SOURCE: Delta Oil & Gas, Inc.

September 08, 2008 10:58 ET

Delta Oil & Gas Generates Profit From Sale of Powell #2 and Isbill #2 Wells, Oklahoma

SEATTLE, WA--(Marketwire - September 8, 2008) - Delta Oil & Gas, Inc. (OTCBB: DOIG) is pleased to announce that the sale of its working interests in its Owl Creek Prospect (Powell #2 and Isbill #2 wells) at Garvin County, Oklahoma has closed and has generated sale proceeds of approximately $1,300,000. Delta is very pleased that it was able to generate this amount of funds from this sale and intends to actively seek out new oil and gas drilling prospects with these funds. Details of the sale are below:

The Owl Creek Oil and Gas field was discovered by the operator in late 2005 and has produced significant amounts of oil and gas to date. Through revenues generated from the Powell #2 and Isbill #2 wells, Delta has already recovered sums in excess of its original investments in this prospect. The field has declined in production to approximately one third of its original rate and as such, the decision to sell was not difficult to make.

The operator of the Powell #2 and the Isbill #2 received an offer to purchase the same from a bona fide third party and, after some negotiations, all the partners, of which Delta was a 20% interest holder, unanimously agreed to the terms of the sale. Due diligence was performed by the purchaser and the sale closed on Friday, August 29, 2008. The sale resulted in approximately $1,300,000 for Delta's 20% interest. This sum represents a sizeable profit for Delta and is in keeping with our business model.

In keeping with our business plan, we intend to grow our asset base as funds become available from production and/or from the sale of properties in production, as was the present case.

About Delta Oil & Gas

Delta Oil & 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 the following prospects: the Mississippi prospects, the horizontal drilling prospect in Saskatchewan, the 2006-03 Prospect at Garvin and Murray Counties, Oklahoma and the 2007-01 Prospect in Garvin County, 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,


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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