Delta Hits Pay at Owl Creek
Delta Oil & Gas, Inc. has discovered both oil and natural gas at its Isbill #2 well at the Owl Creek Prospect in McClain County, Okla.
The Isbill #2 was drilled to a total depth of approximately 5,900 feet and encountered two prospective pay zones. The first the Bromide Sand which we expect to provide approximately 8 to 10 feet of pay and the second being the Upper Viola which is expected to provide an additional 15 feet of pay. Initial daily flow rates from this well were in the approximate range of 200 barrels of oil and 140 mcf of natural gas. That being said, we fully expect that these flow rates are higher than can be maintained and that once the well starts flowing more consistently, production numbers will be released.
Previously, the operator has drilled three wells at the Owl Creek Prospect, in two of which Delta has an interest. The Powell #1 was successful and is producing. The Powell #2, in which we have an interest, is currently producing on average, between 100 and 150 barrels of oil per day along with approximately 40 to 45 mcf natural gas. From its completion in late June 2006 to the end of March 2007, this well has produced in excess of 33,000 barrels of oil and over 9,000 mcf of gas and is showing little sign of decline or depletion. The Isbill #1, in which we had an interest, was drilled and based on preliminary logs, it was deemed not to be commercially viable and was plugged and abandoned.
This prospect has the potential for 10 additional wells on 80-acre spacing or even up to 24 additional wells if on 40-acre spacing. In addition to the Trenton zone of the Viola, other wells in the immediate vicinity have had oil and gas shows in the upper Viola, Hunton, Hart, and Gibson zones. Additional drilling will help further define the project potential in these other pay zones. Delta Oil & Gas has a 20% working interest.
Delta Oil & 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 drilling prospect in Saskatchewan and its interests at Owl Creek, Oklahoma. Delta Oil & Gas is seeking to expand its portfolio to include additional interests in Canada and the USA.