Deep Well Oil & Gas, Inc. has raised $22 million USD in a private placement and signed a farmout agreement with a wholly owned subsidiary of Maurel et Prom to fund our share of the demonstration project at our Sawn Lake heavy oil reservoir in the Peace River oil sands region of Northern Alberta.

Deep Well has accepted a private placement from MP West Canada SAS, a wholly owned subsidiary of Maurel et Prom (Maurel et Prom), of $22 million US priced at 48.8 cents per share. Deep Well will issue 45.1 million shares to Maurel et Prom.

Further, Maurel et Prom has entered into a joint venture agreement with Deep Well agreeing to provide up to USD $40 million in funding for the various steps of the demonstration project, in return for a net 25 per cent working interest in 12 of the 68 sections where Deep Well has a working interest of 50 per cent. Maurel et Prom will also provide funding to cover operating expenses of Deep Well.

Tags: Deep Well Oil & Gas