DWOG "claims" nothing.
The 1.2 billion barrel figure is an evidence-based conclusion from reservoir studies and modeling by a number of highly reputed independent third parties, the latest being DeGolyer and MacNaughton (D&M).
Your entitled to your opinions, geopressure, but not to your own facts.
Heavy oil is by nature viscous, and since you appaer to be from a light oil producing area, perhaps you do not have a deeper appreciation or understanding of the highly effective recovery rates achievable with thermal extraction.
while only a fool with predict with any assurance how much oil can be recovered until production begins, it is instructive to recall what D&M considered recoverable, in a pre-production assessment, (which undoubtedly will be updated once production begins):
"D&M assigned Probable and Possible reserves (2P and 3P) on the half square mile of land designated
for a pilot project. D&M has estimated that in that portion alone there are Probable reserves of
7,806,000 barrels of heavy oil and Probable plus Possible reserves of 9,370,000 barrels attributable to
Deep Well's working interests before adjusting for any Provincial or potential royalties ("DWOG's
portion"). It is anticipated that Proven (1P) reserve category also can be assigned once production
commences on the pilot project.
The majority of the remainder of the reservoir was assigned Contingent resources (1C, 2C, and 3C),
by D&M, as well as some Prospective resources. D&M assigned Contingent and Prospective
resources in three scenarios: Low, Best and High. Low can be considered a "worst case" scenario,
Best can be considered "most likely case" scenario, and High can be considered the "optimistic case"
scenario.
D&M's estimates the Best or "most likely" Contingent resources for DWOG's portion is 198,121,000
barrels. D&M also assigned additional Prospective resources of 56,162,000 barrels for DWOG's
portion.
The independent third party reserves report by D&M, "Assessment and Evaluation of Reserves and
Resources as of December 31, 2011" of our Sawn Lake Project, incorporates the typical requirements
of Canada's "National Instrument 51-101," the "Petroleum Resource Management System (PRMS)"
standard applied in the United States and India, and the "Competent Person's Report" required by
securities regulators in the Hong Kong Stock Exchange.
To maintain the independence, integrity and probity of such assessments of oil reservoirs; Canadian
law prohibits evaluating firms from ever holding any interest, direct or indirect, in the reservoirs
and/or companies evaluated. "
And remember the value assigned:
"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"
This is in addition to the $245 million net revenue to be generated by the HCSS pilot project.
