Replies to post #2326 on Deep Well Oil and Gas (fka DWOG)

[wshaw14]

I dont know if you are even aware of the following approved project.

We previously received approval from the AER for a horizontal cyclic steam stimulation project (“HCSS Project”) application. It is anticipated that we will develop a thermal demonstration project on our properties followed by a commercial expansion project on one half section of land located on section 10-92-13W5 of our Sawn Lake oil sands properties where we currently have a 90% working interest. The final performance results and revised reservoir modeling studies from our current SAGD Project will be used to fine-tune our HCSS Project facility design before we initiate start-up operations on the half section of land where we plan to drill two horizontal wells to test the use of HCSS technology. We performed an environmental field study and surveyed the proposed location of our planned HCSS Project site and received AER approval for the surface wellsite and access road for this project.

[wshaw14]

Here are DeGoyler numbers to compare to my last post.

DeGolyer estimated that production would average 226 barrels of oil per day with an SOR of 4.12 in the first year of our SAGD Project, based on a 100% basis. The first oil production from our joint SAGD Project commenced on September 16, 2014 from the first SAGD well pair. Results to date indicate that the use of SAGD technology is successful in producing oil in the form of bitumen from the Bluesky reservoir. Bitumen production on a 100% basis averaged 399 barrels per day (100 barrels per day net to Deep