SOURCE: Delta Oil & Gas Inc.

March 09, 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) -- March 9, 2007 -- Delta Oil and Gas, Inc. (OTCBB: DOIG) is pleased to announce that it has commenced drilling of a direct offset well to the successful Powell #2 at Owl Creek ( 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 is to be drilled to a total depth of approximately 2,200 feet and the 3-D seismic survey indicates that the Isbill #2 well should be structurally very similar to the new field discovery characterized by the Powell #2 well. Three potentially productive zones are being targeted which include the current lower producing zone of the Powell #2. The same seismic survey also indicates other additional high potential locations for future testing.

The Company has a 20% working interest in this project.

Previously, the operator has successfully drilled three wells at the Owl Creek Prospect, in two of which Delta has an interest. The Powell #1, in which we have no interest 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, the well has produced over 30,500 barrels of oil and 8 million cubic feet of gas. The well is showing very little decline or depletion indicating that the producing reservoir and the associate field is larger than earlier believed. 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.

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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