Document:

Exhibit
      4.3

     

    THIS
      WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
      OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR
      TRANSFERRED UNLESS A REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
      SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS
      IS
      AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER.
      

     

     

    WARRANT

     

    TO
      PURCHASE COMMON STOCK 

    

    OF

    

    DEEP
      WELL
      OIL & GAS, INC.

     

    

      
        	
                Original
                  Issue Date: March 10, 2005

              	
                Warrant
                  No.  __

              

      

    

    

    THIS
      CERTIFIES that_____________________________________ or any subsequent holder
      hereof (the “Holder”),
      has
      the right to purchase from DEEP WELL OIL & GAS, INC., a Nevada corporation
      (the “Company”),
      up to
      ________ fully paid and nonassessable shares of the Company’s common stock, par
      value $0.001 per share (the “Common
      Stock”),
      subject to adjustment as provided herein, at a price per share equal to the
      Exercise Price (as defined below), at any time and from time to time beginning
      on the date on which this Warrant is originally issued (the “Issue
      Date”)
      and
      ending at 6:00 p.m., eastern time, on the date that is the fifth (5th)
      anniversary of the Issue Date (or, if such date is not a Business Day, on the
      Business Day immediately following such date) (the “Expiration
      Date”).
      This
      Warrant is issued pursuant to a Securities Purchase Agreement, dated as of
      March
      10, 2005 (the “Securities
      Purchase Agreement”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Securities Purchase Agreement.

     

    1. Exercise.

    

    (a)
       Right
      to Exercise; Exercise Price.
      The
      Holder shall have the right to exercise this Warrant at any time and from time
      to time during the period beginning on the Issue Date and ending on the
      Expiration Date as to all or any part of the shares of Common Stock covered
      hereby (the “Warrant
      Shares”).
      The
“Exercise
      Price”
for
      each Warrant Share purchased by the Holder upon the exercise of this Warrant
      shall be equal to forty cent ($0.40), subject to adjustment for the events
      specified in Section
      6
      below.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b)
       Exercise
      Notice.
      In
      order to exercise this Warrant, the Holder shall send to the Company by
      facsimile transmission, at any time prior to 6:00 p.m., eastern time, on the
      Business Day on which the Holder wishes to effect such exercise (the
“Exercise
      Date”),
      (i) a
      notice of exercise in substantially the form attached hereto as Exhibit A (the
      “Exercise
      Notice”),
      and
      (ii) a copy of the original Warrant, and, in the case of a Cash Exercise (as
      defined below), the Holder shall pay the Exercise Price to the Company by wire
      transfer of immediately available funds. The
      Exercise Notice shall state the name or names in which the shares of Common
      Stock that are issuable on such exercise shall be issued. In
      the
      case of a dispute between the Company and the Holder as to the calculation
      of
      the Exercise Price or the number of Warrant Shares issuable hereunder
      (including, without limitation, the calculation of any adjustment pursuant
      to
Section
      6
      below),
      the Company shall issue to the Holder the number of Warrant Shares that are
      not
      disputed within the time periods specified in Section
      2
      below
      and shall submit the disputed calculations to a certified public accounting
      firm
      of national reputation (other than the Company’s regularly retained accountants)
      within two (2) Business Days following the date on which the Holder’s Exercise
      Notice is delivered to the Company. The Company shall cause such accountant
      to
      calculate the Exercise Price and/or the number of Warrant Shares issuable
      hereunder and to notify the Company and the Holder of the results in writing
      no
      later than three (3) Business Days following the day on which such accountant
      received the disputed calculations (the “Dispute
      Procedure”).
      Such
      accountant’s calculation shall be deemed conclusive absent manifest error. The
      fees of any such accountant shall be borne by the party whose calculations
      were
      most at variance with those of such accountant.

    

    (c)
       Holder
      of Record.
      The
      Holder shall, for all purposes, be deemed to have become the holder of record
      of
      the Warrant Shares specified in an Exercise Notice on the Exercise Date
      specified therein, irrespective of the date of delivery of such Warrant Shares.
      Except as specifically provided herein, nothing in this Warrant shall be
      construed as conferring upon the Holder hereof any rights as a stockholder
      of
      the Company prior to the Exercise Date.

    

    (d)
       Cancellation
      of Warrant.
      This
      Warrant shall be canceled upon its exercise in full and, if this Warrant is
      exercised in part, the Company shall, at the time that it delivers Warrant
      Shares to the Holder pursuant to such exercise as provided herein, issue a
      new
      warrant, and deliver to the Holder a certificate representing such new warrant,
      with terms identical in all respects to this Warrant (except that such new
      warrant shall be exercisable into the number of shares of Common Stock with
      respect to which this Warrant shall remain unexercised); provided,
      however,
      that
      the Holder shall be entitled to exercise all or any portion of such new warrant
      at any time following the time at which this Warrant is exercised, regardless
      of
      whether the Company has actually issued such new warrant or delivered to the
      Holder a certificate therefor.

    

    2. Delivery
      of Warrant Shares Upon Exercise.
      Upon
      receipt of a fax copy of an Exercise Notice pursuant to Section
      1
      above,
      the Company shall, (A) in the case of a Cash Exercise, no later than the close
      of business on the later to occur of (i) the third (3rd) Business Day following
      the Exercise Date specified in such Exercise Notice and (ii) such later date
      on
      which the Company shall have received payment of the Exercise Price, (B) in
      the
      case of a Cashless Exercise (as defined below), no later than the close of
      business on the third (3rd) Business Day following the Exercise Date specified
      in such Exercise Notice, and (C) with respect to Warrant Shares that are the
      subject of a Dispute Procedure, the close of business on the third (3rd)
      Business Day following the determination made pursuant to Section
      1(b)
      (each of
      the dates specified in (A), (B) or (C) being referred to as a “Delivery
      Date”),
      issue
      and deliver or caused to be delivered to the Holder the number of Warrant Shares
      as shall be determined as provided herein. The Company shall effect delivery
      of
      Warrant Shares to the Holder, as long as the Company’s designated transfer agent
      (the “Transfer
      Agent”)
      participates in the Depository Trust Company (“DTC”)
      Fast
      Automated Securities Transfer program (“FAST”)
      and no
      restrictive legend is required pursuant to the terms of this Warrant or the
      Securities Purchase Agreement, by crediting the account of the Holder or its
      nominee at DTC (as specified in the applicable Exercise Notice) with the number
      of Warrant Shares required to be delivered, no later than the close of business
      on such Delivery Date. In the event that the Transfer Agent is not a participant
      in FAST or if the Holder so specifies in a Exercise Notice or otherwise in
      writing on or before the Exercise Date, the Company shall effect delivery of
      Warrant Shares by delivering to the Holder or its nominee physical certificates
      representing such Warrant Shares, no later than the close of business on such
      Delivery Date. Warrant Shares delivered to the Holder shall not contain any
      restrictive legend unless such legend is required pursuant to the terms of
      the
      Securities Purchase Agreement.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    3. Failure
      to Deliver Warrant Shares.
      

    

    (a) In
      the
      event that the Company fails for any reason to deliver to the Holder the number
      of Warrant Shares specified in the applicable Exercise Notice on or before
      the
      Delivery Date therefor (an “Exercise
      Default”),
      the
      Company shall pay to the Holder payments (“Exercise
      Default Payments”)
      in the
      amount of (i) (N/365) multiplied
      by
      (ii)
the
      aggregate Exercise Price of the Warrant Shares which are the subject of such
      Exercise
      Default
      multiplied
      by
      (iii)
      the lower of twelve percent (12%) per annum and the maximum rate permitted
      by
      applicable law (the “Default
      Interest Rate”),
      where
“N” equals the number of days elapsed between the original Delivery Date of such
      Warrant Shares and the date on which all of such Warrant Shares are issued
      and
      delivered to the Holder. Cash amounts payable hereunder shall be paid on or
      before the fifth (5th) Business Day of each calendar month following the
      calendar month in which such amount has accrued. 

    

    (b) In
      the
      event of an Exercise Default, the Holder may, upon written notice to the Company
      (an “Exercise
      Default Notice”),
      regain on the date of such notice the rights of the Holder under the exercised
      portion of this Warrant that is the subject of such Exercise
      Default. In
      the
      event of such Exercise Default and delivery of an Exercise Default Notice,
      the
      Holder shall retain all of the Holder’s rights and remedies with respect to the
      Company’s failure to deliver such Warrant Shares (including without limitation
      the right to receive the cash payments specified in Section
      3(a)
      above).

    

    (c)
       The
      Holder’s rights and remedies hereunder are cumulative, and no right or remedy is
      exclusive of any other. In addition to the amounts specified herein, the Holder
      shall have the right to pursue all other remedies available to it at law or
      in
      equity (including, without limitation, a decree of specific performance and/or
      injunctive relief). Nothing herein shall limit the Holder’s right to pursue
      actual damages for the Company’s failure to issue and deliver Warrant Shares on
      the applicable Delivery Date (including, without limitation, damages relating
      to
      any purchase of Common Stock by the Holder to make delivery on a sale effected
      in anticipation of receiving Warrant Shares upon exercise, such damages to
      be in
      an amount equal to (A) the aggregate amount paid by the Holder for the Common
      Stock so purchased minus
      (B) the
      aggregate amount of net proceeds, if any, received by the Holder from the sale
      of the Warrant Shares issued by the Company pursuant to such
      exercise).  

    
      
        
        

      

      
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    4.  Exercise
      Limitations.
      In
      no
      event shall a Holder be permitted to exercise
      this Warrant, or part hereof, if, upon such exercise, the number of shares
      of
      Common Stock beneficially owned by the Holder (other than shares which would
      otherwise be deemed beneficially owned except for being subject to a limitation
      on conversion or exercise analogous to the limitation contained in this
Section
      4),
      would
      exceed 4.99% of the number of shares of Common Stock then issued and
      outstanding. As used herein, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Securities Exchange Act of 1934, as
      amended, and the rules thereunder. To the extent that the limitation contained
      in this Section
      4 applies,
      the submission of an Exercise Notice by the Holder shall be deemed to be the
      Holder’s representation that this Warrant is exercisable pursuant to the terms
      hereof and the Company shall be entitled to rely on such representation without
      making any further inquiry as to whether this Section
      4
      applies.
      Nothing contained herein shall be deemed to restrict the right of a Holder
      to
      exercise this Warrant, or part thereof, at such time as such exercise will
      not
      violate the provisions of this Section
      4.
      This
Section
      4
      may not
      be amended unless such amendment is approved by the holders of a majority of
      the
      Common Stock then outstanding; provided,
      however,
      that
      the
      limitations contained in this Section
      4
      shall
      cease to apply (x) upon sixty (60) days’ prior written notice from the Holder to
      the Company, or (y) immediately upon written notice from the Holder to the
      Company at any time after the public announcement or other disclosure of a
      Major
      Transaction (as defined below) or a Change of Control. For purposes hereof,
      “Change
      of Control”
means
      the existence or occurrence of any of the following: (a) the sale, conveyance
      or
      disposition of all or substantially all of the assets of the Company; (b) the
      effectuation of a transaction or series of transactions in which more than
      fifty
      percent (50%) of the voting power of the Company is disposed of; (c) the
      consolidation, merger or other business combination of the Company with or
      into
      any other entity, immediately following which the prior stockholders of the
      Company fail to own, directly or indirectly, at least fifty percent (50%) of
      the
      surviving entity; (d) a transaction or series of transactions in which any
      Person or group acquires more than fifty percent (50%) of the voting equity
      of
      the Company; and (e) the individuals serving on the Board of Directors as of
      the
      Closing Date do not at any time constitute at least a majority of the Board
      of
      Directors of the Company.

    

    5.
       Payment
      of the Exercise Price; Cashless Exercise.
      The
      Holder may pay the Exercise Price in either of the following forms or, at the
      election of Holder, a combination thereof:

    

    (a) through
      a
      cash exercise (a “Cash
      Exercise”)
      by
      delivering immediately available funds, or

    

    (b) if,
      for
      any reason, an effective Registration Statement is not available for the resale
      of all of the Warrant Shares issuable hereunder at the time an Exercise Notice
      is delivered to the Company, through a cashless exercise (a “Cashless
      Exercise”),
      as
      hereinafter provided. The Holder may effect a Cashless Exercise by surrendering
      this Warrant to the Company and noting on the Exercise Notice that the Holder
      wishes to effect a Cashless Exercise, upon which the Company shall issue to
      the
      Holder the number of Warrant Shares determined as follows:

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    
      	 	
              X
                =
                Y x (A-B)/A

            
	 	 
	
              where:

            	
              X
                =
                the number of Warrant Shares to be issued to the
                Holder;

            
	 	 
	 	
              Y
                =
                the number of Warrant Shares with respect to which this Warrant is
                being
                exercised;

            
	 	 
	 	
              A
                =
                the Market Price as of the Exercise Date; and

            
	 	 
	 	
              B
                =
                the Exercise Price.

            

    

    

    For
      purposes of Rule 144, it is intended and acknowledged that the Warrant Shares
      issued in a Cashless Exercise transaction shall be deemed to have been acquired
      by the Holder, and the holding period for the Warrant Shares required by Rule
      144 shall be deemed to have been commenced, on the Issue Date. 

    

    6. Anti-Dilution
      Adjustments; Distributions; Other Events.
      The
      Exercise Price and the number of Warrant Shares issuable hereunder shall be
      subject to adjustment from time to time as provided in this Section
      6.
      In the
      event that any adjustment of the Exercise Price required herein results in
      a
      fraction of a cent, the Exercise Price shall be rounded up or down to the
      nearest one hundredth of a cent.

    

    (a) Subdivision
      or Combination of Common Stock.
      If the
      Company, at any time after the Issue Date, subdivides (by any stock split,
      stock
      dividend, recapitalization, reorganization, reclassification or otherwise)
      the
      outstanding shares of Common Stock into a greater number of shares, then
      effective upon the close of business on the record date for effecting such
      subdivision, the Exercise Price in effect immediately prior to such subdivision
      will be proportionately reduced. If the Company, at any time after the Issue
      Date, combines (by reverse stock split, recapitalization, reorganization,
      reclassification or otherwise) the outstanding shares of Common Stock into
      a
      smaller number of shares, then, effective upon the close of business on the
      record date for effecting such combination, the Exercise Price in effect
      immediately prior to such combination will be proportionally
      increased.

    

    (b)
       Distributions.
      If, at
      any time after the Issue Date, the Company declares or makes any distribution
      of
      cash or any other assets (or rights to acquire such assets) to holders of Common
      Stock, as a partial liquidating dividend or otherwise, including without
      limitation any dividend or distribution to the Company’s stockholders in shares
      (or rights to acquire shares) of capital stock of a subsidiary) (a “Distribution”),
      the
      Company shall deliver written notice of such Distribution (a “Distribution
      Notice”)
      to the
      Holder at least thirty (30) days prior to the earlier to occur of (i) the record
      date for determining stockholders entitled to such Distribution (the
“Record
      Date”)
      and
      (ii) the date on which such Distribution is made (the “Distribution
      Date”)
      (the
      earlier of such dates being referred to as the “Determination
      Date”).
      Within ten (10) days following receipt of a Distribution Notice, the Holder
      shall notify the Company whether the Holder has elected (A) to receive, upon
      any
      exercise of this Warrant after the Determination Date, the same amount and
      type
      of assets being distributed in such Distribution as though the Holder were,
      on
      the Determination Date, a holder of a number of shares of Common Stock into
      which this Warrant is exercisable as of such Determination Date (such number
      of
      shares to be determined at the Exercise Price then in effect and without giving
      effect to any limitations on such exercise) or (B) upon any exercise of this
      Warrant on or after the Determination Date, to reduce the Exercise Price
      applicable to such exercise by reducing the Exercise Price in effect on the
      Business Day immediately preceding the Determination Date by an amount equal
      to
      the fair market value of the assets to be distributed divided by the number
      of
      shares of Common Stock as to which such Distribution is to be made, such fair
      market value to be reasonably determined in good faith by the Company’s Board of
      Directors. If the Holder does not notify the Company of its election pursuant
      to
      the preceding sentence on or before the tenth (10th)
      day
      following receipt of a Distribution Notice delivered in accordance with this
      paragraph (b), the Holder shall be deemed to have elected clause (A) of the
      preceding sentence; and if the Company does not deliver a Distribution Notice
      within the time frames specified above, the Holder shall have the right to
      choose either clause (A) or clause (B) of the preceding sentence at any time
      following the date on which Holder’s receives notice or otherwise becomes aware
      of the Distribution.

     

    
      
        
        

      

      
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    (c) Dilutive
      Issuances.
      If, at
      any time after the Issue Date, the Company issues or sells, or in accordance
      with paragraph (d) below, is deemed to have issued or sold, any shares of Common
      Stock for a price per share less than the Exercise Price on the date of such
      issuance or sale (a “Dilutive
      Issuance”),
      then
      the Exercise Price shall be adjusted to equal such lower price. No adjustment
      shall be made pursuant hereto if such adjustment would result in an increase
      in
      the Exercise Price.

     

    (d) Effect
      On Exercise Price Of Certain Events.
      For
      purposes of determining the adjusted Exercise Price under paragraph (c) above,
      the following will be applicable:

     

    (A) Issuance
      Of Purchase Rights.
      If the
      Company issues or sells any Purchase Rights, whether or not immediately
      exercisable, and the price per share for which Common Stock is issuable upon
      the
      exercise of such Purchase Rights (and the price of any conversion of Convertible
      Securities, if applicable) is less than the Exercise Price in effect on the
      date
      of issuance or sale of such Purchase Rights, then the maximum total number
      of
      shares of Common Stock issuable upon the exercise of all such Purchase Rights
      (assuming full conversion, exercise or exchange of Convertible Securities,
      if
      applicable) shall, as of the date of the issuance or sale of such Purchase
      Rights, be deemed to be outstanding and to have been issued and sold by the
      Company for such price per share. For purposes of the preceding sentence, the
      “price per share for which Common Stock is issuable upon the exercise of such
      Purchase Rights” shall be determined by dividing (x) the total amount, if any,
      received or receivable by the Company as consideration for the issuance or
      sale
      of all such Purchase Rights, plus the minimum aggregate amount of additional
      consideration, if any, payable to the Company upon the exercise of all such
      Purchase Rights, plus,
      in the
      case of Convertible Securities issuable upon the exercise of such Purchase
      Rights, the minimum aggregate amount of additional consideration payable upon
      the conversion, exercise or exchange thereof (determined in accordance with
      the
      calculation method set forth in subparagraph (B) below) at the time such
      Convertible Securities first become convertible, exercisable or exchangeable,
      by
      (y) the maximum total number of shares of Common Stock issuable upon the
      exercise of all such Purchase Rights (assuming full conversion, exercise or
      exchange of Convertible Securities, if applicable). No further adjustment to
      the
      Exercise Price shall be made upon the actual issuance of such Common Stock
      upon
      the exercise of such Purchase Rights or upon the conversion, exercise or
      exchange of Convertible Securities issuable upon exercise of such Purchase
      Rights.

     

    
      
        
        

      

      
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    (B) Issuance
      Of Convertible Securities.
      If the
      Company issues or sells any Convertible Securities, whether or not immediately
      convertible, exercisable or exchangeable, and the price per share for which
      Common Stock is issuable upon such conversion, exercise or exchange is less
      than
      the Exercise Price in effect on the date of issuance or sale of such Convertible
      Securities, then the maximum total number of shares of Common Stock issuable
      upon the conversion, exercise or exchange of all such Convertible Securities
      shall, as of the date of the issuance or sale of such Convertible Securities,
      be
      deemed to be outstanding and to have been issued and sold by the Company for
      such price per share. If the Convertible Securities so issued or sold do not
      have a fluctuating conversion or exercise price or exchange ratio, then for
      the
      purposes of the immediately preceding sentence, the “price per share for which
      Common Stock is issuable upon such conversion, exercise or exchange” shall be
      determined by dividing (x) the total amount, if any, received or receivable
      by
      the Company as consideration for the issuance or sale of all such Convertible
      Securities, plus the minimum aggregate amount of additional consideration,
      if
      any, payable to the Company upon the conversion, exercise or exchange thereof
      (determined in accordance with the calculation method set forth in this
      subparagraph (B)), by (y) the maximum total number of shares of Common Stock
      issuable upon the exercise, conversion or exchange of all such Convertible
      Securities. If the Convertible Securities so issued or sold have a fluctuating
      conversion or exercise price or exchange ratio (a “Variable
      Rate Convertible Security”),
      then
      for purposes of the first sentence of this subparagraph (B), the “price per
      share for which Common Stock is issuable upon such conversion, exercise or
      exchange” shall be deemed to be the lowest price per share which would be
      applicable (assuming all holding period and other conditions to any discounts
      contained in such Variable Rate Convertible Security have been satisfied) if
      the
      conversion price of such Variable Rate Convertible Security on the date of
      issuance or sale thereof were seventy-five percent (75%) of the actual
      conversion price on such date (the “Assumed
      Variable Market Price”),
      and,
      further, if the conversion price of such Variable Rate Convertible Security
      at
      any time or times thereafter is less than or equal to the Assumed Variable
      Market Price last used for making any adjustment under this paragraph (c) with
      respect to any Variable Rate Convertible Security, the Exercise Price in effect
      at such time shall be readjusted to equal the Exercise Price which would have
      resulted if the Assumed Variable Market Price at the time of issuance of the
      Variable Rate Convertible Security had been seventy-five percent (75%) of the
      actual conversion price of such Variable Rate Convertible Security existing
      at
      the time of the adjustment required by this sentence; provided,
      however,
      that if
      the conversion or exercise price or exchange ratio of a Convertible Security
      may
      fluctuate solely as a result of provisions designed to protect against dilution,
      such Convertible Security shall not be deemed to be a Variable Rate Convertible
      Security. No further adjustment to the Exercise Price shall be made upon the
      actual issuance of such Common Stock upon conversion, exercise or exchange
      of
      such Convertible Securities.

     

    
      
        
        

      

      
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    (C) Change
      In Option Price Or Conversion Rate.
      If,
      following an adjustment to the Exercise Price upon the issuance of Purchase
      Rights or Convertible Securities pursuant to a Dilutive Issuance, there is
      a
      change at any time in (x) the amount of additional consideration payable to
      the
      Company upon the exercise of any Purchase Rights; (y) the amount of additional
      consideration, if any, payable to the Company upon the conversion, exercise
      or
      exchange of any Convertible Securities; or (z) the rate at which any Convertible
      Securities are convertible into or exercisable or exchangeable for Common Stock
      (in each such case, other than under or by reason of provisions designed to
      protect against dilution), then in any such case, the Exercise Price in effect
      at the time of such change shall be readjusted to the Exercise Price which
      would
      have been in effect at such time had such Purchase Rights or Convertible
      Securities still outstanding provided for such changed additional consideration
      or changed conversion, exercise or exchange rate, as the case may be, at the
      time initially issued or sold.

     

    (D) Calculation
      Of Consideration Received.
      If any
      Common Stock, Purchase Rights or Convertible Securities are issued or sold
      for
      cash, the consideration received therefor will be the amount received by the
      Company therefore. In case any Common Stock, Purchase Rights or Convertible
      Securities are issued or sold for a consideration part or all of which shall
      be
      other than cash, including in the case of a strategic or similar arrangement
      in
      which the other entity will provide services to the Company, purchase services
      from the Company or otherwise provide intangible consideration to the Company,
      the amount of the consideration other than cash received by the Company
      (including the net present value of the consideration expected by the Company
      for the provided or purchased services) shall be the fair market value of such
      consideration, except where such consideration consists of publicly traded
      securities, in which case the amount of consideration received by the Company
      will be the Market Price thereof on the date of receipt. In case any Common
      Stock, Purchase Rights or Convertible Securities are issued in connection with
      any merger or consolidation in which the Company is the surviving corporation,
      the amount of consideration therefor will be deemed to be the fair market value
      of such portion of the net assets and business of the non-surviving corporation
      as is attributable to such Common Stock, Purchase Rights or Convertible
      Securities, as the case may be. The independent members of the Company’s Board
      of Directors shall calculate reasonably and in good faith, using standard
      commercial valuation methods appropriate for valuing such assets, the fair
      market value of any consideration other than cash or securities.

     

    (E) Issuances
      Without Consideration Pursuant to Existing Securities.
      If the
      Company issues (or becomes obligated to issue) shares of Common Stock pursuant
      to any anti-dilution or similar adjustments (other than as a result of stock
      splits, stock dividends and the like) contained in any Convertible Securities
      or
      Purchase Rights outstanding as of the date hereof, then all shares of Common
      Stock so issued shall be deemed to have been issued for no consideration.

    
       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

    

     

    (e) Exceptions
      To Adjustment Of Exercise Price. Notwithstanding the foregoing, no adjustment
      to
      the Exercise Price shall be made pursuant to paragraph (c) above upon the
      issuance of any Excluded Securities. For purposes hereof, “Excluded Securities”
means (I) securities purchased under the Securities Purchase Agreement; (II)
      securities issued upon exercise of the Warrants; (III) shares of Common Stock
      issuable or issued to (x) employees, consultants or directors from time to
      time
      upon the exercise of options, in such case granted or to be granted in the
      discretion of the Board of Directors pursuant to one or more stock option plans
      or restricted stock plans in effect as of the Issue Date or adopted after the
      Issue Date by the independent members of the Board of Directors with
      substantially the same terms as such plans in effect as of the Issue Date,
      or
      (y) vendors pursuant to warrants to purchase Common Stock that are outstanding
      on the date hereof or issued hereafter, provided such issuances are approved
      by
      the Board of Directors; (IV) shares of Common Stock issued in connection with
      a
      commercial lending transaction with a federally-insured financial institution
      that is approved by the independent members of the Board of Directors,
provided
      that the
      fair market value of such shares does not exceed ten percent (10%) of the amount
      borrowed; (V) shares of Common Stock issued in connection with any stock split,
      stock dividend or recapitalization of the Company; (VI) shares of Common Stock
      issued in connection with the acquisition by the Company of any corporation
      or
      other entity
      occurring after the Effective Date, provided
      that a
      fairness opinion with respect to such acquisition is rendered by an investment
      bank of national recognition; (VII) shares of Common Stock issued in connection
      with any Convertible Securities or Purchase Rights outstanding on the date
      hereof and disclosed in a schedule to the Securities Purchase Agreement; and
      (VIII) shares issued to Persons with whom the Company is entering into a joint
      venture, strategic alliance or other commercial relationship in connection
      with
      the operation of the Company’s business
      and not
      in connection with a transaction the purpose of which is to raise equity
      capital. 

    (f) Notice
      Of Adjustments.
      Upon
      the occurrence of one or more adjustments or readjustments of the Exercise
      Price
      pursuant to paragraph (c) above or any change in the number or type of stock,
      securities and/or other property issuable upon exercise of this Warrant, the
      Company, at its expense, shall promptly compute such adjustment or readjustment
      or change and prepare and furnish to the Holder a notice (an “Adjustment
      Notice”)
      setting forth such adjustment or readjustment or change and showing in detail
      the facts upon which such adjustment or readjustment or change is based, and,
      on
      or before the time that it delivers an Adjustment Notice, publicly disclose
      the
      contents thereof. The failure of the Company to deliver an Adjustment Notice
      shall not affect the validity of any such adjustment.

     

    (g)
       Major
      Transactions.
      In the
      event of a merger, consolidation, business combination, tender offer, exchange
      of shares, recapitalization, reorganization, redemption or other similar event,
      as a result of which shares of Common Stock shall be changed into the same
      or a
      different number of shares of the same or another class or classes of stock
      or
      securities or other assets of the Company or another entity or the Company
      shall
      sell all or substantially all of its assets (each of the foregoing being a
      “Major
      Transaction”),
      the
      Company will give the Holder at least twenty (20) Trading Days written notice
      prior to the earlier of (x) the closing or effectiveness of such Major
      Transaction and (y) the record date for the receipt of such shares of stock
      or
      securities or other assets. In the event of a Major Transaction, the Holder
      shall be permitted to either (i) require the Company to repurchase this Warrant
      for an amount to the value of this Warrant calculated pursuant to the
      Black-Scholes pricing model or (ii) exercise this Warrant in whole or in part
      at
      any time prior to the record date for the receipt of such consideration and
      shall be entitled to receive, for each share of Common Stock issuable to Holder
      upon such exercise, the same per share consideration payable to the other
      holders of Common Stock in connection with such Major Transaction. If and to
      the
      extent that the Holder retains any portion of this Warrant following such record
      date, the Company will cause the surviving or, in the event of a sale of assets,
      purchasing entity, as a condition precedent to such Major Transaction, to assume
      the obligations of the Company under this Warrant, with such adjustments to
      the
      Exercise Price and the securities covered hereby as may be necessary in order
      to
      preserve the economic benefits of this Warrant to the Holder.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (h)
       Adjustments;
      Additional Shares, Securities or Assets.
      In the
      event that at any time, as a result of an adjustment made pursuant to this
      Section
      6,
      the
      Holder of this Warrant shall, upon exercise of this Warrant, become entitled
      to
      receive securities or assets (other than Common Stock) then, wherever
      appropriate, all references herein to shares of Common Stock shall be deemed
      to
      refer to and include such shares and/or other securities or assets; and
      thereafter the number of such shares and/or other securities or assets shall
      be
      subject to adjustment from time to time in a manner and upon terms as nearly
      equivalent as practicable to the provisions of this Section
      6.
      Any
      adjustment made herein that results in a decrease in the Exercise Price shall
      also effect a proportional increase in the number of shares of Common Stock
      into
      which this Warrant is exercisable.

    

    7. Fractional
      Interests.

    

    No
      fractional shares or scrip representing fractional shares shall be issuable
      upon
      the exercise of this Warrant, but on exercise of this Warrant, the Holder hereof
      may purchase only a whole number of shares of Common Stock. If, on exercise
      of
      this Warrant, the Holder hereof would be entitled to a fractional share of
      Common Stock or a right to acquire a fractional share of Common Stock, the
      Company shall, in lieu of issuing any such fractional share, pay to the Holder
      an amount in cash equal to the product resulting from multiplying such fraction
      by the Market Price as of the Exercise Date. 

    

    8. Transfer
      of this Warrant.
      

    

    The
      Holder may sell, transfer, assign, pledge or otherwise dispose of this Warrant,
      in whole or in part, as long as such sale or other disposition is made pursuant
      to an effective registration statement or an exemption from the registration
      requirements of the Securities Act. Upon such transfer or other disposition
      (other than a pledge), the Holder shall deliver this Warrant to the Company
      together with a written notice to the Company, substantially in the form of
      the
      Transfer Notice attached hereto as Exhibit B (the “Transfer
      Notice”),
      indicating the person or persons to whom this Warrant shall be transferred
      and,
      if less than all of this Warrant is transferred, the number of Warrant Shares
      to
      be covered by the part of this Warrant to be transferred to each such person.
      Within three (3) Business Days of receiving a Transfer Notice and the original
      of this Warrant, the Company shall deliver to the each transferee designated
      by
      the Holder a Warrant or Warrants of like tenor and terms for the appropriate
      number of Warrant Shares and, if less than all this Warrant is transferred,
      shall deliver to the Holder a Warrant for the remaining number of Warrant
      Shares. 

    

    9. Benefits
      of this Warrant.

    

    This
      Warrant shall be for the sole and exclusive benefit of the Holder of this
      Warrant and nothing in this Warrant shall be construed to confer upon any person
      other than the Holder of this Warrant any legal or equitable right, remedy
      or
      claim hereunder.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    10. Loss,
      theft, destruction or mutilation of Warrant.

    

    Upon
      receipt by the Company of evidence of the loss, theft, destruction or mutilation
      of this Warrant, and (in the case of loss, theft or destruction) of indemnity
      reasonably satisfactory to the Company, and upon surrender of this Warrant,
      if
      mutilated, the Company shall execute and deliver a new Warrant of like tenor
      and
      date.

    

    11. Notice
      or Demands.

     

    Any
      notice, demand or request required or permitted to be given by the Company
      or
      the Holder pursuant to the terms of this Warrant shall be in writing and shall
      be deemed delivered (i) when delivered personally or by verifiable facsimile
      transmission, unless such delivery is made on a day that is not a Business
      Day,
      in which case such delivery will be deemed to be made on the next succeeding
      Business Day, (ii) on the next Business Day after timely delivery to an
      overnight courier and (iii) on the Business Day actually received if deposited
      in the U.S. mail (certified or registered mail, return receipt requested,
      postage prepaid), addressed as follows:

     

    If
      to
      the Company:

    

    Deep
      Well
      Oil & Gas,
      Inc.

    Suite
      510
      Royal Bank Building

    10117
      Jasper Avenue NW

    Edmonton,
      AB T5J 1W8

    Attn:
       Chief
      Financial Officer

    Tel: (780)
      409-8144

    Fax:
       (780)
      409-8146

     

    with
      a copy (which
      shall not constitute notice) to:

    

    Dorsey
      & Whitney LLP

    Suite
      1605, 777 Dunsmuir Street

    Vancouver
      B.C. V7Y 1K4

    Attn: Mr.
      Dan
      M. Miller

    Tel: (604)
      630-5199

    Fax: (604)
      687-8504

     

    and
      if to
      the Holder, to such address as the Holder shall have furnished to the Company
      in
      writing. 

    

    12. Applicable
      Law.

    

    This
      Warrant is issued under and shall for all purposes be governed by and construed
      in accordance with the laws of the State of New York applicable to contracts
      made and to be performed entirely within the State of New York.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    13. Amendments.

     

    No
      amendment, modification or other change to, or waiver of any provision of,
      this
      Warrant may be made unless such amendment, modification or change is (A) set
      forth in writing and is signed by the Company and the Holder and (B) agreed
      to
      in writing by the holders of at least two-thirds (2/3) of the number of shares
      into which the Warrants are exercisable (without regard to any limitation
      contained herein on such exercise), it being understood that upon the
      satisfaction of the conditions described in (A) and (B) above, each Warrant
      (including any Warrant held by the Holder who did not execute the agreement
      specified in (B) above) shall be deemed to incorporate any amendment,
      modification, change or waiver effected thereby as of the effective date
      thereof.

    

    14. Entire
      Agreement.
       

     

    This
      Warrant and the other Transaction Documents constitute the entire agreement
      among the parties hereto with respect to the subject matter hereof and thereof.
      There are no restrictions, promises, warranties or undertakings, other than
      those set forth or referred to herein and therein. This Warrant and the other
      Transaction Documents supersede all prior agreements and understandings among
      the parties hereto with respect to the subject matter hereof and
      thereof.

     

    15. Headings.
      

     

    The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    [Signature
      Page to Follow]

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has duly executed and delivered this Warrant #25
      as
      of the Original Issue Date.

     

    
      	 DEEP
              WELL OIL & GAS, INC.
	 	 
	
              By:
                

            	 
	 	
              Name:
                Dr. Horst A. Schmid

            
	 	
              Title:
                President and Chief Executive Officer

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A to WARRANT

    

    EXERCISE
      NOTICE

     

    The
      undersigned Holder hereby irrevocably exercises the right to purchase
 
      of the
      shares of Common Stock (“Warrant
      Shares”)
      of
      DEEP WELL OIL & GAS, INC. evidenced
      by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    1.
       Form
      of
      Exercise Price. The Holder intends that payment of the Exercise Price shall
      be
      made as:

    

    ______
      a
Cash
      Exercise
      with
      respect to _________________ Warrant Shares; and/or 

    

    ______
      a
Cashless
      Exercise
      with
      respect to _________________ Warrant Shares, as permitted by Section
      5(b)
      of the
      attached Warrant.

    

    

    2.
       Payment
      of Exercise Price. In the event that the Holder has elected a Cash Exercise
      with
      respect to some or all of the Warrant Shares to be issued pursuant hereto,
      the
      Holder shall pay the sum of $________________ to the Company in accordance
      with
      the terms of the Warrant.

     

    
      	 Date:
              	 
	 	 
	 
	
               Name
                of Registered Holder

            
	 	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B to WARRANT

     

    TRANSFER
      NOTICE

     

    FOR
      VALUE
      RECEIVED, the undersigned Holder of the attached Warrant hereby sells, assigns
      and transfers unto the person or persons named below the right to purchase
       shares
      of
      the Common Stock of DEEP WELL OIL & GAS, INC. evidenced by the attached
      Warrant.

     

    
      
        	 Date:
                	 
	 	 
	 
	
                 Name
                  of Registered Holder

              
	 	 
	
                By:

              	 
	 	
                Name:

              
	 	
                Title:

              
	 	 
	 
	 Transferee
                Name and Address:
	 
	 
	

                 

              
	

                 

              

      

       

    

    
      
        
        

      

      
        -15-Exhibit
      10.7

     

    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 323,333 units (“Units”) at a price of US$0.60 per
      Unit for gross proceeds of US$194,000. Each Unit is comprised of one (1) common
      share (“Common Share”), one (1) Common Share purchase warrant (“Whole Warrant”)
      and another twelve one-hundredths (0.12) Common Share purchase warrant (“Special
      Warrant”). Each Whole Warrant entitles the holder to purchase one (1) Common
      Share at a price of US$0.90 for a period of three years from the Closing Date.
      Each Special Warrant entitles the holder to purchase a Common Share at a price
      of US $1.20 for a period of five 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.

    
      	 	 	 
	 	 	Number
              of Units:
	Name
              of Subscriber - please print	 	
            
	 	 	 

	
              By:

            	 	 	
              Aggregate
                Subscription Price (No. of Units X US$0.60 per
                Unit):

            
	 	
              Authorized
                Signature

            	 	 
	 	 	 	 	 
	 	 	 
	Official
              Capacity or Title - please print	 	
              No.
                of Common Shares Currently Held (excluding Common Shares comprising
                the
                Units subscribed for herein):

            
	 	 	 
	(Please
              print name of individual whose signature appears above if different
              than
              the name of the Subscriber printed above.)	 	 	 
	 	 	 	 
	 	 	 	 
	Subscriber's
              Address	 	Register
              the Units as set forth below:
	 	 	 
	Facsimile
              Number	 	Name
	 	 	 
	Telephone
              Number  
E-Mail
              Address	 	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
                July
                4, 2007
                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$0.60 per
                Unit;

            

    

     

    
      	 	
              (g)

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

            

    

     

    
      	 	
              (h)

            	
              Special 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$1.20 for a period of five (5) years
                from the
                Closing Date

            

    

     

    
      	 	
              (i)

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

            

    

     

    
      	 	
              (j)

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

            

    

     

    
      	 	
              (k)

            	
              “Subscription
                Price”
                means the aggregate subscription price paid by the Subscriber, being
                the
                number of Units subscribed for multiplied by US$0.60 per
                Unit;

            

    

     

    
      	 	
              (l)

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

            

    

     

    
      	 	
              (m)

            	
              “Whole 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$0.90 for a period of three (3) years
                from the
                Closing Date; and

            

    

     

    
      	 	
              (n)

            	
              “Warrant
                Share”
                means a Common Share issuable upon exercise of a
                Warrant.

            

    

     

    Terms
      of the Offering

     

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

     

    2. The
      Subscriber acknowledges that the Units subscribed for hereunder consist of
      a
      sale by the Corporation of 323,333 Units of the Corporation at a subscription
      price of US$0.60 per Unit.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        AB

      

    

    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.

     

    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

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

        AB

      

    

    
      	
              (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

            

    

     

    
      	
              (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

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

        AB

      

    

     

    
      	
              (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

            

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

        AB

      

    

    
      	
              (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

            

    

     

    
      	
              (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

            

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

        AB

      

    

    
      	
              (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

            

    

     

    
      	
              (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.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

        AB

      

    

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

     

    General

     

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

     

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

     

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

     

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

     

    18. Time
      shall be of the essence hereof.

     

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

     

    20. The
      terms
      and provisions of this Subscription Agreement shall be binding upon and enure
      to
      the benefit of the Subscriber and the Corporation and their respective heirs,
      executors, administrators, successors and assigns; provided that, except for
      the
      assignment by a Subscriber who is acting as 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.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

        AB

      

    

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

     

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

     

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

     

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

     

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

     

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

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

        AB

      

    

    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

            

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

        AB

      

    

     

    
      	
              By:

            	 
	 	 
	 	
              Signature

            
	 	 
	 	 
	 	 
	 	
              Print
                name of Signatory (if different from Subscriber)

            
	 	 
	 	 
	 	 
	 	
              Title

            

    

     

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

    

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

     

    APPENDIX
      "A"

     

    
      
        	 	 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' île 
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

              

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    APPENDIX
      "A"

    to
      Exhibit 1

    

      
        	_____	
                (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

              
	 	 	 
	_____	
                (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:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    APPENDIX
      "A"

    to
      Exhibit 1

    
      
         

      

    

    
      	
            	(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;

     

    (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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    APPENDIX
      "A"

    to
      Exhibit 1

     

    (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,

     

    (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;

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    APPENDIX
      "A"

    to
      Exhibit 1

     

    (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

     

    (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.

    

     

    
      
        
        

      

      
        5

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