Three wells were drilled on the oil sands permit lease to provide technical data to support the required regulation set out by the Department of Energy to convert the aforementioned five sections of our oil sands permit.
In addition, three wells were drilled further north. These wells continued the delineation of the main reservoir trend and confirmed the main reservoir continues towards the northern limits of our leases.
Deep Well Oil & Gas is calculating many options for production, now available to it, to decide the best course of action. Drilling on 80% owned lands has opened new avenues for testing and further development of the Sawn Lake project. On the 12 sections of jointly held lands, which Deep Well Oil & Gas does not operate, Deep Well Oil & Gas is also exploring different plans of action with the operator.
On March 18, 2008 the Department of Energy approved the request to extend the term of our oil sands permit for one year to April 9, 2009. On May 5, 2009 the company were informed by the Alberta Department of Energy that they had permitted the company’s application to convert 5 sections of our oil sands permit to a 15-year primary lease. By drilling on these lands, where the permits were set to expire, Deep Well Oil & Gas has not only preserved title to 5 sections but now has a primary lease which is now valid for an additional 15 years.
In the near term Deep Well Oil & Gas also expects to commence an environmental assessment for further development of the Sawn Lake project.
