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 51
sections on six oil sands leases, an 100% working
interest in 5 sections on one oil sands lease, and
a 25% working interest (after Farmout Agreement dated
July 31, 2013) in an additional 12 sections on two
oil sands leases in the Peace River oil sands area
of Alberta, all of these sections are contiguous.
These nine oil sands leases cover 43,015 gross acres
(17,408 gross hectares) of land. Of the 68 contiguous
sections on nine oil sands leases we are the operator
on 56 sections on seven leases where we have working
interest ranging from 90% to 100%.
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
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 seventy-five
wells that penetrated and partially delineated the heart
of the Bluesky Formation heavy oil reservoir.