EDMONTON, ALBERTA - (Marketwire - Jan 19, 2012) Deep Well Oil
& Gas, Inc. (and its subsidiaries - "Deep Well" or
"Company") (OTCQB Marketplace: DWOG) is pleased to
announce that the independent engineering firm of DeGolyer
and MacNaughton Canada Limited (D&M) has completed its
reservoir modeling for a proposed pilot project on the Sawn
Lake lands where Deep Well has a 80 per cent working
interest. The D&M reservoir study follows D&M's economic
forecast for early development in Deep Well's Sawn Lake
property, wherein the data indicated the pilot project would
yield commercial viable extraction of the heavy oil in place.
The D&M reservoir report outlines the steps taken by D&M to
model Horizontal Cyclic Steam Stimulation (HCSS) in the
Bluesky bitumen reservoir in land interests owned by Deep
Well to assess the potential oil production response using
steam injection.
In a letter to Deep Well and its subsidiary Northern Alberta
Oil Ltd. ("Northern") dated January 16,
2012, Mr. Colin P. Outtrim P. Eng., President of D&M,
concludes: "While many uncertainties remain, our initial
modeling suggests the area is a promising candidate for
thermal development. As modeled, the project is economically
viable. We advise Northern to proceed with plans to further
investigate and develop the area."
According to D&M a $50 million US initial investment in the
pilot wells and plant is forecast to yield gross revenue of
more than $800 million over the 19-year production life of
the pilot wells. The full pilot project expansion is forecast
to require 16 wells drilled over 14 years.
The three-dimensional static reservoir models were
constructed with Schlumberger's Petrel geological modeling
tool; then imported into the Steam, Thermal, and Advanced
Processes Reservoir Simulator (STARS) produced by Computer
Modeling Group Ltd. (CMG). It was in these models that
dynamic thermal modeling was performed on the Bluesky
reservoir.
To take advantage of dissolved natural gas in the reservoir
oil the models used relatively high production pressure. The
higher pressure caused the solution gas to remain dissolved
in the oil longer, reducing viscosity. This helped increase
the production rates and lower the steam oil ratio in the
model.
The higher production pressures also prevented formation
bottom water from being produced with the oil, despite its
significant presence in the reservoir.
Deep Well is currently developing a Pilot Project Production
Plan based on D&M's reservoir simulation, and economic
forecasts. Deep Well accepts, and concurs with, D&M's
recommendation for horizontal application of HCSS (with a
single horizontal injector and producer well) followed by a
line-drive steam flood.
In keeping with the D&M forecasts, Deep Well is pursuing
options for capitalization of the pilot project.
Details of how these pilot wells will lead to initial
commercial production will be set out in a production
plan.
Deep Well is fully committed to best practices in
Environmental Stewardship to assure sustainable development
of its in-situ heavy oil holdings.
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 56 contiguous sections of oil
sands leases, 40% working interest in an additional 12
sections of oil sands leases in the Sawn Lake heavy oil area
in North Central Alberta. The leases cover 43,015 gross
acres.
This press release contains forward-looking statements. The
words or phrases "would be," "will
allow," "intends to," "will likely
result," "are expected to," "will
continue," "is anticipated,"
"estimate," "project," or similar
expressions are intended to identify "forward-looking
statements." Actual results could differ materially from
those projected in the Company's proposed oil and gas
related business and described in this press release. The
Company's business and the realization of the results
contemplated by this press release are subject to various
risks, which are discussed in the Company's filings with
the SEC. The Company's filings may be accessed at the
SEC's Edgar system at www.sec.gov. Statements made
herein are as of the date of this press release and should
not be relied upon as of any subsequent date. The Company
cautions readers not to place reliance on such statements.
Unless otherwise required by applicable law, we do not
undertake, and we specifically disclaim any obligation, to
update any forward- looking statements to reflect
occurrences, developments, unanticipated events or
circumstances after the date of such a statement.
Deep Well Oil & Gas, Inc. (OTCQB Marketplace: DWOG - News)
Contact: Deep Well Oil & Gas, Inc. Investor Relations
1 888 - OILSAND (1-888-645-7263) www.deepwelloil.com
distribué par | Ce noodl a été diffusé par Deep Well Oil & Gas Inc. et initialement mise en ligne sur le site http://www.deepwelloil.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-26 18:48:09 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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Press Release - Reservoir Modeling by Degolyer and MacNaughton - January 26, 2012 |