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Delta Oil & Gas discovers new pay zone at Owl Creek, Oklahoma
June 28, 2006
Delta Oil and Gas, Inc, (OTC:BB DOIG) is pleased to announce that its recently acquired interest in a potential oil well known as the Powell #2 has resulted in an important new discovery. The Powell #2 is currently flowing at 216 barrels of oil per day through a 20/64th inch choke with a flowing tubing pressure of 160 pounds per square inch. The Owl Creek Prospect can now be classified as a new discovery in the lower zone and the Trenton zone of the Viola Formation.
The Powell #2 well was drilled to a total depth of 5,617 feet on May 18, 2006. Completion began on June 6th and after a remedial cement job the well was re-perforated in the lower zone on June 21st. The well started naturally flowing oil and gas under its own pressure after only a small amount of the load water was removed by swabbing. Initially, the well flowed at a rate of 10 to 15 barrels of fluid per hour (240 to 360 barrels per day) with 80% - 90% being oil and the remainder being load water.
Of particular note is a second hydrocarbon showing in the Powell #2, found in the Viola Formation. This showing was over 50 feet thick, and the logs indicate that is may also be productive. However, completion of this zone will not take place until sometime in the future.
Because of these positive results at the Powell #2 well, the operator is now actively taking steps to develop the field at Owl Creek by evaluating the next development location for drilling to start as soon as possible. The next well will be an offset to the Powell #2 and may potentially contain the same lower pay zone as the Powell #2. The Company notes that it may drill up to 24 additional wells at Owl Creek if on 40-acre spacing. Pursuant to our agreement, we would be entitled to participate in additional wells by paying 20% of the costs of drilling.
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 new interest in a horizontal oil well in Saskatchewan and its new 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
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.
Greg Werbowski
1.866.355.3644
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