Billionaire investor Kirk Kerkorian’s Tracinda Corp. plans to take a 35 percent, $684 million stake in Delta Petroleum Corp., a Denver oil exploration company.

The Los Angeles investment corporation will buy 36 million shares of Delta at $19 a share, a 23 percent premium from Friday’s $15.51 closing price. Shares were up to 19.5 percent to $18.53 at midday on Monday.

Delta said the investment will boost its ability to fund long-term drilling programs and acquisitions in its core Gulf Coast and Rocky Mountain drilling regions, including the Piceance and Paradox basins.

Tracinda will have the right to nominate members to Delta’s board on a pro rata basis reflecting its share ownership, initially one third of Delta’s board. Delta shareholders are scheduled to vote on the deal in February.

The deal comes a month after Tracinda withdrew an offer for a nearly 20 percent stake in energy company Tesoro Corp. after Tesoro’s board adopted a “poison pill” shareholders’ rights plan.

Tracinda owns a majority interest in MGM Mirage, the second largest gaming company in the world.