Deep Well Oil and Gas (fka DWOG)

[wshaw14]

12-03-2014
PRESS RELEASE
DEEP WELL announces preliminary results of the Sawn Lake SAGD Demonstration
Project
December 3, 2014 – For Immediate Release
EDMONTON, ALBERTA - (Marketwired) Deep Well Oil & Gas, Inc. (and its subsidiaries – "Deep Well" or "Company")
(OTCQB Marketplace: DWOG) is pleased to announce preliminary results of the Sawn Lake Steam Assisted Gravity
Drainage (“SAGD”) Demonstration Project.
For Phase 1 of the SAGD demonstration project, one SAGD well pair was drilled in the fourth quarter of 2013 to a depth of
650 meters and a horizontal length of 780 meters. After the construction of the SAGD facility for steam generation, water
handling and oil treating was completed in 2014, steam injection commenced on May 21st, 2014.
Bitumen production commenced on September 16th 2014. Results to date indicate that the SAGD production process
works in this Bluesky formation reservoir. Bitumen sales averaged 221 barrels of bitumen per day, half way through the
3rd thirty day period since the start-up of the SAGD mode production. Over the next several months the SAGD well pair is
expected to have increased steam injection and bitumen production as the steam chamber develops.
The objective of this initial pilot well pair was to establish that the SAGD process works in the Bluesky formation
reservoir, and results to date support this. We are now focused on achieving commercial rates. We expect to achieve these
results in early March 2015 when reservoir modelling indicates that the steam chamber will reach the top of the Bluesky
formation sandstone reservoir. Maximum production is anticipated to occur around September 2015 corresponding to the
end of the first year of production.
Deep Well is fully committed to best practices in Environmental Stewardship to assure sustainable development of its insitu
heavy oil holdings.
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, a 100 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 heavy
oil area in North Central Alberta. The leases cover 17,408 gross hectares (43,015 gross acres).
This press 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," “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.
Contact:
Deep Well Oil & Gas, Inc.
1 780 409 8144
[e-mail]
www.deepwelloil.com
http://finance.yahoo.com/news/deep-well-announces-preliminary-results-214050146.html