Delta Oil & Gas Finds Gas with Strachan Well in Alberta

Delta Oil and Gas, Inc. has drilled the Strachan well to a total depth of 13,650 feet. Preliminary results indicate the presence of a potential Devonian gas well.

In light of this, the operator has decided to complete the potential gas well by inserting a casing into the total depth of the well. Once the casing is completed, a full production test program for this well can be run. If the results of the tests are positive, this well can be immediately tied into a nearby gas sales pipeline which is connected to the existing Strachan Gas Plant.

During the drilling process, the operator of this potential gas well encountered extremely high gas pressures up to 10,000 pounds per square inch in several zones. The decision to case the well prior to testing based on the dangers associated with running logging tools in a well with such extremely high pressures.

The original Strachan gas pool was discovered 35 years ago however in November 2004 Shell Oil announced a new Leduc Pool discovery at Ricinus with potential One Trillion cubic feet gas reserves.

Delta's Strachan prospect is 12 miles Northeast of the Shell Oil discovery and 2 miles Northeast of the original Strachan gas pool in the same part of the Deep Basin. We are looking for a new, virgin Strachan gas pool. This new Strachan prospect is based on newly developed highly technical Three Dimensional Seismic programs that shed new light on identifying deeply buried pinnacle reefs.

The original Strachan Leduc discovery well was drilled in October 1967 by a junior oil company called Stampede Oil. Six gas wells delineate the aerial extent of this major gas pool with initial production rates to fill the maximum capacity of the Strachan Gas Plant at 250MMCF per day. After 20 years, key wells had cumulative production of between 150 to 225 Billion cubic feet natural gas each. To date, 962 Billion cubic feet of natural gas reserves have been recovered and currently only minimal residual gas production is pipelined to the under-utilized Strachan Gas Plant.