Delta Oil & Gas Logs Oil Pay in Saskatchewan
Delta Oil and Gas reports that the first well at Wordsworth, Saskatchewan, has been drilled to a total horizontal depth of 2,033 meters. The drilling revealed approximately 300 meters of potential oil pay in the horizontal section. The operator is currently making arrangements for a service rig to install tubing, rods and a bottom hole pump for production testing as soon as possible.
Delta owns a 15% working interest before payout and a 7.5% working interest after payout in this first well and in an additional three proposed wells in the Wordsworth area. This area is known for prolific oil reserves in numerous Mississippian Alida pools where horizontal wells can prove initial production rates up to 200 barrels of oil per day and generate up to $2MM cash flow in less than two years. As a consequence with oil sales prices currently above $80/bbl (Cdn.), payout of one well investment of approximately $1MM could be only a few months with up to 10 years of additional production life. Depending on the success of the first well, additional step-out wells may be drilled.
Delta Oil and Gas is a growing exploration company focused
North American oil and natural gas reserves. The Company's
current focus is
on the exploration of its land portfolio comprised of working
highly prospective acreage in the Southern Alberta Foothills
interest in the Cache Slough Project in California, its
interest in the
Strachan Prospect, its interest in its Mississippi prospect,
interest in a horizontal oil well in Saskatchewan and its
in the Owl Creek Prospect in Oklahoma. Delta Oil & Gas
is seeking to
expand its portfolio to include additional interests in
Canada and the USA.