Delta Oil & Gas, Inc. Achieves Stabilized Production on Donner #2 Well in Texas Prospect
31 August 2011 - 11:00PM
Business Wire
Delta Oil and Gas, Inc. (OTCBB: DLTA) is pleased to report that
its most recently drilled Donner #2 well in its Texas Prospect has
been steadily producing from the Lower Hackberry Zone at the
average rate of 25 barrels of oil per day (“bopd”) on a 4/64”
choke. Consideration is now being given to increasing the size of
the choke to maximize daily production at levels similar to the
Donner #1. Consideration is also being given to the potential of
drilling an offset well to give concurrent access to the natural
gas zone located from approximately 7,294 to 7,302 feet.
As previously reported, the Donner #2 was spud on June 28, 2011
and a total depth of 7,550 feet was achieved on July 8, 2011. A
suite of logs was run to total depth and five zones were identified
as potentially capable of producing hydrocarbons. Based on the
initial data, Delta and its partners decided to set production
casing to 7,500 feet. The well was perforated in the Lower
Hackberry and currently, all production is from this zone. The
Company’s geologists and reservoir Engineers see the likelihood of
successful completions in multiple zones within this well bore.
Initial tests of the first zone were completed and the well
flowed oil at the approximate rate of 48 barrels per day with trace
water on a 5/64 inch choke. Immediately following the test period,
the well was shut in, in order to install a new battery facility.
Once the well was shut in, the shut in tubing pressure at surface
exceeded 1000 psi.
Delta anticipates being able to perforate up to 4 additional pay
zones once the initial zone is depleted. Delta will be evaluating
the production rates and the Company has instructed it’s
Consultants to set locations for at least one additional well based
on the 3-D Seismic and the success of Donner #1 and #2.
The Texas prospect contemplates the drilling of a total of three
wells in the Newton County area. The Donner #1 which was drilled to
a total depth of 7,600 feet on June 4, 2010 continues to flow oil
at the approximate rate of 45 bopd of very high quality 42 API oil.
Delta owns a 40% gross working interest in the wells covered by
this drilling program and at present, has fully paid the drilling
and completion costs associated with the Donner #1 and Donner
#2.
About Delta Oil and Gas
Delta Oil is an exploration company focused on developing North
American oil and natural gas reserves. Delta Oil’s current focus is
on the exploration of its land portfolio comprised of working
interests in acreage in King City, California; Southern
Saskatchewan, Canada; Newton County, Texas, and South Central,
Oklahoma. As a result of its acquisition of a controlling interest
in The Stallion Group, a Nevada corporation, it expanded its
property interests to include acreage in the North Sacramento
Valley, California.
On behalf of the Board of Directors,
DOUGLAS N. BOLEN, President
Safe Harbor Statement: Statements in this press release
which are not purely historical, including statements regarding
Delta Oil’s intentions, hopes, beliefs, expectations,
representations, projections, plans or predictions of the future
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. It is important to note
that the Company's actual results could differ materially from
those in any such forward-looking statements. These statements are
only predictions and involve known and unknown risks, uncertainties
and other factors, that may cause our or our industry’s actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by these
forward-looking statements. Our business could be affected by a
number of other factors, including the risk factors listed from
time to time in the company's SEC reports including, but not
limited to, the annual report on Form 10-K for the year ended
December 31, 2010 and the quarterly reports on Form 10-Q filed
subsequently. The Company cautions investors not to place undue
reliance on the forward-looking statements contained in this press
release. Delta Oil & Gas, Inc. disclaims any obligation, and
does not undertake to update or revise any forward-looking
statements in this press release.
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