SOURCE: Delta Oil & Gas, Inc.

October 15, 2007 15:00 ET

Delta Oil & Gas Makes Oil Discovery at Palmetto Point, Mississippi

SEATTLE, WA--(Marketwire - October 15, 2007) - Delta Oil and Gas, Inc. (OTCBB: DOIG) is pleased to announce that flow testing of its oil well at Palmetto Point, Mississippi (the "PP F-12") is complete and has revealed a new oil discovery exceeding our original expectations. On a 12/64 inch choke, the PP F-12 flowed approximately 100 barrels of oil per day during testing with pressures that stabilized at 230 lbs/ft. The well is now in production with a slightly larger choke having been installed. Initially, the well produced no water or associated natural gas which means that if these initial flow rates continue, we expect to receive gross payback on our investment within approximately 60 days of production.

This well occurs in our Phase I prospect at Palmetto Point, Mississippi, which prospect was targeting natural gas. As such, this new oil discovery is extremely exciting for the Company in terms of the overall success of the Phase I Drilling Program, potential cash flow to the Company from this Program and the direction that might be taken in future drilling in the area. The operator has suggested drilling an additional two development wells in the immediate vicinity in which Delta will participate.

To date, in the Palmetto Point, Phase I Drilling Program, we have participated in the drilling on 12 wells, out of which 10 have produced, are producing and/or are expected to produce oil and/or natural gas.

Delta Oil & Gas, Inc. has a 10% working interest in these wells.

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, its interest at Owl Creek, Garvin County, McClain County and 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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