Delta Oil & Gas Inc. announced that it has reached a farmout agreement with the MPG King City Project, L.P., regarding its participation in the King City, California Prospect. The MPG King City Project L.P. will receive an initial 25% working interest in the SBV-2--32 well drilled in November 2011 with completion operations set to begin in October 2012 and a 20% working interest position on any future wells drilled within the Area of Mutual Interest (AMI) comprising 960 acres.