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Deep Well provides SAGD project update

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Oilfield Technology,

Deep Well Oil & Gas Inc. has provided an update for the Steam Assisted Gravity Drainage (SAGD) oil sands project at Sawn Lake, Alberta, Canada.

DWOG holds a 25% working interest in the demonstration project. The demonstration project consists of one SAGD well pair drilled to a depth of 650 m and a horizontal length of 780 m and the SAGD facility for steam generation, water handling, and bitumen treating. Steam injection commenced 21 May 2014, production commenced 16 September 2014, and the steam chamber reached the top of the Bluesky sandstone formation in October 2015.

This project is a significant step towards establishing a commercially viable SAGD project at Sawn Lake and to demonstrate that the SAGD process works in the Bluesky reservoir. It is also providing an indication of the productivity of the reservoir and the amount of steam injection required to produce the bitumen, which are key components in assessing the potential for SAGD development at Sawn Lake.

The demonstration project commenced production in September 2014, and has successfully captured the key data associated with the objectives of the demonstration project. The demonstration project has:

  • Demonstrated that the SAGD process works in the Bluesky formation at Sawn Lake.
  • Established characteristics of ramp up through stabilisation of SAGD performance.
  • Indicated the productive capability and ISOR, of the reservoir.
  • Provided critical information required for well and facility design associated with future commercial development.

Production in 2016 at the Sawn Lake Demonstration Project has reached a steady state production level over the past six weeks of 600 bpd with an instantaneous steam-oil ratio (ISOR) of 2.2 from the one SAGD well pair.

Edited from press release by

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