SOURCE: Delta Oil and Gas, Inc.

August 29, 2007 15:00 ET

Delta Oil and Gas Reports Its Cash Flow Positive From Operations During First Two Quarters of 2007

SEATTLE, WA--(Marketwire - August 29, 2007) - Delta Oil and Gas, Inc. (OTCBB: DOIG) is pleased to report that it has generated positive cash flow from operating activities in its first two quarters of 2007 and expects this to continue. Natural gas and/or oil production continues from twelve wells and several additional wells are expected to be tied into production lines very shortly. Drilling also continues at our Mississippi and Oklahoma prospects and we are anticipating that approximately 9 additional wells are expected to be drilled by the end of the year.

The company has no debt and approximately $1,000,000 cash on hand. This cash, along with revenues from production, is expected to be used to fund drilling operations for the next 12 months. We are currently seeking out new drilling prospects across North America. Delta is pleased with the transition its made from one of a highly prospective development stage resource company to one with no debt, cash in the bank, positive cash flow from operating activities and the ability and goal to expand its portfolio of properties in the coming months.

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 drilling program in Saskatchewan and its interests in 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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