Delta Oil & Gas Makes Discovery in Saskatchewan, Canada

East Wordsworth
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Delta Oil and Gas reports that the first well at Wordsworth, Saskatchewan has resulted in an extraordinary discovery for the Company: A new Alida oil pool at East Wordsworth, Saskatchewan, producing the equivalent of 456 barrels of oil per day. The well reached total horizontal depth of 2033 meters encountering approximately 300 meters of potential oil pay in the horizontal section.

Production testing began on June 7, 2006 and on June 8, 2006 with the end of tubing set at 1600 meters in the horizontal hole, the well flowed oil at a rate of 4.4 cubic meters (28 bbls) per hour for a sustained period of 3 hours. On June 9, 2006 with the tubing set at 1274 meters in the intermediate casing string the well flowed at a rate of 3.8 cubic meters (24 bbls) per hour. Insignificant amounts of brackish and fresh water were encountered which were not formation water.

On Friday June 11, 2006 the well was completed as a flowing oil well producing at a rate of 3.0 cubic meters (19 bbls) per hour against an 8/64" choke. The above flow rate is equivalent to 456 barrels of oil per day. Significant associated gas accompanies the oil production and a market for the associated gas is present at the nearby Carlyle Alida pool (Section 35-7-3 W2M), a distance of about 2.5 miles away.

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 The Company is now in discussions with the operator with respect to the drilling of additional wells in the vicinity.

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, its interest in the Cache Slough Project in California, its interest in the Strachan Prospect, its interest in its Mississippi prospect, its newest interest in a horizontal oil well in Saskatchewan and its newest interest 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.


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