Deep Well Operations Update
April 22 2014 - 8:00AM
Marketwired
Deep Well Operations Update
EDMONTON, ALBERTA--(Marketwired - Apr 22, 2014) - 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.
Deep Well Oil & Gas, Inc.1 780 409
8144info@deepwelloil.comwww.deepwelloil.com