Delta Spuds Second Todd Creek Well
Delta Oil and Gas Inc. said that the drilling of the second well at its Todd Creek prospect is imminent (the "13-33-8-2"). The lands on which this well is being drilled are located approximately 90 miles south of Calgary, Alberta in the Southern Alberta Foothills belt. A substantial part of the drilling is expected to be completed prior to the end of December.
The targeted depth of the well is approximately 5,500 feet and it is expected that this depth will take approximately 18 days to reach. The geological zone being targeted at this depth is known as the Cadomin formation. The Cadomin is a sandstone-conglomerate that sometimes exists as a thick alluvial fan up to 65 feet in thickness and could be spread out for several miles deep in the basin up to 15,000 feet. Cadomin formations can be high-quality reservoirs with good permeability and good porosity, which tend to be sweet gas bearing with potentially high reserves. This well is located very close to the Gas Processing facility so it is expected that once the drilling rig is released, the well, if commercially productive, can be tied into the production facility within approximately 45 days.
Previously at Todd Creek, Delta participated in the drilling of a well located in 13-28-9 2W5. Production of natural gas has commenced at this well. The 13-28 well was completed in June 2005 and initial log analysis showed that the well had 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. Production commenced in September of this year.
Delta has a 20% working interest in 13.75 sections of land (8800 acres) in Todd Creek with an option to earn 15% in 7 additional sections of land (4,480) acres. It is estimated that gas reserves per section could reach 2.0 Billion Cubic Feet of gas. Further development of Todd Creek is planned for 2007 involving the drilling of several additional potential gas wells.
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.