Deep Well Declares Special Distribution of 7 Cents Per Share
August 09 2013 - 08:00AM
Marketwired
Deep Well Oil & Gas, Inc. ("Deep Well" or "Corporation")
(OTCQB:DWOG) is pleased to announce a special one-time distribution
to its shareholders.
Deep Well's Board of Directors has authorized and declared that
the distribution in the amount of US$0.07 per share be payable on
September 20, 2013 to the holders of record of all the issued and
outstanding shares of common stock of the Corporation as of the
close of business on August 16, 2013, (the "Record Date").
This distribution is funded by Deep Well's recently completed
private placement of its common shares which raised US$22 million
at 48.8 cents per share (US$0.488). The Board determined that the
Corporation's shareholders should receive this distribution since
the Corporation has reserves to sustain its operations for the next
few years and its anticipated future capital expenditures are
funded by the joint venture agreement.
On August 2, 2013, Deep Well announced it has accepted a private
placement from MP West Canada SAS, a wholly owned subsidiary of
Maurel et Prom ("Maurel et Prom"), of US$22 million 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 US$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 an additional US$110
million of financing to the Sawn Lake project.
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 square miles of oil sands leases, an 80 per
cent working interest in 5 square miles of oil sands leases and,
post farmout, a net 25 per cent working interest in 12 square miles
in the Sawn Lake heavy oil area in North Central Alberta. The
leases cover 17,408 gross hectares (43,015 gross acres). All of
these lands are contiguous.
The Corporation encourages its stockholders to seek tax advice
regarding their own particular situation in order to understand the
rules and regulations regarding this distribution payment and
"ex-dividend" date and the effect of selling their shares of the
Corporation's common stock following the record date.
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.
1-780-409-8144info@deepwelloil.com www.deepwelloil.com
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