Deep Well Raises Funds and Partners With Maurel et Prom Subsidiary, as Work Begins on Demonstration Project at Sawn Lake
August 02 2013 - 08:00AM
Marketwired
Deep Well Oil & Gas, Inc. (and its subsidiaries "Deep Well" or
"Company") (OTCQB:DWOG) is pleased to announce that it has raised
$22 million USD in a private placement and signed a farmout
agreement with a wholly owned subsidiary of Maurel et Prom to fund
our share of the demonstration project at our Sawn Lake heavy oil
reservoir in the Peace River oil sands region of Northern
Alberta.
Deep Well has accepted a private placement from MP West Canada
SAS, a wholly owned subsidiary of Maurel et Prom ("Maurel et
Prom"), of $22 million US priced at 48.8 cents per share. Deep Well
will issue 45.1 million shares to Maurel et Prom. Further, Maurel
et Prom has entered into a joint venture agreement with Deep Well
agreeing to provide up to USD $40 million in funding for the
various steps of the demonstration project, in return for a net 25
per cent working interest in 12 of the 68 sections where Deep Well
has a working interest of 50 per cent. Maurel et Prom will also
provide funding to cover operating expenses of Deep Well.
Maurel et Prom can also elect to obtain a working interest of 40
per cent to 45 per cent working interest in the remaining 56
sections of land where Deep Well has working interests ranging from
80 per cent to 90 per cent, by committing $110 million US of
financing to the Sawn Lake project.
Drilling operations are commencing, followed by steaming this
autumn on a demonstration project using steam assisted
gravitational drainage (SAGD). First production is expected in the
first months of 2014.
The demonstration project is on the 12 sections of lands in the
Sawn Lake reservoir in which Deep Well and Maurel et Prom will each
hold a 25 per cent interest.
The Board of Directors thanks the Company's shareholders for
their patience and their continued confidence. The Board notes this
demonstration project is only the initial step in extracting the
optimum value from this reservoir.
Maurel et Prom is France's second largest oil and gas company.
It has proven experience as an oil operator with a presence in
Africa and Latin America. In 10 years, they have drilled more than
100 exploration wells and discovered major fields at minimum cost.
Currently working in 10 countries on 4 continents, Maurel et Prom
is focused on exploration and maximisation of the value of its
acreage. The company's management is comprised exclusively of
professionals with strong track records in the oil and gas
industry.
Deep Well and its Canadian subsidiaries, Northern Alberta Oil
Ltd. and Deep Well Oil & Gas (Alberta) Ltd., have a 90 per cent
working interest in 51 contiguous square miles of oil sands leases,
an 80 per cent working interest in 5 contiguous square miles of oil
sands leases and a 50 per cent working interest in 12 contiguous
square miles in the Sawn Lake heavy oil area in North Central
Alberta. The leases cover 17,408 gross hectares (43,015 gross
acres).
Deep Well is fully committed to best practices in environmental
stewardship to assure sustainable development of its in-situ heavy
oil holdings.
This news release contains forward-looking statements. The words
or phrases "would be," "to be," "will allow," "intends to," "will
likely result," "expected," "will continue," "is anticipated,"
"potential," "recoverable," "estimate," "forecast," "project," or
similar expressions are intended to identify "forward-looking
statements." Actual results could differ materially from those
projected in the Company's proposed oil and gas related business
and described in this press release. The Company's business and the
realization of the results contemplated by this press release are
subject to various risks, which are discussed in the Company's
filings with the SEC. The Company's filings may be accessed at the
SEC's Edgar system at www.sec.gov. Statements made herein are as of
the date of this press release and should not be relied upon as of
any subsequent date. The Company cautions readers not to place
reliance on such statements. Unless otherwise required by
applicable law, we do not undertake, and we specifically disclaim
any obligation, to update any forward- looking statements to
reflect occurrences, developments, unanticipated events or
circumstances after the date of such a statement.
Contacts: Deep Well Oil & Gas, Inc. (780)
409-8144info@deepwelloil.com www.deepwelloil.com
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