June 30, 2004
 
        333-82636
 
  Delta Oil & Gas, Inc.
    Colorado 91-2102350
  
 th
 Seattle, Washington 98109
  
 206-285-7576
  
   
 
   
  
 7,508,500 shares of common stock   as of August 16, 2004
 
   1 
 PART I - FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 
  
  
  
  
  
  
 2 
 
 DELTA OIL & GAS, INC.
(A Development Stage Company)


FINANCIAL STATEMENTS


JUNE 30, 2004
(Unaudited)
(Stated in U.S. Dollars)
 DELTA OIL & GAS, INC.
(A Development Stage Company)

BALANCE SHEET
(Unaudited)
(Stated in U.S. Dollars)
 
 JUNE 30                             DECEMBER 3120042003ASSETSCurrentCash
$
3,046

$
63Accounts receivable

5,673


5,0328,719


5,095Oil And Gas Properties, at cost based on full cost accountingProved oil and gas properties

102,346


102,346Less: Accumulated depletion

102,346


101,074-


1,272Other EquipmentComputer equipment

1,741


1,741Less: Accumulated depreciation

1,741


1,628-


113$
8,719

$
6,480LIABILITIESCurrentAccounts payable
$
30,547

$
27,283Accrued interest payable

17,964


13,539Advances payable

88,100


79,655Due to related party

20,000


20,000156,611


140,477Promissory Note Payable

32,968


32,968189,579


173,445STOCKHOLDERS DEFICIENCYShare CapitalAuthorized:100,000,000 common shares, par value $0.001 per share25,000,000 preferred shares, par value $0.001 per shareIssued and outstanding:7,508,500 common shares at June 30, 2004 and December 31, 2003

7,509


7,509Additional paid-in capital

97,116


97,116Deficit Accumulated During The Development Stage

(285,485)


(271,590)(180,860)


(166,965)$
8,719

$
6,480
 
 The accompanying notes are an integral part of these financial statements.
 
 1
****
 DELTA OIL & GAS, INC.
 (A Development Stage Company)
 
 STATEMENT OF OPERATIONS
 (Unaudited)
 (Stated in U.S. Dollars)
 
 INCEPTIONJANUARY 9THREE MONTHS ENDEDSIX MONTHS ENDED2001 TOJUNE 30JUNE 30JUNE 3020042003200420032004RevenueOil and gas sales
**$**
4,341
$
5,233
**$**
6,717
$
9,437
$
84,439Costs And ExpensesGas operating expenses

1,500

3,165

3,063

5,423

30,394General and administration

10,743

10,551

16,164

19,944

116,753Depreciation and depletion

-

581

1,385

1,698

38,584Impairment of oil and gas properties

-

-

-

-

65,503Dry well costs written off

-

-

-

-

118,69012,243

14,297

20,612

27,065

369,924Net Loss For The Period

(7,902)

(9,064)

(13,895)

(17,628)
$
(285,485)Deficit, Beginning Of Period

(277,583)

(255,731)

(271,590)

(247,167)Deficit, End Of Period
**$**
(285,485)
$
(264,795)
**$**
(285,485)
$
(264,795)Basic And Diluted Loss Per Share
$
(0.01)
$
(0.01)
$
(0.01)
$
(0.01)Weighted Average Number Of OutstandingShares

**7,508,500**

7,508,500

**7,508,500**

7,508,500
 
 The accompanying notes are an integral part of these financial statements.
 
 2
 DELTA OIL & GAS, INC.
(A Development Stage Company)

STATEMENT OF CASH FLOWS
(Unaudited)
(Stated in U.S. Dollars)
 
 INCEPTIONJANUARY 9THREE MONTHS ENDEDSIX MONTHS ENDED2001 TOJUNE 30JUNE 30JUNE 3020042003200420032004Operating ActivitiesNet loss
**$**
(5,993)
$
(8,564)
**$**
(13,895)
$
(17,628)
$
(285,485)Adjustments To Reconcile Net Loss To NetCash From Operating ActivitiesDepreciation and depletion

1,385

1,117

1,385

1,698

38,584Impairment of oil and gas properties

-

-

-

-

65,503Dry well costs written off

-

-

-

-

118,690Change in operating assets and liabilities:Accounts receivable

433

(2,036)

(641)

(2,607)

(5,673)Accounts payable

5,391

(4,549)

7,689

1,245

48,511Net Cash From (Used In) Operating Activities

1,216

(14,032)

(5,462)

(17,292)

(19,870)Investing ActivitiesPurchase of oil and gas properties

-

-

-

-

(221,036)Purchase of other equipment

**** **-**

-

**** **-**

-

(1,741)-Net Cash Used In Investing Activities

-

-

-

-

(222,777)Financing ActivitiesIssue of common stock

-

-

-

-

104,625Advance from related party

-

-

8,445

2,090

20,000Advances payable

-

13,359

-

14,649

88,100Promissory note

-

-

-

1,063

32,968Net Cash From Financing Activities

-

13,359

8,445

17,802

245,693****Increase (Decrease) In Cash

1,216

(673)

2,983

510

3,046Cash, Beginning Of Period

63

1,005

63

1,005

-Cash, End Of Period
**$**
1,279
$
332
**$**
3,046
$
1,515
$
3,046
 
 The accompanying notes are an integral part of these financial statements.
 
 3

DELTA OIL & GAS, INC.
(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2004
(Unaudited)
(Stated in U.S. Dollars)


1.BASIS OF PRESENTATION

The unaudited financial statements as of June 30, 2004 included herein have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. It is suggested that these financial statements be read in conjunction with the December 31, 2003 audited financial statements and notes thereto.


2.ORGANIZATION AND BUSINESS

The Company is a development stage, independent natural gas and oil company engaged in the exploration, development and acquisition of natural gas and oil properties in the United States. Deltas entry into the natural gas and oil business began on February 8, 2001.

The Company was incorporated as a Colorado corporation on January 9, 2001.


4

****
 Item 2. Managements Discussion and Analysis or Plan of Operation.
 
 Forward-Looking Statements
   
 Overview
 
  
 Liberty Valance Well
 
  
  
  3
  
 Coalinga Prospect
 
  
  
 Producing Wells and Acreage
 
  
 Producing Wells
 
  Gross
Net
Gross
NetGlenn County, California
-0-
-0-
1
.089Fresno County, California
-0-
-0-
-0-
-0-Total
-0-
-0-
1
.089 
 Acreage
 
 Producing Undeveloped
 
  Glenn County, California
*
*
-0-
-0-Fresno County, California
-0-
-0-
8,360
209Total
*
*
8,360
209 
 
  
 4 
 Drilling Activities
 
  
  Wells drilled (productive)
-0-
-0-Dry holes (exploratory)
1
.025Total
1
.025 
 
 Financing
 
     
  
 Marketing of Production
 
  
  
 Results of Operations
 
  
  
  
 5 
 Liquidity and Capital Resources
 
  
 Going Concern Considerations
 
  
 Revenue Recognition
 
   6 
 Item 3. Controls and Procedures.
 
  
  
 Limitations on the Effectiveness of Internal Controls
 
  
 7 
 PART II  OTHER INFORMATION
 
 Item 1. Legal Proceedings
 
   Item 2. Changes in Securities
 
  
 Item 3. Defaults upon Senior Securities
    Item 4. Submission of Matters to a Vote of Security Holders
    Item 5. Other Information
   
 Item 6. Exhibits and Reports on Form 8-K.
   
 Exhibit Number
Description3.1
Articles of Incorporation 13.2
Bylaws 231.1
Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act of 200231.2
Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act of 200232.
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 
 1
   
  
 8 
 SIGNATURES
 
     
 
 /s/ Douglas Bolen
     9