SOURCE: Delta Oil & Gas, Inc.

January 29, 2007 15:00 ET

Delta Oil & Gas Elects to Participate in Drilling of an Additional Development Well at Owl Creek, Oklahoma, Drilling to Commence Shortly

SEATTLE, WA -- (MARKET WIRE) -- January 29, 2007 -- Delta Oil and Gas, Inc. (OTCBB: DOIG) is pleased to announce that it has elected to participate in the drilling of an additional development well (the "Isbill #2-36") located in Garvin & McClain Counties, Oklahoma, USA ("Owl Creek Prospect").

The entire Owl Creek Prospect has been totally reinterpreted over the past few months after integrating all the seismic data and the data obtained from the drilling of the "Powell #1," the "Powell #2" and the "Isbill #1." The Drilling of the "Isbill #2-36" will be to a total depth of approximately 2,200 feet and is targeting the Bromide sands, which occur at several levels. Based on the success of the "Powell #1 and #2," and based on the information gained from the three wells drilled to date, confidence is high that the "Isbill #2-36" will have commercially viable quantities of oil and/or gas.

Previously, the operator has successfully drilled three wells at the Owl Creek Prospect, in two of which Delta has an interest. The "Powell #1" was successful and is producing. The "Powell # 2," in which we have an interest, is currently producing on average, between 100 and 150 barrels of oil per day along with approximately 40 to 45 mcf natural gas. From its completion in late June 2006 to the end of December 2006, this well has produced in excess of 24,000 barrels of oil and over 6,700 mcf of gas. The "Isbill #1," in which we had an interest, was drilled and based on preliminary logs, it was deemed not to be commercially viable and was plugged and abandoned.

This prospect has the potential for 10 additional wells on 80-acre spacing or even up to 24 additional wells if on 40-acre spacing. In addition to the Trenton zone of the Viola, other wells in the immediate vicinity have had oil and gas shows in the upper Viola, Hunton, Hart, and Gibson zones. Additional drilling will help further define the project potential in these other pay zones.

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