DEEP WELL OIL & GAS, INC. 
By
EDMONTON, ALBERTA - (Marketwire - January 11, 2012) Deep Well
Oil & Gas, Inc. (and its subsidiaries - "Deep Well"
or "Company") (OTCQB Marketplace: DWOG) is pleased
to announce that the independent engineering firm of DeGolyer
and MacNaughton Canada (DMC) has completed its economic
forecasts for a proposed pilot project on the Sawn Lake lands
where DWOG has a 80 per cent working interest. The DMC study
covers early development in Deep Well's Sawn Lake property.
The plan is for horizontal Cyclic Steam Stimulation (CSS) of
bitumen in the Blue Sky formation, with a line drive steam
flood also being forecast in one of the scenarios.
The forecast models development on the northern half of
section 10-92-13W5. This section was chosen because of
several positive factors.
Mapping of the half section gave a bitumen-in-place volume of
24.3 million barrels. Low, best and high recovery factors and
Steam Oil Ratios (SORs) were estimated by computerized
simulations of the reservoir.
Prices used were from the DMC price forecast of September 30,
2011 for crude bitumen at the plant gate (9 API), and Alberta
Plantgate Spot price for natural gas. No adjustment has been
made to these prices for transportation or quality
considerations at this time.
The DMC report forecasts commercial viability of the pilot
project, with the ultimate recovery rates in excess of 40 per
cent of original oil in place.
As a result, DWOG is actively pursuing pilot project
capitalisation in the range of $50 million to $60 million
US.
The preferred production scenario, using horizontal
application of CSS followed by a line-drive steam flood,
forecast gross revenue of $816 million Cdn over the 19 year
production life of the initial pilot, against capital
expenditure of about $50 million Cdn to achieve
production.
It is anticipated that the pilot project will be the core of
Deep Well's first commercial scale production from Sawn Lake.
For the pilot phase, the average operating cost over the life
of the project is estimated to be about $22.00 Cdn per
barrel.
In the coming weeks, Deep Well intends to apply to the Energy
Resources Conservation
Board to modify its existing regulatory approval for pilot
production.
Deep Well is fully committed to best practices in
Environmental Stewardship to assure sustainable development
of its in-situ heavy oil holdings.
Deep Well Oil & Gas, Inc. is a Nevada corporation based in
Alberta Canada. Deep Well and its subsidiaries Northern
Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd. have
an 80% working interest in 56 contiguous sections of oil
sands leases, 40% working interest in an additional 12
sections of oil sands leases in the Sawn Lake heavy oil area
in North Central Alberta. The leases cover 43,015 gross
acres.
This press release contains forward-looking statements. The
words or phrases "would be," "will
allow," "intends to," "will likely
result," "are expected to," "will
continue," "is anticipated,"
"estimate," "project," or similar
expressions are intended to identify "forward-looking
statements." Actual results could differ materially from
those projected in the Company's proposed oil and gas
related business and described in this press release. The
Company's business and the realization of the results
contemplated by this press release are subject to various
risks, which are discussed in the Company's filings with
the SEC. The Company'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 Company
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.
Deep Well Oil & Gas, Inc. (OTCQB Marketplace: DWOG - News)
Contact:
Deep Well Oil & Gas, Inc.
Investor Relations
1 888 - OILSAND (1-888-645-7263)
www.deepwelloil.com
| distribué par | Ce noodl a été diffusé par Deep Well Oil & Gas Inc. et initialement mise en ligne sur le site http://www.deepwelloil.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-11 22:37:58 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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| Press Release - Deep Well Project is commercially viable - January 11, 2012 |
