Deep Well successfully closed an equity investment of $ 5 million dollars at a price of U.S. $0.60, a full warrant at $0.90 with a term of three years and additional 1,000,000 warrants at U.S. $ 1.20 with a term of five years.
The funds will be utilized to execute Deep Well's plan of development for Sawn Lake. The first stage of the plan will be the delineation of the reservoir through the systemic use of seismic, drilling, testing, analysis, and engineering studies. The first stage delineation work will allow the execution of the next stages of the plan targeting production with greater efficiency.
Deep Well Oil & Gas, Inc. is a Nevada corporation based in Alberta Canada. Deep Well and its subsidiaries Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd. have an 80% working interest in 57 contiguous sections of oil sands leases and 6.5 sections of oil sands permits in the Sawn Lake heavy oil area in North Central Alberta. Deep Well has retained an additional 40% working interest in another 6 sections of which Signet Energy has earned 40% from Deep Well. The permits and leases cover 43,964 acres. In addition, Deep Well owns approximately 7,550,000 of Signet's common shares. A previously published independent engineering report estimated that, there are 819.5 million original barrels of oil in place.
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