Delta Begins Five-well Program
Delta Oil and Gas has spud the first of five wells in its recently acquired "2006-03 Drilling Program" with Ranken Energy Corporation (announced May 15, 2007). The first well is known as the Loretta #1-22 (formerly the "Linda #1-22"). The targeted depth of the well is approximately 7,300 feet targeting a Basal Oil Creek Sand. The decision to drill at this location was based on 3-D seismic tests and on the prior drilling of a well by Ranken approximately 1 mile away, which shows very similar structure. That well has produced over 100,000 barrels of oil with a total estimated recoverable barrels in the 500,000 range.
Well sites are currently being prepared on the next wells in this drilling program. We expect to spud the next well (the "Wolf #1-7") in this drilling program within the next two weeks. The total estimated time to complete the entire drilling program is approximately six months.
Delta owns a 10% working interest in this program.
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 drilling prospect in Saskatchewan and its interests in Oklahoma. Delta Oil & Gas is seeking to expand its portfolio to include additional interests in Canada and the USA.