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Delta Oil & Gas completes drilling on oil prospect in Saskatchewan, Canada
June 5, 2006
Delta Oil and Gas, Inc, (OTC:BB DOIG) is pleased to announce that the first well at Wordsworth, Saskatchewan has been drilled to a total horizontal depth of 2,033 meters. The drilling revealed approximately 300 meters of potential oil pay in the horizontal section. The operator is currently making arrangements for a service rig to install tubing, rods and a bottom hole pump for production testing as soon as possible.
Delta owns a 15% working interest before payout and a 7.5% working interest after payout in this first well and in an additional three proposed wells in the Wordsworth area. This area is known for prolific oil reserves in numerous Mississippian Alida pools where horizontal wells can prove initial production rates up to 200 barrels of oil per day and generate up to $2MM cash flow in less than two years. As a consequence with oil sales prices currently above $80/bbl (Cdn.), payout of one well investment of approximately $1MM could be only a few months with up to 10 years of additional production life. Depending on the success of the first well, additional step-out wells may be drilled.
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 newest interest in a horizontal oil well in Saskatchewan and its newest interest in the Owl Creek Prospect in 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
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