Deep Well Oil & Gas, Inc. announced that it has served notice of election to participate in the SAGD Demonstration Project planned by Andora Energy Corporation, in Section 30-91-12W5 held by Andora (50%), MP West Canada (25%) and Deep Well (25%). The election is pursuant to a Demonstration Project Joint Operating Agreement dated July 30, 2013, reached between Andora and Deep Well's wholly-owned subsidiaries, Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd. The effect of this election is that Deep Well will participate in Andora's demonstration project to produce oil from Section 30 of the jointly-held lands, which geological studies show has one of the thickest pay zones of heavy oil in the Sawn Lake reservoir with the most easily-accessible potential for production to yield sustained commercially-viable quantities of heavy oil for a few decades. Deep Well's portion of expenses related to the Section 30 SAGD project, up to $40 million US, will be borne entirely by MP West Canada SAS, a wholly-owned subsidiary of Saint-Aubin Energy (owned 1/3 by Maurel et Prom and 2/3 by MPI, two listed companies based in Paris, France - "Maurel et Prom").

Under a previously announced farmout agreement, Maurel et Prom is spending up to $40 million US on the demonstration project, in return for a net 25% working interest in the 12 sections comprising the Deep Well-Andora joint lands. It is anticipated that drilling and then steaming will take place this fall. First oil production from Sawn Lake is anticipated in the first quarter of 2014.

Maurel et Prom and MPI are France's second and third largest oil and gas companies. They have proven experience as oil operators with a presence in Africa and Latin America. In 10 years, they have drilled more than 100 exploration wells and discovered major fields at minimum cost.

Currently working in 11 countries on 4 continents. The two companies' management is comprised exclusively of professionals with strong track records in the oil and gas industry. Deep Well and its Canadian subsidiaries, Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd., has, before the Farmout to Maurel et Prom, a 90% working interest in 51 contiguous square miles of oil sands leases, an 80% working interest in 5 contiguous square miles of oil sands leases and a 25% (post Farmout) working interest in 12 contiguous square miles in the Sawn Lake heavy oil area in North Central Alberta.

The leases cover 17,408 gross hectares (43,015 gross acres). This project is separate from Deep Well's earlier announced thermal recovery project, intended to extract heavy oil using Horizontal Cyclic Steam Stimulation (HCSS) on the north half of Section 10-92-13W5 where Deep Well has a 90% working interest.