Delta Oil and Gas Spuds First Well in Sacramento Basin
Delta Oil and Gas has spud its first well on its Cache Slough property has commenced. The Cache Slough area is a prolific natural gas area northeast of Sacramento, California. The property is located next to and partially on one of the largest gas fields in the State of California, the 3.5 trillion cubic feet ("Tcf") Rio Vista gas field. Pipelines located near and within the project area make it easy to transport and sell any production encountered.
The Cache Slough property covers approximately 825 acres of land. Analysis of 3-D seismic survey, in combination of all available well data, has resulted in the recognition of several natural gas prospects on the property. The initial drilling focus is expected to be on the high side of the Midland Fault, a major structural feature in the Rio Vista area that has historically produced significant amounts of natural gas.
Delta Oil and Gas has agreed to pay 18.75% of all costs of drilling, testing and completion of the first test well to earn a 12.5% economic interest. Thereafter, Delta Oil & Gas will pay 12.5% of all costs of future wells to earn a 12.5% economic interest.