Delta Oil and Gas Discovers New Gas Pool in Todd Creek
Delta Oil and Gas, Inc announces that it has completed testing of its Todd Creek Well located in 13-28-9-2W5 in Alberta, Canada and the well has been classified as a new natural gas pool discovery. Log analysis shows that the well has 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
Construction of a new gas processing plant just south of this Todd Creek discovery is expected to commence shortly and Delta expects to tie its anticipated gas production into this gas plant by spring of 2006. The gas plant is initially capable of accommodating 10 million cubic feet of gas per day with significant expansion capabilities. While Delta will have no direct interest in the plant, the immediate access to market for its anticipated production from the area is of substantial benefit.
Delta has a 20% working interest in 13.75 sections of land (8800 acres) in Todd Creek with an option to earn 15% in 7 additional sections of land (4,480) acres. It is estimated that gas reserves per section could reach 2.0 Billion Cubic Feet of gas. Further development of Todd Creek is planned for 2006 involving the drilling of several additional potential gas wells. Drilling of the next Todd well, located at 6-28-9-2W5, is planned to commence upon completion of the gas plant.
About Delta Oil and Gas
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 and its interest in the Cache Slough Project in California. Delta Oil & Gas is looking 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
Safe Harbor Statement
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.
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