Deep Well Oil & Gas, Inc.
PINK SHEETS : DWOG

Deep Well Oil & Gas, Inc.

January 23, 2006 08:30 ET

Deep Well Oil & Gas, Inc.: Three Additional Wells Expected to be Completed Before End of Second Quarter 2006

EDMONTON, ALBERTA--(CCNMatthews - Jan. 23, 2006) - Deep Well Oil & Gas, Inc. ("Deep Well") (PINK SHEETS:DWOG) is pleased to announce that, Signet Energy, our working interest partner expects to complete 3 additional wells before the end of the second quarter of 2006. The operations on the first well are still ongoing and news will be released by Signet as it becomes available.

The Reservoir, in the early Cretaceous Bluesky Formation, has pay zones from 10 meters to more than 35 meters thick with a porosity of 30% and a hydrocarbon saturation of up to 70%. The average net oil sands producing zone thickness is 14 meters with an oil quality of 9 to 14 degrees API. It is expected that at least 10% of the estimated 819,000,000 barrels of original oil in place can be produced by conventional methods due to the porosity and permeability of the reservoir, which has a favourable temperature of 18 degrees. A strong acquifer will assist with pressure maintenance.

The Sawn Lake Project is located in the Peace River Oil Sands Area. Other operators in the area, which are within a 60 mile radius, are Shell; which has produced 8,000 barrels of oil per day and Black Rock's which produced 10,000 barrels per day.

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, subject to a farmout agreement, in 63 contiguous sections of oil sands leases and 6.5 sections of oil sands permits in the Sawn Lake heavy oil area in North Central Alberta. After Signet Energy drills 10 wells at no cost to Deep Well, they will fully earns their interest in the project. Deep Well will then directly hold 40% of the project. In addition, Deep Well owns approximately 29.5% of our Signet's common shares. A previously published independent engineering report estimated that, there are 819.5 million original barrels of oil in place.

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. The Company's business is subject to various risks, which are discussed in the Company's filings with the Securities and Exchange Commission ("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. (PINK SHEETS:DWOG - News)

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