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Delta Oil & Gas commences production at Todd Creek, Alberta
September 27, 2006
Delta Oil and Gas, Inc, (OTC:BB DOIG) is pleased to announce that production of natural gas has commenced at its Todd Creek Well located in 13-28-9 2W5 in Alberta, Canada. The 13-28 well was completed in June 2005 and initial log analysis showed that the well had intersected two gas formations with a combined net pay of over 80 feet. Preliminary natural gas reserve estimates for this well exceed 700 Million Cubic Feet of gas. We are anticipating initial production from this well to be approximately 500 mcf per day, of which Delta will receive its pro-rata share.
The operator of the Todd Creek concession has successfully completed the final phase of its 35-kilometer gas gathering system which is capable of processing all production at Todd Creek. The Gas Plant is licensed to process up to 10,000 mcf/day of gas is located just south of Company lands. While Delta Oil & Gas will have no direct interest in the plant, the immediate access to market for its production from the area is of substantial benefit.
In February 2005, the Company acquired a 20% working interest in 13.75 sections of land (approximately 8800 acres) in Todd Creek. The company also has an option to earn 15% in seven additional sections of land (approximately 4,480) acres.
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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