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The
early focus of the Company's drilling program is to
define the heavy oil reservoir one section at a time and
attempt to initiate production from each drilled
location as soon as is practical in order to generate an
early positive cash flow.
Deep Well Oil & Gas,
Inc. through its wholly owned subsidiaries Northern
Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta)
Ltd. has a 100% working interest in 15 sections of
petroleum and natural gas licences (“P&NG”) in
the Peace River area of Alberta, Canada, an 80% working
interest in 56 contiguous sections of oil sands
development leases, and a 40% working interest in an
additional 12 contiguous sections of oil sands
development leases in the Peace River oil sands area of
Alberta, Canada. Our P&NG licences and oil sands
development leases cover 52,505
gross acres. Of the 68 oil sands leases we are the
operator of 56 sections, Andora Energy Corporation is
the operator of the other 12 sections where we have a
40% working interest.
Present
Activity
On
December 4, 2008, as operator, we successfully spudded
the first well of six wells to be drilled in our
2008/2009 winter drilling program. This well is located
at 12-14-092-13W5 in North Central Alberta and was
drilled to a vertical depth of 680 meters. The well was
logged, cased, and completed for bluesky heavy oil
production, with perforated intervals from 644.5m to
649.5m. We have recently submitted an application with
the Energy Resources Conservation Board for a commercial
bitumen recovery scheme to evaluate the 12-14-092-13W5
well for potential development using Cyclic Steam
Stimulation. Currently this application is pending.
On
December 15, 2008, as operator, we successfully spudded
the second well of our six well 2008/2009 winter
drilling program. This well is located at 9-16-092-13W5
in North Central Alberta and was drilled to a vertical
depth of 680 meters. The well was logged, cased, and
completed for bluesky heavy oil production, with
perforated intervals from 638.5m to 643.5m. This well is
currently being tested.
On
January 8, 2009, as operator, we successfully spudded
the third well of our six well 2008/2009 winter drilling
program. This well is located at 10-33-091-13W5 in North
Central Alberta and was drilled to a vertical depth of
708 meters. This well determined the southern edge of
the Bluesky reservoir of our Sawn Lake Project.
On
January 16, 2009, as operator, we successfully spudded
the fourth well of our six well 2008/2009 winter
drilling program. This well is located at 7-5-092-13W5
in North Central Alberta and was drilled to a vertical
depth of 718 meters. The well was logged and cased for
bluesky heavy oil production, and is pending further
evaluation and the development of an exploitation plan
with our joint interest partners.
On
January 25, 2009, as operator, we successfully spudded
the fifth well of our six well 2008/2009 winter drilling
program. This well is located at 8-4-092-13W5 in North
Central Alberta and was drilled to a vertical depth of
725 meters. The well was logged and cased for bluesky
heavy oil production, and is pending further evaluation
and the development of an exploitation plan with our
joint interest partners.
On
February 2, 2009, as operator, we successfully spudded
the sixth well of our six well 2008/2009 winter drilling
program. This well is located at 6-22-092-13W5 in North
Central Alberta and was drilled to a vertical depth of
660 meters. The well was logged and cased for bluesky
heavy oil production, and is pending further evaluation
and the development of an exploitation plan with our
joint interest partners.
Past
Activity
September 2005 -
Drilling of the first test well commenced, targeting the
Bluesky formation zone.
October 2005
- Review of coring and logging on the first vertical
test well completed. Began drilling the horizontal
portion of the first well.
November 2005
- The first well was drilled to a vertical depth of 672 meters followed by a horizontal leg of over
630 meters within the Bluesky oil sands zone.
January 2006
- The operator has initiated production testing of the
first well.
March 2006
- Production flow testing continues, operator confirms
that the well is now showing initial signs off oil flow
as expected.
October 2006
- Preliminary drilling results at Sawn Lake are
announced.
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