SOURCE: Delta Oil & Gas, Inc.

May 27, 2005 09:00 ET

Delta Oil & Gas Acquires California Natural Gas Interest, Drilling to Commence Shortly

SEATTLE, WA -- (MARKET WIRE) -- May 27, 2005 -- Delta Oil and Gas, Inc. (OTC BB: DOIG) is pleased to announce it has entered into an agreement to participate in drilling in a highly prospective property known as the Cache Slough Project, a prolific natural gas area located northeast of Sacramento, California. The Cache Slough Project is located next to the one of the largest gas field in the State of California, the Rio Vista field. Drilling of an initial test well is expected to commence in the next 60 days. Pipelines located near and within the Project area make it easy to transport and sell any production encountered.

The property occupies almost all of the Cache Slough gas field and a small part of the Rio Vista gas field. Although not indicative of future production volumes, the Cache Slough gas field has produced approximately 11.5 billion cubic feet ("Bcf") of natural gas since its discovery in 1945. The giant Rio Vista gas field was discovered in 1936 and has produced in excess of 3.5 trillion cubic feet ("Tcf") of natural gas to date.

The property covers approximately 825 acres of land. Analysis of a 3-D Seismic survey, in combination with scrutiny of all available well data, has resulted in the recognition of several natural gas prospects on the property. The initial drilling focus is expected to be on the high side of the Midland Fault, a major structural feature in the Rio Vista area that has historically produced large amounts of natural gas.

Delta Oil & Gas has agreed to pay 18.75% of all costs of drilling, testing and completion of the first test well to earn 12.5% of the working interest. Thereafter, Delta Oil & Gas will pay 12.5% of all costs of future wells to earn a 12.5% working interest.

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 and its newest interest in the Cache Slough Project in California. Delta Oil & Gas is looking 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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