terms used and not otherwise
defined herein shall have the meanings assigned to such terms in the First
Amendment.

Gentlemen:
Reference is made to the First Amendment pursuant to which, among other things,
the Administrative Agent (on behalf of the Banks) and the Banks agreed to
forbear from exercising their rights and remedies arising as a result of the
Specified Defaults. Pursuant to the terms and conditions of the First Amendment,
(a) the Forbearance Period Termination Date is currently April 15, 2009, and
(b) Borrower is required to consummate the Interim Issuance in order for the
Forbearance Period Termination Date to be automatically extended to May 15,
2009. Borrower has not consummated the Interim Issuance and has requested that
the Administrative Agent (on behalf of the Banks) and the Banks amend the
definition of “Forbearance Period Termination Date” to extend the current
Forbearance Period Termination Date from April 15, 2009 to May 1, 2009.
Subject to the terms and conditions set forth herein, the Administrative Agent
(on behalf of the Banks) and the Banks hereby agree to such request and together
with the Borrower agree that the definition of “Forbearance Period Termination
Date” contained in Section 1 of the First Amendment is hereby amended to delete
the first and third references therein to “April 15, 2009” and replace each such
reference with “May 1, 2009”. Borrower and the Banks further agree that if
Borrower consummates the Equity Issuance in satisfaction of Section 9.1 of the
First Amendment on or prior to May 1, 2009 and without utilizing an Interim
Issuance, then the Equity Issuance Net Proceeds thereof will be applied in
accordance with Section 9.1(a)(i), (ii) and (iii) of the First Amendment.
The Administrative Agent (on behalf of the Banks) and the Banks hereby agree, so
long as no Forbearance Period Termination Event shall have occurred, to forbear
until the Forbearance Period Termination Date (as extended by this letter) from
exercising their rights and remedies arising as a result of the Specified
Defaults. The terms and conditions of the First Amendment, including, without
limitation, Section 3 of the First Amendment, are incorporated herein.
Borrower agrees to pay all reasonable costs and expenses incurred by the
Administrative Agent in connection with the preparation, negotiation and
execution of this letter, including, but not limited to, fees and expenses of
counsel to the Administrative Agent. The extension of the Forbearance Period
Termination Date pursuant to the terms and conditions of this letter is a
one-time extension, and nothing contained herein shall obligate the
Administrative Agent or the Banks to grant any additional or future

 

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extension, amendment, waiver or modification of or to, or in connection with,
any provision of the First Amendment, the Credit Agreement or any other Loan
Paper.
This letter shall be effective automatically upon receipt by the Administrative
Agent of executed counterparts hereof from Borrower, each other Credit Party (as
defined in the Credit Agreement) indicated on the signature pages hereto and the
Majority Banks (as defined in the Credit Agreement). This letter may be executed
in counterparts, and all parties need not execute the same counterpart.
Facsimiles or other electronic transmissions shall be effective as originals.
This letter shall be governed by, and construed in accordance with, the laws of
the State of Texas.
Please acknowledge your agreement with the terms and conditions of this letter
by signing a copy hereof where indicated and returning a fully executed
counterpart to Erec Winandy, counsel for Administrative Agent, via facsimile
number (214) 999-7756 or via electronic e-mail at ewinandy@velaw.com, with four
(4) originals delivered to Erec Winandy via overnight delivery at: Vinson &
Elkins L.L.P., 2001 Ross Avenue, Suite 3700, Dallas, Texas 75201.
[Signatures Follow]

 

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            Sincerely,

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent
      By:   /s/ Brian Orlando         Brian Orlando,        Vice President     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            ACKNOWLEDGED AND AGREED TO BY:

BORROWER:

DELTA PETROLEUM CORPORATION,
a Delaware corporation

      By:   /s/ Kevin K. Nanke         Kevin K. Nanke,        Chief Financial
Officer and Treasurer     

            CREDIT PARTIES:

DELTA EXPLORATION COMPANY, INC., a Colorado
corporation

      By:   /s/ Kevin K. Nanke         Kevin K. Nanke,        Chief Financial
Officer and Treasurer     

            PIPER PETROLEUM COMPANY, a Colorado corporation
      By:   /s/ Kevin K. Nanke         Kevin K. Nanke,        Chief Financial
Officer and Treasurer     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            CASTLE TEXAS EXPLORATION LIMITED
PARTNERSHIP, a Texas limited partnership

By: Delta Petroleum Corporation, a Delaware corporation, its
general partner

      By:   /s/ Kevin K. Nanke         Kevin K. Nanke,        Chief Financial
Officer and Treasurer     

            DPCA LLC, a Delaware limited liability company
      By:   /s/ Kevin K. Nanke         Kevin K. Nanke,        Chief Financial
Officer and Treasurer     

            DELTA PIPELINE, LLC, a Colorado limited liability
company

By: Delta Petroleum Corporation, a Delaware
corporation, its sole manager and sole member

      By:   /s/ Kevin K. Nanke         Kevin K. Nanke,        Chief Financial
Officer and Treasurer     

            DELTA RISK MANAGEMENT, LLC, a Colorado limited
liability company

By: Delta Petroleum Corporation, a Delaware
corporation, its sole manager and sole member

      By:   /s/ Kevin K. Nanke         Kevin K. Nanke,        Chief Financial
Officer and Treasurer     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

JPMORGAN CHASE BANK, N.A.

      By:   /s/ Brian Orlando         Brian Orlando,        Vice President     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

BANK OF MONTREAL

      By:   /s/ Gumaro Tijerina       Name:   Gumaro Tijerina        Title:  
Director     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

DEUTSCHE BANK TRUST COMPANY
AMERICAS

      By:   /s/ Dusan Lazarov       Name:   Dusan Lazarov        Title:   Vice
President     

                  By:   /s/ Valerie Shapiro       Name:   Valerie Shapiro       
Title:   Vice President     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

KEYBANK NATIONAL ASSOCIATION

      By:           Name:           Title:        

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

U.S. BANK NATIONAL ASSOCIATION

      By:           Name:           Title:        

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

BANK OF OKLAHOMA, N.A.

      By:           Name:           Title:        

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

NATIXIS
(f.k.a. Natexis Banques Populaires)

      By:           Name:           Title:             By:           Name:      
    Title:      

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

BARCLAYS BANK PLC

      By:   /s/ Maria Lund       Name:   Maria Lund        Title:   Vice
President     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

BANK OF SCOTLAND

      By:           Name:           Title:        

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION

 

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            BANK:

CAPITAL ONE, NATIONAL ASSOCIATION

      By:   /s/ Wes Fontana       Name:   Wes Fontana        Title:   Assistant
Vice President     

Signature Page
Letter Agreement Dated April 14, 2009
DELTA PETROLEUM CORPORATION