DELTA MUTUAL, INC.

Jollin

Jollin, located in the Salta province, was one of the first concessions that Delta Mutual, Inc. took stake in through its wholly-owned subsidiary, SAHF in October 2008. Originally, SAHF held 23.5% of the interest in escrow through Ambika SA, but eventually, management deemed it better to sell part of their interest it and keep 10% in carry-over mode (no obligation) so that the company could acquire other areas that it had interest in. SAHF was officially admitted to the JV in Jollin and Tonono in July, 2010.

The concession was originally operating around the 1960’s and 1970’s. Tables meticulously kept by the operating company during the times of production addressed that the concession produced between 530,000 and 600,000 m3/day of gas. Another quality mentioned of the wells in the area was that they kept constant pressure throughout their production lives.

In 2009, Dr. Peralta led Perterser (an Argentine drilling company) through a 4,200 m. work-over drill in the well: Jollin-2. After 4 months, the drill was declared successful and the tests performed stated that Jollin-2 could produce 1,000,000 m3/day of gas. The project has been turned over to the managing partners for 2D and 3D seismic charting. Post seismic surveys, the joint venture will evaluate the possibilities of a J-2 well side-track and further exploratory drills.

Jollin Gallery

Tonono

Tonono, also located in the Salta Province, was in a packaged offer along with Jollin with the same partners, JHP. Both of these concessions have a very small area, but contain substantial reservoirs. Reserve reports by former operators exist in both of these, but the current managing partner is working on updating them with modern-day technology.

Tonono was in a commercially-productive status that was expected based on tests to produce between 3,600 and 4,500 barrels a month. The production was halted, however, so that a hired geological firm could produce more appropriate 2D and 3D seismic.

Tonono Gallery