DELTA MUTUAL, INC.

Tartagal & Morillo

SAHF acquired partial interest of Tartagal and Morillo in August 2007. These two concessions cover total areas of approximately 7,063 and 3,534 square kilometers, respectively. Some of the benefits of these two concessions can be seen in surrounding areas where operators such as Chevron and Pan American have profited from being vast reservoirs and nearby pipelines and refineries.

Since SAHF’s acquisition, there have been a series of movement in the managing partner of the JV until New Times Energy Group took over in 2009. Since their takeover, heavy investments have been made into seismic reports in both concessions and work-over drilling in Tartagal. The seismic testing is expected to be completed by the second quarter of 2011.

In recent news, 2 successful work-over drills have been completed in the first quarter 2011 by the managing partner. They are currently being tested for production. In addition, SAHF has bought back from Ambika 9% of participation in the block, putting SAHF as an 18% owner of Tartagal and Morillo. Finally, in the first quarter of 2011, SAHF was successfully admitted into the Joint Venture for these two

Oil	Prospective Resources
Prospect	Estimate
	(Million of Barrels)
EM Deep 1	2.6
EM Deep 2	8.9
EM Deep 3	6.8
EM Deep 4	6.3
PET North	3.5
ZH South	39.2
EQ East	41.1
Probabilistic Total	144.5

Table 1: Prospective Oil Reserves

Gas	Prospective Resources
Prospect	Estimate	MMBOE
	(Million of Cubic Feet)	(Million of Barrels)
EM Deep 1	2.6	2.6
EM Deep 2	459,065	85
EM Deep 3	351,294	65
EM Deep 4	322,479	59
PET North	175,296	32
ZH South	34,281	6
EQ East	35,470	7
Probabilistic Total	2,342,209	279

Table 2: Prospective Gas Reserves