Delta and its partners commenced drilling of the well in mid-September and reached total depth of approximately 6,015ft shortly thereafter.

This well has intersected substantial pay in the Forbes formation at a measured depth of 5940ft-5960ft.

This demonstrates that the well has penetrated a significant proven natural gas reservoir, Delta said.

As anticipated, all logging indicates approximately 20ft of natural gas pay with significant reserves of natural gas.

There is no indication of the presence of a water drive in the reservoir, and tests performed on the well indicate that it is capable of sustained production of approximately five million cubic feet of gas per day.

Delta and its partners have elected to complete the well and to tie it in to a nearby gas sales line.

The companies have designed and completed the installation of all well facilities, metering equipment and a 9,000ft pipeline to the PG&E sales point.

Delta owns a 25% gross working interest in this well and, at present, has fully paid the drilling and completion costs associated with this well.