|
Delta Oil & Gas Inc. Property Acquisitions
DELTA OIL & GAS INC. OTCBB: DOIG February 16, 2005
Delta Oil and Gas Inc. (OTC:BB - DOIG) is pleased to announce that the Company has acquired a working interest in two highly prospective properties known as Todd Creek and Hillspring (details below). Both properties are located approximately 90 miles south of Calgary, Alberta in the Southern Alberta Foothills belt. The total purchase price of the land was $1,014,000 USD.
Todd Creek (Twp. 9 Rge 2W5)
The company has acquired a 20% working interest in 13.75 sections of land (8800 acres) in Todd Creek. The Company also has an option to earn 15% in 7 additional sections of land (4,480 acres) currently owned by Exxon Mobile. Included in the acquisition, is a test well drilled at 7-16-9-2W5, which has been cased and is currently under tight-hole status. Information will be released when available.
It is believed the acreage has potential for up to 20 additional wells. Drilling on the property is anticipated to commence in the second quarter of this year.
Producing wells in the area typically are of long life with minimal declines. The gas is sweet with minimal sulfur or CO2 and generally receives excellent prices. Existing wells on the Todd Creek prospect typically produce at depths between 1600 and 1900 meters.
The operator of the Todd Creek concession has received a license to install a gas plant facility for up to 10,000 mcf/day of gas to be located in 13-34-8-2W5. It is anticipated that construction will begin on the plant in the spring of this year and production from the plant could commence later this year. The proposed plant is to be located within one mile of a connection to a Gas Export Sales line to the United States market. While Delta Oil and Gas will have no direct interest in the plant, the immediate access to market for its anticipated production from the area, is of substantial benefit.
Hillspring Prospect (Twp. 5, 6 Rge 29-30W4M)
The Company has acquired a 10% working interest in one section of land (640 acres) along with an option on an additional 10% working interest in 1.25 sections in the immediate area.
Talisman Energy, as operator of the Hillspring prospect, has advised that a joint well will be drilled at 10-34-5-29W4 in the spring or summer of 2005. Talisman Energy has drilled a number of successful wells immediately surrounding the Company's land position.
Independent estimates of the estimated potential recoverable reserves of the 10-34-5-29W4 well could total up to 12.2 BCF (billions of cubic feet of gas). The potential exists to drill additional wells on the concession.
Further details on the prospects along with a proposed drilling time line will be released in the near future.
About Delta Oil & Gas
Delta Oil and Gas is a growing exploration company focused on developing North American oil and natural gas reserves. The Company's current focus is on the exploration of its land portfolio comprised of working interests in highly prospective acreage in the Southern Alberta Foothills area and is looking to expand its portfolio to include acreage in the US.
On behalf of the Board of Directors,
DOUGLAS N. BOLEN, President
Safe Harbor Statement
This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to time frames, expectations for completion; the analysis of results and the intention to drill. Actual outcomes and the Company's results could differ materially from those in such forward-looking statements. Factors that could cause results to differ materially include general factors that affect all companies that explore for oil and gas, such as the uncertainty of the requirements demanded by environmental agencies, the fact that oil and gas extraction and production is risky, the potential that no commercial quantities of gas are found or recoverable, the price of oil and gas, geological problems that prevent us from reaching drilling targets and specific risks such as the Company's ability to raise financing.
Contact:
Douglas N. Bolen
|
