SOURCE: Delta Oil & Gas, Inc.

August 30, 2006 16:00 ET

Delta Oil & Gas Successfully Completes Second Well in Sacramento Basin; Production to Commence Shortly

SEATTLE, WA -- (MARKET WIRE) -- August 30, 2006 -- Delta Oil & Gas, Inc. (OTCBB: DOIG) is pleased to announce that drilling of its second well (the "CC-7-2") on its Cache Slough property has now reached total depth and the operator of the well has elected to complete the well based on initial testing. Construction of a pipeline is ongoing with an expected completion date before the end of September 2006. Once this pipeline is completed, both our CC-7-1 and CC-7-2 wells will be tied in to accommodate natural gas production.

Drilling commenced on the first well at Cache Slough (the "CC-7-1") in September 2005 and reached total depth in October 2005. Review of the logs indicated the potential of a new gas discovery and the operator of the well elected to complete the well for testing. The completion and preliminary testing of the well was completed in November 2005 and Delta and its partners in this well elected to tie the well into a nearby pipeline to accommodate potential gas production.

In June 2006 the Department of Water Resources approved our application and gave us a permit to bore underneath a Reclamation Board levee in order to connect our well to a nearby gas sales pipeline. This was the last permit required before we commence construction of the pipeline for the well. The operator is currently in contact with contractors regarding construction of the pipeline which is expected to commence in the immediate future.

The Cache Slough area, covering approximately 825 acres of land, is a prolific natural gas area northeast of Sacramento, California. The property is located next to and partially on one of the largest gas fields in the State of California, the 3.5 trillion cubic feet ("Tcf") Rio Vista gas field. Pipelines located near and within the project area make it relatively easy to transport and sell the natural gas.

Delta Oil & Gas has earned a 12.5% economic interest in both wells. A proposal for the drilling of a third well in this area is expected from the operator within the next 90 days.

About Delta Oil & Gas

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 Cache Slough Project in California, its interest in the Strachan Prospect, its interest in its Mississippi prospect, its newest interest in a horizontal oil well in Saskatchewan and its newest 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.

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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