**Exhibit      10.26**

**DEEP      WELL OIL & GAS, INC.**

**NON-QUALIFIED      STOCK OPTION AGREEMENT**

| 1.                                                                                                                                                                                                                                                                                                                              | Amendment                to Existing Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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|                                                                                                                                                                                                                                                                                                                            | This                Agreement shall be in addition to the and amend it                accordingly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| 2.                                                                                                                                                                                                                                                                                                                              | Grant                of Option                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                                                            | The                Corporation hereby grants Optionee the option (the “Option”) to purchase                all or any part of an aggregate of 390,000 shares (the “Shares”) of Common                Stock of the Corporation at the exercise price of $0.71 per share                according to the terms and conditions set forth in this Agreement                and in                the Deep Well Oil & Gas, Inc. November 28, 2005 Stock Option Plan (the                “Plan”). The Option will not be treated as an incentive stock option                within the meaning of Section 422 of the Internal Revenue Code of                1986, as amended (the “Code”). The Option is issued under the Plan and is                subject to its terms and conditions. A copy of the Plan will be furnished                upon request of Optionee. |
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|                                                                                                                                                                                                                                                                                                                            | The                Option shall terminate at the close of business five years from the                date                hereof (the “Option Termination Date”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| 3.                                                                                                                                                                                                                                                                                                                              | Vesting                of Option Rights; Transferability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| (A)                                                                                                                                                                                                                                                                                                                             | This                Option shall be exercisable, in whole or in part, according to the                following vesting schedule:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                                                            | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 130,000                Shares on July 1, 2006, |
|                                                                                                                                                                                                                                                                                                                            | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 130,000                Shares on July 1, 2007, |
|                                                                                                                                                                                                                                                                                                                            | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 130,000                Shares on July 1, 2008, |
|                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| subject                to Optionee’s continuing to provide services to the Corporation or any                Subsidiary as an employee, director or consultant, as the case may                be,                provided that the Optionee continues to provide services on such                anniversary date.  |
|                                                                                                                                                                                                                                                                                                                            | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | During                the lifetime of the consulting contract with the Optionee, the Option                shall be exercisable only by Optionee and shall not be assignable                or                transferable by Optionee. |

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| 4.        | Exercise                of Option after Death or Termination of Services or                Employment                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|      | Except                as otherwise determined by the Board:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (A)       | In                the event that an Optionee ceases to provide services to the Corporation                as a result of termination for cause (as such term is defined in                clause                22.3 of the Consulting Agreement), each of the Options held by the                Optionee shall cease to be exercisable after the date of termination                of                services as a consultant.                                                                                                                          |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (B)       | In                the event that an Optionee ceases to provide services to the Corporation                for any reason other than termination for cause, any vested Option                held by                Optionee may continue to be exercised by the Optionee to and until                the                earlier of:                                                                                                                                                                                                                        |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|      | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | the                applicable expiration of the Option Period in respect of such Option;                and |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|      | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | the                period after the date on which Optionee ceases to provide services                to the                Corporation that is permitted by the applicable laws, policies, rules                and                regulations of any stock exchange upon which the Underlying Shares                are                then listed, posted and/or quoted for trading; |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (C)       | Notwithstanding                the above, in no case may the Option be exercised to any extent by                anyone                after the Option Termination Date.                                                                                                                                                                                                                                                                                                                                                                                  |
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| 5.        | Method                of Exercise of Option                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|      | Subject                to the foregoing, the Option may be exercised in whole or in part                from                time to time by serving written notice of exercise on the Corporation                at                its principal office within the Option period. The notice shall state                the                number of Shares as to which the Option is being exercised and shall                be                accompanied by payment of the exercise price. Payment of the exercise                price shall be made; |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (A)       | in                cash (including bank check, personal check or money order payable                to the                Corporation),                                                                                                                                                                                                                                                                                                                                                                                                                     |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (B)       | with                the approval of the Corporation (which may be given in its sole                discretion), by delivering to the Corporation for cancellation shares                of                the Corporation’s Common Stock already owned by Optionee having a Fair                Market Value (as defined in the Plan) equal to the full exercise                price of                the Shares being acquired,                                                                                                                   |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (C)       | with                the approval of the Corporation (which may be given in its sole                discretion), by electing to have the Corporation retain from the                number of                Shares to be issued to the Optionee upon the exercise of such Option                Shares having a Fair Market Value on the date of exercise equal to                the                aggregate exercise price payable upon exercise of such                Option;                                                                         |
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| (D)       | through                a special sale and remittance procedure pursuant to which Optionee                (or any                other person or persons permitted to exercise the option) shall                concurrently provide irrevocable instructions                                                                                                                                                                                                                                                                                               |
|      | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | to                a Corporation designated brokerage firm to effect the immediate sale                of                the purchased shares and remit to the Corporation, out of the sale                proceeds available on the settlement date, sufficient funds to cover                the                aggregate exercise price payable for the purchased shares plus all                applicable income and employment taxes required to be withheld by                the                Corporation by reason of such exercise and |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|      | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | to                the Corporation to deliver the certificates for the purchased shares                directly to such brokerage firm in order to complete the sale;                or |
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| (E)  | by              any combination of the methods of payment described              above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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| 6.     | Securities                Law Matters.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| (A)    | Restricted                Securities. The Optionee understands and acknowledges that neither the                Option nor the Shares have been registered under the United States                Securities Act of 1933, as amended (the “Securities Act”), that the Option                has been issued to it in reliance on an exemption from the registration                requirements of the Securities Act, and that the Option and the Shares                are, or will be, as applicable, “restricted securities” as defined in Rule                144 under the Securities Act.                                                                              |
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| (B)    | Accredited                Investor. The Optionee represents that it is an “accredited investor”                within the meaning of Rule 501(a) under the Securities                Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| (C)    | Restrictions                on Exercise. The Optionee understands and acknowledges that the Option                may be exercised only pursuant to an exemption from the registration                requirements of the Securities Act and applicable state securities                laws,                and that at the time of any proposed exercise, the Corporation may                require                an opinion of counsel or other evidence satisfactory to it to the                effect                that the Shares may be issued pursuant to such exercise without                registration under the Securities Act or applicable state securities                laws. |
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| (D)    | Resale                Restrictions. The Optionee understands and acknowledges that                notwithstanding anything to the contrary contained in this Agreement,                the                Option and the Shares may be offered, sold, pledged or otherwise                transferred only                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | to                the Corporation; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|   | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | outside                the United States in accordance with Rule 904 of Regulation S under                the                Securities Act and in compliance with applicable Canadian local laws                and                regulations; or |
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|   | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | within                the United States, in a transaction that does not require registration                under the Securities Act or any applicable state securities laws.                In                connection with any proposed sale, pledge or other transfer of the                Option                or the Shares, the Corporation may require an opinion of counsel                or other                evidence satisfactory to it to the effect that the proposed sale,                pledge                or other transfer may be effected without registration under the                Securities Act or applicable state securities laws. |
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| (E)    | Legend.                The Optionee understands and acknowledges that upon the original                issuance                of the Shares, as applicable, and until such time as the same is                no longer                required under applicable requirements of the Securities Act or state                securities laws, the certificates representing the Shares, and all                certificates issued in exchange therefor or in substitution thereof,                shall                bear a legend with respect to the transfer restrictions set forth                above.                                                                                       |

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| 7.     | Miscellaneous                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| (A)    | Plan                Provisions Control.                In the event that any provision of the Agreement conflicts with or                is                inconsistent in any respect with the terms of the Plan, the terms                of the                Plan shall control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| (B)    | No                Rights of Stockholders.                Neither Optionee, Optionee’s legal representative nor a permissible                assignee of this Option shall have any of the rights and privileges                of a                stockholder of the Corporation with respect to the Shares, unless                and                until such Shares have been issued in the name of Optionee, Optionee’s                legal representative or permissible assignee, as                applicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| (C)    | No                Right to Employment.                The grant of the Option shall not be construed as giving Optionee                the                right to be retained in the employ of, or as giving a director of                the                Corporation or a Subsidiary (as defined in the Plan) the right to                continue                as a director of the Corporation or a Subsidiary, nor will it affect                in                any way the right of the Corporation or a Subsidiary to terminate                such                employment or position at any time, with or without cause. In addition,                the Corporation or Subsidiary may at any time dismiss Optionee from                employment, or terminate the term of a director of the Corporation                or a                Subsidiary, free from any liability or any claim under the Plan or                the                Agreement. Nothing in the Agreement shall confer on any person any                legal                or equitable right against the Corporation or any Subsidiary, directly                or                indirectly, or give rise to any cause of action at law or in equity                against the Corporation or a Subsidiary. The Option granted hereunder                shall not form any part of the wages or salary of Optionee for purposes                of                severance pay or termination indemnities, irrespective of the reason                for                termination of employment. Under no circumstances shall any person                ceasing                to be an employee of the Corporation or any Subsidiary be entitled                to any                compensation for any loss of any right or benefit under the Agreement                or                Plan which such optionee might otherwise have enjoyed but for termination                of employment, whether such compensation is claimed by way of damages                for                wrongful or unfair dismissal, breach of contract or otherwise. By                participating in the Plan, Optionee shall be deemed to have accepted                all                the conditions of the Plan and the Agreement and the terms and conditions                of any rules and regulations adopted by the Committee and shall be                fully                bound thereby. |
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| (D)    | Governing                Law.                The validity, construction and effect of the Plan and the Agreement,                and                any rules and regulations relating to the Plan and the Agreement,                shall be                determined in accordance with the internal laws, and not the law                of                conflicts, of the State of Nevada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| (E)    | Severability.                If any provision of the Agreement is or becomes or is deemed to be                invalid, illegal or unenforceable in any jurisdiction or would disqualify                the Agreement under any law deemed applicable by the Committee (as                defined                in the Plan), such provision shall be construed or deemed amended                to                conform to applicable laws, or if it cannot be so construed or deemed                amended without, in the determination of the Committee, materially                altering the purpose or intent of the Plan or the Agreement, such                provision shall be stricken as to such jurisdiction or the Agreement,                and                the remainder of the Agreement shall remain in full force and                effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| (F)    | No                Trust or Fund Created.                Neither the Plan nor the Agreement shall create or be construed to                create                a trust or separate fund of any kind or a fiduciary relationship                between                the Corporation or any Subsidiary and Optionee or any other                person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| (G)    | Headings.                Headings are given to the Sections and subsections of the Agreement                solely                as a convenience to facilitate reference. Such headings shall not                be                deemed in any way material or relevant to the construction or                interpretation of the Agreement or any provision                thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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| (H)    | Conditions                Precedent to Issuance of Shares;                Repurchase Rights. Shares shall not be issued pursuant to the exercise                of the Option unless such exercise and the issuance and delivery                of the                applicable Shares pursuant thereto shall comply with all relevant                provisions of law, including, without limitation, the Securities                Act of                1933, as amended, the Exchange Act of 1934, as amended, the rules                and                regulations promulgated thereunder, the requirements of any applicable                Stock Exchange or the Nasdaq National Market and the corporate laws                of the                state of Nevada. As a condition to the exercise of the purchase price                relating to the Option, the Corporation may require that the person                exercising or paying the purchase price represent and warrant that                the                Shares are being purchased only for investment and without any present                intention to sell or distribute such Shares if, in the opinion of                counsel                for the Corporation, such a representation and warranty is required                by                law. |
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| (I)    | Withholding.                In order to comply with all applicable federal, state or provincial                income                tax laws or regulations, the Corporation may take such action as                it deems                appropriate to assure that all applicable federal, state or provincial                payroll, withholding, income or other taxes are withheld or collected                from                Optionee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| (J)    | Adjustment                to Number of Shares and Exercise Price. Subject to approval if                necessary of any relevant stock exchange, the Board will adjust the                number                of Shares subject to an Option, and the exercise price per Share                payable                upon exercise of an Option, upon the occurrence of any stock dividend,                stock split, reverse stock split, combination of shares, reclassification                of shares, recapitalization or other similar corporate transaction                with                respect to the Shares. Notwithstanding the preceding sentence to                the                contrary, no such adjustment will be made upon the conversion of                any debt                instrument, share of preferred stock or other convertible security                of the                Corporation into Shares.                                                                                                                                                                                                                                                                                                                                                                                             |
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| (K)    | Review                of Plan. Optionee acknowledges receipt of a copy of the Plan and                represents that he or she is familiar with the terms and provisions                thereof, and hereby accepts this Option subject to all of the terms                and                provisions thereof. Optionee has reviewed the Plan and this Option                in                their entirety, has had an opportunity to obtain the advice of counsel                prior to executing this Option and fully understands all provisions                of the                Option. Optionee hereby agrees to accept as binding, conclusive and                final                all decisions or interpretations of the Board upon any questions                arising                under the Plan or this Option.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| (L)    | Change                of Address. Optionee further agrees to notify the Corporation upon any                change in the residence address indicated                below.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|         |                                                            |         |
|--------------|-----------------------------------------------------------------|--------------|
|         | **DEEP                WELL                OIL & GAS, INC.** |
|    |                                                       |    |
|         | By:                                                   |         |
|         | Name:                                                           |         |
|         | Title:                                                |         |
|         |                                                            |

|         |         |         |
|--------------|--------------|--------------|
|         | **OPTIONEE** |
|    |    |    |
|         | Name:        |         |
|         | Address:     |         |
|         |         |

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