Delta Oil & Gas discovers an aggregate of 67 feet of gas pay and 7 feet of oil pay in first seven wells drilled at Palmetto Point, Mississippi

July 18, 2006

Delta Oil and Gas, Inc, (OTC:BB DOIG) is pleased to announce that the sixth and seventh gas wells at Palmetto Point, Mississippi have been drilled to total depth, deemed by the operator to be commercially viable and have been cased for production. In total, seven wells have been drilled in the ten well program at Palmetto Point. To date, five of the seven wells have been successful and have been cased for production.

Drilling of the first of ten wells (the “PP F-40“) commenced in the first week of May 2006 and a total of seven of ten wells have been drilled to date. Production casing has been set on five of these wells as each of the five encountered zones of natural gas and two of the five encountered zones of oil in addition to the natural gas. Two wells were not successful and have been plugged and abandoned.

The well depths and pay zone depths of each of the successful wells are set out below:

At present, the F-118 and the F-42 are being hooked up to a nearby natural gas pipeline. The natural gas production should commence within approximately three weeks. Connections to the pipeline for the F-39 and F-40 are expected to follow shortly thereafter. Potential flow rates for the gas will not be known until shortly after the pipeline connections are complete and production is established. These flow rates will be reported as soon as they are available.

Drilling continues on the balance of the wells at Palmetto Point with an expected completion date in August 2006.

The Drilling Program is being conducted by Griffin & Griffin Exploration in its capacity as Operator. This consists of the drilling, logging, testing, completing and equipping for production (or if applicable, the plugging and abandonment) of ten wells. Griffin anticipates drilling to a subsurface depth equal to such depth as is necessary to penetrate the sands of the Frio Formation identified as potentially productive of oil and/or gas. Griffin has drilled, owned or operated more than 100 Frio wells in the region.

Griffin has utilized seismic “bright spot” technology a technology providing a tool to identify gas reservoirs and to delineate the reservoir geometry and limits. Utilizing these critical factors has improved reserve estimates and the geologic success ratio that has made the Frio an economical and predictable reservoir.

The Frio in the area of Southwest Mississippi and North-Central Louisiana is a very complex series of sand representing marine transgressions and regression and therefore the presence of varying depositional environments. Structurally, the Frio gas accumulations are a function of local structure and/or structural nose formed as a result of differential compaction features. However, stratigraphic termination (i.e. up dip shales outs of sands) also plays a role in most Frio accumulations. The stratigraphy is so complex that seismic HCL evaluations are the only viable exploratory tool for the Frio prospect.

Delta has acquired a 10% gross working interest in the drilling program.

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 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

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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