SOURCE: Delta Oil & Gas, Inc.

October 09, 2006 15:00 ET

Delta Oil & Gas Elects to Participate in Completion of Strachan Gas Well in Alberta, Canada

SEATTLE, WA -- (MARKET WIRE) -- October 9, 2006 -- Delta Oil and Gas, Inc. (OTCBB: DOIG) is pleased to announce that it has elected to complete its final AFE (Authorization For Expenditure) for the Strachan Gas Well. With the operator issuing final AFE calls to the participants of the Strachan Well 14-9-39-9-W5 we are expecting that the target zones will be perferated and tested this fall. Preliminary results indicate the presence of a potential Devonian gas well.

To date the Strachan Well has been drilled to a total depth of 13,650 feet at a total cost of over $10 million. The operator encountered extremely high gas pressures of up to 10,000 pounds per square inch in several zones. Due to the high pressures, drilling and completion has been extremely difficult. Casing has been set to total depth. A specialized, high penetration, low diameter perforation gun has been ordered to perforate into various zones. Due to the possible formation parameters, additional required notices and permissions had to be requested and granted prior to this work being undertaken. These are now in place. The size of the gas pool is undetermined and will remain so until testing is completed. If the results of the tests are positive, this well can be immediately tied into a nearby gas sales pipeline which is connected to the existing Strachan Gas Plant.

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.

Delta's 4% interest in the Strachan prospect is 12 miles Northeast of the Shell Oil discovery and 2 miles Northeast of the original Strachan gas pool in the same part of the Deep Basin. We are looking for a new, virgin Strachan gas pool. This new Strachan prospect is based on newly developed highly technical Three Dimensional Seismic programs that shed new light on identifying deeply buried pinnacle reefs.

The original Strachan Leduc discovery well was drilled in October 1967 by a junior oil company called Stampede Oil. Six gas wells delineate the aerial extent of this major gas pool with initial production rates to fill the maximum capacity of the Strachan Gas Plant at 250MMCF per day. After 20 years, key wells had cumulative production of between 150 to 225 billion cubic feet natural gas each. To date, 962 billion cubic feet of natural gas reserves have been recovered and currently only minimal residual gas production is pipelined to the under-utilized Strachan Gas Plant.

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, its interest in a horizontal oil well in Saskatchewan and its newest interest at Owl Creek, 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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