Document:

SUBSCRIPTION FOR UNITS

 (Part 5 Accredited Investor Exemption Pursuant to "Multi-lateral Instrument
       45-103 - Capital Raising Exemptions" - Alberta Residents Only and
  Accredited Investor Exemption Pursuant to "Ontario Securities Commission Rule
                        45-501" - Ontario Residents Only)

TO:         Deep Well Oil & Gas, Inc. (the "Corporation")
            510 Royal Bank Building
            10117 Jasper Avenue, AB  T5J 1W8

The undersigned subscriber (the "Subscriber") acknowledges that the Corporation
is proceeding with an Offering of 5,000,000 units ("Units") at a price of
US$0.40 per Unit for gross proceeds of US$2,000,000. Each Unit is comprised of
one (1) common share ("Common Share") and one (1) Common Share purchase warrant
("Warrant"). The undersigned Subscriber hereby tenders to the Corporation this
subscription offer which, upon acceptance by the Corporation, will constitute an
agreement of the Subscriber to subscribe for, take up, purchase and pay for and,
on the part of the Corporation, to issue and sell to the Subscriber, the number
of Units set out below on the terms and subject to the conditions set out in
this Subscription Agreement. Until the Closing of the Offering, all subscription
funds shall be held in a non-interest bearing account of the Corporation. Upon
Closing of the Offering, all of the subscription proceeds (net of expenses
thereon) will be released to the Corporation. In the event the Offering does not
close, any and all subscription proceeds will be returned to subscribers without
interest, deduction or penalty. The Subscriber hereby acknowledges and agrees
that the terms and conditions contained in the attached Schedule "A" form part
of this Subscription Agreement and are incorporated herein by reference.

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                                              Number of Units:
Name of Subscriber - please print

By:
      Authorized Signature

Official  Capacity  or  Title - please
print

(Please print name of individual whose signature appears above if different than
the name of the Subscriber printed above.)

Subscriber's Address

Facsimile Number

Telephone Number     E-Mail Address

----------------------------------      ----------------------------------------

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                                        Aggregate   Subscription  Price  (No. of
                                        Units X US$0.40 per Unit):
----------------------------------      ----------------------------------------

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                                        No. of Common Shares Currently
                                        Held (excluding Common Shares
                                        comprising the Units subscribed
                                        for herein):

----------------------------------      ----------------------------------------

----------------------------------      ----------------------------------------
                                        Deliver the Units as set forth below:

                                        Name

                                        Account reference, if applicable

                                        Contact Name

                                        Address

                                        Telephone Number            E-Mail
                                        Address
----------------------------------      ----------------------------------------

----------------------------------
Register the Units as set forth
below:

Name

Account reference, if applicable

Address

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ACCEPTANCE: The Corporation hereby accepts the above subscription as of this
_______ day of ____________________, 2005 and the Corporation represents and
warrants to the Subscriber that the representations and warranties made by the
Corporation are true and correct in all material respects as in all material
respects as of this date and that the Subscriber is entitled to rely thereon.

                                             DEEP WELL OIL & GAS, INC.

                                             By:
                                                  ------------------------------

     This is the first page of an agreement comprised of 8 pages (not including
                                   Exhibits).

<PAGE>

               SCHEDULE "A" -TERMS AND CONDITIONS OF SUBSCRIPTION FOR
                       UNITS OF DEEP WELL OIL & GAS, INC.

Definitions

In this Subscription Agreement:

      (a)   "Closing" or "Closing Date" means the closing of the Offering
            initially expected to occur on or about August 12, 2005 or such
            other date or dates as may be determined by the Corporation in its
            sole discretion and such other subsequent closings as may be
            required to complete the Offering;

      (b)   "Common Share" means a common share in the capital stock of the
            Corporation;

      (c)   "Corporation" means Deep Well Oil & Gas, Inc.;

      (d)   "MI 45-102" means Multilateral Instrument 45-102 - Resale of
            Securities;

      (e)   "MI 45-103" means Multilateral Instrument 45-103 - Capital Raising
            Exemptions;

      (f)   "Offering" means the offering of Units by the Corporation at US$0.40
            per Unit;

      (g)   "OSC Rule 45-501" means Ontario Securities Commission Rule 45-501-
            Exempt Distributions;

      (h)   "Securities" means the Units, the Common Shares and the Warrants
            comprising the Units, and the Warrant Shares;

      (i)   "Subscriber" means the person or company identified as the
            Subscriber on the face page of this Subscription Agreement;

      (j)   "Subscription Agreement" means this agreement, together with the
            schedules and exhibits attached hereto, as amended or supplemented
            from time to time;

      (k)   "Subscription Price" means the aggregate subscription price paid by
            the Subscriber, being the number of Units subscribed for multiplied
            by US$0.40 per Unit;

      (l)   "Unit" means a unit consisting of one (1) Common Share and one (1)
            Warrant of the Corporation;

      (m)   "Warrant" means one (1) Common Share purchase warrant of the
            Corporation which entitles the holder to purchase one (1) Common
            Share at a price of US$0.60 for a period of three (3) years from the
            Closing Date; and

      (n)   "Warrant Share" means a Common Share issuable upon exercise of a
            Warrant.

Terms of the Offering

1. The Subscriber hereby confirms its subscription for and agrees to take up the
Units as provided for on the initial page of this Subscription Agreement and
delivers herewith a certified cheque or bank draft payable to the Corporation in
the amount of the Subscription Price and authorizes the Corporation to release
the said funds for use by the Corporation on Closing against delivery to the
Subscriber of duly issued certificates representing the Common Shares and
Warrants comprising the Units subscribed for herein.

2. The Subscriber acknowledges that the Units subscribed for hereunder form part
of a larger issuance and sale by the Corporation of a maximum of 5,000,000 Units
of the Corporation at a subscription price of US$0.40 per Unit.

3. The Subscriber acknowledges that if the Offering does not close on any
subscriptions received, the amounts received for subscriptions will be promptly
returned by the Corporation to subscribers without interest, deduction or
penalty. The Units offered are subject to acceptance by the Corporation and to
rejection or allotment by the Corporation in whole or in part and the
Corporation reserves the right to discontinue the Offering at any time without
notice.

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<PAGE>

4. The Subscriber acknowledges that this Subscription Agreement and the Exhibits
hereto require the Subscriber to provide certain personal information to the
Corporation. Such information is being collected by the Corporation for the
purposes of completing the Offering, which includes, without limitation,
determining the Subscriber's eligibility to purchase the Units under applicable
securities legislation, preparing and registering certificates representing
Units to be issued to the Subscriber and completing filings required by any
stock exchange or securities regulatory authority. The Subscriber's personal
information may be disclosed by the Corporation to: (a) stock exchanges or
securities regulatory authorities, (b) the Corporation's registrar and transfer
agent, and (c) any of the other parties involved in the Offering, including
legal counsel and may be included in record books in connection with the
Offering. By executing this Subscription Agreement, the Subscriber is deemed to
be consenting to the foregoing collection, use and disclosure of the
Subscriber's personal information. The Subscriber also consents to the filing of
copies or originals of any of the Subscriber's documents described in Section 11
hereof as may be required to be filed with any stock exchange or securities
regulatory authority in connection with the transactions contemplated hereby.

5. THE SUBSCRIBER FURTHER ACKNOWLEDGES THAT AN INVESTMENT IN THE UNITS MUST BE
CONSIDERED SPECULATIVE AND IS SUBJECT TO A NUMBER OF RISK FACTORS. THE
SUBSCRIBER COVENANTS AND AGREES TO COMPLY WITH MI 45-103 OR OSC RULE 45-501, AS
APPLICABLE, MI 45-102 AND ANY OTHER APPLICABLE SECURITIES LEGISLATION, RULES,
REGULATIONS, ORDERS OR POLICIES CONCERNING THE PURCHASE, HOLDING OF, AND RESALE
OF THE SECURITIES. THE SECURITIES ARE SUBJECT TO RESALE RESTRICTIONS AND WILL
BEAR A LEGEND TO THAT EFFECT.

6. In addition to one manually signed, completed copy of this Subscription
Agreement, the Subscriber will execute and deliver to the Corporation all other
documentation as may be required by applicable securities legislation, rules,
policy statements, and orders, including MI 45-103 or OSC Rule 45-501, as
applicable, to permit the issue and sale of the Units. The Subscriber
acknowledges and agrees that any such documentation, when executed and delivered
by the Subscriber, will form part of and will be incorporated into this
Subscription Agreement with the same effect as if each constituted a
representation and warranty or covenant of the Subscriber hereunder in favour of
the Corporation, and the Subscriber consents to the filing of such documents
and/or information contained in such documents as may be required to be filed
with any securities or the regulatory authority in connection with the
transactions contemplated hereby.

Representations, Warranties and Covenants by Subscriber

7.    The Subscriber represents, warrants and covenants to the Corporation (and
      acknowledges that the Corporation and its counsel are relying thereon)
      both at the date hereof and at the Closing Date that:

      (a)   the Subscriber has been independently advised as to restrictions
            with respect to trading in the Units imposed by applicable
            securities legislation, confirms that no representation has been
            made to it by or on behalf of the Corporation with respect thereto,
            acknowledges that it is aware of the characteristics of the Units,
            the risks relating to an investment therein and of the fact that it
            may not be able to resell the Securities except in accordance with
            limited exemptions under applicable securities legislation and
            regulatory policy, including MI 45-102 and the United States
            Securities Act of 1933, as amended (as defined below) until expiry
            of the applicable restricted period and compliance with the other
            requirements of applicable law; and the Subscriber agrees that any
            certificates representing the Securities, and all certificates
            issued in exchange therefor or in substitution thereof, will bear a
            legend indicating that the resale of such Securities is restricted;
            and

      (b)   the Subscriber has not received or been provided with, nor has it
            requested, nor does it have any need to receive, any offering
            memorandum, or any other document (other than an annual report,
            annual information form, interim report, information circular or any
            other continuous disclosure document, the content of which is
            prescribed by statute or regulation) describing the business and
            affairs of the Corporation which has been prepared for delivery to,
            and review by, prospective purchasers in order to assist it in
            making an investment decision in respect of the Units; and

      (c)   the Subscriber has been afforded the opportunity (i) to ask such
            questions as it deemed necessary of, and to receive answers from,
            representatives of the Corporation concerning the terms and
            conditions of the offering of the Units and (ii) to obtain such
            additional information which the Corporation possesses or can
            acquire without unreasonable effort or expense that the Subscriber
            considered necessary in connection with its decision to invest in
            the Units; and

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<PAGE>

      (d)   the Subscriber has not become aware of any advertisement, article,
            notice or other communication in printed media of general and
            regular paid circulation (or other printed public media), radio,
            television, the internet or telecommunications or other form of
            advertisement (including electronic display) with respect to the
            distribution of the Units; and

      (e)   this Agreement is made unconditionally as a result of the
            Subscriber's desire to participate in the future development of the
            Corporation; and

      (f)   the Subscriber is purchasing as principal and it knows that it is
            purchasing the Units pursuant to an exemption under MI 45-103 or OSC
            Rule 45-501, as applicable, and, as a consequence, is restricted
            from using most of the civil remedies available under applicable
            securities legislation, may not receive information that would
            otherwise be required to be provided to it under applicable
            securities legislation, and the Corporation is relieved from certain
            obligations that would otherwise apply under applicable securities
            legislation; and

      (i)   if a resident of Alberta, the Subscriber is a resident in or
            otherwise subject to the applicable securities laws of Alberta and
            it is an "accredited investor", as such term is defined in MI 45-103
            promulgated under the Securities Act (Alberta) and has concurrently
            executed and delivered a Representation Letter in the form attached
            as Exhibit 1 to this Subscription Agreement; or

      (ii)  if a resident of Ontario, the Subscriber is a resident in or
            otherwise subject to the applicable securities laws of Ontario and
            is an "accredited investor", as such term is defined in OSC Rule
            45-501 promulgated under the Securities Act (Ontario) and has
            concurrently executed and delivered a Representation Letter in the
            form attached as Exhibit 2 to this Subscription Agreement; and

      (g)   if the Subscriber is resident in any jurisdiction not referred to in
            Subsection 7(f) above: (a) the purchase of the Units does not
            contravene any of the applicable laws in the Subscriber's
            jurisdiction of residence and does not trigger (i) any obligation to
            prepare and file a prospectus, an offering memorandum or similar
            document, or any other ongoing reporting requirements with respect
            to such purchase or otherwise, or (ii) any registration or other
            obligation on the part of the Corporation; (b) the sale of the Units
            as contemplated in the Subscription Agreement complies with or is
            exempt from applicable securities legislation of the Subscriber's
            jurisdiction of residence and the Subscriber will provide such
            evidence of compliance with all such matters as the Corporation may
            request; (c) the Subscriber will comply with the provisions of
            Section 5 and Subsection 7(a) as if they were a resident of Alberta;
            and (d) and notwithstanding that the Subscriber is not a resident of
            Alberta, it is an "accredited investor", as such term is defined in
            MI 45-103 promulgated under the Securities Act (Alberta) and has
            concurrently executed and delivered a Representation Letter in the
            form attached as Exhibit 1 to this Subscription Agreement; and

      (h)   no person has made to the Subscriber any written or oral
            representations:

            (i)   that any person will resell or repurchase any of the
                  Securities;

            (ii)  that any person will refund the purchase price of any of the
                  Securities;

            (iii) as to the future price or value of any of the Securities; or

            (iv)  that any of the Securities will be listed and posted for
                  trading on a stock exchange or that application has been made
                  to list and post any of the Securities for trading on a stock
                  exchange; and

      (i)   the Subscriber has no knowledge of a "material fact" or "material
            change" (as those terms are defined by applicable securities
            legislation) in respect of the affairs of the Corporation that has
            not been generally disclosed to the public, other than knowledge
            relating directly to its subscription for the Units; and

      (j)   the Corporation may complete additional financings in the future,
            and such future financings may have a dilutive effect on
            then-current security holders of the Corporation, including the
            Subscriber; and

                                       4
<PAGE>

      (k)   it is aware that the Securities have not been and will not be
            registered under the United States Securities Act of 1933, as
            amended ("U.S. Securities Act") and that the Securities may not be
            offered or sold in the United States or to, or for the account or
            benefit of, a U.S. Person (as defined in Regulation S under the U.S.
            Securities Act) (a "U.S. Person") without registration under the
            U.S. Securities Act or compliance with requirements of an exemption
            or exclusion from registration and the applicable laws of all
            applicable states and acknowledges that the Corporation has no
            present intention of filing a registration statement under the U.S.
            Securities Act in respect of the Securities; and

      (l)   the Units have not been offered to the Subscriber in the United
            States; and

      (m)   it is not a U.S. Person and is not purchasing the Units on behalf
            of, or for the account or benefit of, a U.S. Person; and

      (n)   the Subscriber undertakes and agrees that it will not offer or sell
            the Securities in the United States unless such securities are
            registered under the U.S. Securities Act and the securities laws of
            all applicable states of the United States or an exemption or
            exclusion from such registration requirements is available, and
            further that it will not resell the Securities except in accordance
            with the provisions of applicable securities legislation,
            regulations, rules, policies and orders and stock exchange rules;
            and

      (o)   it will not engage in hedging transactions with regard to the
            Securities except in compliance with the U.S. Securities Act; and

      (p)   it understands and acknowledges that the Corporation must refuse to
            register any transfer of the Securities not made in accordance with
            an available exemption or exclusion from the registration
            requirements of the U.S. Securities Act or pursuant to registration
            under the U.S. Securities Act; and

      (q)   if the Subscriber is a "distributor" (as defined in Regulation S
            under the U.S. Securities Act) or is an "affiliate" (as defined in
            Rule 405 under the U.S. Securities Act) of a distributor or is
            acting on behalf of a distributor, (i) it agrees that it will not
            offer or sell the Securities during the one year period after the
            completion of the distribution of the Units (the "Distribution
            Compliance Period") to a U.S. Person or for the account or benefit
            of a U.S. Person (other than a distributor), and (ii) if it sells
            Securities to another distributor, a dealer (as defined in Section
            2(a)(12) of the U.S. Securities Act) or a person receiving a selling
            concession fee or other remuneration, during the Distribution
            Compliance Period, the Subscriber agrees that it will send a written
            confirmation or other notice to the purchaser stating that the
            purchaser is subject to the same restrictions on offers and sales
            that apply to a distributor and setting forth the restrictions on
            offers and sales of Securities within the United States or to, or
            for the account or benefit of, U.S. Persons; and

      (r)   the Subscriber understands and acknowledges that the Warrants may
            not be exercised by or on behalf of a U.S. Person unless the Warrant
            Shares issuable upon such exercise have been registered under the
            U.S. Securities Act or an exemption or exclusion from such
            registration is available; and

      (s)   the Subscriber understands and acknowledges that each person
            exercising a Warrant will be required to provide either (i) written
            certification that it is not a U.S. Person and the Warrant is not
            being exercised on behalf of a U.S. Person, or (ii) a written
            opinion of counsel, of recognized standing reasonably satisfactory
            to the Corporation, to the effect that the Warrant being exercised
            and the Warrant Shares issuable upon such exercise have been
            registered under the U.S. Securities Act or are exempt from
            registration thereunder; and

      (t)   if any Securities are being sold in the United States pursuant to
            Rule 144 under the U.S. Securities Act, the United States
            restrictive legend may be removed from the certificates representing
            the Securities by delivering to the Corporation a written opinion of
            counsel, of recognized standing reasonably satisfactory to the
            Corporation, to the effect that the legend is no longer required
            under applicable requirements of the U.S. Securities Act or state
            securities laws; and

      (u)   if a corporation, partnership, unincorporated association or other
            entity, it has the legal capacity to enter into and be bound by this
            Subscription Agreement and further certifies that all necessary
            approvals of directors, shareholders or otherwise have been given
            and obtained; and

      (v)   if an individual, it is of the full age of majority and is legally
            competent to execute this Subscription Agreement and take all action
            pursuant hereto; and

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<PAGE>

      (w)   it acknowledges that the net subscription proceeds (gross proceeds
            less expenses, including legal fees which have not been paid by the
            Corporation), will be immediately releasable to the Corporation on
            the Closing Date or later closing dates, as the case may be; and

      (x)   this Subscription Agreement has been duly and validly authorized,
            executed and delivered by and constitutes a legal, valid, binding
            and enforceable obligation of the Subscriber; and

      (y)   the entering into of this Subscription Agreement and the
            transactions contemplated hereby will not result in a violation of
            any of the terms and provisions of any law applicable to it, or any
            of its constating documents, or of any agreement to which the
            Subscriber is a party or by which it is bound; and

      (z)   in the case of a subscription by the Subscriber for Units acting as
            agent for a disclosed principal, it is duly authorized to execute
            and deliver this Subscription Agreement and all other necessary
            documentation in connection with such subscription on behalf of such
            principal and this Subscription Agreement has been duly authorized,
            executed and delivered by or on behalf of, and constitutes a legal,
            valid and binding agreement of, such principal; and

      (aa)  the Subscriber has such knowledge in financial and business affairs
            as to be capable of evaluating the merits and risks of the
            Subscriber's investment and the Subscriber, or, where the Subscriber
            is not purchasing as principal, each beneficial purchaser, is able
            to bear the economic risk of loss of the Subscriber's entire
            investment in the Units; and

      (bb)  except for the representations and warranties made by the
            Corporation herein, it has relied solely upon publicly available
            information relating to the Corporation and not upon any verbal or
            written representation as to fact or otherwise made by or on behalf
            of the Corporation and acknowledges that the Corporation's counsel
            are acting as counsel to the Corporation and not as counsel to the
            Subscriber; and

      (cc)  the Subscriber understands that Units are being offered for sale
            only on a "private placement" basis and that the sale and delivery
            of the Units is conditional upon such sale being exempt from the
            requirements as to the filing of a prospectus or delivery of an
            offering memorandum or upon the issuance of such orders, consents or
            approvals as may be required to permit such sale without the
            requirement of filing a prospectus or delivering an offering
            memorandum and, as a consequence (i) it is restricted from using
            most of the civil remedies available under securities legislation;
            (ii) it may not receive information that would otherwise be required
            to be provided to it under securities legislation; and (iii) the
            Corporation is relieved from certain obligations that would
            otherwise apply under securities legislation; and

      (dd)  if required by applicable securities legislation, regulations,
            rules, policies or orders, MI 45-103, OSC Rule 45-501 or by any
            securities commission, stock exchange or other regulatory authority,
            the Subscriber will execute, deliver, file and otherwise assist the
            Corporation in filing, such reports, undertakings and other
            documents with respect to the issue of the Units (including, without
            limitation, a completed and duly executed Representation Letter,
            attached as Exhibit 1 and Exhibit 2 hereto, as applicable); and

      (ee)  the Subscriber will not resell the Securities except in accordance
            with the provisions of applicable securities legislation and stock
            exchange rules, if applicable, in the future; and

      (ff)  the Subscriber deals at arm's length with the Corporation within the
            meaning of the Income Tax Act (Canada) and will continue to deal at
            arm's length with the Corporation at all times which are relevant
            for this Subscription Agreement; and

      (gg)  none of the funds the Subscriber is using to purchase the Units are,
            to the knowledge of the Subscriber, proceeds obtained or derived,
            directly or indirectly, as a result of illegal activities; and

      (hh)  the funds representing the total Subscription Price which will be
            advanced by the Subscriber to the Corporation hereunder will not
            represent proceeds of crime for the purposes of the Proceeds of
            Crime (Money Laundering) and Terrorist Financing Act (Canada) (the
            "PCMLA") and the Subscriber acknowledges that the Corporation may in
            the future be required by law to disclose the Subscriber's name and
            other information relating to this Subscription Agreement and the
            Subscriber's subscription hereunder, on a confidential basis,
            pursuant to the PCMLA; and

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<PAGE>

      (ii)  to the best of its knowledge, the subscription funds to be provided
            by the Subscriber (i) have not been or will not be derived from or
            related to any activity that is deemed criminal under the law of
            Canada, the United States of America, or any other jurisdiction, and
            (ii) are not being tendered on behalf of a person or entity who has
            not been identified to the Subscriber and the Subscriber shall
            promptly notify the Corporation if the Subscriber discovers that any
            of such representations cease to be true, and to provide the
            Corporation with appropriate information in connection therewith;
            and

      (jj)  the Subscriber acknowledges that it has been encouraged to and
            should obtain independent legal, income tax and investment advice
            with respect to its subscription for these Units and accordingly,
            has been independently advised as to the meanings of all terms
            contained herein relevant to the Subscriber for purposes of giving
            representations, warranties and covenants under this Subscription
            Agreement.

Representations, Warranties and Covenants of the Corporation

8. The Corporation hereby represents and warrants to the Subscriber that it has
been duly incorporated and is a valid and subsisting corporation under the laws
of the State of Nevada, United States, is extra-provincially registered in the
Province of Alberta, Canada and has full corporate power and authority to enter
into this Subscription Agreement and to perform its obligations hereunder.

9. The Corporation hereby covenants with the Subscriber that it will take all
corporate action required to issue to the Subscriber the Units and the Common
Shares and the Warrants comprising the Units on the Closing Date.

Registration Rights

10. If the Corporation proposes to register, pursuant to any registration rights
agreement (a "Registration Rights Agreement"), for shareholders other than the
Subscriber, any of its Common Shares or other equity securities (or securities
convertible into equity securities) under the U.S. Securities Act in connection
with the public offering of such securities solely for cash (other than a
registration on Form S-8, Form S-4 or Form F-4), the Corporation will, at all
such times, promptly give the Subscriber written notice of such proposed
registration. Upon the written request of the Subscriber, given within 20 days
after the mailing of such notice by the Corporation, the Corporation will,
subject to the provisions of applicable Registration Rights Agreements, use its
commercial best efforts to cause a registration statement covering all of the
(i) Common Shares being acquired hereunder and (ii) Warrant Shares that each
such holder has requested to be registered to become effective under the U.S.
Securities Act. Only to the extent they apply to "piggy back" registrations,
such registration shall also be subject to the other provisions of each
applicable Registration Rights Agreement. For greater certainty, (i) such
registration shall not be subject to any provisions of any Registration Rights
Agreement that are applicable only to "demand" registrations, and (ii) the
Subscriber acknowledges that except as contemplated by this Section, the
Corporation is under no obligation hereunder to register any of its securities
or to complete any offering of its securities it proposes to make, and the
Corporation will therefore incur no liability (including any penalties that may
be incurred under a Registration Rights Agreement) to the Subscriber for its
failure to register any of its securities or to complete any offering of its
securities.

Closing

11. The Subscriber agrees to deliver to the Corporation, not later than 4:30
p.m. (Edmonton time) on the Closing Date: (a) this duly completed and executed
Subscription Agreement; (b) a certified cheque or bank draft payable to Deep
Well Oil & Gas, Inc. for the Subscription Price of the Units subscribed for
under this Subscription Agreement; (c) if the Subscriber is an "accredited
investor" in Alberta or is purchasing Units pursuant to Subsection 7(g), a fully
completed and duly executed Representation Letter, attached as Exhibit 1 hereto;
and (d) if the Subscriber is an "accredited investor" in Ontario, a fully
completed and duly executed Representation Letter, attached as Exhibit 2 hereto.

12. The purchase and sale of the Units pursuant to this Subscription Agreement
will be completed at the offices of the Corporation's solicitors, Parlee McLaws
llp, in Edmonton, Alberta on the Closing Date or such other place or time as the
Corporation decides in its sole discretion. On the Closing Date, the Corporation
shall receive all completed subscription agreements, including this Subscription
Agreement, and the Subscription Price against delivery by the Corporation of the
certificates representing the Units.

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<PAGE>

13. The Corporation shall be entitled to rely on delivery of a facsimile copy of
executed subscriptions, and acceptance by the Corporation of such facsimile
subscriptions shall be legally effective to create a valid and binding agreement
between the Subscriber and the Corporation in accordance with the terms hereof.

General

14. The Subscriber agrees that the representations, warranties and covenants of
the Subscriber herein will be true and correct both as of the execution of this
Subscription Agreement and as of the Closing Date and will survive the
completion of the issuance of the Units. The representations, warranties and
covenants of the Subscriber herein are made with the intent that they be relied
upon by the Corporation and it's counsel in determining the eligibility of a
purchaser of Units and the Subscriber agrees to indemnify the Corporation,
including its respective affiliates, shareholders, directors, officers,
partners, employees, advisors and agents, against all losses, claims, costs,
expenses and damages or liabilities which any of them may suffer or incur which
are caused or arise from a breach thereof. The Subscriber undertakes to
immediately notify the Corporation at 510 Royal Bank Building, 10117 Jasper
Avenue, Edmonton, Alberta, T5J 1W8, Attention: Curtis Sparrow (Fax Number: (780)
409-8146), of any change in any statement or other information relating to the
Subscriber set forth herein which takes place prior to the Closing Date.

15. The obligations of the parties hereunder are subject to acceptance of the
terms of the Offering by any required regulatory approvals.

16. The Subscriber acknowledges and agrees that all costs incurred by the
Subscriber (including any fees and disbursements of any special counsel retained
by the Subscriber) relating to the purchase of the Units by the Subscriber shall
be borne by the Subscriber.

17. The contract arising out of this Subscription Agreement and all documents
relating thereto shall be governed by and construed in accordance with the laws
of the Province of Alberta and the federal laws of Canada applicable therein.
The parties irrevocably attorn to the exclusive jurisdiction of the courts of
the Province of Alberta.

18. Time shall be of the essence hereof.

19. This Subscription Agreement represents the entire agreement of the parties
hereto relating to the subject matter hereof and there are no representations,
covenants or other agreements relating to the subject matter hereof except as
stated or referred to herein.

20. The terms and provisions of this Subscription Agreement shall be binding
upon and enure to the benefit of the Subscriber and the Corporation and their
respective heirs, executors, administrators, successors and assigns; provided
that, except for the assignment by a Subscriber who is acting as nominee or
agent to a beneficial owner and as otherwise herein provided, this Subscription
Agreement shall not be assignable by any party without prior written consent of
the other parties.

21. The Subscriber, on its own behalf and, if applicable, on behalf of others
for whom it is contracting hereunder, agrees that this subscription is made for
valuable consideration and may not be withdrawn, cancelled, terminated or
revoked by the Subscriber, on its own behalf and, if applicable, on behalf of
others for whom it is contracting hereunder.

22. Neither this Subscription Agreement nor any provision hereof shall be
modified, changed, discharged or terminated except by an instrument in writing
signed by the party against whom any waiver, change, discharge or termination is
sought.

23. The invalidity, illegality or unenforceability of any provision of this
Subscription Agreement shall not affect the validity, legality or enforceability
of any other provision hereof.

24. The Subscriber acknowledges and agrees that acceptance of this Subscription
Agreement will be conditional, among other things, upon the sale of Units to the
Subscriber being exempt from any prospectus and offering memorandum requirements
of all applicable securities laws. The Corporation will be deemed to have
accepted this Subscription Agreement upon the delivery on the Closing Date of
the certificates representing the Units to or upon the direction of the
Subscriber in accordance with the provisions hereof.

25. The headings used in this Subscription Agreement have been inserted for
convenience of reference only and shall not affect the meaning or interpretation
of this Subscription Agreement or any provision hereof.

                                       8
<PAGE>

26. The covenants, representations and warranties contained herein shall survive
the Closing of the transactions contemplated hereby.

27. Each party shall from time to time do such further acts and execute and
deliver such further documents as shall be reasonably required in order to fully
perform and carry out the terms of this Subscription Agreement.

28. In this Subscription Agreement, words importing the singular include the
plural and vice versa and words importing persons include firms or corporations.

29. This Subscription Agreement may be executed in any number of counterparts
with the same effect as if all parties to this Subscription Agreement had signed
the same document and all counterparts will be construed together and constitute
one and the same instrument.

30. All notices hereunder will be in writing and addressed to the party for whom
it is intended at the address indicated herein. Either party may by notice to
the other party change its address for service. Any notice personally delivered
will be deemed to have been given or made on the date it was actually delivered,
or if sent by electronic facsimile, will be deemed to have been given or made on
the business day next following the date upon which it was transmitted.

31. In this Subscription Agreement references to "$" are to United States
dollars unless stated otherwise.

                                       9
<PAGE>

                                    EXHIBIT 1

                              REPRESENTATION LETTER

                       (FOR ALBERTA ACCREDITED INVESTORS)

TO:         DEEP WELL OIL & GAS, INC. (the "Corporation")

      In connection with the purchase of units of the Corporation ("Units") by
the undersigned subscriber or, if applicable, the principal on whose behalf the
undersigned is purchasing as agent (the "Subscriber" for the purposes of this
Exhibit 1), the Subscriber hereby represents, warrants, covenants and certifies
to the Corporation that:

1. The Subscriber is resident in Alberta or is subject to the laws of the
Province of Alberta;

2. The Subscriber, unless it is a person or company described in paragraph (p)
or (q) in the attached Appendix "A" that is deemed pursuant to the provisions of
section 1.2 of Multilateral Instrument 45-103 entitled "Capital Raising
Exemptions" to be purchasing as principal, is purchasing the Units as principal
for its own account;

3. The Subscriber is an "accredited investor" within the meaning of Multilateral
Instrument 45-103 entitled "Capital Raising Exemptions" by virtue of satisfying
the indicated criterion as set out in Appendix "A" to this Representation
Letter; and

4. Upon execution of this Exhibit 1 by the Subscriber, this Exhibit 1 shall be
incorporated into and form a part of the Subscription Agreement.

      Dated: _________________________, 2005.

                               Print name of Subscriber

                               By:
                                     -------------------------------------------
                                     Signature

                                     -------------------------------------------
                                     Print  name  of  Signatory  (if  different
                                     from Subscriber)

                                     -------------------------------------------
                                     Title

     IMPORTANT: PLEASE INITIAL THE APPROPRIATE PARAGRAPH(S) ON APPENDIX "A"

                                       10
<PAGE>

                                  APPENDIX "A"
                                  to Exhibit 1

      Accredited Investor - (defined in MI 45-103) means:

(a)             a Canadian financial institution, or an authorized foreign bank
                listed in Schedule III of the Bank Act (Canada); or
(b)             the Business Development Bank of Canada incorporated under the
                Business Development Bank of Canada Act (Canada); or
(c)             an association under the Cooperative Credit Associations Act
                (Canada) located in Canada or a central cooperative credit
                society for which an order has been made under subsection 473(1)
                of that Act; or
(d)             a subsidiary of any person or company referred to in paragraphs
                (a) to (c), if the person or company owns all of the voting
                securities of the subsidiary, except the voting securities
                required by law to be owned by directors of that subsidiary; or
(e)             a person or company registered under the securities legislation
                of a jurisdiction of Canada, as an adviser or dealer, other than
                a limited market dealer registered under the Securities Act
                (Ontario) or the Securities Act (Newfoundland and Labrador); or
(f)             an individual registered or formerly registered under the
                securities legislation of a jurisdiction of Canada, as a
                representative of a person or company referred to in paragraph
                (e); or
(g)             the government of Canada or a jurisdiction of Canada, or any
                crown corporation, agency or wholly-owned entity of the
                government of Canada or a jurisdiction of Canada; or
(h)             a municipality, public board or commission in Canada; or (i) any
                national, federal, state, provincial, territorial or municipal
                government  of or in any  foreign  jurisdiction,  or any agency
                of that government; or
(j)             a pension fund that is regulated by either the Office of the
                Superintendent of Financial Institutions (Canada) or a pension
                commission or similar regulatory authority of a jurisdiction of
                Canada; or
(k)             an individual who, either alone or with a spouse, beneficially
                owns, directly or indirectly, financial assets having an
                aggregate realizable value that before taxes, but net of any
                related liabilities, exceeds CAD$1,000,000; or
(l)             an individual whose net income before taxes exceeded CAD$200,000
                in each of the two most recent years or whose net income before
                taxes combined with that of a spouse exceeded CAD$300,000 in
                each of the two most recent years and who, in either case,
                reasonably expects to exceed that net income level in the
                current year; or
(m)             a person or company, other than a mutual fund or non-redeemable
                investment fund, that, either alone or with a spouse, has net
                assets of at least CAD$5,000,000 and unless the person or
                company is an individual, that amount is shown on its most
                recently prepared financial statements; or
(n)             a mutual fund or non-redeemable investment fund that, in the
                local jurisdiction, distributes its securities only to persons
                or companies that are "accredited investors" (as defined in MI
                45-103); or
(o)             a mutual fund or non-redeemable investment fund that, in the
                local jurisdiction, is distributing or has distributed its
                securities under one or more prospectuses for which the
                regulator has issued receipts; or

                                       1
<PAGE>

(p)             a trust company or trust corporation registered or authorized to
                carry on business under the Trust and Loan Companies Act
                (Canada) or under comparable legislation in a jurisdiction of
                Canada or a foreign jurisdiction, trading as a trustee or agent
                on behalf of a fully managed account; or
(q)             a person or company trading as agent on behalf of a fully
                managed account if that person or company is registered or
                authorized to carry on business under the securities legislation
                of a jurisdiction of Canada or a foreign jurisdiction as a
                portfolio manager or under an equivalent category of adviser or
                is exempt from registration as a portfolio manager or the
                equivalent category of adviser; or
(r)             a registered charity under the Income Tax Act (Canada) that, in
                regard to the trade, has obtained advice from an eligibility
                adviser or other adviser registered to provide advice on the
                securities being traded; or
(s)             an entity organized in a foreign jurisdiction that is analogous
                to any of the entities referred to in paragraphs (a) through (e)
                and paragraph (j) in form and function; or
(t)             a person or company in respect of which all of the owners of
                interests, direct or indirect, legal or beneficial, except the
                voting securities required by law to be owned by directors, are
                persons or companies that are "accredited investors" (as defined
                in MI 45-103).

      NOTE:  The investor must initial  beside the  applicable  portion of the
      above definition.

      For the purposes hereof:

(a)         "affiliate" means an issuer connected with another issuer because

      (i)   one of them is the subsidiary of the other, or

      (ii)  each of them is controlled by the same person or company;

(b)         "beneficial ownership" of securities by a person occurs

      (i)   for the purposes of Alberta securities law, when such securities are
            beneficially owned by

            (A)   a company controlled by that person or an affiliate of that
                  company,

            (B)   an affiliate of that person, or

            (C)   through a trustee, legal representative, agent or other
                  intermediary of that person;

(c)         "Canadian financial institution" means a bank, loan corporation,
            trust company, insurance company, treasury branch, credit union or
            caisse populaire that, in each case, is authorized to carry on
            business in Canada or a jurisdiction, or the Confederation des
            caisses populaires et d'economie Desjardins du Quebec;

(d)         "director" when used in relation to a person, includes a person
            acting in a capacity similar to that of a director of a company;

(e)         "eligibility adviser" means an investment dealer or equivalent
            category of registration, registered under the securities
            legislation of the jurisdiction of a purchaser and authorized to
            give advice with respect to the type of security being distributed;

(f)         "financial assets" means cash and securities;

(g)         "foreign jurisdiction" means a country other than Canada or a
            political subdivision of a country other than Canada;

(h)         "founder", in respect of the Corporation, means a person or company
            who,

                                       2
<PAGE>

      (i)   acting alone, in conjunction or in concert with one or more other
            persons or companies, directly or indirectly, has taken the
            initiative in founding, organizing or substantially reorganizing the
            business of the Corporation, and

      (ii)  at the time of the proposed trade, is actively involved in the
            business of the Corporation;

(i)         "fully managed account" means an account for which a person or
            company makes the investment decisions if that person or company has
            full discretion to trade in securities for the account without
            requiring the client's express consent to a transaction;

(j)         "jurisdiction" means a province or territory of Canada except when
            used in the term "foreign jurisdiction";

(k)         "local jurisdiction" means the jurisdiction in which the applicable
            securities regulatory authority is situate;

(l)         "individual" means a natural person, but does not include

      (i)   a partnership, unincorporated association, unincorporated syndicate,
            unincorporated organization or a trust, or

      (ii)  a natural person in the person's capacity as trustee, executor,
            administrator or other legal representative;

(m)         "mutual fund" includes an issuer of securities that entitles the
            holder to receive on demand, or within a specified period after
            demand, an amount computed by reference to the value of a
            proportionate interest in the whole or in part of the net assets,
            including a separate fund or trust account, of an issuer of the
            securities;

(n)         "non-redeemable investment fund" means an issuer,

      (i)   where contributions of security holders are pooled for investment,

      (ii)  where security holders do not have day-to-day control over the
            management and investment decisions of an issuer, whether or not
            they have the right to be consulted or to give directions, and

      (iii) whose securities do not entitle the security holder to receive on
            demand, or within a specified period after demand, an amount
            computed by reference to the value of a proportionate interest in
            the whole or in part of the net assets of an issuer;

(o)         "person or company" includes

      (i)   for the purposes of Alberta securities law, an individual,
            corporation, partnership, unincorporated or incorporated
            association, unincorporated or incorporated syndicate,
            unincorporated or other incorporated organization, trust, trustee,
            executor, administrator or other legal representative;

(p)         "regulator" means

      (i)   the Executive Director, as defined under section 1 of the Securities
            Act (Alberta);

      (ii)  such other person as is referred to in Appendix D of National
            Instrument 14-101 - Definitions;

                                       3
<PAGE>

                                  APPENDIX "A"
                                  to Exhibit 1

(q)         "related liabilities" means:

      (i)   liabilities incurred or assumed for the purpose of financing the
            acquisition or ownership of financial assets; or

      (ii)  liabilities that are secured by financial assets;

(r)         "securities legislation" means

      (i)   for Alberta, the Securities Act (Alberta) and the regulations and
            rules under such Act and the blanket rulings and orders issued by
            the Alberta Securities Commission, and

      (ii)  for other Canadian jurisdictions, such other statutes and
            instruments as are listed in Appendix B of National Instrument
            14-101 - Definitions;

(s)         "securities regulatory authority" means

      (i)   the Alberta Securities Commission;

      (ii)  in respect of any local jurisdiction other than Alberta, means the
            securities commission or similar regulatory authority listed in
            Appendix C of National Instrument 14-101 - Definitions;

(t)         "voting security" means any security which:

      (i)   is not a debt security; and

      (ii)  carries a voting right either under all circumstances or under some
            circumstances that have occurred and are continuing;

(u)         An issuer is considered to be "controlled" by a person or company
            if:

      (i)   for the purposes of Alberta securities law,

            a)    voting securities of the issuer carrying more than 50% of the
                  votes that may be cast to elect directors are held, other than
                  for the purpose of giving collateral for a bona fide debt, by
                  or for the benefit of that person or company; and

            b)    the votes carried by the securities referred to in (a) are
                  sufficient, if exercised, to elect a majority of the board of
                  directors of the issuer.

                                       4
<PAGE>

                                   EXHIBIT "2"

                              REPRESENTATION LETTER

                       (FOR ONTARIO ACCREDITED INVESTORS)

TO:         DEEP WELL OIL & GAS, INC. (the "Corporation")

      In connection with the purchase of units in the capital of the Corporation
(the "Units") by the undersigned subscriber or, if applicable, each beneficial
purchaser for whom the undersigned is acting (the "Subscriber" for the purposes
of this Exhibit 2), the Subscriber hereby represents, warrants, covenants and
certifies to the Corporation that:

1. The Subscriber is resident in Ontario or is subject to the laws of the
Province of Ontario;

2. The Subscriber is purchasing the Units as principal for its own account;

3. The Subscriber is an "accredited investor" within the meaning of Ontario
Securities Commission Rule 45-501 promulgated under the Securities Act (Ontario)
by virtue of satisfying the indicated criterion as set out in Appendix "A" to
this Representation Letter; and

4. Upon execution of this Exhibit 2 by the Subscriber, this Exhibit 2 shall be
incorporated into and form a part of the Subscription Agreement.

      Dated:  _______________________, 2005.

                       Print name of Subscriber

                       By:
                             --------------------------------------------
                             Signature

                             --------------------------------------------
                             Print  name  of  Signatory  (if  different
                             from Subscriber)

                             --------------------------------------------
                             Title

       IMPORTANT: PLEASE INITIAL THE APPROPRIATE PARAGRAPH(S) ON APPENDIX "A"

<PAGE>

                                  APPENDIX "A"
                                  to Exhibit 2

      Accredited Investor - (defined in Ontario Securities Commission Rule
45-501) means:

(a)             a bank listed in Schedule I or II of the Bank Act (Canada), or
                an authorized foreign bank listed in Schedule III of the Bank
                Act (Canada);
(b)             the Business Development Bank incorporated under the Business
                Development Bank Act (Canada);
(c)             a loan corporation or trust corporation registered under the
                Loan and Trust Corporations Act (Ontario) or under the Trust and
                Loan Companies Act (Canada), or under comparable legislation in
                any other jurisdiction;
(d)             a co-operative credit society, credit union central, federation
                of caisses populaire, credit union or league, or regional caisse
                populaire, or an association under the Cooperative Credit
                Associations Act (Canada), in each case, located in Canada;
(e)             a company licensed to do business as an insurance company in any
                jurisdiction;
(f)             a subsidiary entity of any person or company referred to in
                paragraph (a), (b), (c), (d) or (e), where the person or company
                owns all of the voting shares of the subsidiary entity;
(g)             a person or company registered under the Securities Act
                (Ontario) or securities legislation in another jurisdiction as
                an adviser or dealer, other than a limited market dealer;
(h)             the government of Canada or of any jurisdiction, or any crown
                corporation, instrumentality or agency of a Canadian federal,
                provincial or territorial government;
(i)             any Canadian municipality or any Canadian provincial or
                territorial capital city;
(j)             any national, federal, state, provincial, territorial or
                municipal government of or in any foreign jurisdiction, or any
                instrumentality or agency thereof;
(k)             a pension fund that is regulated by either the Office of the
                Superintendent of Financial Institutions (Canada) or a
                provincial pension commission or similar regulatory authority;
(l)             a registered charity under the Income Tax Act (Canada); (m) an
                individual who beneficially owns, or who together with a spouse
                beneficially own, financial assets having an aggregate
                realizable value that, before taxes but net of any related
                liabilities, exceeds CAD$1,000,000;
(n)             an individual whose net income before taxes exceeded CAD$200,000
                in each of the two most recent years or whose net income before
                taxes combined with that of a spouse exceeded CAD$300,000 in
                each of those years and who, in either case, has a reasonable
                expectation of exceeding the same net income level in the
                current year;
(o)             an individual who has been granted registration under the
                Securities Act (Ontario) or securities legislation in another
                jurisdiction as a representative of a person or company referred
                to in paragraph (g), whether or not the individual's
                registration is still in effect;
(p)             a promoter of the issuer or an affiliated entity of a promoter
                of the issuer;
(q)             a spouse, parent, brother, sister, grandparent or child of an
                officer, director or promoter of the issuer;
<PAGE>

                                  APPENDIX "A"
                                  to Exhibit 2

(r)             a person or company that, in relation to the issuer, is an
                affiliated entity or a person or company referred to in clause
                (c) of the definition of distribution in subsection 1(1) of the
                Securities Act (Ontario) ("Control Person");
(s)             an issuer that is acquiring securities of its own issue; (t) a
                company, limited liability company, limited partnership, limited
                liability partnership, trust or estate, other than a mutual fund
                or non-redeemable investment fund, that had net assets of at
                least CAD$5,000,000 as reflected in its most recently prepared
                financial statements;
(u)             a person or company that is recognized by the Ontario Securities
                Commission as an accredited investor;
(v)             a mutual fund or non-redeemable investment fund that, in
                Ontario, distributes its securities only to persons or companies
                that are accredited investors;
(w)             a mutual fund or non-redeemable investment fund that, in
                Ontario, distributes its securities under a prospectus for which
                a receipt has been granted by the Director (as defined in the
                Securities Act (Ontario)) or, if it has ceased distribution of
                its securities, has previously distributed its securities in
                this manner;
(x)             a fully managed account if it is acquiring a security that is
                not a security of a mutual fund or non-redeemable investment
                fund;
(y)             an account that is fully managed by a trust corporation
                registered under the Loan and Trust Corporations Act (Ontario)
                or under the Trust and Loan Companies Act (Canada), or under
                comparable legislation in any other jurisdiction;
(z)             an entity organized outside of Canada that is analogous to any
                of the entities referred to in paragraphs (a) through (g) and
                paragraph (k) in form and function; or
(aa)            a person or company in respect of which all of the owners of
                interests, direct or indirect, legal or beneficial, are persons
                or companies that are "accredited investors" (as defined in OSC
                Rule 45-501).

      NOTE:  The investor must initial  beside the  applicable  portion of the
      above definition.

      For the purposes hereof:

(v)   "company" means any corporation, incorporated association, incorporated
      syndicate or other incorporated organization;

(w)   "Control Person" means any person, company or combination of persons or
      companies holding a sufficient number of any securities of the issuer to
      affect materially the control of the issuer but any holding of any person,
      company or combination of persons or companies holding more than 20% of
      the outstanding voting securities of the issuer, in the absence of
      evidence to the contrary, shall be deemed to affect materially the control
      of the issuer;

(x)   "director" where used in relation to a person, includes a person acting in
      a capacity similar to that of a director of a company;

(y)   "entity" means a company, syndicate, partnership, trust or unincorporated
      organization;

(z)   "financial assets" means cash, securities, or any contract of insurance or
      deposit or evidence thereof that is not a security for the purposes of the
      Securities Act (Ontario);

(aa)  "fully managed account" means an investment portfolio account of a client
      established in writing with a portfolio adviser who makes investment
      decisions for the account and has full discretion to trade in securities
      of the account without requiring the client's express consent to a
      transaction;

(bb)  "individual" means a natural person, but does not include a partnership,
      unincorporated association, unincorporated syndicate, unincorporated
      organization, trust, or a natural person in his or her capacity as
      trustee, executor, administrator or other legal personal representative;

(cc)  "mutual fund" means an issuer whose primary purpose is to invest money
      provided by its security holders and whose securities entitle the holder
      to receive on demand, or within a specified period after demand, an amount
      computed by reference to the value of a proportionate interest in the
      whole or in a part of the net assets, including a separate fund or trust
      account, of the issuer;
<PAGE>

(dd)  "non-redeemable investment fund" means an issuer:

(i)   whose primary purpose is to invest money provided by its securityholders;

(ii)  that does not invest,

(A)   for the purpose of exercising or seeking to exercise control of an issuer,
      other than an issuer that is a mutual fund or a non-redeemable investment
      fund, or

(B)   for the purpose of being actively involved in the management of any issuer
      in which it invests, other than an issuer that is a mutual fund or a
      non-redeemable investment fund; and

(iii) that is not a mutual fund;

(ee)  "officer" means the chair, any vice-chair of the board of directors, the
      president, any vice president, the secretary, the assistant secretary, the
      treasurer, the assistant treasurer, and the general manager of a company,
      and any other person designated an officer of a company by by-law or
      similar authority, or any individual acting in a similar capacity on
      behalf of an issuer;

(ff)  "person" means an individual, partnership, unincorporated association,
      unincorporated syndicate, unincorporated organization, trust, trustee,
      executor, administrator, or other legal representative;

(gg)  "portfolio adviser" means

(i)   a portfolio manager; or

(ii)  a broker or investment dealer exempted from registration as an adviser
      under subsection 148(1) of the Regulation made under the Securities Act
      (Ontario) if that broker or investment dealer is not exempt from the
      by-laws or regulations of the Toronto Stock Exchange or the Investment
      Dealers' Association of Canada referred to in that subsection;

(hh)  "promoter" means (a) a person or company who, acting alone or in
      conjunction with one or more other persons, companies or a combination
      thereof, directly or indirectly, has taken the initiative in founding,
      organizing or substantially reorganizing the business of the issuer, or
      (b) a person or company who, in connection with the founding, organizing
      or substantial reorganizing of the business of the issuer, directly or
      indirectly, receives in consideration of services or property, or both
      services and property, 10% or more of any class of securities of the
      issuer or 10% or more of the proceeds from the sale of any class of
      securities of a particular issue, but a person or company who receives
      such securities or proceeds either solely as underwriting commissions or
      solely in consideration of property shall not be deemed a promoter within
      the meaning of this definition if such person or company does not
      otherwise take part in founding, organizing or substantially reorganizing
      the business;

(ii)  "related liabilities" means liabilities incurred or assumed for the
      purpose of financing the acquisition or ownership of financial assets and
      liabilities that are secured by financial assets; and

(jj)  "spouse", in relation to an individual, means another individual to whom
      that individual is married, or another individual of the opposite sex or
      the same sex with whom that individual is living in a conjugal
      relationship outside marriage.

Affiliated Entities, Control and Subsidiaries

1. A person or company is considered to be an affiliated entity of another
person or company if one is a subsidiary entity of the other, or if both are
subsidiary entities of the same person or company, or if each of them is
controlled by the same person or company.

2. A person or company is considered to be controlled by a person or company if

(a) in the case of a person or company,

      (i)   voting securities of the first mentioned person or company carrying
            more than 50% of the votes for the election of directors are held,
            otherwise than by way of security only, by or for the benefit of,
            the other person or company, and

      (ii)  the votes carried by the securities are entitled, if exercise, to
            elect a majority of the directors of the first-mentioned person or
            company.

(b)   in the case of a partnership that does not have directors, other than a
      limited partnership, the second-mentioned person or company holds more
      than 50% of the interests in the partnership; or

(c)   in the case of a limited partnership, the general partner is the
      second-mentioned person or company.

3.    A person or company is considered to be a subsidiary entity of another
      person or company if

(a)   it is controlled by,

      (i) that other, or

      (ii)  that other and one or more persons or companies, each of which is
            controlled by that other, or

      (iii) two or more persons or companies, each of which is controlled by
            that other, or

(b)   it is a subsidiary entity of a person or company that is the other's
      subsidiary entity.AS THE CORPORATION IS NOT A REPORTING ISSUER IN ANY JURISDICTION OF CANADA,
UNLESS PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER OF THIS
SECURITY MUST NOT TRADE THE SECURITY IN CANADA AND MAY HAVE TO HOLD THE SECURITY
FOR AN INDEFINITE PERIOD.

NEITHER THESE WARRANTS NOR THE COMMON SHARES ISSUABLE UPON EXERCISE THEREOF HAVE
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. THESE WARRANTS MAY NOT BE EXERCISED WITHIN THE UNITED STATES OR BY OR ON
BEHALF OF A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES
ACT), EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
U.S. SECURITIES ACT, AND EXEMPTIONS FROM APPLICABLE STATE SECURITIES LAWS, IN
EACH CASE AFTER PROVIDING AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY
TO THE CORPORATION TO SUCH EFFECT.

NEITHER THESE WARRANTS NOR THE COMMON SHARES ISSUABLE UPON EXERCISE THEREOF MAY
BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF
EXCEPT: (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S.
SECURITIES ACT; (B) IN A TRANSACTION OUTSIDE THE UNITED STATES MEETING THE
REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT OR (C) IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN
EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. PRIOR TO THE
COMPLETION OF ANY SUCH TRANSACTION PURSUANT TO THE FOREGOING CLAUSES (B) OR (C),
THE TRANSFEROR SHALL DELIVER TO THE CORPORATION A WRITTEN OPINION OF COUNSEL OR
OTHER EVIDENCE SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT SUCH
TRANSACTION IS IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS OF ALL
APPLICABLE UNITED STATES FEDERAL AND STATE SECURITIES LAWS. HEDGING TRANSACTIONS
WITH RESPECT TO THESE WARRANTS AND THE COMMON SHARES ISSUABLE UPON EXERCISE
THEREOF ARE PROHIBITED UNLESS THEY ARE CONDUCTED IN COMPLIANCE WITH THE U.S.
SECURITIES ACT.

This  warrant  certificate  is void if not  exercised  on or before  5:00 p.m.
(Edmonton time) on October 11, 2008.

                               WARRANT CERTIFICATE
                            DEEP WELL OIL & GAS, INC.

               (Incorporated under the laws of the State of Nevada
              and extra-provincially registered in the Province of
                                Alberta, Canada)

--------------------------------------------------------------------------------
WARRANT CERTIFICATE
--------------------------------------------------------------------------------
NO. (Certificate)
--------------------------------------------------------------------------------
(Warrant)  WARRANTS,  each  entitling  the holder to acquire one Common Share
for each Warrant represented hereby
--------------------------------------------------------------------------------

                   THIS IS TO CERTIFY THAT, FOR VALUE RECEIVED

                                     (Name)
                                    (Address)

(hereinafter referred to as the "holder" or the "Warrantholder") is entitled to
acquire for each Warrant represented hereby, in the manner and subject to the
restrictions and adjustments set forth herein, at any time and from time to time
until 5:00 p.m. (Edmonton time) (the "Time of Expiry") on the Expiry Date (as
hereinafter defined), one fully paid and non-assessable common share ("Common
Share") of DEEP WELL OIL & GAS, INC. (the "Corporation"), at the Exercise Price
(as hereinafter defined), subject to adjustment as herein provided.

These Warrants may only be exercised at the principal office of the Corporation
at 510 Royal Bank Building, 10117 Jasper Avenue, Edmonton, Alberta, T5J 1W8, or
such other office as the Corporation may advise the holder in writing. These
Warrants are issued subject to the terms and conditions appended hereto as
Schedule "A".
<PAGE>

IN WITNESS WHEREOF, the Corporation has caused this Warrant Certificate to be
executed by a duly authorized officer.

DATED this 11th day of October, 2005.
                                          DEEP WELL OIL & GAS, INC.

                                          Per:
                                                --------------------------------

                   (See terms and conditions attached hereto)

<PAGE>

                                  SCHEDULE "A"

                        TERMS AND CONDITIONS FOR WARRANT

                                    ARTICLE 1

                                 INTERPRETATION

1.1   Definitions

      In these Terms and Conditions, unless there is something in the subject
matter or context inconsistent therewith:

(a)   "Common Shares" means the common shares in the capital of the Corporation;

(b)   "Corporation" means Deep Well Oil & Gas, Inc.;

(c)   "Current Market Price" of the Common Shares at any date means the simple
      average of the closing price per share for the Common Shares for any 10
      consecutive trading days selected by the Corporation commencing not more
      than 45 trading days before such date on the stock exchange on which the
      Common Shares are listed or, if such Common Shares are not listed on a
      stock exchange, such over-the-counter market on which the Common Shares
      are quoted or trade (provided that if on any day in such period no closing
      price per share for the Common Shares is reported on by such exchange or
      over-the-counter market for such day, the average of the reported closing
      bid and asked prices on such exchange or over-the-counter market on such
      day shall be deemed to be the closing price per share for the Common
      Shares for such day) of if the Common Shares are not listed or quoted on
      any stock exchange or over-the-counter market, a price determined by the
      board of directors of the Corporation acting reasonably;

(d)   "Dividend Paid in the Ordinary Course" means a dividend declared payable
      on the Common Shares in any four consecutive quarters of the Corporation,
      whether in (1) cash, (2) securities of the Corporation, including rights,
      options or warrants (other than rights, options or warrants referred to in
      subsection 4.2(b)) to purchase any securities of the Corporation or
      property or other assets of the Corporation, or (3) property or other
      assets of the Corporation, to the extent that the amount or value of such
      dividend together with the amount or value of all other dividends
      theretofore paid during such financial year (any such securities, property
      or other assets so distributed to be valued at the fair market value of
      such securities, property or other assets, as the case may be, as
      determined by the Corporation, which determination shall be conclusive,
      provided that, for the purposes of this definition, the fair market value
      of any Common Share distributed by way of dividend shall be conclusively
      determined by reference to the Current Market Price per Common Share on
      the date prior to the declaration of such dividend) does not exceed the
      greater of:

         (i)   150% of the aggregate amount and/or value of dividends declared
               payable by the Corporation on the Common Shares in the period of
               four consecutive financial quarters ended immediately prior to
               the first day of such financial year; and

                                       2
<PAGE>

         (ii)  100% of the consolidated net income of the Corporation before
               extraordinary items (but after dividends payable on all shares
               ranking prior to or on a parity with respect to the payment of
               dividends with the Common Shares) in respect of the period of
               four consecutive financial quarters ended immediately prior to
               the first day of the current financial quarter (such consolidated
               net income, extraordinary items and dividends to be shown in the
               audited consolidated financial statements of the Corporation for
               such period of four consecutive financial quarters or if there
               are no audited consolidated financial statements for such period,
               computed in accordance with generally accepted accounting
               principles, consistent with those applied in the preparation of
               the most recent audited consolidated financial statements of the
               Corporation);

(e)   "Exercise Price" means the price of US$0.60 per Common Share (subject to
      adjustment in certain events);

(f)   "Expiry Date" means the 11th day of October, 2008;

(g)   "herein", "hereby" and similar expressions refer to these Terms and
      Conditions as the same may be amended or modified from time to time; and
      the expression "Article" and "Section" followed by a number refer to the
      specified Article or Section of these Terms and Conditions;

(h)   "person" means an individual, corporation, partnership, trustee or any
      unincorporated organization and words importing persons have a similar
      meaning;

(i)   "Time of Expiry" means 5:00 p.m. (Edmonton time) on the Expiry Date;

(j)   "Warrant" means the warrant to acquire Common Shares evidenced by the
      Warrant Certificate issued to the holder; and

(k)   "Warrant Certificate" means the certificate to which these Terms and
      Conditions are attached.

1.2   Gender

      Words importing the singular number include the plural and vice versa and
words importing the masculine gender include the feminine and neuter genders.

1.3   Interpretation Not Affected by Headings

      The division of these Terms and Conditions into Articles, Sections and
Subsections and the insertion of headings are for convenience of reference only
and shall not affect the construction or interpretation thereof.

                                       3
<PAGE>

1.4   Applicable Law

      The terms hereof and of the Warrant shall be construed in accordance with
the laws of the Province of Alberta and the laws of Canada applicable thereto.

                                    ARTICLE 2

                                ISSUE OF WARRANT

2.1   Issue of Warrants

      That number of Warrants set out on the Warrant Certificate are hereby
created and authorized to be issued.

2.2   Additional Warrants

      Subject to any other written agreement between the Corporation and the
Warrantholder, the Corporation may at any time and from time to time undertake
further equity or debt financing and may issue additional securities of any kind
including Common Shares, warrants or grant options or similar rights to purchase
Common Shares to any person.

2.3   Issue in Substitution for Lost Warrants

      If the Warrant Certificate becomes mutilated, lost, destroyed or stolen:

(a)   the Corporation shall, subject to subsection 2.3(b) hereof, issue and
      deliver a new Warrant Certificate of like date and tenor as the one
      mutilated, lost, destroyed or stolen, in exchange for and in place of and
      upon cancellation of such mutilated, lost, destroyed or stolen Warrant
      Certificate; and

(b)   the holder shall bear the cost of the issue of a new Warrant Certificate
      hereunder and in the case of the mutilation, loss, destruction or theft of
      the Warrant Certificate, shall, as a condition precedent to the issuance
      of a new Warrant Certificate, furnish to the Corporation such evidence of
      mutilation, loss, destruction, or theft as shall be satisfactory to the
      Corporation in its sole discretion and, if required by the Corporation, an
      indemnity in an amount and form satisfactory to the Corporation, in its
      discretion, and shall pay the reasonable charges of the Corporation in
      connection therewith.

2.4   Warrantholder Not a Shareholder

      The Warrant Certificate shall not constitute the holder a shareholder of
the Corporation, nor entitle it to any right or interest in respect thereof
except as may be expressly provided in the Warrant Certificate. The Corporation
may deem and treat the holder of the Warrant Certificate as the absolute owner
thereof for all purposes and the Corporation shall not be affected by any notice
to the contrary.

                                       4
<PAGE>

2.5   Register of Warrants

      At all times while Warrants are outstanding, the Corporation shall
maintain a register of all holders of Warrants on which shall be entered the
names, latest known addresses of all holders and if available, the telecopier
numbers of such holders and particulars of the Warrants held by them and a
register of transfers in which shall be entered the particulars of all transfers
of Warrants, such registers to be kept by and at the office of the Corporation.

2.6   Transfer

      Warrants may only be transferred on the register of the Corporation by the
holder thereof or its legal representatives or its attorney duly appointed by an
instrument in writing in form and execution satisfactory to the Corporation in
accordance with applicable laws. The Warrants and the Common Shares issuable
thereunder are and may continue to be subject to resale restrictions and hold
periods, and holders should consult their legal advisors in respect of the same.
Such transfer will be effected upon surrender to the Corporation of this Warrant
Certificate for cancellation and the duly completed and executed Transfer Form
attached hereto as Appendix 1 and upon compliance, to the reasonable
satisfaction of the Corporation, with:

(a)   the conditions herein;

(b)   such reasonable requirements as the Corporation may require; and

(c)   all applicable securities legislation and requirements of regulatory
      authorities and all stock exchanges upon which the Common Shares are
      listed from time to time, as applicable.

                                    ARTICLE 3

                             EXERCISE OF THE WARRANT

3.1   No Registration under U.S. Securities Act

      The Warrants may not be exercised within the United States, or by or on
behalf of a "U.S. Person" (as defined in Regulation S under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act")), nor will
certificates representing Common Shares issuable upon exercise of the Warrants
be delivered in the United States, except pursuant to an exemption from the
registration requirements of the U.S. Securities Act and exemptions from
applicable state securities laws. Any person who proposes to exercise a Warrant
shall provide to the Corporation, as contemplated in Appendix 2, either (i)
written certification that the Warrant is not being exercised within the United
States or by or on behalf of a U.S. Person, (ii) a written opinion of counsel or
other evidence satisfactory to the Corporation to the effect that the issuance
of Common Shares upon exercise of such Warrant is not required to be registered
under the U.S. Securities Act and applicable state securities laws or (iii)
written confirmation by the person exercising the Warrant that it is the
original purchaser thereof and reaffirming, as of the date of such exercise, the
representations, warranties made by it in the subscription agreement pursuant to
which it purchased the Warrant. Common Shares issuable upon exercise of Warrants
by a person in the United States or by or on behalf of a U.S. Person may, if so
determined by the Corporation in its sole discretion, bear a legend restricting
transfer.

                                       5
<PAGE>

3.2   Method of Exercise of The Warrant

      The holder may exercise the right hereby conferred on the holder to
acquire Common Shares (subject to the provisions of this Article 3) by:

(a)   duly completing and executing the Warrant Exercise Form attached hereto as
      Appendix 2; and

(b)   certifying that the holder or (if different) the recipient of the Common
      Shares to be issued upon exercise of the Warrant either: (i) is not (a) a
      "U.S. Person", (b) exercising the Warrant(s) on behalf of a "U.S. Person",
      and (c) in the United States at the time that the Warrant(s) are exercised
      and did not execute or deliver the Warrant Exercise Form in the United
      States; or (ii) at or prior to the time of such exercise, has delivered to
      the Corporation a written opinion of counsel or other evidence
      satisfactory to the Corporation to the effect that the issuance of Common
      Shares upon such exercise is not required to be registered under the U.S.
      Securities Act and applicable state securities laws; or (iii) is the
      original purchaser of the Warrants and confirms as of the date of such
      exercise, the representations, warranties and agreements made by it in the
      subscription agreement pursuant to which the Warrant was purchased by it;
      and

(c)   surrendering this certificate, together with the holder's certified cheque
      or a bank draft, money order or wire transfer in the full amount of the
      total aggregate Exercise Price of the Common Shares being purchased,
      together with the duly completed and executed Warrant Exercise Form, to
      the Corporation at its offices,

at any time up until the Time of Expiry. This Warrant Certificate shall be
deemed to be surrendered only upon personal delivery thereof to, or if sent by
mail or other means of transmission, upon actual receipt thereof by, the
Corporation at its offices.

3.3   Effect of Exercise of the Warrant

(a)   Upon surrender and payment as aforesaid the Common Shares so subscribed
      for shall be issued as fully paid and non-assessable shares, free from all
      liens, charges and encumbrances and the holder shall become the holder of
      record of such Common Shares on the date of such surrender and payment;

(b)   Within ten (10) business days after surrender and payment as aforesaid,
      the Corporation shall forthwith cause the issuance of and mail to the
      holder a certificate for the Common Shares purchased as aforesaid;

(c)   Notwithstanding anything herein contained including any adjustment
      provided for in Article 4, the Corporation shall not be required, upon the
      exercise of any Warrants, to issue fractions of Common Shares or to
      distribute certificates which evidence fractional Common Shares. Any
      fractional Common Shares that would otherwise be issuable upon the
      exercise of Warrants shall be cancelled by the Corporation without
      compensation to the holder thereof; and

                                       6
<PAGE>

(d)   Notwithstanding anything herein contained, no Common Shares will be issued
      pursuant to the exercise of any Warrant if the issuance of such Common
      Shares would constitute a violation of the securities laws of any
      applicable jurisdiction or the requirements of any applicable stock
      exchange, and without limiting the generality of the foregoing, in the
      event that any of the Warrants are exercised prior to expiry of any hold
      period or other resale restriction placed thereon by such laws or
      requirements, the certificates evidencing the Common Shares thereby issued
      will bear such legend as is required under applicable securities laws and
      that, in the opinion of legal counsel to the Corporation, is necessary in
      order to avoid a violation of any such laws or requirements.

3.4   Subscription for Less than Entitlement

      The holder may subscribe for and purchase a number of Common Shares less
than the number which it is entitled to purchase pursuant to the surrendered
Warrant Certificate. In the event of any purchase of a number of Common Shares
less than the number which can be purchased pursuant to the Warrant Certificate,
the Corporation shall forthwith issue and deliver to the holder a new Warrant
Certificate containing the same terms and conditions as disclosed herein to
purchase that number of Common Shares with respect to which such partial
exercise did not apply.

3.5   Resale Restrictions

      As the Corporation is not a reporting issuer in any jurisdiction of
Canada, unless permitted under Canadian securities legislation, the holder of
this security must not trade the security in Canada and may have to hold the
security for an indefinite period.

3.6   Expiration of the Warrant

      After the Time of Expiry, all rights hereunder shall wholly cease and
terminate and the Warrant Certificate and the Warrants shall be void and of no
further force and effect.

                                    ARTICLE 4

                                   ADJUSTMENTS

4.1   Adjustment of Number of Common Shares

      The acquisition rights in effect at any date attaching to the Warrants
shall be subject to adjustment from time to time as follows:

(a)   If and whenever at any time after the date hereof and prior to the Time of
      Expiry, any adjustment in the Exercise Price or in the calculation thereof
      pursuant to Section 4.2 shall occur as a result of:

                                       7
<PAGE>

      (i)   an event referred to in subsection 4.2(a);

      (ii)  the fixing by the Corporation of a record date for an event referred
            to in subsection 4.2(b); or

      (iii) the fixing by the Corporation of a record date for an event referred
            to in subsection 4.2(c) if such event constitutes the issue or
            distribution to the holders of all or substantially all of its
            outstanding Common Shares of:

                  (A)   Common Shares, or

                  (B)   securities exchangeable for or convertible into Common
                        Shares at less than the Current Market Price of the
                        Common Shares on such record date, or

                  (C)   rights, options or warrants to acquire Common Shares at
                        an exercise, exchange or conversion price per Common
                        Share less than the Current Market Price of the Common
                        Shares on such record date,

               the number of Common Shares obtainable upon the subsequent
               exercise of the Warrant shall be adjusted simultaneously with the
               adjustment in the Exercise Price pursuant to Section 4.2 by
               multiplying the number of Common Shares theretofore obtainable on
               the exercise thereof immediately prior to such adjustment by a
               fraction of which the numerator shall be the total number of
               Common Shares outstanding immediately after such date and the
               denominator shall be the total number of Common Shares
               outstanding immediately prior to such date. To the extent that
               any adjustment in subscription rights occurs pursuant to this
               subsection 4.1(a) as a result of the distribution of securities
               convertible into or exchangeable for Common Shares referred to in
               subsection 4.2(a) or as a result of the fixing by the Corporation
               of a record date for the distribution of rights, options or
               warrants referred to in subsection 4.2(b), the number of Common
               Shares purchasable upon exercise of a Warrant shall be readjusted
               immediately after the expiration of any relevant exchange,
               conversion or exercise right to the number of Common Shares which
               would be purchasable based upon the number of Common Shares
               actually issued and remaining issuable immediately after such
               expiration, and shall be further readjusted in such manner upon
               expiration of any further such right. To the extent that any such
               adjustment in subscription rights occurs pursuant to this
               subsection 4.1(a) as a result of the fixing by the Corporation of
               a record date for the distribution referred to in subsection
               4.2(c) of rights, options or warrants or exchangeable or
               convertible securities, the number of Common Shares purchasable
               upon exercise of a Warrant shall be readjusted immediately after
               the expiration of any relevant exchange, conversion or exercise
               right to the number which would be purchasable pursuant to this
               subsection 4.1(a) if the fair market value of such rights,
               options or warrants or other exchangeable or convertible
               securities had been determined for the purposes of the adjustment
               pursuant to this subsection 4.1(a) on the basis of the number of
               Common Shares issued and remaining issuable immediately after
               such expiration, and shall be further readjusted in such manner
               upon expiration of any further right.

                                       8
<PAGE>

(b)   If and whenever at any time after the date hereof and prior to the Time of
      Expiry there is a reclassification of the Common Shares or a capital
      reorganization of the Corporation other than as described in subsection
      4.2(a) or a consolidation, amalgamation or merger of the Corporation
      (including, without limitation, by way of plan of arrangement) with or
      into any other body corporate, trust, partnership or other entity, or a
      sale or conveyance of the property and assets of the Corporation as an
      entirety or substantially as an entirety to any other body corporate,
      trust, partnership or other entity, any Warrantholder who has not
      exercised his right of acquisition prior to the effective date of such
      reclassification, reorganization, consolidation, amalgamation, merger,
      sale or conveyance, upon the exercise of such right thereafter, shall be
      entitled to receive and shall accept, in lieu of the number of Common
      Shares then sought to be acquired by it, the kind and number of shares or
      other securities or property of the Corporation or of the body corporate,
      trust, partnership or other entity resulting from such reclassification,
      reorganization, consolidation, amalgamation or merger, or to which such
      sale or conveyance may be made, as the case may be, that such holder would
      have been entitled to receive as a result of such reclassification,
      reorganization, consolidation, amalgamation, merger, sale or conveyance,
      if, on the record date or the effective date thereof, as the case may be,
      the Warrantholder had been the registered holder of the number of Common
      Shares to which the holder was theretofore entitled upon exercise. If
      determined appropriate by the board of directors of the Corporation to
      give effect to or to evidence the provisions of this subsection 4.1(b),
      the Corporation, its successor, or such purchasing body corporate,
      partnership, trust or other entity, as the case may be, shall prior to or
      contemporaneously with any such reclassification, reorganization,
      consolidation, amalgamation, merger, sale or conveyance, enter into an
      agreement or new Warrant Certificate which shall provide, to the extent
      possible, for the application of the provisions set forth in this Warrant
      Certificate with respect to the rights and interests thereafter of the
      Warrantholder to the end that the provisions set forth in this Warrant
      shall thereafter correspondingly be made applicable, as nearly as may
      reasonably be, with respect to any shares, other securities or property to
      which a Warrantholder is entitled on the exercise of its acquisition
      rights thereafter and upon entering into such new Warrant Certificate or
      agreement, the Corporation shall cease to have any obligations (including
      the obligation to issue any Common Shares) hereunder and the holder shall
      cease to have any rights hereunder. Any Warrant Certificate or agreement
      entered into pursuant to the provisions of this subsection 4.1(b) shall be
      an agreement entered into pursuant to the provisions of Article 6. Any
      Warrant Certificate or agreement entered into between the Corporation, any
      successor to the Corporation or such purchasing body corporate,
      partnership, trust or other entity shall provide for adjustments which
      shall be as nearly equivalent as may be practicable to the adjustments
      provided in this Article 4 and which shall apply to successive
      reclassifications, reorganizations, consolidations, amalgamations,
      mergers, sales or conveyances.

                                       9
<PAGE>

4.2   Adjustment of Exercise Price

      The Exercise Price in effect at any date attaching to the Warrants shall
be subject to adjustment from time to time as follows:

(a)   If and whenever after the date hereof and at any time prior to the Time of
      Expiry, the Corporation shall:

      (i)   subdivide, divide or change its outstanding Common Shares into a
            greater number of Common Shares;

      (ii)  consolidate, reduce or combine its outstanding Common Shares into a
            lesser number of Common Shares;

      (iii) make any distribution, other than by way of Dividend Paid in the
            Ordinary Course, to the holders of all or substantially all of the
            outstanding Common Shares payable in Common Shares;

      the Exercise Price in effect on the effective date of such events referred
      to in subsections 4.2(a)(i), 4.2(a)(ii), or 4.2(a)(iii) shall be adjusted
      to equal the price determined by multiplying the Exercise Price in effect
      immediately prior to such effective date by a fraction of which the
      numerator shall be the total number of Common Shares outstanding
      immediately prior to such date and the denominator shall be the total
      number of Common Shares immediately after such date. Such adjustment shall
      be made successively whenever any event referred to in this subsection
      4.2(a) shall occur.

(b)   If and whenever at any time after the date hereof, the Corporation shall
      fix a record date which is prior to the Time of Expiry for the issue of
      rights, options or warrants to all or substantially all the holders of
      outstanding Common Shares under which such holders are entitled during a
      period expiring not more than sixty (60) days after the record date for
      such issue to subscribe for or purchase Common Shares, or securities
      convertible into or exchangeable for Common Shares, at a price per Common
      Share or having a conversion or exchange price per Common Share less than
      the Current Market Price per Common Share on such record date, the
      Exercise Price shall be adjusted immediately after such record date so
      that it shall equal the price determined by multiplying the Exercise Price
      in effect on such record date by a fraction of which the numerator shall
      be the total number of Common Shares outstanding on such record date plus
      a number of Common Shares equal to the number arrived at by dividing the
      aggregate price of the total number of additional Common Shares offered
      for subscription or purchase, or the aggregate conversion or exchange
      price of the convertible securities so offered, by such Current Market
      Price per Common Share, and of which the denominator shall be the total
      number of Common Shares outstanding on such record date plus the total
      number of additional Common Shares offered for subscription or purchase
      (or into which the convertible securities so offered are convertible or
      exchangeable). If by the terms of the rights, options or warrants referred
      to in this subsection 4.2(b), there is more than one purchase, conversion
      or exchange price per Common Share, the aggregate price of the total
      number of additional Common Shares offered for subscription or purchase,
      or the aggregate conversion or exchange price of the convertible
      securities so offered, shall be calculated for purposes of the adjustment
      on the basis of the lowest purchase, conversion or exchange price per
      Common Share, as the case may be. Any Common Shares owned by or held for
      the account of the Corporation or any subsidiary of the Corporation shall
      be deemed not to be outstanding for the purpose of any such computation.
      To the extent that any adjustment in Exercise Price occurs pursuant to
      this subsection 4.2(b) as a result of the fixing by the Corporation of a
      record date for the distribution of rights, options or warrants referred
      to in this subsection 4.2(b), the Exercise Price shall be readjusted
      immediately after the expiration of any relevant exchange, conversion or
      exercise right to the Exercise Price which would then be in effect based
      upon the number of Common Shares actually issued and remaining issuable
      after such expiration, and shall be further readjusted in such manner upon
      expiration of any further such right.

                                       10
<PAGE>

(c)   If and whenever at any time prior to the Time of Expiry, the Corporation
      shall fix a record date which is prior to the Time of Expiry for the issue
      or distribution to all or substantially all the holders of its outstanding
      Common Shares of:

      (i)      shares of any class other than Common Shares (excluding Dividends
               Paid in the Ordinary Course);

      (ii)     rights, options or warrants (excluding those referred to in
               subsection 4.2(b));

      (iii)    evidences of its indebtedness; or

      (iv)     any other property or assets (excluding Dividends Paid in the
               Ordinary Course);

      then, and in each such case, the Exercise Price shall be adjusted
      immediately after such record date so that it shall equal the price
      determined by multiplying the Exercise Price in effect on such record date
      by a fraction, of which the numerator shall be the total number of Common
      Shares outstanding on such record date multiplied by the Current Market
      Price on such record date, less the aggregate fair market value (as
      determined by the Corporation, which determination shall be conclusive) of
      such shares, rights, options, warrants, evidences of indebtedness or
      assets so issued or distributed, and of which the denominator shall be the
      total number of Common Shares outstanding on such record date multiplied
      by such Current Market Price, and any Common Shares owned by or held for
      the account of the Corporation or any subsidiary of the Corporation shall
      be deemed not to be outstanding for the purpose of any such computation.
      Such adjustment shall be made successively whenever such a record date is
      fixed, and to the extent that such distribution is not so made, the
      Exercise Price shall then be readjusted to the Exercise Price which would
      then be in effect if such record date had not been fixed or to the
      Exercise Price which would then be in effect based upon such shares,
      rights, options, warrants, evidences of indebtedness or assets actually
      distributed, as the case may be.

                                       11
<PAGE>

4.3   General Adjustments

(a)   If necessary, appropriate adjustments shall be made in the application of
      the provisions set forth in this Article 4 with respect to the rights and
      interests thereafter of the holders of Warrants to the end that the
      provisions set forth in this Article 4 shall thereafter correspondingly be
      made applicable as nearly as may reasonably be possible in relation to any
      shares or other securities or property thereafter deliverable upon the
      exercise of any Warrant. Any such adjustments shall be made by and set
      forth in an amendment to this Warrant Certificate hereto approved by the
      directors of the Corporation and shall for all purposes conclusively be
      deemed to be an appropriate adjustment.

(b)   If any case in which this Article 4 shall require that an adjustment shall
      become effective immediately after a record date for an event referred to
      herein, the Corporation may defer, until the occurrence of such event,
      issuing to the holder of any Warrant exercised after such event the
      additional Common Shares issuable upon such conversion by reason of the
      adjustment required by such event before giving effect to such adjustment;
      provided, however, that the Corporation shall deliver to such holder an
      appropriate instrument evidencing such holder's right to receive such
      additional Common Shares upon the occurrence of the event requiring such
      adjustment and the right to receive any distributions made on such
      additional Common Shares declared in favour of holders of record of Common
      Shares on and after the relevant date of exercise or such later date as
      such holder would, but for the provisions of this subsection 4.3(b), have
      become the holder of record of such additional Common Shares as a result
      of the exercise of the Warrants.

(c)   No adjustment in the Exercise Price or in the number of shares to be
      issued pursuant to the exercise of the Warrants shall be required unless
      such adjustment would result in a change of at least 1% in the Exercise
      Price then in effect or unless the number of shares to be issued would
      change by at least 1/100th of a share, provided, however, that any
      adjustments which, except for the provisions of this subsection 4.3(c)
      would otherwise have been required to be made, shall be carried forward
      and taken into account in any subsequent adjustment.

(d)   The adjustments provided for in this Article 4 in the Exercise Price and
      in the number and classes of shares which are to be received on the
      exercise of Warrants are cumulative. After any adjustment pursuant to this
      Section, the term "Common Shares" where used in this Warrant shall be
      interpreted to mean the shares or other securities or property of the
      Corporation which, as a result of all prior adjustments pursuant to this
      Section, the Warrantholder is entitled to receive upon the exercise of his
      Warrant, and the number of Common Shares indicated in any subscription
      made pursuant to a Warrant shall be interpreted to mean the number and
      kind of securities or property which, as a result of all prior adjustments
      pursuant to this Article 4, a Warrantholder is entitled to receive upon
      the full exercise of a Warrant entitling the holder thereof to purchase
      the number of Common Shares so indicated.

(e)   All securities and property which a Warrantholder is at the time in
      question entitled to receive on the full exercise of his Warrant, whether
      or not as a result of adjustments made pursuant to this Section, shall,
      for the purposes of the interpretation of this Warrant be deemed to be
      securities and property which such Warrantholder is entitled to purchase
      pursuant to such Warrant.

                                       12
<PAGE>

4.4   Notice of Adjustment

      Whenever the number of Common Shares purchasable upon the exercise of each
Warrant or the Exercise Price of such Common Shares is adjusted, as herein
provided, the Corporation shall promptly send to the Warrantholder by first
class mail, postage prepaid, notice of such adjustment or adjustments.

                                    ARTICLE 5

                          COVENANTS BY THE CORPORATION

5.1   Covenants by the Corporation

      The Corporation hereby covenants and agrees as follows:

(a)   it will at all times maintain its corporate existence and will carry on
      its business as currently carried on;

(b)   it will reserve and there will remain unissued out of its authorized
      capital a sufficient number of Common Shares to satisfy the rights of
      acquisition provided for in the Warrant Certificate; and

(c)   all Common Shares issued upon exercise of the right to purchase provided
      for herein shall, upon payment of the Exercise Price therefor, be issued
      as fully paid and non-assessable shares.

                                    ARTICLE 6

                              MERGER AND SUCCESSORS

6.1   Corporation May Consolidate, etc. on Certain Terms

      Nothing herein contained shall prevent any consolidation, reorganization,
amalgamation, arrangement or merger of the Corporation with or into any other
body corporate, trust, partnership or other entity, or a conveyance or transfer
of all or substantially all the properties and assets of the Corporation as an
entirety or substantially as an entirety to any other body corporate, trust,
partnership or other entity lawfully entitled to acquire and operate same,
provided, however, that the other body corporate, trust, partnership or other
entity formed by such reorganization, consolidation, amalgamation, arrangement
or merger or which acquires by conveyance or transfer all or substantially all
the properties and assets of the Corporation shall, simultaneously with such
reorganization, consolidation, amalgamation, arrangement, merger, conveyance or
transfer, assume the due and punctual performance and observance of all the
covenants and conditions hereof to be performed or observed by the Corporation.

                                       13
<PAGE>

6.2   Successor Corporation Substituted

      In case the Corporation, pursuant to Section 6.1, shall be reorganized,
consolidated, amalgamated, arranged, or merged with or into any other body
corporate, trust, partnership or other entity, or shall convey or transfer all
or substantially all of its properties and assets as an entirety or
substantially as an entirety to any other body corporate, trust, partnership or
other entity, the successor formed by such reorganization, consolidation,
amalgamation, arrangement or merger or into which the Corporation shall have
been reorganized, consolidated, amalgamated, arranged or merged or which shall
have received a conveyance or transfer as aforesaid, shall succeed to and be
substituted for the Corporation hereunder and such changes in phraseology and
form (but not in substance) may be made in the Warrant Certificate and herein as
may be appropriate in view of such reorganization, consolidation, amalgamation,
arrangement, merger, conveyance or transfer.

                                       14
<PAGE>

                                   APPENDIX 1

--------------------------------------------------------------------------------

                                  TRANSFER FORM

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to
_____________________________________, __________________ Warrants of Deep Well
Oil & Gas, Inc. registered in the name of the undersigned on the records of Deep
Well Oil & Gas, Inc. represented by the Warrant Certificate attached hereto and
irrevocably appoints Deep Well Oil & Gas, Inc. the attorney of the undersigned
to transfer the said securities on the books or register with full power of
substitution.

DATED the ______ day of ________________, 200__.

Signature Guaranteed                            Signature of Holder

Instructions:

1.    The signature of the Holder must be the signature of the person appearing
      on the face of this Certificate.

2.    If the Transfer Form is signed by a trustee, executor, administrator,
      curator, guardian, attorney, officer of a corporation or any person acting
      in a judiciary or representative capacity, the certificate must be
      accompanied by evidence of authority to sign satisfactory to the
      Corporation.

3.    The signature on the Transfer Form must be guaranteed by an authorized
      officer of a chartered bank, trust Corporation or an investment dealer who
      is a member of a recognized stock exchange.

4.    Warrants shall only be transferable in accordance with applicable laws.
      The Warrants and the Common Shares issuable thereunder are subject to
      resale restrictions and hold periods which will prevent the Holder, except
      in very limited circumstances from trading such securities. Holders should
      consult their legal advisors in this regard.

<PAGE>

                                   APPENDIX 2
                              WARRANT EXERCISE FORM

TO:   Deep Well Oil & Gas, Inc.

The undersigned holder of the within Warrant(s) hereby subscribes for
_______________ Common Shares of Deep Well Oil & Gas, Inc. (the "Corporation")
(or such number of Common Shares or other securities or property to which such
exercise entitles the undersigned in lieu thereof or in addition thereto under
the provisions of the Warrant Certificate) pursuant to the within Warrant(s) at
US$0.60 per share (or the adjusted dollar amount per share at which the
undersigned is entitled to purchase such shares under the provisions of the
Warrant(s) subscribed for above) prior to 5:00 p.m. (Edmonton time) on the
Expiry Date on the terms specified in the said Warrant Certificate, which
certificate is surrendered to the Corporation and which will, upon the issuance
of the Common Shares referred to above and the issuance of a new Warrant for any
outstanding rights of the surrendered Warrant, be null and void. The undersigned
also encloses herewith a certified cheque, bank draft or money order or has
transmitted good same day funds by wire or other similar transfer, in lawful
money of the United States, payable to or to the order of Deep Well Oil & Gas,
Inc. in payment of the exercise price.

In order to exercise any Warrants represented by this certificate, the person
exercising Warrant(s) must check one of the following:

                               [PLEASE CHECK ONE]

|_|   The undersigned holder (i) at the time of exercise of these Warrants is
      not in the United States; (ii) is not a "U.S. person" as defined in
      Regulation S under the United States Securities Act of 1933, as amended
      (the "U.S. Securities Act"), and is not exercising these Warrants on
      behalf of a "U.S. person"; and (iii) did not execute or deliver this
      Warrant Exercise Form in the United States; or

|_|   The undersigned certifies that an exemption from registration under the
      U.S. Securities Act and any applicable state securities laws is available,
      and attached hereto is an opinion of counsel to such effect, it being
      understood that any opinion of counsel tendered in connection with the
      exercise of these Warrants must be in form and substance satisfactory to
      the Corporation; or

|_|   The undersigned certifies that the undersigned is the original purchaser
      of the Warrant(s) being exercised and confirms as of the date hereof, the
      representations, warranties and agreements made by the undersigned in the
      subscription agreement pursuant to which such Warrant(s) was acquired by
      it.

The undersigned directs that the said Common Shares hereby exercised, be issued
and delivered as follows:

<TABLE>
<CAPTION>
<S>                                          <C>                                      <C>
Name in full                         Address(es) (Include Postal Code)          # of Common Shares
---------------------------          ----------------------------------         ------------------
(Please print full name in which certificates are to be issued. If any of the
securities are to be issued to a person or persons other than the undersigned,
the undersigned holder must pay to the Corporation all requisite taxes or other
governmental charges.)
</TABLE>

DATED this         day of                 , 200 .
           -------        ----------------     -

Witness                                   Signature  of  Warrantholder  (or  its
                                          representative if not an individual).

Print name and address of Warrantholder in full

Name:                                           Address:
            ------------------------------              ------------------------

Title of person signing on behalf of holder (if subscriber is not an
individual):

                                          ______________________________________
------------------------------------
                                          Signature Guaranteed

<PAGE>

1.    If the Warrant Exercise Form indicates that Common Shares are to be issued
      to a person or persons other than the registered holder of the
      certificate, the signature of such holder of the Warrant Exercise Form
      must be guaranteed by an authorized officer of a chartered bank, trust
      corporation or an investment dealer who is a member of a recognized stock
      exchange.

2.    If the Warrant Exercise Form is signed by a trustee, executor,
      administrator, curator, guardian, attorney, officer of a corporation or
      any person acting in a judiciary or representative capacity, the
      certificate must be accompanied by evidence of authority to sign
      satisfactory to the Corporation.

3.    If the registered Holder exercises its right to receive Common Shares
      prior to expiry of any hold period or other resale restriction placed on
      the Warrants by the securities laws of any applicable jurisdiction or the
      requirements of any applicable stock exchange, the certificates evidencing
      the Common Shares thereby issued will bear such legend as is required
      under applicable securities laws and that, in the opinion of legal counsel
      to the Corporation, be necessary in order to avoid a violation of any such
      laws or requirements.

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