Texas Prospect

Donner #1

Donner #1The Donner #1 well, located in Newton County, Texas was drilled to a total depth of 7,600 feet on June 4, 2010 and flowed at rates as high as 192 barrels of oil per day (“bopd”) during the initial test. Since that time, the test period has ended and the well has been tied in to a new battery facility owned by the Company and its Partners. The well is now on full production flowing naturally on a 4.5/64th choke at the restricted rate of 41 bopd. This well has not shown any decline characteristics as of Feb. 2011 nor has there been any water production during its production history. Delta is very pleased with the production profile of this well.

Donner #2

Following the success of Donner #1, the Company and its Partners are in the process of preparing our second drill location and access roads on these lands. Donner #2 is not characterized as an offset well. We anticipate encountering significant virgin reserves of both gas and oil. These potential reserves appear to be clearly indicated in the 3D seismic interpretations. This well is scheduled for spud in early March 2011 once the road and drill site are ready to accept the drilling equipment

The Texas project contemplated the drilling of up to three wells in the Newton County area. Once the exact location and timing of the drilling of the second well is confirmed, the Company will provide further updates. Delta owns a 40% gross working interest before pay out in the wells covered by this drilling program and at present, has fully paid the drilling and completion costs associated with the Donner #1 and it’s site preparation AFE’s on Donner #2