Delta Oil & Gas Discovers Two Pay Zones in First Natural Gas Well Drilled at Palmetto Point, Mississippi
Monday May 22, 9:00 am ET
SEATTLE, WA--(MARKET WIRE)--May 22, 2006 -- Delta Oil and Gas, Inc. (OTC BB:DOIG.OB - News) is pleased to announce that drilling has commenced at Palmetto Point, Mississippi and that the first of ten wells has been completed with positive results.
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The Well was drilled to a total depth of 3,892 feet and casing was run to total depth. Based on initial core analysis and logs, the well appears to have two Frio Gas zones. The first zone appears from 2,749 feet to 2,751 feet and the second from 3,181 feet to 3,194 feet in depth. In light of these findings, the operator elected to run 3,340 feet of production casing into the well and to complete it for production.
The operator has now moved the drilling rig onto the next drilling site and expects the drilling of the second potential gas well to be completed within one week.
The Drilling Program is being conducted by Griffin & Griffin Exploration in its capacity as Operator. This consists of the drilling, logging, testing, completing and equipping for production (or if applicable, the plugging and abandonment) of ten wells. Griffin anticipates drilling to a subsurface depth equal to such depth as is necessary to penetrate the sands of the Frio Formation identified as potentially productive of oil and/or gas. Griffin has drilled, owned or operated more than 100 Frio wells in the region.
Griffin has utilized seismic "bright spot" technology, a technology providing a tool to identify gas reservoirs and to delineate the reservoir geometry and limits. Utilizing these critical factors has improved reserve estimates and the geologic success ratio that has made the Frio an economical and predictable reservoir.
The Frio in the area of Southwest Mississippi and North-Central Louisiana is a very complex series of sand representing marine transgressions and regression and therefore the presence of varying depositional environments. Structurally, the Frio gas accumulations are a function of local structure and/or structural nose formed as a result of differential compaction features. However, stratigraphic termination (i.e. up dip shales outs of sands) also plays a role in most Frio accumulations. The stratigraphy is so complex that seismic HCL evaluations are the only viable exploratory tool for the Frio prospect.
Delta has acquired a 10% gross working interest in the drilling program.
About Delta Oil and Gas
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 Cache Slough Project in California, its Strachan prospect in Alberta, Canada, its interests in Palmetto Point, Mississippi and its interest in the horizontal oil drilling program in Saskatchewan, Canada. Delta Oil & Gas is seeking to expand its portfolio to include additional interests in Canada and the USA.
On behalf of the Board of Directors,
DOUGLAS N. BOLEN, B.A., LL.B., President
Safe Harbor Statement
This news release includes statements about expected future events and/or results that are forward looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to time frames, expectations for completion; the analysis of results and the intention to drill. Actual outcomes and the Company's results could differ materially from those in such forward-looking statements. Factors that could cause results to differ materially include general factors that affect all companies that explore for oil and gas, such as the uncertainty of the requirements demanded by environmental agencies, the fact that oil and gas extraction and production is risky, the potential that no commercial quantities of gas are found or recoverable, the price of oil and gas, geological problems that prevent us from reaching drilling targets and specific risks such as the Company's ability to raise financing.
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Source: Delta Oil & Gas Inc.
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