Delta Issues Update on Mississippi Ops
Delta Oil and Gas, Inc. on Thursday issued the following update on drilling and production in respect to its Mississippi prospect:
Palmetto Point, Mississippi - 10 well Program:
The operator is nearing completion of the 10 well drilling program in Palmetto Point, Mississippi. Of the ten wells drilled to date, 7 have been completed, two have been plugged and abandoned and the last well is expected to be drilled immediately. Of the 7 completed wells, four are currently producing an average of 486,000 cubic feet of natural gas per day with total production to November 13, 2006 equaling 17,455,000 cubic feet of natural gas. The remaining drilled wells are either awaiting compressor or pipeline connections before production on these wells can commence. We expect this to be completed before the end of December 2006.
We are extremely pleased to have had a 77% success rate so far on this first drilling program.
In addition to the ten wells described above, we acquired a 10% interest in two additional Frio wells, previously drilled by Griffin & Griffin located in the same area, both of which were successful wells. They are currently shut in and waiting to be tied into the nearby pipeline.
Phase 2 - Mississippi Fifty well drilling program
Based on the success of the initial ten well drilling program, in August 2006, we entered into a joint venture agreement to acquire an interest in a drilling program comprised of up to 50 natural gas and/or oil wells with the potential of multiple zones of pay. The geological formations being targeted in this program are the Frio Formation and what is known as the "Wilcox Formation."
The first well drilled under this new joint venture agreement (CMR-USA 39-14) has been successfully drilled to 3200 feet and logged and is showing approximately 24 feet of gas pay. It is expected to be tied in to a nearby pipeline by the end of December 2006.
Additional wells are expected to be drilled shortly as drilling rigs become available, well site preparation is completed and property title work is completed on the remaining wells.
Delta has a 10% interest in both the Palmetto Point wells and the new Mississippi joint venture.
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 Strachan Prospect, its interest in its Mississippi prospect, its interest in a horizontal oil well in Saskatchewan and its interest in the Owl Creek Prospect in Oklahoma. Delta Oil & Gas is seeking to expand its portfolio to include additional interests in Canada and the USA.