Tuesday, December 13, 2005 9:09:17 AM
Market Wire - December 13, 2005 9:00 AM (EDT)
SEATTLE, WA, Dec 13, 2005 (MARKET WIRE via COMTEX) -- Delta Oil and Gas, Inc. (OTC BB: DOIG) is pleased to announce the following operational update relating to the Company's four natural gas prospects.
Todd Creek Prospect
Delta's Todd Creek Well located in 13-28-9-2W5 in the Southern Foothills area of Alberta, Canada has been drilled, completed and classified as a new natural gas pool 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 of gas.
Construction of a new gas processing plant just south of this Todd Creek discovery has commenced and Delta expects to tie its anticipated gas production into this gas plant by spring of 2006. The gas plant is initially capable of accommodating 10 million cubic feet of gas per day with significant expansion capabilities. While Delta will have no direct interest in the plant, the immediate access to market for its anticipated production from the area is of substantial benefit.
Cache Slough Prospect
Delta's Cache Slough Well, located near Sacramento, California has been drilled, completed and classified as a significant new natural gas pool discovery. Review of the preliminary data indicates that the well tested at flow rates exceeding our expectations. Delta and partners have elected to tie-in the well to a nearby gas pipeline to accommodate the natural gas production which is expected to commence in January 2006. Flow rates and reserve size will be announced after the well has commenced commercial production. Future drilling plans with regards to the Cache Slough prospect will be announced in early 2006.
Strachan Prospect
Drilling continues on Delta's potential natural gas well in its recently acquired, highly prospective property in the Deep Basin along the edge of the Alberta foothills belt approximately 80 miles Northwest of Calgary, Alberta ("Strachan Prospect"). The targeted depth of the well is approximately 13,500 feet and this depth is expected to be achieved before the end of December 2005.
The original Strachan gas pool was discovered 35 years ago, however, in November 2004 Shell Oil announced a new Leduc Pool discovery at Ricinus with potential One Trillion cubic feet gas reserves.
Hillspring Prospects
Earlier this year, Delta Oil & Gas acquired a 10% working interest in 640 gross sections of land in the Hillspring area of Alberta. The operator of the Hillspring prospect has drilled 4 wells adjacent to the lands Delta has acquired. The operator is currently reviewing the data on these 4 wells and it is anticipated that a well will be drilled on Delta's land in 2006.
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 and its newest interest in the Strachan Prospect. 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.
Distributed by Filing Services Canada and retransmitted by Market Wire
Contact Info:
Andrew Hay
1.866.355.3644
Contact via http://www.marketwire.com/mw/emailprcntct?id=A73FA92DD2D2A790
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