Delta Oil & Gas Closes $2,000,000 Private Placement Financing

Delta Oil and Gas, Inc. (OTC BB: DOIG.OB) has closed the $2,000,000 private placement equity financing previously announced on February 6, 2006.

The private placement was comprised of the sale of approximately 727,272 Units at the price of $2.75 per Unit for total gross proceeds to the Company of $2,000,000. Each Unit is comprised of one share restricted common stock and one warrant (the "Warrant") to purchase one share of restricted common stock, exercisable for a period of three years from the closing of this offering. The exercise price of the Warrants is $3.00. Assuming that all of the Warrants are exercised by the holder(s), the gross proceeds received from the Warrants will equal approximately $2,181,000. A commission of 7.5% will be paid on the private placement. In light of current market conditions and through negotiations with the investors, the price of the private placement was reduced from the previously announced price of $4.40 per share.

The funds for the Units have been received in full. The placement is designed to strengthen the Company's balance sheet and is expected to be used to finance the Company's upcoming capital expenditures including Delta's drilling in the Hillspring and Todd Creek areas in the Southern Alberta Foothills, the completion of the Company's potential Devonian gas well on its Strachan prospect, potential additional drilling in and around the Cache Slough prospect located in the Sacramento basin in California and the costs associated with its newest interests in the ten well drilling program at the Palmetto Point Prospect in Mississippi. The Company is also actively pursuing other exploration opportunities both in North America and overseas.

The following are Delta's current projects:

Palmetto Point Prospect

On February 21, 2006, Delta took an assignment of a ten percent gross working and revenue interest in a ten well drilling program at its Palmetto Point Prospect in Mississippi. The operator of the drilling program is Griffin & Griffin Exploration, L.L.C., which has drilled, owned or operated more than 100 Frio wells in the region. It is expected that drilling of the first of the ten wells could be initiated before the end of March 2006 with the balance of the wells to be drilled and completed within approximately 9 months. The drilling program will consist of the drilling, logging, testing, completing and equipping for production (or if applicable, the plugging and abandonment) of ten wells. Griffin anticipates drilling to a subsurface depth equal to such depth as is necessary to penetrate the sands of the Frio Formation identified as potentially productive of oil and/or gas.

The prospect wells are located in the Frio Geological formation. Frio wells typically enjoy low finding costs and have a high degree of success. The gas targets occur at shallower depths, and have minimal completion costs. The Frio in the area of Southwest Mississippi and North-Central Louisiana is a very complex series of sand representing marine transgressions and regression and therefore the presence of varying depositional environments. Structurally, the Frio gas accumulations are a function of local structure and/or structural nose formed as a result of differential compaction features. However, stratigraphic termination (i.e. up dip shales outs of sands) also plays a role in most Frio accumulations. The stratigraphy is so complex that seismic HCL evaluations are the only viable exploratory tool for the Frio prospect.

Hillspring Prospects

Earlier this year, Delta Oil & Gas acquired a 10% working interest in 640 gross sections of land in the Hillspring area of Alberta. The operator of the Hillspring prospect has drilled 4 wells adjacent to the lands Delta has acquired. The operator is currently reviewing the data on these 4 wells along with additional seismic testing and it is anticipated that a well will be drilled on Delta's land in 2006.

Todd Creek Prospect

Delta's Todd Creek Well located in 13-28-9-2W5 in the Southern Foothills area of Alberta, Canada has been drilled, completed and classified as a new natural gas pool discovery. Log analysis shows that the well has intersected two gas formations with a combined net pay of over 80 feet. Preliminary natural gas reserve estimates for this well exceed 700 Million Cubic Feet of gas.

Construction of a new gas processing plant just south of this Todd Creek discovery has commenced and Delta expects to tie its anticipated gas production into this gas plant by spring of 2006. The gas plant is initially capable of accommodating 10 million cubic feet of gas per day with significant expansion capabilities. While Delta will have no direct interest in the plant, the immediate access to market for its anticipated production from the area is of substantial benefit.

Strachan Prospect

Total depth of 13,650 feet has been reached on Delta's potential natural gas well in its recently acquired, highly prospective property in the Deep Basin along the edge of the Alberta foothills belt approximately 80 miles Northwest of Calgary Alberta. ("Strachan Prospect"). Preliminary results indicate the presence of a potential Devonian gas well. Casing has been inserted to total depth and a full testing program is underway.

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.

Cache Slough Prospect

Delta's Cache Slough Well, located near Sacramento, California, has been drilled, completed and classified as a significant new natural gas pool discovery. Review of the preliminary data indicates that the well tested at flow rates exceeding our expectations. Delta and partners have elected to tie-in the well to a nearby gas pipeline to accommodate the natural gas production. Despite a setback suffered as a result of recent heavy flooding in the area due to higher than average rainfalls, the pipeline is expected to be completed before the end of March 2006. Results may be announced after the well has commenced commercial production. Future drilling plans with regards to the Cache Slough prospect will be announced in the first quarter of 2006.

About Delta Oil and Gas

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 and its newest interest in its Mississippi prospect. Delta Oil & Gas is seeking to expand its portfolio to include additional interests in Canada and the USA.