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Deep
Well Oil & Gas, Inc. will attempt to produce the
Bluesky Formation sand with primary production
techniques at the Sawn Lake Heavy Oil Project. Nearby
examples of heavy oil projects completed in the Bluesky
Formation are currently or were capable of primary
production at economic rates when drilled horizontally
(Seal Field, Wabasca Field, Joussard Pool).
The
Company's preliminary Plan of Development calls for an
initial delineation production scheme utilizing large
diameter horizontal wells that are essential for a
successful program.
The
Company believes that significant solution gas reserves
are contained within lands controlled by the Company.
Production and marketing of this gas is planned to occur
simultaneously with oil production. An existing natural
gas sales pipeline is located on leases controlled by
the Company.
Existing
infrastructure is in place to accommodate the earliest
stages of production; however, additional capacity will
have to be added as the project grows.
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