DEEP WELL OIL & GAS, INC. Deep Well Oil & Gas, Inc. entered into a farmout agreement with MP West Canada SAS to fund the company share of the Alberta Energy Regulator approved SAGD Project at the company Sawn Lake heavy oil reservoir in the Peace River oil sands region of Northern Alberta. The MP West Canada SAS has informed the company that it plans to transfer its interests in the Farmout to MP Energy West Canada Corp. In accordance with this Farmout Agreement, the MP West Canada SAS has agreed to provide up to USD 40,000,000 in funding for the company portion of the costs for the Steam Assisted Gravity Drainage (‘SAGD') Project, in return for a net 25% working interest in 12 sections where Deep Well has a working interest of 50%.
The MP West Canada SAS has since paid CAD 12,073,513 to the operator of the SAGD Project for the Farmee's share and Deep Well's share of the initial costs of the SAGD Project.
