**Exhibit      10.12**

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

**SURGE      GLOBAL ENERGY, INC.**

| **Re:** | **Farmout                Agreement dated February 25, 2005 between Deep Well Oil & Gas, Inc.                and Northern Alberta Oil Ltd., as Farmor, and Surge Global Energy                (Canada), Ltd. and Surge Global Energy, Inc., as Farmee (“Farmout                Agreement”)** |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Surge      Canada”) **

| SURGE                GLOBAL ENERGY (CANADA), LTD.                                                                                       |                              |
|-----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
| SURGE                GLOBAL ENERGY, INC.                                                                                                |                              |
|                                                                                                                                    |                              |   |
| Per:                                                                                                                                    | /s/                Fred Kelly     |   |
|                                                                                                                                    |                              |   |
|                                                                                                                                    |                              |   |
| All                of the foregoing is acknowledged, confirmed and agreed to this                10th                day of March, 2005 |
|                                                                                                                                    |                              |   |
| DEEP                WELL OIL & GAS, INC.                                                                                            |                              |
|                                                                                                                                    |                              |
| Per:                                                                                                                                    | /s/                Steven Gawne   |   |
|                                                                                                                                    |                              |   |
|                                                                                                                                    |                              |   |
| NORTHERN                ALBERTA OIL LTD.                                                                                                |                              |
|                                                                                                                                    |                              |   |
| Per:                                                                                                                                    | /s/                Curtis Sparrow |   |

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

**SURGE      GLOBAL ENERGY, INC.**

| **Re:** | **Farmout                Agreement dated February 25, 2005 between Deep Well Oil & Gas, Inc.                and Northern Alberta Oil Ltd., as Farmor, and Surge Global Energy                (Canada), Ltd. and Surge Global Energy, Inc., as Farmee (“Farmout                Agreement”)** |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | Surge                  Inc. is only a party to the Farmout Agreement for the purposes                  of Article                  14; |
|----|----------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Surge                Inc. has no rights or obligations under the Farmout Agreement except                for                those contained in Article 14; and |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | without                limiting the generality of the foregoing, Surge Inc. has no right                or                obligation to participate in any well or to earn any interest in                the                Farmout Lands under the Farmout                Agreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| SURGE                GLOBAL ENERGY (CANADA), LTD.                                                                                       |                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|
| SURGE                GLOBAL ENERGY, INC.                                                                                                |                                           |
|                                                                                                                                    |                                           |   |
| Per:                                                                                                                                    |                   /s/ Fred Kelly     |   |
|                                                                                                                                    |                                           |   |
|                                                                                                                                    |                                           |   |
| All                of the foregoing is acknowledged, confirmed and agreed to this                10th                day of March, 2005 |
|                                                                                                                                    |                                           |   |
| DEEP                WELL OIL & GAS, INC.                                                                                            |                                           |
|                                                                                                                                    |                                           |
| Per:                                                                                                                                    |                   /s/ Steven Gawne   |   |
|                                                                                                                                    |                                           |   |
|                                                                                                                                    |                                           |   |
| NORTHERN                ALBERTA OIL LTD.                                                                                                |                                           |
|                                                                                                                                    |                                           |   |
| Per:                                                                                                                                    |                   /s/ Curtis Sparrow |   |

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