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Mr. Wshaw
It actually may be more, since the additional 10 per cent, depending on various pay zones, will vary in yield. An arithmetical calculation, while indicative, won't take all the geological anomalies into account. It sounds illogical, but an additional 10 per cent working interest may yield more than a 10 per cent increase in volume of recoverable oil.
I am sure they will have a new reservoir report by the end of the year, after drilling starts, which will move a lot of the contingent resources into the probable and possible category; and also reflect the share earned by M and P.
I would sell a chunk at 75 cents . . .
Maybe not. They could change the proportion by increasing the number of shares they can issue. The Maurel et Prom 45 million shares amounts to 20 per cent of the company according to the M and P release, and if you add in the 180 million plus shares Mr. Youyou would have after exercise of warrants and options, that's more than 100 per cent of the shares right there. So they must have increased their share cap limit.
Flee now.
You have been scammed by seasoned and veteran scam artists who specialize in recycling the same useless land through multiple companies.
Report below shows how OCTX value went from $300 to $60 million by paper shuffling between companies, on lands of no proven value whatsoever.
These guys specialize in ginning up "petroleum initially in place" which means they've found some rock or sand with oil in it.
Actually getting it out, if it can be done at all, needs lots of geological studies, engineering studies, reservoir modeling, test wells, results analysis, multi-year regulatory approval, all BEFORE you can start raising the real capital needed to proceed.
http://promotionstocksecrets.com/octagon-88-resources-octx-the-complete-ugly-truth/
I am sorry to say you have been cleaned out and the folks who did it to you have moved on.
The report below details how the Tighe brothers and their cronies routinely engage in pump-and-dump exercises, using the same pieces of worthless land, and the same paid pumpers.
It is chilling to think that what one would normally regard as criminal behaviour getsr epeated time and again, but these people get away with it.
What used to be TAMO's assets morphed into CEC Northstar which then morphed inot Octagon 88 resources. the report below shows how Octagon 88 went from $300 in assets to paper assets of $60 million by share swaps of what used to be CEC Northstar shares, which before then were TAMM shares. Please get out now. This company is dead.
And if you have only a few shares left, consider them done.
http://promotionstocksecrets.com/octagon-88-resources-octx-the-complete-ugly-truth/
You would think this news would be positive. But whoever keeps manipulating the stock down is at it again! the market opens with a 1,900 share trade that was booked overnight at a "holding pattern" price. Nothing happens for half an hour. then a 2,400 share trade drops the price by five per cent! I'm going to go see my banker today and see if I can free up some funds. I'm going to buy whatever I can afford up to 48.8 cents. Then we'll see. Mr. Youyou and Maurel et Prom obviously have a much deeper understanding of this reservoir than most of us. I just don't get why someone would DROP the share price after news like today's.
Did you see what Mr. Youyou has done? looks like he's cashed in all his options. This gives him more than one hundred and twelve MILLION shares in DWOG.
This gentleman has done more to show his faith in DWOG, good times and bad, than any other investor. He must have had incredible patience in that three years when the stock was languishing in the few pennies range. Check out his SEC filing for details.
So, any doubters left out there on the long-term benefits of putting money into DWOG? Congratulations, Mr. Youyou. Here's hoping your great luck rubs off on the rest of us. Hats off to you, sir!
Absolutely not. And the $110 million they are required to commit will pay for the HCSS as well as enhanced production from SAGD. Key fact here is that in Canada, you qualify for bank financing if you can show six months of sustained production averaging 1000 barrels per day.
So going forward, all revenue can be leveraged for bank financing, which will cover a minimum of 50 per cent Capex. More aggressive Canadian banks will fund in excess of 80 per cent Capex after 3000 barrels per day flow is established for six months. For secured (with oil production) loans, going rate is LIBOR plus, with the plus varying on the long-term reservoir production modelling.
Current LIBOR (12 month Canadian dollar loan) is 1.7685 per cent, so basically DWOG should be able to borrow for Capex at roughly three per cent interest to pay for expansion beyond the two demonstration projects.
Here are recent sales figures from Maurel et Prom. Might be advisable to start following them diligently, since there is a strong likelihood DWOG will be part of this company by 2015.
http://www.maureletprom.fr/joomdocs/S113_MAU-8AOU13_EN.pdf
I believe you are an experienced oil and gas player who is injecting a strong cautionary note on the downside prospects, and your perspectives ought to be seen in that light, even though I believe your sense of caution is extreme, and unwarranted by much of the available evidence.
That said, for me the crucial period is the end of 2014: by then, MP West Canada SAS will be in a position where it could elect to take a 50 per cent working interest in the remainder of DWOG's position in the reservoir, with operatorship.
If MP West Canada SAS does so, it will effectively mean that Maurel et Prom has exercised its option to take control of DWOG and develop the entire reservoir with its expertise. It would then be left to the DWOG shareholders to benefit from DWOG's portion of the revenue, while facing no expenses other than -- possibly -- paying back the DWOG proportion of the $110 million financing Maurel would need to commit, to avail the option.
That's why I believe your projections of Q1 and Q2 2015, with no profitability foreseen by 2017 or 2018, seem wide of the mark.
On the other hand, if Maurel decides upon evaluation that it will not elect to exercise its option, then DWOG will be in the market for other suitors, and a possible takeover bid, and your timelines for evaluation and eventual profitability may be closer to the mark.
While the Q4 2014 election date is a deadline, even more important is securing approval for the HCSS pilot on the half-section 10 of DWOG's 90 per cent lands. I believe you are right, that an experienced player like Maurel would think it foolish to run two pilots simultaneously. Thus, were I in their position, I would carefully evaluate the results of the SAGD demonstration, take at least the first two quarters of 2014 to carefully study what is coming out of the ground, before determining that the HCSS should be launched. This would in any case be wise, because much of the equipment used for the SAGD might be recycled for use in the HCSS pilot, thus significantly reducing the Capex for both projects. So if DWOG announces by the third quarter of 2014 that it will undertake the HCSS pilot, then you can be sure that it will be with Maurel's approval, and it would be a clear early signal that Maurel will elect to exercise its options.
So I'm not dismissing your cautionary note, simply explaining another plausible perspective on the same facts, one that is shared by most posting on this board.
Let's wait for the HCSS approval which in itself is a huge catalytic step, as it would mean the Alberta Energy Regulator has cleared the way for Maurel to commit a further $110 million to reservoir development including the HCSS pilot.
All the guys named here are Garry's buddies.
If you come across any of them involved with a company, be really careful with your DD.
http://agreements.realdealdocs.com/Settlement-Agreement/SETTLEMENT-AGREEMENT-2477847/
and especially have a look at
http://promotionstocksecrets.com/octagon-88-resources-octx-the-complete-ugly-truth/
DWOG is well rid of Garry and his associates and is finally ready to make money.
The "chequered past" was entirely a product of a character called Garry Tighe who finds it unadvisable to come home to Canada, and launches numerous companies from his home base in Switzerland, which inevitably turn out to be pump and dump operations leaving hundreds of innocent investors holding the bag. Cougar, KDKN, Tamm, CEC Northstar and on we go. Check out the embittered investors at TAMO's message board, for instance. What kind of "non-bent" person would call their company Tamm Oil, with a home page picture of someone else's pipeline, unless they intended to create confusion with Tamoil, which is a significant company with hundreds of gas stations in Europe?
Garry and his brother Bill, who is resident in Calgary, routinely float companies and make dubious claims. They were the driving force behind 113, the defaulting numbered company DWOG finally bought out. The Tighe brothers' shenanigans with TAMO, when they tried some nefarious backhanded takeover of DWOG, ended up exploding in their faces, with TAMO having to take a $63 million loss. Even so, thanks to machinations by Garry and buddies of his, TAMO is manipulated to trade in the teens even though its assets amount to the square root of SFA. Maybe "futrcash" is you, Garry.
Anyway, DWOG has been clean since March 2011 when Garry's buddies were kicked off the board and honest and capable directors appointed.
Please come back to Calgary, Garry. I am sure the Royal Canadian Mounted Police would like you to assist them with their inquiries.
Folks should refuse to sell below the price Maurel and Prom paid. That will lift us out of the high 30s. The big announcement came and went this week, and I hope it has sunk in that this investment is about to become a reality -- that's what the formal "election to participate" means. Oil, lots of it, is on the way. I expect there will be some panic-spreading by shakedown artists until the next big announcement, which will be start of drilling in the second half of September. Until then stand united and hold firm!
Great!!! One down, one to go!
Still a couple of obstacles to overcome. Agreement says they will pay Andora to cancel a potential three per cent GORR. But their 10K of last January reports a potential GORR (gross overriding royalty) of 6.5 per cent. Who has the other 3.5 per cent and will it impede operations? Is the GORR even valid? If it was, Andora might not settle for $2.8 million, because a three per cent GORR could be worth tens of millions of dollars. Deep Well needs to clean up the GORR as soon as possible. It's good to know nearly half the GORR has been resolved, but what about the other half?
Then there are the lawsuits (see extract from 10K below).
The lawsuits are a significant potential liability, with damage claims in excess of $30 million, and Maurel is NOT repsonsible for them because they are not "operating expenses." In fact, they are old "legacy" lawsuits that will be an impediment until they are settled. Now that DWOG has the cash, shouldn't it settle to get rid of these? We need some clarity.
Last obstacle is the pilot on their Section 10 lands. Does the Maurel funding take care of that? if they hadn't paid out the distribution of seven cents, they would have had money to get a real start on this after it's approved. Is there enough money left to fund it?
Not being negative like Geopressure here, but a realistic investor has to look for potential red flags.
ITEM 3. LEGAL PROCEEDINGS
I.G.M. Resources Corp. vs. Deep Well Oil & Gas, Inc., et al
On March 10, 2005, I.G.M. Resources Corp. (hereinafter referred to as “IGM”) filed against Classic Energy Inc., 979708 Alberta Ltd. (hereinafter referred to as “979708”), Deep Well Oil & Gas, Inc., Nearshore Petroleum Corporation, Steven P. Gawne, Rebekah Gawne, Gawne Family Trust, 1089144 Alberta Ltd., John F. Brown, Diane Lynn McClaflin, Cassandra Doreen Brown, Elissa Alexandra Brown, Brown Family Trust, Priority Exploration Ltd., Northern Alberta Oil Ltd. and Gordon Skulmoski (hereinafter referred to as the “Defendants”) a Statement of Claim in the Court of Queen’s Bench of Alberta Judicial District of Calgary. This suit is part of a series of lawsuits or actions undertaken by IGM against some of the other above-named Defendants.
IGM was a minority shareholder of 979708. 979708 was purportedly in the business of discovering, assembling and acquiring oil and gas prospects. In 2002 and 2003, 979708 acquired oil and gas prospects in the Sawn Lake area of Alberta. On or about the14th of July 2003, all or substantially all the assets of 979708 were sold to Classic Energy Inc. IGM claims the value of the assets sold was far in excess of the value paid for those assets. On April 23, 2004, Northern purchased some of Classic Energy Inc.’s assets, including some of which are under dispute by IGM. On June 7, 2005, Deep Well acquired all of the common shares of Northern thereby giving Deep Well an indirect beneficial interest in the assets IGM is claiming an interest in.
IGM seeks an order setting aside the transaction between 979708 and Classic Energy Inc. and returning the assets to 979708, compensation in the amount of $15,000,000 Cdn, and a declaration of trust declaring that Northern and Deep Well hold all of the assets acquired from 979708 and any property acquired by use of such assets or confidential information of 979708, in trust for IGM.
This lawsuit has been stayed pending the outcome of the other litigation by IGM against some of the above Defendants other than Deep Well and Northern. The Company believes the claims are without merit and will vigorously defend against them. As of September 30, 2012, no contingent liability has been recorded, as we believe a successful outcome for IGM is remote.
Hardie & Kelly vs. Brown, et al
On June 2, 2006, Hardie and Kelly (the “Plaintiff”), Trustee of the Estate of John Forbes Brown, filed against John Forbes Brown, a bankrupt, Diane Lynn McClaflin, 1089144 Alberta Ltd., and Deep Well (the “Defendants”) an Amended Statement of Claim filed in the Court of Queen’s Bench of Alberta Judicial District of Calgary. John Forbes Brown was a former officer and then sub-contractor of Deep Well before and at the time he was assigned into bankruptcy on July 12, 2004. The Plaintiff claims, in addition to other issues unrelated to Deep Well, that John Forbes Brown received 4,812,500 Deep Well shares as a result of his employment in Deep Well and that John Forbes Brown improperly assigned these shares to the numbered company as a ruse entered into on the eve of insolvency by John Forbes Brown in order to facilitate the hiding of assets from his creditors and the trustee of his bankruptcy. The Plaintiff further claims that on August 23, 2004, John Forbes Brown advised the Plaintiff that he in fact owned the above shares and did not disclose this ownership in his filed bankruptcy statement of affairs.
The Plaintiff further claims that John Forbes Brown would lodge the said shares with his lawyer until such time as these shares could be transferred to the Plaintiff. The Plaintiff further claims that unbeknownst to them John Forbes Brown surreptitiously removed the shares from his lawyer’s office and delivered them to Deep Well so that Deep Well could cancel them. The Plaintiff claims that Deep Well conspired with John Forbes Brown to defraud the creditors of John Forbes Brown by taking receipt and cancelling the said shares. The Plaintiff claims that consideration paid by Deep Well for the said shares was invested in the home owned by John Forbes Brown and his wife. The Plaintiff seeks: 1.) An accounting of the proceeds and benefits derived by the dealings of the shares; 2.) The home owned by John Forbes Brown and his wife, to be held in trust on behalf of the Plaintiff, and an accounting of proceeds related to this trust; 3.) Damages from the Defendants because of their actions; 4.) A judgment for $15,612,645 Cdn; 5.) An order to sell John Forbes Brown’s home; and 6.) Interest and costs.
We plan to vigorously defend ourselves against the Plaintiff’s claims. As at September 30, 2012, no contingent liability has been recorded, as we believe a successful outcome for the Plaintiff is remote.
Northern Alberta Oil Ltd. vs. 1132559 Alberta Ltd.
On June 27, 2008, our subsidiary, Northern Alberta Oil Ltd. (hereinafter referred to as “Northern”), filed a Statement of Claim in the Court of Queen’s Bench of Alberta Judicial District of Edmonton against 1132559 Alberta Ltd. (hereinafter referred to as “113”). Northern claims that 113 has not paid their share of the incurred operating costs for the Sawn Lake project. Northern further claims that they paid the operating expenses required on behalf of 113 and invoiced 113 for the amounts and that 113 refused or neglected to reimburse their proportionate share of the operating costs. Northern sought: 1.) Payment in full in the amount of $74,470.71 in Canadian funds for the amounts invoiced to 113; 2.) Interest pursuant to section 106 of the PASC (“Petroleum Accountants Society of Canada”) 1996 Accounting Procedure; and 3.) Costs of the action. As part of the purchase and sale agreement, effective December 3, 2012, between us and 113, we have discontinued this claim against 113.
HokieHead
Here's a report from Oil and Gas Journal:
http://www.ogj.com/articles/2013/08/andora-sawn-lake-sagd-pilot-getting-under-way.html
Good to see the buzz picking up, although I see the report says Pan orient's JV partners are "attempting to raise funds."
Guess the "attempt" worked!
It is true that tax rules vary, which is why it is wise to seek professional guidance. If this is construed as a "return of capital to the shareholder" it might be eligible for different tax treatment than a capital gain.
Dear Geopressure
Apparently the market does not share your perspective.
Maurel's influence is being felt already. They are obviously courting French investors now.
http://finance.yahoo.com/news/deep-well-d-cide-participer-140202134.html
Not sure if this board is aware, but DWOG is actually listed on the Frankfurt Bourse. The trading symbol in Frankfurt is VVE.
I asked. It is a distribution. It should not be subject to withholding tax.
Big volume today could be guys cashing in after making five times or more on their money. If you believe hang on and stand united. My DD says reservoir is real and solid.
When you read that Shell presentation, it talks about the Peace River In Situ Project done in 1979, followed by the Peace River Expansion Project in 1986. The guys I was talking to told me about the results they got in the 1986 expansion. It was when they acquired Black Rock (for about $2.6 billion, just after it began producing) they acquired the cold flow and the tank batteries that are going to be part of Carmon Creek. The 1979 project was their demonstration project, and in 1986, they ramped up to the 12,500 bpd level.
The pictures you see of the development look like they can be used either for SAGD or HCSS for steam injection. It is interesting to note that the technical consultant DWOG used to drill its own test wells was one of the experts who pioneered the Peace River Oil Sands for Shell in 1979 and in 1986.
That would tell me DWOG's geology is pretty sound, and they may have some great technical advice on how to get to high recovery rates.
Incidentally, DWOG is using the Black Rock precedent to plan its development. Shell bought Black Rock when it hit about 1700 barrels a day production, I believe.
Here's a link to a really comprehensive presentation on Shell's Carmon Creek in-situ operation (using SAGD, CSS, HCSS and other thermal processes, perhaps even using vapour and solvents along with the steam). Please paste the link in your browser.
http://environment.alberta.ca/documents/Shell_Carmon_Creek_2009_Public_Information_Document.pdf
Guys at Shell tell me their recovery rate was internally reported to be in the mid-60 per cent range (they pioneered the area, in a nearby play) but when they did their detailed testing after the first pay zone had been developed, they found zero trace of hydrocarbons. That means they got ALL of it out.
Shell's recovery rates are proprietary, as is the technology (or more likely the many combination of technologies) they used; but this is the word around the oil patch in Calgary.
By the way, the weird news related to this is that the president of Pan Orient, the company that owns more than 70 per cent of DWOG's development partner Andora, has pulled up stakes and left Alberta to go live in Thailand. Looks like POE boss Jeff Chisholm is enjoying the good life in Bangkok even before the first drop of oil comes out. He must be really confident about the success of the reservoir!
Sawn Lake a busy place these days with PennWest's expansion pans. They have the conventional oil lease below DWOG's Sawn Lake heavy oil lease, it appears. From their August investor update, they are investing a lot in improving infrastructure in the area. This can only help DWOG with getting the oil out, and with understanding the reservoir better (Penn West drills through the DWOG leases every time it drills a conventional oil well).
Here's the snapshot from their presentation:
??Slave Point
Carbonates Trend
2012 Facility Expansion & Capacities
• Otter battery
(2,500 to 12,000 bbls/d)
• Red Earth gasplant (0.85 to 10 mmcf/d)
• Sawn battery
(750 to 9,400 bbls/d)
2013 Program Focus & Status Plant
??Red Earth
• • •
Leverage infrastructure investments Focused half cycle development Water flood pilots–2H2013
H1
• D&C cost structure decreased • Ahead of schedule
Doesn't look like that has any bearing on what they are proceeding with now. The 10Q talks about an APPROVED project.
And that application is on the 90 per cent lands where they applied for modification. The approved project is on the 50 per cent lands (12 sections) with Andora where M and P is farming in. So looks like they are ready to go without any need of further government approval: When the approval finally comes on the project on the 90 per cent lands, they will have TWO demo projects eligible on their lands.
17. Subsequent Events
On July 30, 2013, the Company entered into a Steam Assisted Gravity Drainage demonstration project (“SAGD Demonstration Project”) Agreement with the Company’s joint venture partner Andora Energy Corporation to participate in a recently AER (as defined below) approved SAGD Demonstration Project on the Company’s 50% owned oil sands properties located in North Central Alberta, Canada (also known as the Sawn Lake heavy oil reservoir), whereby the Company will initially pay CDN $12,073,512 for its initial share of the costs of the SAGD Demonstration Project.
On July 31, 2013, the Company entered into farmout agreement (the “Farmout Agreement”) with MP West Canada SAS (“Farmee”), a wholly owned subsidiary of Maurel et Prom, to fund the Company’s share of a recently approved Alberta Energy Regulator (“AER”) SAGD Demonstration Project at the Company’s Sawn Lake heavy oil reservoir in North Central Alberta, Canada. In accordance with this Farmout Agreement the Farmee has agreed to provide up to $40,000,000 in funding for the Company’s portion of the costs for the SAGD Demonstration Project, in return for a net 25% working interest in 12 of the 68 sections where the Company has a working interest of 50%. On July 31, 2013, and as required by the Farmout Agreement, the Farmee deposited into trust with the Company's legal counsel, the amount of CDN $12,103,512.00 to pay for the Company’s initial share of the costs for the SAGD Demonstration Project.
They need to cross list on TSX-V or CNSX as soon as possible. Right now, it is extremely difficult for Canadian residents to acquire any position in DWOG. No Canadian brokerages I know of will accept DWOG share certificates for trade, and brokers are not even allowed to recommend this to clients or discuss it, because it is an OTC stock. Even if a client wants to buy, Canadian brokers are required to warn them off. This is crazy for a Nevada corporation (historic reasons we all understand) that has its property and operations in Canada. Once Canadians can trade in this, HokieHead's prediction has a way better chance of coming true.
From a 2012 PR:
Deep Well Oil & Gas, Inc. (OTCQB Marketplace:DWOG - News)
Contact:
Deep Well Oil & Gas, Inc.
Dr. Horst A. Schmid
Chairman of the Board
780 409 8144
HASchmid@deepwelloil.com
www.deepwelloil.com
According to SEC filings, Mr. Youyou is the beneficial owner of 86,164,285 shares of Deep Well.
Looks like he build the company to the point that his French friends felt confident to invest the money necessary to convert Mr. Youyou's faith in Horst and Horst's team over the years, into profitable oil production from this immense reservoir. He must be a very astute businessman. If you read his background, he sold luxury watches, jewelry and perfume in the former countries of the Soviet Union right after the collapse of communism, and he was a VERY early investor in DWOG when less patient investors couldn't see the potential.
Is he going to join his fellow directors in converting his options? That will be the ultimate vote of confidence in DWOG's future.
Reserves have already been assigned by DeGolyer&MacNaughton (D&M) based on the fact that pilot is approved. The Cotningent Resources move up to become reserves once first oil emerges. First production also enables more delineation of the resrvoir, with potential recoverable oil moving up in classification. Since the major "contingency" was financing, it is reasonable to expect that most resources would be reclassified as reserves. Don't know how many shareholders there are; beyond the block owned by the board of directors about a third of the outstanding shares are tradeable.
I bought then too, and kept on acquiring in the down years. Now, with all the financing they will need, and a big international company holding the reins, we can finally look forward to this, extracted from their March 2012 PR. It is based on $65 oil, does not include the acquisition of another 10 per cent working interest, and does not reflect percentages after the farmout. Still, it predicts that real value should start flowing. Patience has its rewards:
"D&M forecasts that the Probable plus Possible reserves on the half square mile (out of the total of 68 square miles of Deep Well's lands) chosen for the pilot project will yield an undiscounted future net revenue of Cdn $245,562,000 (two hundred and forty-five million five hundred and sixty-two thousand Canadian dollars). D&M arrived at this forecast by subtracting, from gross revenue, capital costs, operating expenses and Provincial royalties, but not after taxes or other potential royalties.
D&M forecasts that the Contingent resources in most of the other parts of the reservoir will yield an undiscounted future net revenue of Cdn $8,627,000,000 (Eight billion, six hundred and twenty seven million Canadian dollars). For planning purposes, Deep Well and its wholly-owned Canadian subsidiaries will use the Best (or most likely) Contingent resource case scenario.
To determine gross revenue D&M use an initial forecast price of about Cdn $65 per barrel, which is subject to market fluctuations and valid as of December 31st, 2011."
This might explain why Maurel and Prom thought it was a good buy to buy 20 per cent of the company at 48.8 cents a share, and to put up the needed working capital.
Agreed. Will fluctuate some, as manipulators try to shake out the short-termers. Then wait for drilling to begin for the next uptick.
When a major international oil company buys this stock at 48.8 cents and commits money to a demonstration project, the day to day operations of DWOG, and establishes an option to commit a further $110 million in financing to earn a substantial working interest, there is a reason to buy. The investors obviously had access to confidential information under a confidentiality agreement, which means they would have had their own experts study every aspect of the reservoir before committing. When you look at Maurel and Prom's success record in the industry, these are astute players. They make this investment on the belief that the reservoir is worth a lot. So, to answer you question, if they think 48.8 cents is a bargain price, why wouldn't you?
The same guys who were playing games a few years ago through TAMO and later KDKN may be starting to dump shares. When they were running the nonsense through TAMO (which had to take a $63 million write-down after the courts slapped their illegal attempt to corner DWOG shares) keep on running new schemes from their base in Switzerland. Past two months there were a lot of 100-share trades at the close of days to torpedo the stock whenever it had a good day. Looks like those boys are at it again.
There is a new development in today's 10Q that was not in the two earlier PRs. Under the MD&A on operations, it is announced that the project for first production is going to be on lands held 50-50 by DWOG and Andora. Maurel et Prom already has placed $12 million in a lawyer trust account to fund DWOG's initial portion of this project. The Operations discussion in the 10Q says that a Demonstration Project Agreement was reached with Andora on July 30. Work has already begun on the site, and the discussion says drilling begins in September with steaming to follow, in a SAGD project.
All sounds good.
That is precisely why surplus capital is being distributed to stockholders.
It is definitely a Distribution, NOT a special dividend. It should be tax free depending on where you live, and it is best to seek professional guidance.
It is not a dividend. It is a Distribution of capital. Essentially, returning surplus capital to stockholders. This makes a Distribution materially different from a dividend, and has profound implications in terms of tax treatment. Rather than relying on general theory of dividends from Wikipedia, one would hope that stockholders seek relevant professional advice from brokers and/or accountants and/or tax lawyers. A one time special Distribution, for instance, might not to be subject to a withholding tax, as a dividend might be. Moreover, a one-time Distribution should in no way be considered as anything other than an extraordinary event, which is why it is a special Distribution.
Dear Moderator
Could you kindly change the information in the corporate profile of Deep Well Oil & Gas, Inc., which appears to have been drawn from a bygone age in the company's history.
Mr. Cyrus Spaulding resigned some years ago, and the Signet farmout referenced in the profile also belongs to prehistory.As announced, there is currently a farmout agreement with a wholly-owned subsidiary of a transnational French energy firm, Maurel et Prom. There are no others.
A more accurate corporate profile, as drawn from the most recent news release, is:
"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."