|
|
 |
Delta Oil & Gas acquires interest in an oil prospect at Owl Creek, Oklahoma, Completion and testing to commence immediately
June 1, 2006
Delta Oil and Gas, Inc, (OTC:BB DOIG) is pleased to announce that it has entered into an assignment agreement to accept an assignment of an undivided 20% working interest in a potential oil well known as the Powell #2 and an option to purchase a 20% interest in all future wells drilled on a total of 1,120 acres surrounding the Powell #2 and an option to participate in any lands of mutual interest that may be acquired in the future by the Owl Creek Participants. The 1,120 acres is located in Garvin & McClain Counties, Oklahoma, USA. (“Owl Creek Prospect”)
The Powell #2 well was drilled to a total depth of 5,617 feet on May 18, 2006. After reviewing a complete suite of open hole logs performed on this potential well, there were two potential hydrocarbon showings. The first of the two hydrocarbon showings was in what is known as the “Upper Viola”. This showing was over 50 feet thick. The second hydrocarbon showing was in a deeper zone with good porosity, permeability and calculated productive. In light of this, the operator, Ranken Energy Corporation recommended that production casing be run in order to test the two hydrocarbon showings.
The operator is currently developing this 1,120 field with a view to drilling a additional well on the Owl Creek Prospect as early as June 2006. Pursuant to our agreement, we would be entitled to participate in this additional well by paying 20% of the costs of drilling.
Previously, the operator has successfully completed the first well (the Powell #1) and has been producing oil and gas for approximately 5 months. Based on this well, the Owl Creek Prospect has been classified as a new discovery in the Trenton zone of the Viola Formation. This prospect has the potential for 11 additional wells on 80-acre spacing or even up to 24 additional wells if on 40-acre spacing. In addition to the Trenton zone of the Viola, other wells in the immediate vicinity have had oil and gas shows in the upper Viola, Hunton, Hart, and Gibson zones. Additional drilling will help further define the project potential in these other pay zones.
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, its interest in the Strachan Prospect, its interest in its Mississippi prospect, its interest in a horizontal oil well in Saskatchewan and its newest interest at Owl Creek, Oklahoma. 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
|
