| A.   | Assignor      and the Assignee each are in the business of resource      exploration; |
|----------------|---------------------------------------------------------------------------------------|

| B.   | Subject      to certain carried working interest partners (“CWIP”) and certain Royalty      burdens, Assignor holds a one hundred (100%) interest in certain land      leases known as the Donner Prospect in Newton County, Texas, (the “Working      Interest”) as set forth in: the leases and assignments attached hereto as      Exhibit A and which forms part of this Agreement (collectively the      “Leases”); |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | Assignor      desires to assign to Assignee 60% of its Working Interest to Assignee (the      “Assignment”); |
|----------------|--------------------------------------------------------------------------------------------------------------------------|

| D.   | For      purposes of this Agreement, the term “60% Working Interest” is defined as      set forth in this Letter Agreement, including the right to participate at      a 60% working interest in all future wells drilled on a total of      approximately 243.81 acres as represented by the Leases and also includes      the right to participate in any Areas of Mutual Interest (“AMI”) that may      be acquired by the Assignor; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E.   | Assignee      desires to accept the 60% Working Interest from Assignor, and to assume      all of Assignor's obligations and liabilities with respect thereto in      accordance with, and subject to, the terms and conditions set forth in      this Agreement. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| If      to the Assignor:       | If      to the Assignee:      |
|--------------------------------|-------------------------------|
|                           |                          |
| Delta      Oil & Gas, Inc. | Hillcrest      Resources Ltd. |
| #604-700      W. Pender St.    | #303-750      W. Pender St.   |
| Vancouver,      BC, V6C 1G8    | Vancouver,      B.C.          |
| Ph:  604.602.1500    | Ph:      604.488.1514         |
| Fax:      604.602.1650         | Fax:  604.844.7572  |

| ASSIGNOR:                                                                                                                                                      | ASSIGNEE:                                                                                                                                                                                                                                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                           |                                                                                                                                                                                                                                                                            |
| Delta      Oil & Gas, Inc.                                                                                                                                 | Hillcrest      Resources Ltd.                                                                                                                                                                                                                                                   |
|                                                                                                                                                           |                                                                                                                                                                                                                                                                            |
|                                                                                                                                                           |                                                                                                                                                                                                                                                                            |
|                                                                                                                                                           |                                                                                                                                                                                                                                                                            |
| By:      /s/      Christopher      Paton-Gay                    | By:      /s/ Don      Gee                                          |
| Authorized      Signatory                                                                                                                                      | Authorized      Signatory                                                                                                                                                                                                                                                       |
|                                                                                                                                                           |                                                                                                                                                                                                                                                                            |
| Name:   Christopher      Paton-Gay                                                                                                                   | Name:         Don Gee                                                                                                                                                                                                                                            |
| Title:          CEO                                                                                                                        | Title:           President                                                                                                                                                                                                                             |

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| 1. | Oil,      Gas & Liquid Hydrocarbon Lease dated March 26, 2009, by and between,      Donner Properties, as Lessor, and Barry Lasker, as Lessee, a Memorandum of      which is recorded in Book 578, Page 799 of the Official Public Records of      Newton County, Texas; and |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Oil,      Gas & Liquid Hydrocarbon Lease dated March 26, 2009, by and between      James L. Negley and George L. Winter, Trustee of The George L. Winter      Revocable Trust, as Lessor, and Barry Lasker, as Lessee, a Memorandum of      which is recorded in Book 578, Page 801 of the Official Public Records of      Newton County, Texas. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|         | Leases1 | Drilling2 | Completion3 | Operating |
|--------------|---------|-----------|-------------|-----------|
| Well      #1 |    |      |        |      |
| DELTA        | 40%     | 40%       | 40%         | 40%       |
| HILLCREST    | 60%     | 60%       | 60%         | 60%       |
| CWIP         | 0       | 0         | 0           | 0         |
| Well      #2 |    |      |        |      |
| DELTA        | 40%     | 40%       | 40%         | 40%       |
| HILLCREST    | 60%     | 60%       | 60%         | 60%       |
| CWIP         | 0       | 0         | 0           | 0         |
| Well      #3 |    |      |        |      |
| DELTA        | 40%     | 40%       | 40%         | 40%       |
| HILLCREST    | 60%     | 60%       | 60%         | 60%       |
| CWIP         | 0       | 0         | 0           | 0         |

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| 1.   | Leases      includes Subsurface and Surface leases and land and legal      costs. |
|----------------|-----------------------------------------------------------------------------------|

| 2.   | Drilling      Costs shall include all subsurface and surface Leases, site preparation      costs, infrastructure, roads, environmental impact studies, permits, and      remediation work. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Completion      Costs includes all pipeline costs, tie-in costs to the point of      sale. |
|----------------|--------------------------------------------------------------------------------------------|

| 4.   | Existing      3D seismic and mapping shall be included without further      costs. |
|----------------|------------------------------------------------------------------------------------|

|         | BPO    | APO    |
|--------------|--------|--------|
| Well      #1 |   |   |
| DELTA        | 36%    | 20%    |
| HILLCREST    | 54%    | 30%    |
| CWIP         | 10%    | 50%    |
| Well      #2 |   |   |
| DELTA        | 36%    | 24%    |
| HILLCREST    | 54%    | 36%    |
| CWIP         | 10%    | 40%    |
| Well      #3 |   |   |
| DELTA        | 36%    | 28%    |
| HILCREST     | 54%    | 42%    |
| CWIP         | 10%    | 30%    |

| Subsequent      Wells: | Each      party shall receive net revenues in the same percentage of their      participation both BPO andAPO |
|------------------------|---------------------------------------------------------------------------------------------------------------|

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