**Exhibit
      10.23**








**FARMOUT
      ACKNOWLEDGEMENT AGREEMENT**





**WHEREAS** Deep
      Well Oil and Gas, Inc. (herein “Deep Well”), Northern Alberta Oil Ltd. (herein
“Northern”) (herein Deep Well and Northern collectively referred to as the
“Farmors”), Surge Global Energy, Inc. (“Surge U.S.”) and Surge Global Energy
      (Canada), Ltd. (the “Farmee”) have entered into a farmout agreement dated
      February 25, 2005, as amended effective November 1, 2005 (the “Farmout
      Agreement”) with respect to those leases and lands described in Schedule “A” to
      the Farmout Agreement (known as the Sawn Lake oil sands property);





**AND
      WHEREAS** the
      Farmee is currently negotiating a brokered private placement of secured
      convertible debentures (the “Debentures”) in the principal amount of up to
      $10,000,000 CAD (the “Private Placement”);





**AND
      WHEREAS** MGI
      Securities Ltd. (the “Agent”) will act as the Farmee’s exclusive agent in
      offering the Debentures to subscribers;





**AND
      WHEREAS** the
      Agent, as a condition of the Private Placement, requires the Farmors to confirm
      and validate the enforceability of the Farmout Agreement;





**NOW
      THEREFORE** in
      consideration for $10.00 paid by the Farmee to each of Surge U.S. and the
      Farmors and the promises, covenants and agreements contained herein, the
      validity and sufficiency of such consideration being hereby confirmed, the
      parties hereby agree as follows:





Deep
      Well, Northern, Surge U.S., the Farmee and Deep Well Oil & Gas (Alberta)
      Ltd. (“Deep Well Alberta”) confirm and agree that all of the terms, provisions,
      rights and obligations set out in the Farmout Agreement remain in full force
      and
      effect and the Farmee and Surge U.S. are in good standing and not in default
      under the agreement. In particular, Deep Well, Deep Well Alberta and Northern
      confirm, acknowledge and agree that Surge U.S. and the Farmee, as applicable,
      have complied with Section 3.1 (as amended by valid extension notices), Section
      13.1(a) and Section 14.1 of the Farmout Agreement and are not in default under
      any of those sections or any other provision of the Farmout Agreement. The
      parties to the Farmout Agreement agree that the “Test Well” (as defined in the
      Farmout Agreement) has been Spud in accordance with the Farmout Agreement,
      the
      Test Well was drilled to the Contract Depth and the Farmee has fully performed
      all its obligations and undertaking under the Farmout Agreement in respect
      of
      the Test Well and Article 3 whereby the Farmee did earn the working interest
      in
      the section of land on which the Test Well is situated as provided for in
      Section 3.2 of the Farmout Agreement, together with the Farmor’s Pre-Farmout
      Working Interest in 5 additional sections of the Farmout Lands provided they
      are
      selected by Farmee by January 31, 2006. Furthermore, Deep Well, Northern, Deep
      Well Alberta, Surge U.S. and the Farmee represent and warrant to the Agent
      that
      all of the conditions precedent set out in Section 2.1 of the Farmout Agreement
      have been completed. Deep Well, Northern, Deep Well Alberta, Surge U.S. and
      the
      Farmee acknowledge that the Agent is relying on the foregoing representations
      in
      completing the Private Placement. The Farmors acknowledge and confirm that
      the
      Farmee is entitled to rely on the foregoing and this Farmout Acknowledgement
      Agreement is in order to drill Option Wells under Articles 4 and 5 of the
      Farmout Agreement.









This
      Agreement may be executed in any number of separate counterparts with the same
      effect as if all Parties had signed the same copy of this Agreement. All
      counterparts shall be construed together and constitute one
      agreement.





The
      terms
      of this Acknowledgement Agreement are agreed to this 15th day of
      November, 2005.





**DEEP
                WELL OIL AND GAS, INC,**
            
            **SURGE
                GLOBAL ENERGY, INC.**Per:
            /s/
                Horst A. Schmid
            
            Per:
            /s/
                David PerezName:
                Horst A. Schmid
            
            
            Name:
                David PerezTitle:
                President and CEO
            
            
            Title:**NORTHERN
                ALBERTA OIL LTD.**
            
            **SURGE
                GLOBAL ENERGY (CANADA), LTD.**Per:
            /s/
                Curtis J. Sparrow
            
            Per:
            /s/
                Fred W. KellyName:
                Curtis J. Sparrow
            
            
            Name:
                Fred W. KellyTitle:
                President
            
            
            Title:**DEEP
                WELL OIL AND GAS (ALBERTA) LTD.**
            
            **MGI
                SECURITIES LTD.**Per:
            /s/
                Horst A. Schmid
            
            Per:
            /s/
                Tony P. LoriaName:
                Horst A. Schmid
            
            
            Name:Tony
                P. LoriaTitle:
                President and CEO
            
            
            Title: