OPERATIONS

Overview

Deep Well Oil & Gas, Inc. through its wholly owned subsidiaries, Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd., has a 90% working interest in six oil sands leases, a 100% working interest in one oil sands lease, and a 25% working interest in an additional two oil sands leases in the Peace River oil sands area of Alberta, all of these leases are contiguous. These nine oil sands leases, as of July 25, 2018, cover 37,322 gross acres (15,104 gross hectares) of land. Of the nine oil sands leases we are the operator on seven leases where we have working interest ranging from 90% to 100%.

Deep Well's management believes that the Sawn Lake Heavy Oil Project is at the same pre-growth stage experienced by other heavy oil companies prior to a major period of growth.

Other operators targeting the deeper Slave Point Formation have previously drilled much of the land. Because of the earlier extensive exploration for light oil, Deep Well is able to benefit from data collected by others pertaining to the drilling of more than one-hundred wells that penetrated and partially delineated the heart of the Bluesky Formation heavy oil reservoir.