SOURCE: Delta Oil & Gas Inc.

May 03, 2006 09:00 ET

Delta Oil & Gas Acquires First Oil Prospect in Southeastern Saskatchewan, Canada; Drilling to Commence Before July 1, 2006

SEATTLE, WA -- (MARKET WIRE) -- May 3, 2006 -- Delta Oil and Gas, Inc. (OTC BB: DOIG) is pleased to announce that it has entered into a farm-in agreement with Texalta Petroleum Ltd., a well established operator in southeast Saskatchewan. The company has agreed to participate for 15% before payout and 7.5% after payout in a proposed four oil well horizontal drilling program in the Wordsworth area. This area is known for prolific oil reserves in numerous Mississippian Alida pools where horizontal wells can prove initial production rates up to 200 barrels of oil per day and generate up to $2MM cash flow in less than two years. As a consequence with oil sales prices currently at $75/bbl (Cdn.), payout of one well investment of approximately $1MM could be only a few months with up to 10 years of additional production life. It is anticipated that the first well will spud within the next 2-3 months subject to drill rig availability. Depending on the success of the first well, additional step-out wells may be drilled.

The first well is to be drilled horizontally for up to 2,000 meters adjacent to existing abandoned borehole with apparent missed oil pay zone in a thick oil-stained porous dolomite reservoir. Based on independent well log appraisals, this potential pay zone could prove a new oil pool with up to 4 million barrels recoverable oil.

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