Deep Well Operations Update

Deep Well Oil & Gas, Inc. (and its subsidiaries - "Deep Well" or "Company")
(OTCQB:DWOG) is pleased to announce the following operations update on its joint
projects located in Sawn Lake, Alberta.


Since entering into a Farmout Agreement in late July of 2013 with MP West Canada
SAS (the "Farmee"), a subsidiary beneficially owned 1/3 by Maurel et Prom and
2/3 by MPI Energy, two listed companies based in Paris, France, and after
entering into a steam assisted gravity drainage ("SAGD') demonstration project
with our joint venture partners we can report that Phase 1 of this project is
nearing completion. Final construction of the SAGD facility is currently being
completed and steam injection at Sawn Lake is scheduled for the end of April
2014. Once construction and initial testing is completed the Bluesky oil sands
reservoir will be steamed for approximately three months, after which first
bitumen production is anticipated around the end of July 2014. For further
information about the SAGD project and photos of the steam facility visit our
website at http://www.deepwelloil.com/op_sagd.htm. 


SAGD Project - Phase 1 Highlights



--  Application for the SAGD project submitted to the Energy Resources
    Conversation Board (now known as the Alberta Energy Regulator "AER") to
    conduct a thermal recovery project on our joint lands in Sawn Lake,
    Alberta where we have a 25% working interest (post farmout agreement). 
    
--  Regulatory approval for the first phase of the SAGD project was obtained
    from the AER under the Oil Sands Conservation Act along with approval
    from the Government of Alberta under the Environmental Protection and
    Enhancement Act. 
    
--  The Farmee has paid all required cash calls relating to the authority of
    expenditures ("AFEs") for the first phase of the SAGD project as
    required by the farmout agreement. Under this farmout agreement the
    Farmee agreed to provide up to USD $40 million in funding for the
    various first phases of the SAGD project, in return for a net 25 per
    cent working interest in 12 sections of where Deep Well has working
    interests of 50 per cent. The Farmee will also provide monthly funding
    to cover operating expenses of Deep Well. 
    
--  Drilling and completion of one SAGD well pair is completed. These
    horizontal wells were drilled to a vertical depth of approximately 650
    meters and have horizontal legs of 780 meters. 
    
--  Expansion and construction of the pre-existing well site pad is
    completed. 
    
--  Procurement and transportation of equipment, which included the purchase
    and delivery of a steam generator and water treatment plant to the SAGD
    surface pad site is completed. 
    
--  Installation of a water source and disposal facilities, along with
    connecting pipelines to tie-in the water source and disposal wells to
    the SAGD steam facility is completed. 
    
--  Installation of a fuel source tie-in pipeline to the SAGD steam facility
    is completed. 
    
--  Construction of assembling and testing of the SAGD steam facility for
    steam generation and water handling is nearing completion. 
    
--  First steam is anticipated around the end of April 2014. 
    
--  First oil sands production is anticipated around the end of July 2014.



SAGD Project - Phase 2 Outlook

After the initial Phase 1 production tests and depending on the results using
SAGD technology, the operator of the SAGD project will proceed with Phase 2 of
the project. This second phase is anticipated to include the drilling of two
additional SAGD well pairs and the associated expansion of the current SAGD
steam facility.


HCSS Project - Phase 1 Highlights



--  Application for the horizontal cyclic steam stimulation project ("HCSS
    Project") submitted to the AER to conduct a thermal recovery project on
    our joint lands in Sawn Lake, Alberta where we have a 90% working
    interest. 
    
--  Regulatory approval for the HCSS Project was obtained from the AER under
    the Oil Sands Conservation Act. 
    
--  Currently waiting on the preliminary results of the SAGD Project to
    fine-tune our HCSS Project design before we initiate start-up
    operations.



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 25 per cent working interest
in 12 contiguous square miles in the Sawn Lake oil sands area in North Central
Alberta. The leases cover 17,408 gross hectares (43,015 gross acres) of land. 


This press release contains forward-looking statements. The words or phrases
"might"," "purported", "claimed", "would be," "to be," "will allow," "intends
to," "will likely result," " expected," "will continue," "is anticipated,"
"potential," "recoverable," "estimate," "forecast," "project," "plans," or
similar expressions are intended to identify "forward-looking statements."
Actual results could differ materially from those projected in the Corporation's
proposed oil and gas related business and described in this press release. The
Corporation's business and the realization of the results contemplated by this
press release are subject to various risks, which are discussed in the
Corporation's filings with the SEC. The Corporation'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 Corporation 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Deep Well Oil & Gas, Inc.
1 780 409 8144
info@deepwelloil.com
www.deepwelloil.com
Deep Well Oil and Gas (CE) (USOTC:DWOG)
Historical Stock Chart
From Mar 2024 to Apr 2024