SOURCE: Delta Oil & Gas Inc.

December 04, 2006 16:00 ET

Delta Oil and Gas Sells Its Cache Slough Interests in the Sacramento Basin for $1,500,000

SEATTLE, WA -- (MARKET WIRE) -- December 4, 2006 -- Delta Oil and Gas, Inc, (OTCBB: DOIG) is pleased to announce that it has sold its interest in two wells at Cache Slough near Sacramento, California for $1,500,000. The company's original investment in these two wells was approximately $432,000 representing a gain on sale of over $1,068,000. An independent evaluation of the two wells was completed by a contract geologist and our Board of Directors determined that the price as offered represented the fair market value of our interest and amounted to a good return on moneys spent to date on these wells.

At the time of the sale, we had earned a 12.5% economic interest in both wells drilled to date, neither of which is currently producing any oil or natural gas.

Management is of the view that this sale fits squarely within the business objectives established by the Company in that the funds received from this sale, rather than from actual production over time, can be immediately reinvested in additional drilling prospects to enhance return on equity. Given the success Delta has had in the Sacramento Basin, management will continue to focus on finding additional drilling prospects in the California region.

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 in the Owl Creek Prospect 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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