**Exhibit      10.9**

**ASSUMPTION      OF LIABILITIES AND INDEMNITY AGREEMENT made as of February 28,      2005**

**DEEP      WELL OIL & GAS, INC.**
**NORTHERN      ALBERTA OIL LTD.**

**SURGE      GLOBAL ENERGY (CANADA), LTD., **

| 1. | Pursuant                to the Royalty Agreement (“Royalty Agreement”) dated December 12, 2003                between Mikwec Energy Canada Ltd. (now Northern Alberta Oil Ltd.                by name                change) and Nearshore Petroleum Corporation (“Nearshore”), Nearshore was                granted a 6.5% gross overriding royalty on petroleum and natural                gas                rights (including oil sands rights) in Townships 91 and 92, Ranges                12 and                13, W5M (the “GORR”); |
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| 2. | Deep                Well as farmor and Sure, as farmee entered into a Farmout Agreement                dated                February 25, 2005 (“Farmout Agreement”) pursuant to which Surge will have                the right to earn a 40% undivided interest in some of all the Farmout                Lands; |
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| 3. | The                Farmout Lands are encumbered by the                GORR; |
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| 4. | The                interests that are earned by Surge under the Farmout Agreement                (“**Earned                Interests**”)                will be encumbered by the GORR (which is not acceptable to Surge);                and |
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| 5. | In                order to induce Surge to enter into the Farmout Agreement and to                drill                wells thereunder, Deep Well has agreed to be responsible for and                to assume                the obligation to pay the GORR as it pertains to the Earned Interests,                and                the parties are entering into this Agreement to confirm those                arrangements. |
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| 1. | Capitalized                terms used in this Agreement but not defined herein shall have the                meanings given to those terms in the Farmout                Agreement. |
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| 2. | Deep                Well is solely responsible for and shall timely pay (at its sole                cost and                expense) the GORR and perform all other obligations of any kind or                nature                whatsoever arising under the Royalty Agreement, in each case as they                pertain to the Earned Interests. It is the intentions of the parties                that                Surge shall have no obligation or liability under any circumstances                whatsoever to pay the GORR, perform any obligation under the Royalty                Agreement or deal with any person(s) entitled to the GORR. Without                limiting the generality of the foregoing, if any owner of an interest                in                the GORR elects to take its royalty share of production in kind,                Deep Well                will provide that “in kind” production from is own production or from some                other source. |
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| 3. | Deep                Well shall indemnify and save harmless Surge and each of its Affiliates                and each of their respective directors, officers, employees, agents                and                representatives (collectively, the “**Indemnified                Persons**”)                from and against any and all claims and demands made by any person(s)                claiming to have an interest in or rights under the GORR or the Royalty                Agreement and for any and all direct costs, damages and expenses                whatsoever which any Indemnified Person may suffer, sustain, pay                or incur                in connection with any claim(s) by any person(s) in respect of the                GORR or                the Royalty Agreement (including, without limitation, Surge’s reasonable                legal costs on a solicitor and its own client                basis). |
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| 4. | Notwithstanding                that Surge has no obligations in respect of the GORR or the Royalty                Agreement, if a claim by any person in respect of any unpaid GORR                payment                might adversely affect any of the Earned Interests, then Surge shall                be                entitled, but not obligated, to make payment of the GORR, subject                always                to all rights to pursue indemnification from Deep Well hereunder,                at law,                in equity or otherwise and to set-off any amounts Surge pays in respect                of                the GORR against any amounts otherwise due and payable by Surge to                Deep                Well under the Farmout Agreement or, under an Existing JOA, except                for                such right-off, Surge shall not have any right, interest or benefit                in the                GORR or Royalty Agreement                whatsoever. |
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| 5. | Deep                Well Oil & Gas, Inc. and Northern Alberta Oil Ltd. shall be jointly                and severally liable for the obligations of Deep Well under this                Agreement. |
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| 6. | Deep                Well shall not assign this Agreement or any or all of its obligations                under this Agreement without the prior written consent of Surge,                which                consent may be arbitrarily withheld. Surge may assign this Agreement,                in                whole or in part, to any permitted assignee of any of the Earned                Interests. |
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| 7. | The                obligations of Deep Well under this Agreement are absolute and shall                not                be lessened or modified in any respect notwithstanding any circumstances                whatsoever including, without limitation, any past, present or future                changes in the ownership of the                GORR. |
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| 8. | (a) | No                waiver by Surge of any breach (whether actual or anticipated) of                any of                the covenants, provisions or conditions herein contained shall take                effect                or be binding upon Surge unless the same is expressed in writing                executed                by an officer of Surge. Any waiver so given shall extend only to                the                particular breach so waived and shall not Limit or affect any rights                with                respect to any other or future breach whether of a similar or dissimilar                nature. |
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|  | (b) | The                parties acknowledge and confirm that this Agreement was negotiated                and                prepared by the parties with the advice of their respective legal                counsel                to the extent deemed necessary by each of the parties, and was not                prepared by one party to the exclusion of the other party and,                accordingly, should not be construed against either party by reason                of its                preparation, negotiation, or                drafting. |
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|  | (c) | If                any term of this Agreement is or becomes invalid, illegal or unenforceable                in any jurisdiction, such invalidity, illegality or unenforceability                shall                not affect the validity, legality or enforceability of any other                term of                this Agreement and such invalid, illegal or unenforceable term shall                be,                as to such jurisdiction, severable from this                Agreement. |
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|   | (d) | This                Agreement shall be conclusively deemed for all purposes whatsoever                to be                made under and for all purposes to be governed by and construed in                accordance with the laws of the Province of Alberta and of Canada                applicable therein and shall be treated in all respects as an Alberta                law                contract. Each party agrees that any action or proceedings with respect                to                this Agreement shall be brought in the courts of Alberta at                Calgary. |
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|   | (e) | A                derivative of a defined term shall have a corresponding meaning                herein. |
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|   | (f) | No                amendment or other variation of the provisions of this Agreement                shall be                binding on the parties or either of them unless it is evidenced in                writing                executed by an officer of that                party. |
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|   | (g) | Time                shall be of the essence hereof. |
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|   | (h) | Each                party shall, from time to time and at all times hereafter, do all                such                further acts and execute and deliver all such further documents as                may be                reasonably required by the other party in order to perform and carry                out                the terms and the intent of this                Agreement. |
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|  | (i) | This                Agreement may be executed in any number of separate counterparts                with the                same effect as if all parties had signed the same copy of this Agreement.                All counterparts shall be construed together and constitute one agreement.                Each party shall be entitled to rely on the delivery of executed                facsimile                copies of counterpart execution pages of this Agreement and such                facsimile                copies shall be legally effective to create a valid and binding agreement                between the parties. |
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|  | (j) | This                Agreement shall enure to the benefit of and be binding upon the parties                hereto and their respective successors and permitted                assigns. |
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| **DEEP                WELL OIL & GAS, INC.** | **NORTHERN                ALBERTA OIL LTD.** |
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|                                             |                                         |
| Per:                                             | /s/                Steven Gawne              | Per: | /s/                Curtis Sparrow |
| Per:                                             | President                and CEO             | Per: | Director |

| **SURGE                GLOBAL ENERGY (CANADA), LTD.** |                             |
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|                                                  |                             |
| Per:                                                  | /s/                Fred W. Kelly |   |
| Per:                                                  | CEO                              |   |

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