Deep Well Oil & Gas, Inc. announce preliminary results of the Sawn Lake Steam Assisted Gravity Drainage (SAGD) Demonstration Project.

For Phase 1 of the SAGD demonstration project, one SAGD well pair was drilled in the fourth quarter of 2013 to a depth of 650 meters and a horizontal length of 780 meters. After the construction of the SAGD facility for steam generation, water handling and oil treating was completed in 2014, steam injection commenced on May 21st, 2014.

Bitumen production commenced on September 16th, 2014. Results to date indicate that the SAGD production process works in this Bluesky formation reservoir. Bitumen sales averaged 221 barrels of bitumen per day, half way through the 3rd thirty day period since the start-up of the SAGD mode production. Over the next several months the SAGD well pair is expected to have increased steam injection and bitumen production as the steam chamber develops.

Tags: Deep Well Oil & Gas