Document:

Unassociated Document

    SUBSCRIPTION
      FOR UNITS

    

    (Part
      5
      Accredited Investor Exemption Pursuant to “National Instrument 45-106
      -
      Prospectus and Registration Exemptions”
-
      

    Alberta
      and British Columbia 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 1,300,000 units (“Units”) at a price of US$1.50
      per Unit for gross proceeds of US$1,950,000. Each Unit is comprised of one
      (1)
      common share (“Common Share”) and one (1) Common Share purchase warrant. Each
      whole warrant entitles the holder to purchase one (1) Common Share at a price
      of
      US$2.25 for a period of three years from the Closing Date. 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.

     

    
      	
              _____________________________________

              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

            	 	 	
               

              Number
                of Units:

            
	
            
	
            
	
              Aggregate
                Subscription Price (No. of Units X US$1.50 per
                Unit):

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

            
	 
	 	
              Register
                the Units as set forth below:

               

              __________________________________________________________

              Name

               

              __________________________________________________________

              Address

               

              __________________________________________________________

              Address

               

               

            
	 
	 

    

    

    ACCEPTANCE:
      The
      Corporation hereby accepts the above subscription as of this _______ day of
      ____________________, __________ 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 9 pages (not including
      Exhibits).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    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
                January 11, 2006 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)

            	
              “NI
                45-102” means
                National Instrument 45-102 - Resale
                of Securities; 

            

    

     

    
      	 	
              (e)

            	
              “NI
                45-106” means
                National Instrument 45-106 - Prospectus
                and Registration Exemptions; 

            

    

     

    
      	 	
              (f)

            	
              “Offering”
                means the offering of Units by the Corporation at US$1.50 per
                Unit;

            

    

     

    
      	 	
              (g)

            	
              “Securities”
                means the Units, the Common Shares and the Warrants comprising the
                Units,
                and the Warrant Shares;

            

    

     

    
      	 	
              (h)

            	
              “Subscriber”
                means the person or company identified as the Subscriber on the face
                page
                of this Subscription Agreement;

            

    

     

    
      	 	
              (i)

            	
              “Subscription
                Agreement”
                means this agreement, together with the exhibits attached hereto,
                as
                amended or supplemented from time to
                time;

            

    

     

    
      	 	
              (j)

            	
              “Subscription
                Price”
                means the aggregate subscription price paid by the Subscriber, being
                the
                number of Units subscribed for multiplied by US$1.50 per
                Unit;

            

    

     

    
      	 	
              (k)

            	
              “Unit”
                means a unit consisting of one (1) Common Share and one (1) Common
                Share
                purchase warrant of the
                Corporation;

            

    

     

    
      	 	
              (l)

            	
              “Warrant”
                means a Common Share purchase warrant of the Corporation in which
                one (1)
                whole warrant entitles the holder to purchase one (1) Common Share
                of the
                Corporation at a price of US$2.25 for a period of three (3) years
                from the
                Closing Date; and

            

    

     

    
      	 	
              (m)

            	
              “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 1,300,000 Units
      of
      the Corporation at a subscription price of US$1.50 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.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    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 NI 45-106, NI 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 NI 45-106, 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 NI 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

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
              (d)

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

            

    

     

    
      	
              (e)

            	
              the
                Subscriber is purchasing as principal and it knows that it is purchasing
                the Units pursuant to an exemption under NI 45-106 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 NI 45-106
                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 British Columbia,
                the Subscriber is a resident in or otherwise subject to the applicable
                securities laws of British Columbia and it is an "accredited investor"
                as
                such term is defined in NI 45-106 promulgated under the Securities
                Act
                (British Columbia) and has concurrently executed and delivered a
                Representation Letter in the form attached as Exhibit 1
                to
                this Subscription Agreement; and

            

    

     

    
      	
              (f)

            	
              if
                the Subscriber is resident in any jurisdiction not referred to in
                Subsection 7(e)
                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 or British
                Columbia; and (d) and notwithstanding that the Subscriber is not
                a
                resident of Alberta or British Columbia, it is an "accredited investor"
                as
                such term is defined in NI 45-106 promulgated under the Securities
                Act
                (Alberta) and/or the Securities
                Act
                (British Columbia) and
                has concurrently executed and delivered a Representation Letter in
                the
                form attached as Exhibit 1
                to
                this Subscription Agreement; and

            

    

     

    
      	
              (g)

            	
              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

            

    

     

    
      	
              (h)

            	
              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

            

    

     

    
      	
              (i)

            	
              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

            

    

     

    
      	
              (j)

            	
              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

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
              (k)

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

            

    

     

    
      	
              (l)

            	
              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

            

    

     

    
      	
              (m)

            	
              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

            

    

     

    
      	
              (n)

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

            

    

     

    
      	
              (o)

            	
              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

            

    

     

    
      	
              (p)

            	
              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

            

    

     

    
      	
              (q)

            	
              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

            

    

     

    
      	
              (r)

            	
              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

            

    

     

    
      	
              (s)

            	
              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

            

    

     

    
      	
              (t)

            	
              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

            

    

     

    
      	
              (u)

            	
              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

            

    

     

    
      	
              (v)

            	
              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

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
              (w)

            	
              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

            

    

     

    
      	
              (x)

            	
              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

            

    

     

    
      	
              (y)

            	
              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

            

    

     

    
      	
              (z)

            	
              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 acting as agent for
                a
                disclosed principal, each beneficial purchaser, is able to bear the
                economic risk of loss of the Subscriber’s entire investment in the Units;
                and

            

    

     

    
      	
              (aa)

            	
              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

            

    

     

    
      	
              (bb)

            	
              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

            

    

     

    
      	
              (cc)

            	
              if
                required by applicable securities legislation, regulations, rules,
                policies or orders, NI 45-106, 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

            

    

     

    
      	
              (dd)

            	
              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

            

    

     

    
      	
              (ee)

            	
              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

            

    

     

    
      	
              (ff)

            	
              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

            

    

     

    
      	
              (gg)

            	
              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

            

    

     

    
      	
              (hh)

            	
              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

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              (ii)

            	
              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 a fully completed and duly executed
      Representation Letter, attached as Exhibit
      1
      hereto;
      or (d) if the Subscriber is an “accredited investor” in British Columbia a
      fully completed and duly executed Representation Letter, attached as
Exhibit
      1
      hereto;
      or (e)
      if the Subscriber is purchasing Units pursuant to Subsection 7(f)
      a fully
      completed and duly executed Representation Letter, attached as Exhibit
      1
      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.

     

    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.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    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 agent to a beneficial disclosed
      purchaser 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.

     

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

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    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

        
          

        

      

      
 

    

    EXHIBIT
      1

     

    REPRESENTATION
      LETTER

     

    (FOR
      ALBERTA AND/OR BRITISH COLUMBIA ACCREDITED INVESTORS OR ACCREDITED INVESTORS
      TO
      WHOM SUBSECTION 7(f)
      APPLIES)

     

    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 British Columbia or is subject to the
      laws
      of the Province of Alberta or British Columbia;

     

    2. The
      Subscriber, unless it is a person or company described in paragraph (q) in
      the attached Appendix "A" that is deemed pursuant to the provisions of
      section 2.3(5) of National Instrument 45-106 entitled "Prospectus and
      Registration 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 National Instrument
      45-106 entitled "Prospectus and Registration 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:
              ___________________________________.	 	 
	 	 	 
	 	  
	 	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

        
          

        

      

      
         

      

    

    APPENDIX
      "A"

     

    to
      Exhibit 1

    
 

    Accredited
      Investor
      -
      (defined in NI 45-106) means:

     

    
      	 	(a)	
              a
                Canadian financial institution or a Schedule III Bank;
                or

            
	 	 	 
	 	(b)	
              the
                Business Development Bank of Canada incorporated under the Business
                Development Bank of Canada Act
                (Canada); or

            
	 	 	 
	 	(c)	
              a
                subsidiary of any person referred to in paragraphs (a) or (b), if the
                person 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

            
	 	 	 
	 	(d)	
              a
                person registered under the securities legislation of a jurisdiction
                of
                Canada as an adviser or dealer, other than a person registered solely
                as a
                limited market dealer under one or both of the Securities
                Act
                (Ontario) or the Securities
                Act
                (Newfoundland and Labrador); or

            
	 	 	 
	 	(e)	
              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 (d); or

            
	 	 	 
	 	(f)	
              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

            
	 	 	 
	 	(g)	
              a
                municipality, public board or commission in Canada and a metropolitan
                community, school board, Comité de gestion de la taxe scolaire de
                l' le de Montreal or an intermunicipal management board in Québec;
                or

            
	 	 	 
	 	(h)	
              any
                national, federal, state, provincial, territorial or municipal government
                of or in any foreign jurisdiction, or any agency of that government;
                or

            
	 	 	 
	 	(i)	
              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

            
	 	 	 
	 	(j)	
              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

            
	 	 	 
	 	(k)	
              an
                individual whose net income before taxes exceeded CAD$200,000 in
                each of
                the 2 most recent calendar years or whose net income before taxes
                combined
                with that of a spouse exceeded CAD$300,000 in each of the 2 most
                recent
                calendar years and who, in either case, reasonably expects to exceed
                that
                net income level in the current calendar year; or

            
	 	 	 
	 	(l)	
              an
                individual who, either alone or with a spouse, has net assets of
                at least
                CAD$5,000,000; or

            
	 	 	 
	 	(m)	
              a
                person, other than an individual or investment fund that has net
                assets of
                at least CAD$5,000,000 as shown on its most recently prepared financial
                statements and such person was not created or used solely to purchase
                or
                hold securities as an “accredited investor”; or

            
	 	 	 
	 	(n)	
              an
                investment fund that distributes or has distributed its securities
                only
                to:

               

              (i)
                a person that is or was an accredited investor at the time of the
                distribution;

               

              (ii)
                a person that acquires or acquired securities in the circumstances
                referred to in sections 2.10 and 2.19 of NI 45-106; or

               

              (iii)
                a person described in paragraph (n)(i) or (ii) that acquires or acquired
                securities under section 2.18 of NI 45-106;
                or

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

      
        APPENDIX
          "A"

         

        to
          Exhibit 1

      

    

    
      	 	 	 
	 	(o)	
              an
                investment fund that distributes or has distributed securities under
                a
                prospectus in a jurisdiction of Canada for which the regulator, or
                in
                Québec, the securities regulatory authority, has issued a receipt;
                or

            
	 	 	 
	 	(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, acting on behalf of a fully managed account
                managed
                by the trust company or trust corporation, as the case may be;
                or

            
	 	 	 
	 	(q)	
              a
                person acting on behalf of a fully managed account managed by that
                person,
                if that person

               

              (i)
                is registered or authorized to carry on business as an adviser or
                the
                equivalent under the securities legislation of a jurisdiction of
                Canada or
                a foreign jurisdiction; and

               

              (ii)
                in Ontario, is purchasing a security that is not a security of an
                investment fund; 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 an adviser registered under the securities
                legislation of the jurisdiction of the registered charity to give
                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) to (d) or paragraph (i)
                in form and 

              function;
                or

            
	 	 	 
	 	(t)	
              a
                person in respect of which all of the owners of interests, direct,
                indirect, or beneficial, except the voting securities required by
                law to
                be owned by directors, are persons that are “accredited investors” (as
                defined in NI 45-106); or

            
	 	 	 
	 	(u)	
              an
                investment fund that is advised by a person registered as an adviser
                or a
                person that is exempt from registration as an adviser;
                or

            
	 	 	
              (v) a
                person that is recognized or designated by the securities regulatory
                authority or, except in Ontario and Québec, the regulator as

               

              (i)
                an “accredited investor” (as defined in NI 45-106); or

               

              (ii)
                an exempt purchaser in Alberta or British
                Columbia.

            

    

    

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

     

    For
      the purposes hereof:

     

    
      	
              (a)

            	
              "bank"
                means a bank named in Schedule I or II of the Bank
                Act (Canada);

            

    

     

    
      	
              (b)

            	
              "Canadian
                financial institution"
                means

            

    

     

    (i)
      an
      association governed by the Cooperative
      Credit Associations Act
      (Canada)
      or a central cooperative credit society for which an order has been made under
      section 473(1) of that Act; or

     

    (ii)
      a
      bank, loan corporation, trust company, trust corporation, insurance company,
      treasury branch, credit union, caisse populaire, financial services cooperative,
      or league that, in each case, is authorized by an enactment of Canada or a
      jurisdiction of Canada to carry on business in Canada or a jurisdiction of
      Canada;

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

      
        APPENDIX
          "A"

         

        to
          Exhibit 1

         

      

    

    
      	
              (c)

            	
              "director"
                means

            

    

     

    (i)
      a
      member of the board of directors of a company or an individual who performs
      similar functions for a company, and

     

    (ii)
      with
      respect to a person that is not an company, an individual who performs functions
      similar to that of a director of a company;

     

    
      	
              (d)

            	
              "eligibility
                adviser"
                means a person that is registered as an investment dealer or in an
                equivalent category of registration under the securities legislation
                of
                the jurisdiction of a purchaser and authorized to give advice with
                respect
                to the type of security being distributed;

            

    

     

    
      	
              (e)

            	
              "EVCC"
                means an employee venture capital corporation that does not have
                a
                restricted constitution and is registered under Part 2 of the Employee
                Investment Act (British
                Columbia), R.S.B.C. 1996 c. 112, and whose business objective is
                making
                multiple investments;

            

    

     

    
      	
              (f)

            	
              "financial
                assets"
                means

            

    

     

    (i)
      cash;

     

    (ii)
      securities; or

     

    (iii)
      a
      contract of insurance, a deposit or evidence of a deposit that is not a security
      for the purposes of securities legislation;

     

    
      	
              (g)

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

            

    

     

    
      	
              (h)

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

            

    

     

    
      	
              (i)

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

            

    

     

    
      	
              (j)

            	
              "individual"
                means

            

    

     

    
      	 	
              (i)

            	
              for
                Alberta, a natural person, but does not
                include

            

    

     

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

     

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

     

    
      	 	
              (ii)

            	
              for
                British Columbia, a natural person, but does not
                include

            

    

     

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

     

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

     

    
      	
              (k)

            	
              "investment
                fund"
                means a mutual fund or a non-redeemable investment fund, and, for
                greater
                certainty in British Columbia, includes an EVCC and a
                VCC;

            

    

     

    
      	
              (l)

            	
              "non-redeemable
                investment fund"
                means an issuer,

            

    

     

    
      	 	
              (i)

            	
              whose
                primary purpose is to invest money provided by its
                securityholders,

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

      
        APPENDIX
          "A"

         

        to
          Exhibit 1

         

      

    

    
      	 	
              (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;

            

    

     

    
      	
              (m)

            	
              "person"
                includes

            

    

     

    (i)
      an
      individual;

     

    (ii)
      a
      corporation;

     

    (iii)
      a
      partnership, trust, fund and an association, syndicate, organization or other
      organized group of persons, whether incorporated or not; and

     

    (iv)
      an
      individual or other person in that person's capacity as a trustee, executor,
      administrator or other legal representative;

     

    
      	
              (n)

            	
              "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;

     

    
      	
              (o)

            	
              "Schedule
                III bank"
                means an authorized foreign bank named in Schedule III of the Bank
                Act (Canada):

            

    

     

    
      	
              (p)

            	
              "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;

     

    (ii)
      for
      British Columbia, the Securities
      Act
      (British
      Columbia) and the regulations, rules and forms under such Act and the blanket
      rulings and orders issued by the British Columbia Securities
      Commission;

     

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

     

    
      	
              (q)

            	
              "securities
                regulatory authority"
                means

            

    

     

    (i)
      for
      Alberta, the Alberta Securities Commission;

     

    (ii)
      for
      British Columbia, the British Columbia Securities Commission;

     

    (iii)
      for
      other Canadian jurisdictions, means the securities regulatory authority as
      listed in Appendix C of National Instrument 14-101 - Definitions;
      

     

    
      	
              (r)

            	
              "spouse"
                means an individual who

            

    

     

    (i)
      is
      married to another individual and is not living separate and apart within the
      meaning of the Divorce
      Act
      (Canada), from the other individual; or

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

      
        APPENDIX
          "A"

         

        to
          Exhibit 1

         

      

    

    (ii)
      is
      living with another individual in a marriage-like relationship, including a
      marriage-like relationship of individuals of the same gender; or

     

    (iii)
      in
      Alberta, is an individual referred to in paragraph (i) or (ii) or is an adult
      interdependent partner within the meaning of the Adult
      Interdependent Relationships Act
      (Alberta);

     

    
      	
              (s)

            	
              "subsidiary"
                means an issuer that is controlled directly or indirectly by another
                issuer and includes a subsidiary of that subsidiary;
                and

            

    

     

    
      	
              (t)

            	
              "VCC"
                means a venture capital corporation registered under Part 1 of the
                Small
                Business Venture Capital Act (British
                Columbia), R.S.B.C. 1996 c. 429 whose business objective is making
                multiple investments.

            

    

     

    Meaning
      of Control:

     

    A
      person
      ("first person") is considered to "control"
      another
      person ("second person") if:

     

    (i)
       the
      first
      person, directly or indirectly, beneficially owns or exercises control or
      direction over securities of the second person carrying votes which, if
      exercised, would entitle the first person to elect a majority of the directors
      of the second person, unless that first person holds the voting securities
      only
      to secure an obligation; or

     

    (ii)
       the
      second person is a partnership, other than a limited partnership, and the first
      person holds more than 50% of the interests of the partnership; or

     

    (iii)
       the
      second person is a limited partnership and the general partner of the limited
      partnership is the first person.

    
 

    
      
         

      

      
        15Unassociated Document

    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 January 13, 2009.

    

    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
                	 	«Warrant»
                WARRANTS, each 
	NO. «Certificate»	 	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".

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      
        	DATED this 13 day of January, 2006.	 	 
	 	 	DEEP WELL OIL & GAS, INC.
	 	 	 
	 	 	Per:
                ___________________________________

      

    

    

    

    (See
      terms and conditions attached hereto)

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    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

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	 	
              (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$2.25 per Common Share (subject to adjustment
                in certain events);

            

    

     

    
      	
              (f)

            	
              "Expiry
                Date" means the 13th day of January,
                2006;

            

    

     

    
      	
              (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.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
              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.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
              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.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
              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

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    
      	
              (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:

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (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.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
              (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.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
              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.

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	
              (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.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
              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.

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
              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.

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
              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.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    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.

            

    

    

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    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$2.25 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]

     

    
      	
              o

            	
              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

            

    

    
      	
              o

            	
              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

            

    

    
      	
              o

            	
              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:

     

    
 

    
      	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.)

    

          

    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

    

      

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
              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.

            

    

     

    
      
         

      

        18

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