Here is a blast from the past. SOR of 2.1 is phenomenal and far surpassed the projections.
Deep Well Announces SAGD Project Update
February 24, 2016 – 08:00 ET
EDMONTON, ALBERTA - (Marketwired) Deep Well Oil & Gas, Inc. (and its subsidiaries – "Deep
Well" or "Company") (OTCQB: DWOG) is providing an update for our Steam Assisted Gravity
Drainage (“SAGD”) oil sands project at Sawn Lake, Alberta, Canada.
DWOG holds a 25% working interest in the demonstration project, which commenced in 2013
located at Sawn Lake. The demonstration project consists of one SAGD well pair drilled to a
depth of 650 meters and a horizontal length of 780 meters and the SAGD facility for steam
generation, water handling, and bitumen treating. Steam injection commenced May 21, 2014,
production commenced September 16, 2014, and the steam chamber reached the top of the
Bluesky sandstone formation in October 2015.
This project is a significant step towards establishing a commercially viable SAGD project at
Sawn Lake and to demonstrate that the SAGD process works in the Bluesky reservoir. It is also
providing an indication of the productivity of the reservoir and the amount of steam injection
required to produce the bitumen, which are key components in assessing the potential for
SAGD development at Sawn Lake.
The demonstration project commenced production in September 2014, and has successfully
captured the key data associated with the objectives of the demonstration project. The
demonstration project has:
• demonstrated that the SAGD process works in the Bluesky formation at Sawn Lake,
• established characteristics of ramp up through stabilization of SAGD performance,
• indicated the productive capability and ISOR, of the reservoir and
• provided critical information required for well and facility design associated with future
commercial development.
Production in 2016 at the Sawn Lake Demonstration Project has reached a steady state
production level over the past six weeks of 600 barrels per day (“BOPD”) (150 BOPD net to
DWOG) with an instantaneous steam-oil ratio (“ISOR”) of 2.2 from the one SAGD well pair.
Production, on a 100% basis, averaged 596 BOPD with an ISOR of 2.2 in January and has
averaged 620 BOPD with an ISOR of 2.1 during the first 21 days of February.
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