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Delta Oil & Gas to complete well in Sacramento Basin
October 20, 2005
Delta Oil and Gas, Inc, (OTC:BB DOIG) is pleased to announce that the operator of its first well on its Cache Slough property has reached the targeted depth. Review of the preliminary drill logs indicate that this is a potential gas well and based on these logs, the operator intends to immediately complete the well for testing. Once final testing is complete and a determination is made that the well is economically viable, the well will be tied in to a nearby pipeline to accommodate the natural gas production.
The Cache Slough area is a prolific natural gas area northeast of Sacramento, California. The property is located next to and partially on one of the largest gas fields in the State of California, the 3.5 trillion cubic feet (“Tcf”) Rio Vista gas field. Pipelines located near and within the project area make it easy to transport and sell any production encountered.
The Cache Slough property covers approximately 825 acres of land. Analysis of 3-D seismic survey, in combination of all available well data, has resulted in the recognition of several natural gas prospects on the property. The initial drilling focus is expected to be on the high side of the Midland Fault, a major structural feature in the Rio Vista area that has historically produced significant amounts of natural gas.
Delta Oil and Gas has agreed to pay 18.75% of all costs of drilling, testing and completion of the first test well to earn a 12.5% economic interest. Thereafter, Delta Oil & Gas will pay 12.5% of all costs of future wells to earn a 12.5% economic interest.
About Delta Oil and 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, its interest in the Cache Slough Project in California and its newest interest in the Strachan Prospect. Delta Oil & Gas is seeking to expand its portfolio to include additional interests in Canada and the USA.
On behalf of the Board of Directors,
DOUGLAS N. BOLEN, B.A., LL.B., 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 Information
Andrew Hay
1.866.355.3644
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