September 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 September 30, 2004










1


PART I - FINANCIAL INFORMATION





Item 1.  Financial Statements.






























2  **DELTA OIL & GAS, INC.**
 **(A Development Stage Company)**
 
 
 **FINANCIAL STATEMENTS**
 
 
 **SEPTEMBER 30, 2004**
 **(Unaudited)**
 **(Stated in U.S. Dollars)**
    **DELTA OIL & GAS, INC.**
 **(A Development Stage Company)**
 
 **BALANCE SHEET**
 **(Unaudited)**
 **(Stated in U.S. Dollars)**
 **SEPTEMBER 30**DECEMBER 31**2004**


2003**ASSETS****Current**Cash
**$**
**1,110**

$
63Accounts receivable
****
**1,567**


5,032****
**2,677**


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

**102,346**


102,346Less: Accumulated depletion

**102,346**


101,074**-**


1,272**Other Equipment**Computer equipment

**1,741**


1,741Less: Accumulated depreciation

**1,741**


1,628**-**


113**$**
**2,677**

$
66,480**LIABILITIES****Current**Accounts Payable
**$**
**42,800**

$
27,283Accrued interest payable
****
**20,004**


13,539Advances payable
****
**81,655**


79,655Due to related party
****
**20,000**


20,000****
**164,459**


140,477**Promissory Note Payable**
****
**32,968**


32,968****
**197,427**


173,445**SHAREHOLDER'S DEFICIENCY****Share Capital**Authorized100,000,000 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 September 30, 2004 and

****Decemver 31, 2003

**7,509**


7,509Additional paid-in capital

**97,116**


97,116**Deficient Accumulated During The Development Stage**

**(299,375)**


(271,590)**(194,750)**


(166,965)**$**
**2,677**

$
6,480
 
  F-1
 
 **DELTA OIL & GAS, INC.**
 **(A Development Stage Company)**
 
 **STATEMENT OF OPERATIONS**
 **(Unaudited)**
 **(Stated in U.S. Dollars)**
 
 INCEPTIONJANUARY 9**THREE MONTHS ENDED****NINE MONTHS ENDED**2001 TO**SEPTEMBER 30                              SEPTEMBER 30**SEPTEMBER****30**2004**


2003


**2004**


2003


2004**Revenue**Oil and gas sales
**$**
**148**

$
4,224

**$**
**6,865**

$
13,661

$
84,587****





******Costs And Expenses**Oil and gas operatingexpenses

**3,180**


2,527


**6,243**


7,950


33,574General and

****





****administration

**10,858**


2,554


**27,022**


22,498


127,611Depreciation and

****





****depletion

**-**


625


**1,385**


2,323


38,584Impairment of oil and gasproperties

**-**


-


**-**


-


65,503Dry well costs written off

**-**


-


**-**


-


118,690**14,038**


5,706


**34,650**


32,771


383,962**Net Loss For The Period**

**(13,890)**


(1,482)


**(27,785)**


(19,110)

$
(299,375)**Deficit, Beginning of**

******Period**

**(285,485)**


(264,795)


**(271,590)**


(247,167)**Deficit, End of Period**

**(299,375)**


(266,277)

**$**
**(299,375**
**)**
$
(266,277
)****

******Basic And Diluted Loss Per Share**
**$**
**(0.01**
**)**
$
(0.01
)
**$**
**(0.01**
**)**
$
(0.01
)**Weighted Average Number Of Outstanding Shares**

**7,508,500**


7,508,500


**7,508,500**


7,508,500****

****
   
 F-2
  DELTA OIL & GAS, INC.
 **(A Development Stage Company)**
 
 **STATEMENT OF CASH FLOWS**
 **(Unaudited)**
 **(Stated in U.S. Dollars)**
 
 INCEPTIONJANUARY 9**NINE MONTHS ENDEND**2001 TO**SEPTEMBER 30**SEPTEMBER 30**2004**


2003


2004**Operating Activities**Net loss
**$**
**(27,785)**

$
(19,110)

$
(299,375)**Adjustments To Reconcile net Loss To Net****Cash From Operating Activities**

****Depreciation and depletion

**1,385**


2,323


38,584Impairment of oil and gas properties

**-**


-


65,503Dry well costs written off

**-**


-


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

**3,465**


(2,540)


(1,567)Accounts payable

**15,517**


550


42,800Accrued interest payable

**6,465**


4,488


20,004**Net Cash From (Used In) Operating****Activities**

**(953)**


(14,289)


(15,361)**Investing Activities**Purchase of oil and gas properties

**-**


-


(221,036)Purchase of other equipment

**-**


-


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

********-****


-


(222,777)******Financing Activities**

****Issue of common stock

**-**


-


104,625Advance from related party

**-**


1,500


20,000Advances payable

**2,000**


12,956


81,655Promissory note

**-**


-


32,968**Net Cash From Financing Activities**

**2,000**


14,456


239,248******Increase (Decrease) In Cash**

**1,047**


167


1,110**Cash, Beginning Of Period**

**63**


1,005


-**Cash, End Of Period**
**$**
**1,110**

$
1,172

$
1,110
   
 F-3
  DELTA OIL & GAS, INC.
 **(A Development Stage Company)**
 
 **NOTES TO FINANCIAL STATEMENTS**
 
 **SEPTEMBER 30, 2004**
 **(Unaudited)**
 **(Stated in U.S. Dollars)**
 
 
 1.   BASIS OF PRESENTATION
 
  
 2.   ORGANIZATION AND BUSINESS
 
  
  
 F-4
 
 Item 2.  Managements Discussion and Analysis or Plan of Operation
 
 Forward-Looking Statements









Overview










Liberty Valance Well

















3





Coalinga Prospect















Financing





















Marketing of Production















Results of Operations







4










Liquidity and Capital Resources











Going Concern Considerations










Revenue Recognition










Item 3.  Controls and Procedures.












5





Limitations on the Effectiveness of Internal Controls







6  PART II - OTHER INFORMATION





Item 1. Legal Proceedings








Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds









Item 3.  Defaults upon Senior Securities








Item 4. Submission of Matters to a Vote of Security Holders








Item 5. Other Information









Item 6. Exhibits





**Exhibit Number**
****
**Description**3.1
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   7




SIGNATURES


















/s/ Douglas Bolen










8