Delta Spuds Offset Well at Owl Creek
Delta Oil and Gas, Inc. has commenced drilling a direct offset well to the successful Powell #2 at Owl Creek (the "Isbill #2-36"), which is located in Garvin & McClain counties, Okla.
The entire Owl Creek Prospect has been totally reinterpreted over the past few months after integrating all the seismic data and the data obtained from the drilling of the "Powell #1," the "Powell #2" and the "Isbill #1." The Drilling of the Isbill #2-36 is to be drilled to a total depth of approximately 2,200 feet and the 3-D seismic survey indicates that the Isbill #2 well should be structurally very similar to the new field discovery characterized by the Powell #2 well. Three potentially productive zones are being targeted which include the current lower producing zone of the Powell #2. The same seismic survey also indicates other additional high potential locations for future testing.
Delta has a 20% working interest in this project.
Previously, the operator has successfully drilled three wells at the Owl Creek Prospect, in two of which Delta has an interest. The Powell #1, in which we have no interest was successful and is producing. The Powell #2, in which we have an interest, is currently producing on average, between 100 and 150 barrels of oil per day along with approximately 40 to 45 mcf natural gas. From its completion in late June 2006, the well has produced over 30,500 barrels of oil and 8 million cubic feet of gas. The well is showing very little decline or depletion indicating that the producing reservoir and the associate field is larger than earlier believed. The "Isbill #1," in which we had an interest, was drilled and based on preliminary logs, it was deemed not to be commercially viable and was plugged and abandoned.
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 Strachan Prospect, its interest in its Mississippi prospect, its interest in a horizontal oil well in Saskatchewan and its interest at Owl Creek, Oklahoma. Delta Oil & Gas is seeking to expand its portfolio to include additional interests in Canada and the USA.