SOURCE: Delta Oil & Gas Inc.

November 16, 2005 09:39 ET

Delta Oil & Gas Announces New Gas Discovery in Sacramento Basin

SEATTLE, WA -- (MARKET WIRE) -- November 16, 2005 -- Delta Oil and Gas, Inc, (OTC BB: DOIG) is pleased to announce that it has made a significant natural gas discovery on its Cache Slough property in Sacramento California. Recently completed testing of the first well drilled on the property has resulted in natural gas 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. Flow rates and reserve size will be announced after the well has commenced commercial production.

Douglas Bolen, Delta's President stated, "We are very excited with the test results of our first well drilled on the Cache Slough prospect. We expect to be producing and selling natural gas within the next 60 to 90 days from this well. Future drilling plans with regards to the Cache Slough prospect will be announced in early 2006."

The Cache Slough area 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 easy to transport and sell any production encountered.

The Cache Slough property covers approximately 825 acres of land. Analysis of 3-D seismic survey, in combination 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 significant amounts of natural gas.

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