Delta Nears Production at Ca. Well

Delta reported it is nearing production on its newest well located in the North Sacramento Basin, California. Delta and its partners commenced drilling the well in mid September and reached total depth of approximately 6,015 feet shortly thereafter. Delta and partners have established that this well has intersected substantial pay in the Forbes formation at a measured depth of 5940-5960 feet. This has aligned with our extensive seismic reviews and demonstrates that our well has successfully penetrated a significant proven natural gas reservoir.

As anticipated all logging clearly indicates approximately 20 feet of natural gas pay with significant reserves of natural gas. There is no indication of the presence of a water drive in the reservoir. Tests performed on the well indicate that it is capable of sustained production of approximately 5 million cubic feet of gas per day. The well currently has a well-head pressure in excess of 3,000 PSI.

In light of these facts Delta and its Partners elected to complete the well and to tie it in to a nearby gas sales line. In that regard, Delta and partners have designed and completed the installation of all well facilities, metering equipment and a 9,000 foot wholly owned pipeline to the PG&E sales point. We are now awaiting County approval to commence production and sales. The Company has been advised that approval is expected following a hearing scheduled for mid November, 2010. We expect production and sales of gas to begin immediately thereafter. Delta will report production rates and reserve estimates once the well has established a meaningful production profile.

"Our 25% gross working interest in this successful well represents a significant milestone for Delta," stated Christopher Paton-Gay, CEO. "Along with our recent success in Texas with a 40% gross working interest in our Donner #1 well, we are moving away from taking smaller working interests in projects to focusing our efforts in our core areas and taking larger interests in each exploration and development project. This 2010 shift in our business plan and our resulting successes are expected to materially increase our production numbers, asset base and cash flows."

Delta owns a 25% gross working interest in this well and at present, has fully paid the drilling and completion costs associated with this well. Delta and partners control approximately 900 acres of land in this area and expect to commence evaluating the balance of the land for additional drilling sites. Delta has fully paid $222,125 which represents its proportionate share of the costs of drilling and completing this well. Delta estimates that there will be a final charge of approximately $80,000 to our 25% working interest, once our consortium's wholly owned pipeline and tie-ins have been completed and final invoices have been tendered.


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