Signet Preps Sawn Lake Well Sites for Drilling

Deep Well Oil & Gas, Inc. said that its joint venture partner and operator of the Sawn Lake heavy oil project, Signet Energy Inc., is in the process of preparing the next three well sites for drilling and has engaged an engineering company to develop a design basis memorandum for detailed engineering of the surface facilities.

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, subject to a farmout agreement, in 63 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. The permits and leases cover 43,964 acres. After Signet Energy drills 10 wells at no cost to Deep Well, they will fully earn their interest in the project. Deep Well will then directly hold 40% of the project. In addition, Deep Well owns 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.