We expect that both sands will be tested within the next 30 days with completion efforts to follow shortly thereafter. Following a successful completion of this initial well, Delta and partners expect to drill and test additional wells in this area upon obtaining the required permitting from the County.

Background

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 to casing point 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.

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.

General

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

Contact

1.866.355.3644
Investor Relations

As previously reported, the Donner #2 was spud on June 28, 2011 and a total depth of 7,550 feet was achieved on July 8, 2011. A suite of logs was run to total depth and five zones were identified as potentially capable of producing hydrocarbons. Based on the initial data, Delta and its partners decided to set production casing to 7,500 feet. The well was perforated in the Lower Hackberry and currently, all production is from this zone. The Company’s geologists and reservoir Engineers see the likelihood of successful completions in multiple zones within this well bore.

Initial tests of the first zone were completed and the well flowed oil at the approximate rate of 48 barrels per day with trace water on a 5/64 inch choke. Immediately following the test period, the well was shut in, in order to install a new battery facility. Once the well was shut in, the shut in tubing pressure at surface exceeded 1000 psi.

Delta anticipates being able to perforate up to 4 additional pay zones once the initial zone is depleted. Delta will be evaluating the production rates and the Company has instructed it’s Consultants to set locations for at least one additional well based on the 3-D Seismic and the success of Donner #1 and #2.

The Texas prospect contemplates the drilling of a total of three wells in the Newton County area. The Donner #1 which was drilled to a total depth of 7,600 feet on June 4, 2010 continues to flow oil at the approximate rate of 45 bopd of very high quality 42 API oil. Delta owns a 40% gross working interest in the wells covered by this drilling program and at present, has fully paid the drilling and completion costs associated with the Donner #1 and Donner #2.

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, and South Central, Oklahoma. As a result of its acquisition of a controlling interest in The Stallion Group, a Nevada corporation, it expanded its property interests to include acreage in the North Sacramento Valley, California.

On behalf of the Board of Directors,

DOUGLAS N. BOLEN, President

Contact

1.866.355.3644
Investor Relations

The Donner #2 was spud on June 28, 2011 and a total depth of 7,550 feet was achieved on July 8, 2011. A suite of logs was run to total depth and five zones were identified as potentially capable of producing hydrocarbons. Based on the initial data, Delta and its partners decided to set production casing to 7,500 feet. The well was perforated in the Lower Hackberry. The Company’s geologists and reservoir Engineers see the likelihood of successful completions in multiple zones within this well bore.

Initial tests of the first zone were completed and the well flowed oil at the approximate rate of 48 barrels per day (“bopd”) with trace water on a 5/64 inch choke. Immediately following the test period, the well was shut in, in order to install a new battery facility. Once the well was shut in, the shut in tubing pressure at surface exceeded 1000 psi. It is expected that the well will be on full production within two weeks.

Delta anticipates being able to perforate up to 4 additional pay zones once the initial zone is depleted. Delta will be evaluating the production rates and the Company has instructed it’s Consultants to set locations for at least one additional well based on the 3-D Seismic and the success of Donner #1 and #2. Consideration may be given to drilling a Donner #2 offset well to provide separate and concurrent access to the natural gas zone located from 7,294 to 7,302 feet. Once flowing production has stabilized on Donner #2, the Company will provide further updates.

The Texas prospect contemplates the drilling of a total of three wells in the Newton County area. The Donner #1 which was drilled to a total depth of 7,600 feet on June 4, 2010 continues to flow oil at the approximate rate of 45 bopd of very high quality 42 API oil. Delta owns a 40% gross working interest in the wells covered by this drilling program and at present, has fully paid the drilling and completion costs associated with the Donner #1 and Donner #2.

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, and South Central, Oklahoma. As a result of its acquisition of a controlling interest in The Stallion Group, a Nevada corporation, it expanded its property interests to include acreage in the North Sacramento Valley, California.

On behalf of the Board of Directors,

DOUGLAS N. BOLEN, President

Contact

1.866.355.3644
Investor Relations

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.

Lonestar, California:

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.

General:

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

Contact

1.866.355.3644
Investor Relations

As anticipated all logging clearly indicates approximately 20 feet of natural gas pay with significant reserves of natural gas. There is no indication of the presence of a water drive in the reservoir. Tests performed on the well indicate that it is capable of sustained production of approximately 5 million cubic feet of gas per day (“5 mmcf/day”). The well currently has a well-head pressure in excess of 3,000 PSI.

In light of these facts Delta and its Partners elected to complete the well and to tie it in to a nearby gas sales line. In that regard, Delta and partners have designed and completed the installation of all well facilities, metering equipment and a 9,000 foot wholly owned pipeline to the PG&E sales point. We are now awaiting County approval to commence production and sales. The Company has been advised that approval is expected following a hearing scheduled for mid November, 2010. We expect production and sales of gas to begin immediately thereafter. Delta will report production rates and reserve estimates once the well has established a meaningful production profile.

“Our 25% gross working interest in this successful well represents a significant milestone for Delta” stated Christopher Paton-Gay, CEO. “Along with our recent success in Texas with a 40% gross working interest in our Donner #1 well, we are moving away from taking smaller working interests in projects to focusing our efforts in our core areas and taking larger interests in each exploration and development project. This 2010 shift in our business plan and our resulting successes are expected to materially increase our production numbers, asset base and cash flows.”

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 has fully paid $222,125 which represents its proportionate share of the costs of drilling and completing this well. Delta estimates that there will be a final charge of approximately $80,000 to our 25% working interest, once our consortium’s wholly owned pipeline and tie-ins have been completed and final invoices have been tendered.

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

Contact

1.866.355.3644
Investor Relations

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

Contact

1.866.355.3644
Investor Relations

A complete suite of logs run on the well indicate approximately 13 feet of oil pay with an average porosity of 30%. The Company’s reservoir Engineer and Geologist calculate the drainage to cover approximately 40 to 50 acres. Delta will be evaluating the expected production rates and the Company has instructed it’s Consultants to set locations for 2 additional wells based on the 3-D Seismic and the success of Donner #1. The Company is also evaluating the wisdom of opening up significant reserves within Donner #1 with a horizontal leg.

The Texas prospect contemplates the drilling of a total of three wells in the Newton County area. Once flowing production has stabilized the Company will provide further updates.

Delta owns a 40% gross working interest 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, and South Central, Oklahoma. As a result of its acquisition of a controlling interest in The Stallion Group, a Nevada corporation, it expanded its property interests to include acreage in the North Sacramento Valley, California.

On behalf of the Board of Directors,

DOUGLAS N. BOLEN, President

Contact

1.866.355.3644
Investor Relations

The first well (“Donner #1”) was spud on May 28, 2010 and the targeted depth of 7,600 feet was achieved on June 4, 2010.  A suite of electric logs was run to total depth and these have strongly indicated approximately 20 feet of hydrocarbon pay.  Based on this initial data, Delta and its partner decided to set production casing. Delta will be evaluating the expected production rates and the Company has instructed it’s Consultants to set locations for additional wells, as well as to evaluate the wisdom of opening up significant reserves within Donner #1 with lateral drilling.

The Texas prospect contemplates the drilling of a total of three wells in the Newton County area.  Once flowing production has stabilized the Company will provide further updates.

Delta owns a 40% gross working interest 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, and South Central, Oklahoma.  As a result of its acquisition of a controlling interest in The Stallion Group, a Nevada corporation, it expanded its property interests to include acreage in the North Sacramento Valley, California.

On behalf of the Board of Directors,

DOUGLAS N. BOLEN, President

Contact

1.866.355.3644
Investor Relations

After the initial period of production, the flow rates on the first and second wells have stabilized at approximately 400 barrels of oil per day combined with some associated natural gas. This confirms our initial conclusion that we have identified a significant new oil discovery in this area.

Electric logs also indicate the potential for numerous additional high potential pay zones above this tested zone, including one that is known to have flowed oil and gas to the surface during earlier drill stem testing.

The 3rd and 4th wells in this 4 well drilling program have also been drilled, completed and are undergoing further testing for commercially viable quantities of hydrocarbons. Electric logs indicate that the drilling of these wells may have intersected up to nine separate pay zones. The initial indications are that on the fourth well, two significant pay zones were intersected which total approximately 34 feet of hydrocarbon pay. In addition, there may be several other smaller pay zones.

Because of the success of this drilling program, there may be the potential for one or more offset wells in which Delta would participate. Delta owns a 5% working interest in the wells covered by this drilling program and has fully paid the costs associated with this program.

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, and South Central, Oklahoma.  As a result of its acquisition of a controlling interest in The Stallion Group, a Nevada corporation, it expanded its property interests to include acreage in the North Sacramento Valley, California.

On behalf of the Board of Directors,

DOUGLAS N. BOLEN, President

Contact

1.866.355.3644
Investor Relations

The initial well was perforated in one of the lower zones on January 22, 2010. Since perforation, the well has flowed at rates of 400 to 550 barrels of fluid per day with an oil cut ranging from 50 to 70%. It is believed that the water is primarily the result of the drilling and completion process, and that most if not all of it will disappear shortly. The natural gas production rates are estimated to be between 200 and 300 mcf per day. A gathering line is being laid and the well should be producing, and subsequently selling, both gas and oil very shortly.

The 2nd, 3rd and 4th wells have now all been drilled and all flowed oil at good pressures and volume in drill stem tests taken from the most significant zones. Electric logs indicate that the drilling of all wells may have intersected up to nine separate pay zones. The initial indications are that on the fourth well, two significant pay zones were intersected which total approximately 34 feet of hydrocarbon pay. In addition, there may be several other smaller pay zones.

Because of the success of this drilling program, there may be the potential for one or more offset wells in which Delta would participate. Delta owns a 5% working interest in the wells covered by this drilling program and has fully paid the costs associated with this program.

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, and South Central, Oklahoma.  As a result of its acquisition of a controlling interest in The Stallion Group, a Nevada corporation, it expanded its property interests to include acreage in the North Sacramento Valley, California.

On behalf of the Board of Directors,
DOUGLAS N. BOLEN, President

Contact

1.866.355.3644
Investor Relations