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Delta Oil & Gas commences first ever oil production. Cumulative production from the Oklahoma and Saskatchewan wells exceeds 10,000 Barrels of Oil over the last 45 days.
July 24, 2006
Delta Oil and Gas, Inc, (OTC:BB DOIG) is pleased to announce that it’s recently acquired interest in an oil well known as the Powell #2 at Owl Creek, Oklahoma has resulted in an important new discovery. The Powell #2 has produced approximately 5,346 barrels of oil to July 20, 2006 and is producing approximately 60,000 cubic feet natural gas per day. Delta has a 20% interest in this well. In light of the success of this well, Delta and partners have committed to drill the first of several direct offset wells in the area. The first well, when completed will be called the Isbill # 1-36. Drilling is expected to commence in early August.
Seismic data indicates that the Isbill #1-36 well should be structurally very similar to the successful Powell #2 well. This includes both the current lower producing zone in the Powell #2, and the additional prospective pay zones (including the upper Viola).
Delta is also pleased to announce that its horizontal well in the Wordsworth area, Saskatchewan, Canada is now producing steadily with the assistance of a pump. The well was drilled horizontally to a depth of 2033 meters encountering approximately 300 meters of oil pay. To the end of June, the well has produced 4,339 barrels of oil. Initial gas production from the same well is estimated to be in the 50,000 to 100,000 cubic feet per day but to the end of June, the gas has been flared off until it can be connected to a pipeline. Delta has a 15% interest in this well.
Delta and partners are planning additional seismic work and further drilling in the project area as soon as practicable, with the expectation of substantial production increases from the Alida pool which may contain up to 4 million barrels of oil.
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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