June 18 (Reuters) - Gold Reserve's ( GDRZF ) subsidiary

Dalinar Energy Corporation on Wednesday submitted an improved

bid for the parent of Venezuela-owned refiner Citgo Petroleum as

part of a U.S. court-organized auction, the mining company said

in a release.

A federal judge in Delaware set June 18 as the deadline for

companies to submit improved offers to challenge a $3.7 billion

bid for Citgo's parent PDV Holding from Contrarian Funds'

affiliate Red Tree Investments, which was selected earlier this

year as the starting bid in the auction.

The court is trying to secure a deal to satisfy companies

lining up to be paid up to $19 billion in compensation for debt

defaults and expropriations in Venezuela.

The auction's winner is expected to be recommended by July 2

by a court officer overseeing the sale. Other consortia

including affiliates of trading house Vitol and hedge fund

Elliott Investment Management also were considering bids,

sources close to the preparations said.

Dalinar Energy's revised bid, which relies on a combination

of equity and debt financing, is supported by a consortium

including Rusoro Mining ( RMLFF ) and two units of U.S.

conglomerate Koch, Gold Reserve ( GDRZF ) said.

"The revised bid, if approved by the Court, and consummated,

would satisfy, in cash or non-cash consideration, the attached

judgments of all waterfall creditors senior to Gold Reserve ( GDRZF ). The

revised bid also would satisfy a substantial percentage of Gold

Reserve's ( GDRZF ) attached judgment," the company said in the release.