Delta Oil and Gas, Inc, has entered into an agreement with Ranken Energy Corporation to participate in a five well drilling program at Garvin and Murray Counties, Oklahoma (the “2006-3 drilling Program”) Delta has agreed to take a 10% working interest in this program.

This decision was based on the geological information provided to us and on the successes we have already enjoyed working with Ranken at our Owl Creek Prospect. The drilling of the first well is expected to commence in June 2007 and all wells should be drilled within six months of the start date.

Prospect well summary:

The Linda Prospect – Garvin County, Oklahoma: This well is targeting a Basal Oil Creek Sand and the targeted depth of the well is approximately 7,300 feet. Previously, Ranken drilled a well approximately 1 mile away from the Linda Prospect with very similar structure. That well has produced over 92,000 barrels of oil since September 2004 with estimated total recoverable barrels in the 500,000 range. Using 3-D seismic testing, Ranken is confident in the chosen location for the Linda Prospect.

The Meridian Prospect – Garvin County, Oklahoma: This well will target the 2nd Bromide Sand, the 1st Bromide Sand and the Viola Sand. Ranken’s 3-D seismic testing has revealed a clearly defined structural ridge which has the potential to have trapped significant amounts of oil and natural gas. The targeted depth for this well is 6,600 feet.

The Plaster Prospect – Garvin County, Oklahoma: The targeted depth of this well is 7,350 feet and, based on interpretation of 3-D seismic data, has the potential to encounter significant oil reserves from the Basal Oil Creek Sand. The Seismic data indicates that there is the potential for two wells on the 150 net acres encompassed by this lease.

The Crazy Horse Prospect – Murray County, Oklahoma: This well is also targeting the Basal Oil Creek Sand that was found productive approximately one mile away. Secondary objectives may include two 1st Bromide Sands and up to four Upper Pennsylvanian Hoxbar Sands. Prior production from the Basal Oil Creek Sands in this area has been remarkable. The targeted depth of this well is 3,800 feet and the total acreage encompassed by this lease is approximately 300.

The Dale Prospect – Garvin County, Oklahoma: This prospect is a continuation of ongoing drilling, development and exploration of portions of the approximate 190 net acres included in this prospect. This is a multiple-well development prospect including the purchase of an existing well (the “Dale #1”) which is producing oil from the 1st Bromide Sand, the re-completion of the Viola Sand in the Dale #1 and to drill what will be known as the Ruggles #1-15 well to the Basal Creek Sand.