NEW YORK, July 12, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Ernest C. Schlotter, research analyst with Investrend Research Affiliate SISM Research, has announced that SISM will initiate coverage on Deep Well Oil and Gas Corp. (Pink Sheets:DWOG).
Deep Well, based in Calgary, Canada, has focused its operations on oil and gas explorations, and developments with special emphasis on heavy oil and gas exploration activities in Alberta, Canada.
On July 8, Schlotter attended a Deep Well press conference to announce its acquisition of Mikwec Energy Canada Ltd., an energy explorer and developer and the holder of an 80 percent working interest in 10,000 hectares in the proven Peace River heavy oil country of Alberta, with additional acreage under evaluation. Its Sawn Lake Oil Sands Project near Fort McMurray is poised for fast track development. It is estimated that 680 million barrels of oil and 475 BCF of gas can be recovered from this project.
The Mikwec board is chaired by Horst A. Schmidt, who has served 15 years as Cabinet Minister and 10 years as Commissioner General in Alberta.
Schlotter is encouraged regarding the outlook for Deep Well because of the potential of oil sands and the Sawn Lake Project. "Deep Well is a reporting company to the SEC and has submitted all requirements to NASD to become quoted on the OTC Bulletin Board, minimum requirements for SISM's two-year continuing research program."
Schlotter added: "Dependence on crude oil in North America is anticipated well into the middle of this century. The Sawn Lake Project is a world-class project with the advantage of immediate start up. Deep Well estimates 39 million barrels of Original Oil (OOIP) per section with a total of 1.500 million OOIP in place. NPV with a 10 percent discount is valued between $1.4 and $2 billion. With its experienced management team, Deep Well and Mikwec will increase shareholder value substantially." They intend to produce the first commercial oil from Sawn Lake in November 2004.
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 Financials OneAnalytics/FirstCall, to Multex, Datamonitor and Investrend. Both SISM Research and Investrend Research subscribe to the "Standards for Independent Research Providers."
Deep Well Oil & Gas Corp. paid SISM Research a retainer of $5,000, plus $1,750 per month over a two-year period solely to ensure independent coverage.