Delta Oil and Gas, Inc, report that Delta and its partners have drilled the first discovery well ("SBV-2-32") at its King City, California Prospect. The SBV-2-32 well was spud on November 22, 2011 and was drill to a total depth of 3,468 feet on November 29, 2011.
Casing was set and cemented in place to total depth. Two intervals showed promise for the production of commercially viable quantities of hydrocarbons. The first interval of approximately 30 feet with 12 API gravity showed good oil staining on drilling and provided a good log response. The second interval of interest indicated approximately 70 feet of oil pay with 17 – 18 API gravity also with good oil staining during drilling and very good log response.
We expect that both sands will be tested within the next 30 days with completion efforts to follow shortly thereafter. Following a successful completion of this initial well, Delta and partners expect to drill and test additional wells in this area upon obtaining the required permitting from the County.
On May 25, 2009, Delta entered into a Farm-out agreement with Sunset Exploration to participate in a drilling and exploration of approximately 10,000 acres of land located in Monterey County, California. Delta agreed to pay 66.67% of all costs to casing point expended in respect of the initial test well to earn a 40% Working Interest. On all subsequent wells, Delta agreed to pay 40% of the costs to earn its 40% Working Interest.
To date, all referenced lands were shot with a 2 dimensional seismic swath as well as a gravity survey. The prospect area is in and around the King City Oilfield, and the current data will enable the Company to effectively test the entire Monterey sections.
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