Delta Oil & Gas, Inc. (DLTA) Gives Updates for Lonestar and King City, California

By @ibtimes on

Delta Oil and Gas, Inc., the independent natural gas and oil company, recently reported to its shareholders an update on its King City and Lonestar, California prospects.

On May 25, 2009, Delta Oil & Gas entered a Farm-out agreement with Sunset Exploration for the drilling and exploration of 10,000 acres of land in Monterey County, California. As terms of the agreement, Delta Oil will pay 66.67% of all costs expended in respect of the initial test well to earn a 40% Working Interest. On the wells, Delta agreed to pay 40% of the cost in order to earn a 40% Working interest. Drilling operations are expected to begin during the month of May in 2011, as all operations have been approved by Monterey County pending finalization of issues of grading plans.

To date, all referenced lands were shot with a 2-dimensional seismic swath and a gravity survey. The current data will allow the company to test the entire Monterey sections efficiently. Total depth for the drilling is approximated at 4000 feet, as the expected Monterey formation will range from 2000-4000 feet in depth.

On September 1st of last year, Delta Oil entered into a deal for a joint exploration and development of the Lonestar Prospect, which is located in North Sacramento Basin, California. The first well, also known as the “California 1-1”, was drilled to 6,015 feet in September, encountering approximately 20 feet of natural gas pay from the Forbes Formation. This information follows extensive seismic reviews and demonstrates that a significant penetration was made in the proven natural gas reservoir, indicating no presence of a water drive.

The subsequent well is currently producing up to 4.2 million cubic feet (4.2 mmcf) of natural gas per day, with a prospect of exceeding these levels. However, Delta and its partners have been forced into a restriction of the flow rates in accordance with the PG&E line pressure issues. Delta Oil owns a 25% gross working interest in the well and has presently paid all drilling and completion costs that have occurred. Delta and its respective partners are in control of 900 acres of the land in this area, with an expectation to commence the evaluation of the land for additional drilling sites.

Delta Oil & Gas is also pleased to announce the launching of its new website, www.deltaoilandgas.com. Delta feels the new site will better describe the prospects, accomplishments, and future goals for the company, while providing all current information on Delta and its events. The company will also provide periodic emails to those who enter their information at the website.

Delta Oil & Gas, Inc. focuses on the exploration, development, and acquisition of natural gas and oil properties in the US and Canada. The company owns working interests in various acreages including: King City and North Sacramento Valley, California; Southern Saskatchewan, Canada; South Central, Oklahoma; and Eastern Texas. The company works to minimize geological risk by focusing on properties with large, known hydrocarbon accumulations that have been overlooked, while using modern drilling and completion technologies that maximize reservoir potential. The company, which was founded in 2001, is headquartered in Calgary, Canada.

Get more information on Delta Oil & Gas Inc. at their company website, www.deltaoilandgas.com

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