Deep Well Oil & Gas, together with its 20% working
interest partner, Maxen Petroleum Inc, a privately held Canadian company,
successfully bid for three parcels of heavy oil sands leases in the Company's
Sawn Lake Project area. The thirty square mile (19,200 acres, 7,936 ha.) oil
sands lease acquisition, purchased from the Alberta Government in a blind
bidding process, effectively doubles the land holdings of the Company. The
parcels are located immediately adjacent to the existing thirty-two section
(20,480 acres, 8,192 ha.) oil sands lease holdings that the Company controls.
The strategic importance to the Company of acquiring these leases prior to the
initiation of operations cannot be overstated. Bidding for and successfully
acquiring oil sands leases in an increasingly competitive market once oil
production commences, will add significantly to Company costs.
The Sawn Lake Oil Sands are situated in and near an all weather accessible
region of north central Alberta with good proximity to roads, pipelines and