SOURCE: Delta Oil & Gas Inc.

March 28, 2007 15:00 ET

Delta Oil & Gas Encounters Two Potential Pay Zones at Isbill #2 at Owl Creek Oklahoma

SEATTLE, WA -- (MARKET WIRE) -- March 28, 2007 -- Delta Oil and Gas, Inc. (OTCBB: DOIG) is pleased to announce that drilling to a total depth of 5,700 feet on its Isbill #2 well at Owl Creek, Oklahoma has been completed. Initial logs revealed two potential pay zones and the operator has recommended the running of production casing to fully test multiple prospective pay zones.

The primary target for the Isbill #2 well was the 1st Bromide "C" Sand which was discovered at 5,497 feet. Good hydrocarbon showings were observed on the mud log in the 1st Bromide "C" Sand from 5,502 feet to 5,510 feet. A drill stem test was run over this interval and recovered natural gas in 15 seconds and oil to the surface in 20 minutes. No water was found in the test. Electric logs further confirmed that the 1st Bromide Sand would be commercially productive with average porosities of 14% and water saturation of 21%.

In addition to the approximate 8 feet of pay mentioned above, there is the potential for an additional pay zone between 5,190 feet and 5,212 feet in what is known as the Upper Viola Limestone. Water saturations at this depth are 52%. Production casing is expected to be run to facilitate further testing in the next two weeks.

Overall, the Owl Creek Prospect has been outstanding for Delta. The Powell #2 continues to flow at rates exceeding 120 barrels of oil per day and approximately 40 to 50 mcf gas per day and to the end of February 2007, the well has generated almost double the amount of our initial investment in this well. With the additional potential production from the Isbill #2, the revenue stream from Owl Creek should substantially increase.

Delta has a 20% working interest in this project.

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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