Delta Oil and Gas, Inc, (OTC:BB DLTA) previously reported that its Donner #1 Well, located in Newton County, Texas was drilled to a total depth of 7,600 feet on June 4, 2010 and flowed at rates as high as 192 barrels of oil per day (“bopd”) during the initial test. Since that time, the test period has ended and the well has been tied in to a new battery facility owned by the Company and its Partners. The well is now on full production flowing naturally on a 4.5/64th choke at the restricted rate of 41 bopd at a relatively constant flowing pressure of 980 PSI. The well appears capable of daily production in excess of what is currently being produced. Once we are comfortable that production stability has been achieved, the Company and its partners may increase production to the 60 to 65 bopd range with a view to further increases as is deemed sustainable. The total production for the last 16 days of August 2010 was 665 barrels of high quality light gravity oil with zero water produced. Sales of this oil began immediately following tie-in in mid August.
A complete suite of logs run on the well indicated approximately 13 feet of oil pay with an average porosity of 30%. The Company’s reservoir Engineer and Geologist calculate the area of closure to cover approximately 70 acres. The Company and its partners are required by the terms of the lease to commence drilling on the second well on the lease within 6 months of completing the Donner #1 well and as such, the Company has instructed its Consultants to set a location for the next well based on the 3-D Seismic and the success of Donner #1. We expect drilling to commence immediately following permitting. The Company is also evaluating the wisdom of opening up significant reserves within the Company’s acreage with a horizontal leg.
The Texas project contemplates the drilling of up to three wells in the Newton County area. Once the exact location and timing of the drilling of the second well is confirmed, the Company will provide further updates. Delta owns a 40% gross working interest before pay out in the wells covered by this drilling program and at present, has fully paid the drilling and completion costs associated with the Donner #1.
About Delta Oil and Gas
Delta Oil is an exploration company focused on developing North American oil and natural gas reserves. Delta Oil’s current focus is on the exploration of its land portfolio comprised of working interests in acreage in King City, California; Southern Saskatchewan, Canada; Newton County, Texas, South Central, Oklahoma, and the North Sacramento Valley, California.
On behalf of the Board of Directors,
DOUGLAS N. BOLEN, President
Safe Harbour Statement
Statements in this press release which are not purely historical, including statements regarding Delta Oil’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that the Company’s actual results could differ materially from those in any such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Our business could be affected by a number of other factors, including the risk factors listed from time to time in the company’s SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 2008 and the quarterly reports on Form 10-Q filed subsequently. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Delta Oil & Gas, Inc. disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
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