Delta Oil & Gas Inc. reported that Delta and its partners have drilled, cased, cored and logged the first well in its new Northwest Premont Drilling and Re-Entry Prospect located west of Corpus Christi, Texas. The Garcia #3 was drilled to a total depth 3,780 feet and was cased, logged and cored in preparation for perforating, testing and tie-in. A completion rig is expected to be on-site within 3 weeks for single zone production.

After stabilized production is achieved, additional zones are expected to be perforated. Although the Garcia #3 is subject to "tight-hole" status, Delta can report that the logs and cores indicate as many as 9 pay zones in the Gulf Coast 'Frio' and 'Miocene' sands with the potential to produce commercially viable quantities of hydrocarbons. Delta and partners are very happy with the tests of the Garcia #3 so far which has proven up the geological projections of the field.

After the Garcia #3 is perforated, tested and tied-in, Delta intends to re-complete 2 previously drilled well bores in the vicinity in which Delta expects to find analogous pay zones to the Garcia #3. Additionally, Progas is considering an offset well to the Garcia #3. Though the parameters of the field are uncertain at this time, substructure mapping of wells drilled in the area indicates it is larger than anticipated with a larger areal extent than most Frio fields. By participating in the Garcia #3, and paying its share of previous development expenses and lease acquisition costs, Delta earned a 10% right of continued development in the field which includes the drilling of no less than 15 additional wells. Additional information regarding the completion of the Garcia #3 and other initiatives within the Area of Mutual Interest as it becomes available.