Delta Oil & Gas to Drill 55 to 65 Wells Over Next 18 Months
Delta Oil and Gas expects to drill 50 to 60 natural gas and/or oil wells in the USA and 8 to 10 natural gas and/or oil wells in Canada over the next 18 months.
Based on the successes we have had to date at our Todd Creek, Cache Slough, Owl Creek, Palmetto Point and Wordsworth prospects, we feel that additional drilling in these areas is warranted and anticipate a high degree of success. The additional drilling at each of these locations will be conducted by the same operators as were previously involved. In each case, we will be required to pay our proportionate share of the costs of drilling in order to earn our proportionate share of the revenues.
TODD CREEK - In May 2005 the company commenced drilling on a second location of the property. The well is located in 13-28-9-2W5 which is 500 meters south of the discovery well at 6-33-9-2W5. Drilling was completed in June 2005. In November 2005, Delta completed testing of its Todd Creek Well located in 13-28-9-2W5 and the well has been classified as a new natural gas 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 (Mcf) of gas.
CACHE SLOUGH - Drilling commenced on the first well at Cache Slough (the "#7-1") in September 2005 and reached a total depth in October. Review of the preliminary logs indicated the potential of a new gas discovery and the operator of the well elected to complete the well for testing. The completion and preliminary testing of the well was completed in November 2005. Delta and its partners in this well elected to tie the well into a nearby pipeline to accommodate potential gas production. The well has been classified by the operator as a new gas discovery. In August, 2006 a second well at Cache Slough (the "#7-2") was drilled to total depth and the operator has elected to complete the well for additional testing. If testing is positive, it will be tied into a nearby gas pipeline.
OWL CREEK - The Powell #2 well was drilled to total depth in May 2006 and completed in June. The well is now producing oil and gas at the approximate rates of 125 to 150 barrels of oil and 50,000 mcf of natural gas per day. A second well called the Isbill #1-36 is currently being drilled near our first location and should be completed before the end of September 2006.
PALMETTO POINT - To date, seven wells have been drilled at this location, five of which have now been tied into a nearby pipeline and are producing natural gas in the approximate daily amount of 450,000 cubic feet.
WORDSWORTH - 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.