Delta Logs Gas Pay in Sacramento Basin

Delta Oil and Gas has made a significant natural gas discovery on its Cache Slough property in Sacramento California. Recently completed testing of the first well drilled on the property has resulted in natural gas flow rates exceeding our expectations. Delta and partners have elected to tie-in the well to a nearby gas pipeline to accommodate the natural gas production. Flow rates and reserve size will be announced after the well has commenced commercial production.

Douglas Bolen, Delta's President stated, "We are very excited with the test results of our first well drilled on the Cache Slough prospect. We expect to be producing and selling natural gas within the next 60 to 90 days from this well. Future drilling plans with regards to the Cache Slough prospect will be announced in early 2006."

The Cache Slough area is a prolific natural gas area northeast of Sacramento, California. The property is located next to and partially on one of the largest gas fields in the State of California, the 3.5 trillion cubic feet ("Tcf") Rio Vista gas field. Pipelines located near and within the project area make it easy to transport and sell any production encountered.

The Cache Slough property covers approximately 825 acres of land. Analysis of 3-D seismic survey, in combination of all available well data, has resulted in the recognition of several natural gas prospects on the property. The initial drilling focus is expected to be on the high side of the Midland Fault, a major structural feature in the Rio Vista area that has historically produced significant amounts of natural gas.

Delta Oil and Gas has agreed to pay 18.75% of all costs of drilling, testing and completion of the first test well to earn a 12.5% economic interest. Thereafter, Delta Oil & Gas will pay 12.5% of all costs of future wells to earn a 12.5% economic interest.


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