**Exhibit
      10.16**





**THIS
      AGREEMENT MADE AS OF THE 1st DAY OF JULY, 2005**




**BETWEEN:**





**NORTHERN
      ALBERTA OIL LTD.**


a
      body
      corporate


(hereinafter
      referred to as "the Company")





**OF
      THE FIRST PART**





-
      and
      -





**PORTWEST
      INVESTMENTS LTD.**


a
      body
      corporate


(hereinafter
      referred to as “the Consultant”)





**OF
      THE SECOND PART**





**CONSULTING
      AGREEMENT**





**WHEREAS** the
      Company is in the business of buying, selling, financing, developing or
      otherwise dealing with oil and gas properties





**AND
      WHEREAS** the
      Company has agreed to hire the Consultant to provide the services and expertise
      of DR. Horst A. Schmid (hereinafter referred to as “the Consultant’s
      Representative”) to manage and supervise all of the Company’s operations,
      projects or joint ventures as the case may be.





**AND
      WHEREAS** the
      Company considers the Consultant and the Consultant’s Representative to possess
      a unique background that consists of a special skills and expertise in a
      combination of areas; such as the oil and gas industry, governmental issues,
      regulatory, fundraising and the potential for international joint ventures
      related to the Company’s business.









**AND
      WHEREAS** the
      Company wishes to retain the aforementioned special and unique skills and
      expertise of the Consultant and the Consultant’s Representative on a continuing
      long term basis.





**AND
      WHEREAS** although
      the Consultant has been providing some services to the Company’s parent, Deep
      Well Oil & Gas (hereinafter referred to as “DWOG”), given the recent events
      with DWOG and that all parties wish to ensure the continued, undistracted
      services of the Consultant for years into the future.





**AND
      WHEREAS** the
      Company and DWOG recognize that a Change in Control (as hereinafter defined)
      may
      result in the departure or distraction of the Company's key management
      personnel, including the Consultant, to the detriment of the Company and its
      shareholders;





**AND
      WHEREAS** the
      Board considers that it is imperative and in the best interests of the Company
      and its shareholders that notwithstanding any Potential Change in Control (as
      hereinafter defined), the Company be able to rely on the Consultant to continue
      in its position;





**AND
      WHEREAS** to
      induce the Consultant to remain under contract to the Company and to assure
      the
      Company of the continued attention and services of the Consultant
      notwithstanding any Potential Change in Control, the parties hereto have
      determined to enter into this Consulting Agreement;





**AND
      WHEREAS** it is
      recognized by all parties that the more completely and longer that the Company
      dominates the Consultant’s available time and resources, to the detriment of
      other past, present, and prospective clients, projects and activities of the
      Consultant, that it becomes increasingly more difficult for the Consultant
      to
      retain the level of service to its past and present clients and continue
      marketing activities to develop new clients, therefore the Consultant’s present
      and future business prospects will suffer as a result of entering into this
      Agreement.





**NOW
      THEREFORE** ,
      in
      consideration of the mutual covenants contained herein, the Parties agree as
      follows:




|**1** | **EFFECTIVE
              DATE**
|----- | --------------------------------




Effective
      July 1, 2005, the Consultant shall continue to provide the services as in the
      past and as set out below and the Consultant’s Representative shall continue to
      assume the responsibilities of; Advisor to, Agent for and Project Manager on
      behalf of the Company with respect to each and every project undertaken by
      the
      Company until termination of this Agreement in accordance with the terms herein.
      In addition, the Consultant and the Consultant’s Representative will be asked to
      perform duties for Deep Well Oil & Gas, Inc. who, as of June 7, 2005,
      acquired all of the common shares of the Company. It is acknowledged that this
      is an expansion of the services supplied to Deep Well Oil & Gas, Inc. since
      January.









|**2** | **TERMS
              OF CONTRACT**
|----- | -----------------------------------




This
      Agreement shall remain effective and the Consultant’s Representative shall
      continue to provide his expertise and service as Advisor, Agent and Project
      Manager for the Company in regards to all matters undertaken on behalf of the
      Company until terminated in accordance with the terms herein.





|**3** | **FEES**
|----- | --------






|3.1 | The
              Company will pay fees to the Consultant in the sum of ONE HUNDRED AND
              FIFTY THOUSAND ($150,000.00) DOLLARS per annum in Canadian currency
              (the
              “Fee”) by equal monthly installments of TWELVE THOUSAND FIVE HUNDRED
              ($12,500.00) DOLLARS (the “Monthly Fee”) each commencing on the last day
              of July, 2005 and continuing thereafter on the last day of each month
              up
              to and including the last day of June, 2006, or until this Agreement
              is
              otherwise terminated in accordance with the terms set out herein. These
              Fees do not include any fees or remuneration that the Consultant or
              the
              Consultant’s Representative receive for acting as a director of Deep Well
              Oil & Gas, Inc.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|3.2 | the
              Company (directly or through DWOG) will grant the Consultant the same
              participation in all benefits or incentive programs, options, incentive
              options, bonuses, deferred remuneration programs as it offers its most
              favoured remunerated senior employee, consultant or
              contractor.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------






|**4** | **EXPENSES**
|----- | ------------




The
      Company shall reimburse the Consultant, at cost, for all third party, travel,
      long distance, cellular, meal, meeting, rental, equipment and office expenses
      incurred on behalf of the Company. Mileage will be charged at $0.50 per
      kilometer escalating in accordance with the Canadian Revenue Agency
      guidelines.








|**5** | **TERM**
|----- | --------




The
      term
      of this Agreement shall be for two (2) year commencing July 1, 2005, and shall
      continue until June 30, 2007. At the end of the term herein, the contract shall
      automatically renew for an additional six (6) month interval and thereafter
      on
      perpetual six (6) month intervals until such time as it may be terminated by
      either party by way of a written notice delivered to the other party. Such
      Notice shall be delivered to the other party at least three (3) months (“Notice
      Period”) prior to the date of termination, and this agreement shall remain in
      place and enforceable until the end of the Notice Period.









|**6** | **INDEPENDENT
              CONTRACTOR**
|----- | ----------------------------------------




The
      Consultant shall perform the services as an independent contractor. Nothing
      contained in this Agreement shall be deemed to create any association,
      partnership, joint venture, or relationship of principal and agent or employer
      and employee between the parties hereto or to provide either party with the
      right, power or authority, whether express or implied, to create any such duty
      or obligation on behalf of the other party. The Consultant also agrees that
      it
      will not hold itself out as an affiliate of or partner, joint venturer,
      co-principal or co-employer with the Company, by reason of the Agreement and
      that the Consultant will not knowingly permit any of its employees, agents
      or
      representatives to hold themselves out as, or claim to be employees of the
      Company by reason of the Agreement.





|**7** | **TERMINATION**
|----- | ---------------




This
      Agreement will terminate and cease only upon:




|7.1 | receipt
              of written notice as set out in Section 5 herein,
              or
|--- | ----------------------------------------------------------------------------------------



|7.2 | upon
              the death of the Consultant’s Representative,
              or
|--- | ---------------------------------------------------------------------------------



|7.3 | if
              the Consultant’s Representative becomes physically or mentally disabled to
              the extent that he can no longer carry out his duties as set forth
              in this
              Agreement.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|**8** | **TERMINATION
              AFTER POTENTIAL OR REAL CHANGE IN
              CONTROL**
|----- | -------------------------------------------------------------------------------------



|8.1 | For
              the purposes of this section, the following terms have the meanings
              indicated:
|--- | --------------------------------------------------------------------------------------------------------------



|8.1.1 | "Voting
              Shares" means any shares of capital stock of the Company or DWOG entitled
              to vote generally in the election of directors of the Company or
              DWOG;
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








|8.1.2 | "Person"
              includes any individual, firm, partnership, trust, trustee, executor,
              administrator, legal personal representative, government, governmental
              body or authority, corporation or other incorporated or unincorporated
              organization;
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.3 | "Change
              in Control" means the occurrence at any time after the date of this
              Agreement of any change in the holding, direct or indirect, of Voting
              Shares as a result of which a Person, or group of Persons, or Persons
              acting jointly or in concert, together with any associate or affiliate
              of
              any such Person or Persons, are in a position to exercise effective
              control of the Company and for the purposes of this Agreement a Person,
              or
              group of Persons, or Persons acting jointly or in concert, together
              with
              any associate or affiliate of any such Person or Persons, shall be
              deemed
              to be in a position to exercise effective control of the Company or
              DWOG
              if;
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.3.1 | any
              Person, or group of Persons, or Persons acting jointly or in concert,
              together with any associate or affiliate of any such Person or Persons,
              (other than a trustee or other fiduciary holding securities under an
              employee benefit plan of the Company or DWOG), is or becomes the
              beneficial owner, directly or indirectly, of any Voting Shares or other
              securities of DWOG. which directly or following conversion thereof
              would
              entitle the holder thereof to cast more than 15% of the votes outstanding
              which could be cast in an election of directors of
              DWOG;
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.3.2 | pursuant
              to a single election or appointment or a series of elections or
              appointments over any period of 24 months from June 7, 2005 and after
              the
              date of this Agreement, those individuals who at the beginning of such
              period constituted the Boards of the Company and DWOG, together with
              any
              new or additional director or directors whose election or appointment
              to
              the Boards of the Company or DWOG has been approved by those of such
              individuals then remaining as directors from the original Boards, become
              for any reason (other than the death, disability or retirement of those
              individuals, or any of them,) to constitute a minority of the Board
              of the
              Company or DWOG;
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.3.3 | the
              Board of DWOG by resolution duly adopted by the affirmative vote of
              a
              majority of the votes cast by the entire Board of DWOG, determines
              that
              for purposes of this Agreement a change in control of DWOG has occurred;
              or
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








|8.1.3.4 | the
              Company or DWOG disposes of a majority of the capital stock of the
              Company
              or DWOG which is entitled to vote generally in the election of directors
              of the Company or DWOG, as the case may be, or of all or substantially
              all
              of the business and assets of the Company or DWOG to any Person other
              than
              a Person who is deemed to be an affiliate of the Company or
              DWOG;
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.4 | "Potential
              Change in Control" means the occurrence at any date hereafter of any
              one
              of the following events:
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.4.1 | any
              Person publicly announces an intention to take actions which, if carried
              out, would constitute a Change in
              Control;
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.4.2 | the
              Company or DWOG enters into an agreement or proposes to take action
              which,
              if carried out, would result in the occurrence of a Change in
              Control;
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.4.3 | any
              Person, or group of Persons, or Persons acting jointly or in concert,
              together with any associate or affiliate of any such Person or Persons,
              acquires a holding, direct or indirect, of Voting Shares and/or other
              securities in excess of the number which, directly or following conversion
              thereof, would entitle the holders thereof to cast 15% of the votes
              attaching to all Voting Shares; or
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.4.4 | the
              Board of the Company or the Board of DWOG, by resolution duly adopted
              by
              the affirmative vote of a majority of the votes cast by the entire
              board
              of the Company or DWOG, determines that for purposes of this Agreement
              a
              Potential Change in Control has occurred.
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.5 | "Involuntary
              Termination" means any one of the following events if such event occurs
              within 24 months after a Change in
              Control:
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.5.1 | any
              actual or express termination by the Company or DWOG of this Agreement
              following any Change in Control which is not due to the death of the
              Consultant’s Representative or a condition of total and continuing
              disability which renders the Consultant’s Representative incapable of
              performing his essential job duties as set out in this Section 7.3
              of this
              Agreement;
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.5.2 | any
              change in the Consultant's or Consultant’s Representative’s title,
              reporting relationship, responsibilities or authority as in effect
              immediately prior to any Change in Control which adversely affects
              to a
              material degree his role in the management of the Company or
              DWOG;
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








|8.1.5.3 | any
              reduction in the Consultant’s Fees paid by the Company as in effect
              immediately prior to any Change in Control or, if such Fees has been
              subsequently increased at any time or from time to time, any reduction
              in
              such increased Fees;
|------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.1.5.4 | a
              failure or refusal of the Company to renew this Agreement after any
              Change
              in Control shall have occurred;
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------



|8.2 | Upon
              the occurrence of a Change in Control or a Potential Change in Control
              the
              Consultant shall have the right, exercisable by notice to the Company
              within three months from the date on which the Change in Control or
              Potential Change in Control occurs, to terminate this Agreement. The
              expiry of the Consultant's rights under his Section 8.2 with respect
              to
              any particular Change in Control or a Potential Change in Control will
              not
              prevent the Consultant from exercising such right of termination with
              respect to any subsequent occurrence of a Change in Control or a Potential
              Change in Control.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.3 | Upon
              the occurrence of an Involuntary Termination the Consultant shall have
              the
              right, exercisable by notice to the Company within three months from
              the
              date on which the Involuntary Termination occurs, to terminate this
              Agreement. If the Consultant does not terminate this Agreement with
              in
              such period, his right to terminate the Agreement under this Section
              8.3
              with respect to such Involuntary Termination shall expire but this
              Agreement will otherwise continue in full force and effect. The expiry
              of
              the Consultant's rights under his Section 8.3 with respect to any
              particular Involuntary Termination will not prevent the Consultant
              from
              exercising such right of termination with respect to any subsequent
              occurrence of an Involuntary Termination.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.4 | If
              the Consultantterminates
              this Agreement pursuant to Section 8.2 or 8.3, the Consultant shall,
              at
              the request of the Company, continue its services with the Company
              for a
              period up to one month following such termination at its then existing
              Fee
              level to assist the Company in an orderly transition of management.
              The
              amount paid to the Consultant under this Section 8.4 will not reduce
              the
              amount payable under Section 8.5
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.5 | If
              the Consultant terminates this Agreement pursuant to Section 8.2 or
              8.3,
              the Company shall, within 10 days of notice to the
              Company:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








|8.5.1 | pay
              to the Consultant all outstanding amounts for past Fees and
              expenses;
|----- | -----------------------------------------------------------------------------------------------------



|8.5.2 | an
              amount equal to the amounts remaining under the Term set out in Section
              5
              at the rates set out in Section 3.1, and
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.5.3 | an
              additional amount equaling :
|----- | ---------------------------------------------



[12
      + YE]
      * [CMF ]




Where:




CMF
      = the
      Consultant's Monthly Fee at the time of the termination, or the Fees at the
      time
      of a Change in Control, if higher.




YE
      = the
      number of full years (each year being a period of 12 months) since February
      6,
      2004




If
      [12 +
      YE] exceeds 24, it shall be deemed to equal 24.




|8.6 | If,
              in relation to Termination because of a Change in Control, a Potential
              Change in Control or an Involuntary Termination, a dispute arises
              regarding:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8.6.1 | whether
              or not an Involuntary Termination has
              occurred;
|----- | -----------------------------------------------------------------------------------



|8.6.2 | the
              validity, interpretation or enforcement of this Agreement;
              or
|----- | ---------------------------------------------------------------------------------------------



|8.6.3 | the
              right of the Consultant to receive any remuneration or payments referred
              to in this Agreement:
|----- | ------------------------------------------------------------------------------------------------------------------------------



the
      Company shall, from time to time, on demand by the Consultant, pay all
      reasonable legal fees and expenses incurred by the Consultant, acting reasonably
      and in good faith, in contesting or disputing the Company's position or seeking
      to obtain, enforce or retain any right, benefit or payment provided for in
      this
      Agreement;




|8.7 | The
              Company shall use its best efforts to require any successor, whether
              direct or indirect to all or substantially all of the business and/or
              assets of the Company or DWOG to expressly agree to assume and to perform
              this Agreement in the same manner that the Company would have been
              required to perform it if no such succession had occurred. If the Company
              fails to obtain such Agreement prior to the effective date of such
              succession, the Consultant shall be entitled to terminate this Agreement
              and receive the payments and benefits outlined in Section 8.3 as if
              the
              Consultant had terminated this Agreement upon an Involuntary
              Termination.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








|8.8 | The
              parties confirm that the provisions of this Article 8 are reasonable
              and
              that the total amounts payable as outlined herein are reasonable estimates
              of the damages which will be suffered by the Consultant in the event
              of a
              Change in Control, Potential Change in Control or an Involuntary
              Termination and shall not be construed as a penalty and shall not be
              reduced if the Consultant shall secure, or shall not pursue, alternative
              consulting engagements following the termination of this Agreement
              under
              this Article 8.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|**9** | **CONSULTANT’S
              DUTIES**
|----- | -------------------------------------




The
      Consultant covenants and agrees that it will provide the services of the
      Consultant’s Representative on a non-exclusive basis that will:




|9.1 | serve
              the needs of the Company as an Advisor, Agent, and Project Manager
              of the
              Company’s business.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------



|9.2 | serve
              the needs of DWOG for Chief Executive Officer and
              President.
|--- | ----------------------------------------------------------------------------------------------



|**10** | **NOTICE**
|------ | ----------




Notices
      served in accordance with the provisions of the Agreement shall be in writing
      and served in person to the other party or mailed postage prepaid:





To
      the
      Company:





Suite
      510, Royal Bank Building,


10117
      Jasper Avenue


Edmonton,
      Alberta


T5J
      1W8





To
      the
      Consultant:





Portwest
      Investments Ltd.


c/o
      PO
      Box 1651


Edmonton,
      AB T6J 2N9


Attention:
      Dr. Horst A. Schmid











|**11** | **INDEMNITY**
|------ | -------------




The
      Company and DWOG shall continue the existing indemnity for the Consultant and
      the Consultant’s Representative in the form as attached as Schedule
“A”.





|**12** | **COMPLETE
              AGREEMENT**
|------ | ------------------------------------




This
      Agreement expresses the final Agreement between the Consultant and the Company
      with respect to all matters herein and no representations, inducements, promises
      or agreements or otherwise between the parties not embodied herein shall be
      of
      any force and effect. This Agreement shall not be altered, amended or qualified
      except by a memorandum in writing, signed by both the Consultant and the
      Company, and any alteration, amendment or qualification thereof shall be null
      and void and shall not be binding upon any such party unless made and recorded
      as aforesaid.





|**13** | **RETURN
              OF PROPERTY**
|------ | ------------------------------------




Upon
      any
      termination of this Agreement the Consultant shall at once deliver or cause
      to
      be delivered to the Company all books, documents effects, money, securities
      or
      other property belonging to the Company or for which the Company is liable
      to
      others, which are in the possession, charge, control or custody of the
      Consultant and the Company and DWOG shall at once deliver or cause to be
      delivered to the Consultant all books, documents effects, money, securities
      or
      other property belonging to the Consultant or for which the Consultant is liable
      to others, which are in the possession, charge, control or custody of the
      Company or DWOG. Recognizing that both Parties many have an interest in certain
      notes, papers and documents, then a copy shall be provided to the other
      Party.





|**14** | **ENUREMENT**
|------ | -------------




This
      Agreement shall enure to the benefit of and be binding upon the permitted
      successors and assigns of the parties hereto.





|**15** | **GOVERNING
              LAW**
|------ | -------------------------------




This
      Agreement shall be construed and enforced in accordance with, and the rights
      of
      the parties shall be governed by, the laws of Alberta.





|**16** | **CONSTRUCTION**
|------ | ----------------




In
      this
      Agreement, except as otherwise expressly provided, all words and personal
      pronouns relating thereto shall be read and construed as the number and gender
      of the party or parties referred to in each case require and the verb shall
      be
      read and construed as agreeing with the required word and pronoun.









|**17** | **HEADINGS**
|------ | ------------




The
      division of this Agreement into paragraphs and the use of headings is for
      convenience of reference only and shall not modify or affect the interpretation
      or construction of this Agreement or any of its provisions.





|**18** | **TAXES**
|------ | ---------




The
      Consultant hereby warrants to the Company that it is, or will be, registered
      for
      GST and that its GST number will be on all invoices.




**IN
      WITNESS WHEREOF** the
      Parties hereto have properly executed this Agreement as of the effective date
      first above written.




**NORTHERN
      ALBERTA OIL LTD.**




**Per:** **/s/
      Moses Ling**




**PORTWEST
      INVESTMENTS LTD.**




**Per:** **/s/
      Horst A. Schmid**




**Acknowledged
      to by;**





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




**Per:** **/s/
      Curtis Sparrow**