Delta Oil & Gas Begins Production at Three Core Properites

Delta Oil and Gas has commenced production at three of its core properties: Owl Creek, Wordsworth and Palmetto Point. In addition, production from the Todd Creek and Cache Slough properties is expected to start shortly. Seven wells in total have commenced production of which two are oil wells and five are natural gas wells. An additional seven wells are currently being tied in with production slated to start this month. Production results are summarized as follows:

Owl Creek, Oklahoma

The oil discovery at the Powell #2 well in Owl Creek, Oklahoma has produced just under 10,000 barrels of oil to August 31, 2006. Daily production is currently averaging approximately 125 to 150 barrels of oil per day and 50,000 cubic feet of natural gas per day. In light of this major discovery, the drilling of a second well, known as Isbill #1-36, has commenced and will reach total depth in early September 2006.

Wordsworth, Saskatchewan

The horizontal well drilled earlier this summer in the Wordsworth area of Saskatchewan, Canada has produced approximately 9,350 barrels to the end of July 2006. At last report, the well continues to produce in the range of 200 to 250 barrels of oil per day. Gas production from the same well is estimated to be 50,000 to 100,000 cubic feet per day. A second well is expected to be drilled later this year.

Palmetto Point, Mississippi

The operator has tied in five of the natural gas wells at Palmetto Point, Mississippi. Production from these wells is averaging approximately 450,000 cubic feet of natural gas per day. Four additional wells will commence production later this month. An additional ten-well drilling program will commence October 2006.

"We could not be more pleased with the recent successes we've had and with the rapid development of our business plan." (Douglas N. Bolen, President & CEO) "We are moving Delta Oil & Gas to the next level as we transform the company from an early stage exploration company to one that is focused on both exploration and production."