The well is expected to be drilled to a vertical depth of around 650m with a horizontal leg of about 750m, which will target the Sawn Lake Bluesky reservoir zone.
The company had previously issued a notice of election to participate in the SAGD demonstration project, which is planned by its joint venture partner and operator of the SAGD project.
Deep Well’s 2013 phase includes the drilling of two horizontal wells, steam generation facility, water handling and oil treating, along with water source and disposal well facilities.
The steam operations are expected to begin in December 2013, while first oil production is anticipated in the first quarter of 2014.
Deep Well also signed a farmout agreement with MP West Canada SAS to fund its share of approved Alberta Energy Regulator SAGD project at Sawn Lake heavy oil reservoir in the Peace River oil sands region.
