NEW YORK, CALGARY, Alberta, and ZURICH, Aug. 9, 2004 (PRIMEZONE) -- (Investrend Research Syndicate) Ernest C. Schlotter, research analyst with Investrend Research affiliate SISM Research has initiated coverage of Deep Well Oil & Gas, Inc. (Pink Sheets:DWOG) with a "Strong Buy/5" rating and six month target of $3.
His report stated:
Deep Well Oil & Gas, Inc., is now in the pre-production stage and has recently acquired an 80% working interest through a stock based transaction in 32 contiguous sections (20,480 acres) in the Peace River Sawn Lake Oil Sands Project. The potential is 512 wells on this property with initial work on the field scheduled for Q4 2004. The company expects initial production from the first two wells by December 2004, with an initial daily production rate of 400 barrels from each well.
Deep Well Oil & Gas is a reporting company and is awaiting approval to trade on the OTCBB. Schlotter noted: "Stratigraphic test drills have already proven geological mapping of the Bluesky reservoir pool. More than 75 development wells have been drilled through the heavy oil pool, defining the pool and indicating more than 1,500 million barrels of oil in place. Also, all examples of oil sands projects completed in the Bluesky area are currently, or were previously capable of, primary production at economical rates when drilled horizontally." The analyst added: "The Company expects to produce more than 500 million barrels of oil over the next 25 years at the Sawn Lake Project.
"We believe that in today's environment, heavy oil is an excellent investment opportunity because there is essentially no exploration risk, an extremely (25-50 years) long reserve life, stable production rates and an attractive royalty regime." SISM Research believes that Deep Well Oil & Gas, Inc. could outperform the sector.
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SISM Research, based in Zurich, Switzerland, is a private investment research firm offering high-quality, independent research on public companies since 1995. SISM writes, publishes and distributes research coverage, in both English and German, on micro- to small-cap public companies trading on the OTC Bulletin Board, NASDAQ and AMEX. This coverage is geared toward institutional and individual investors in both North America and in German-speaking Europe, a market that represents more than 100 million people. SISM Research is a content provider to Thomson Financial OneAnalytics/FirstCall, to Multex, and InvesTrend. Both SISM Research and InvesTrend Research subscribe to the "Standards for Independent Research Providers." Deep Well Oil & Gas paid SISM Research a retainer of $5,000, plus $1,750 per month over a two-year period solely to ensure independent coverage.