Delta Oil and Gas, Inc, (OTC:BB DLTA) is pleased to update shareholders on its King City, California and Lonestar, California Prospects.
King City, California:
On May 25, 2009, Delta entered into a Farm-out agreement with Sunset Exploration to participate in a drilling and exploration of approximately 10,000 acres of land located in Monterey County, California. Delta agreed to pay 66.67% of all costs expended in respect of the initial test well to earn a 40% Working Interest. On all subsequent wells, Delta agreed to pay 40% of the costs to earn its 40% Working Interest. It is expected that drilling operations will commence during the month of May 2011 as all permitting operations have been approved by Monterey County pending finalization of issues surrounding grading plans.
To date, all referenced lands were shot with a 2 dimensional seismic swath as well as a gravity survey. The prospect area is in and around the King City Oilfield, and the current data will enable the Company to effectively test the entire Monterey sections. Total depth for drilling will be approximately 4000 feet and it is expected that the Monterey formation will be encountered from 2000 feet to 4000 feet in depth. Updates will be provided as they become known.
On September 1, 2010, Delta entered into an agreement for the joint exploration and development of the Lonestar Prospect located in the North Sacramento Basin, California. The first well (the “California 1–1”) was drilled to 6,015 feet in mid September and encountered approximately 20 feet of natural gas pay from the Forbes formation with significant reserves. This has aligned with our extensive seismic reviews and demonstrates that our well has successfully penetrated a significant proven natural gas reservoir with no indication of water drive.
The well is producing up to 4.2 million cubic feet (4.2 mmcf) of natural gas per day. The well is capable of producing in excess of these levels; however, Delta and partners have been forced to restrict its flow rates for the time being due to PG&E line pressure issues.
Delta owns a 25% gross working interest in this well and at present, has fully paid the drilling and completion costs associated with this well. Delta and partners control approximately 900 acres of land in this area and expect to commence evaluating the balance of the land for additional drilling sites.
Delta is also pleased to disclose that it had launched its new website which can be found at www.deltaoilandgas.com. Delta feels that this website better describes our prospects, accomplishments and goals and should serve as a current source of information for all of Delta’s events. Periodic company e-mails will be distributed to all who visit the site and provide their e-mail address for that purpose.
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; Newton County, Texas, South Central, Oklahoma, and the North Sacramento Basin, 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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