DEEP WELL OIL & GAS, INC. (OTCMKTS:DWOG) Files An 8-K Changes in Registrant’s Certifying AccountantITEM 4.01
On July 14, 2017, the Board of Directors, acting as the Audit Committee of Deep Well Oil & Gas, Inc. (the “Corporation”), approved the dismissal of Sadler, Gibb & Associates, LLC (“Sadler Gibb”) as the Corporation’s independent registered public accounting firm. Sadler Gibb was engaged by the Corporation on October 6, 2015 to audit the consolidated financial statements of the Corporation for the fiscal year ending September 30, 2015 and to perform reviews of the Corporation’s unaudited quarterly financial information for the periods ending December 31, 2015, March 31, 2016 and June 30, 2016. Sadler Gibb also audited the Corporation’s consolidated financial statements for the fiscal years ending September 30, 2013 and September 30, 2014.
In connection with the Corporation’s audited consolidated financial statements for the fiscal years ending September 30, 2013 and September 30, 2014, Sadler Gibb’s audit reports did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles.
In connection with the audit of the Corporation’s consolidated financial statements for the fiscal year ending September 30, 2015, the Corporation and Sadler Gibb had a difference of opinion on the evaluation of its oil and gas properties and how much, if any, of the Corporation’s oil and gas property assets should be written down. The Board of Directors of the Corporation was dissatisfied with the length of time that it was taking to complete the audit of the Corporation’s financial statements for the fiscal year ending September 30, 2015. This difference of opinion between the Corporation and Sadler Gibb has resulted in a significant delay of the timing of filing the Corporation’s consolidated financial statements. The Corporation agreed to engage an independent third-party audit accounting specialist, chosen by Sadler Gibb, to give an opinion on the analysis of the Corporation’s oil and gas properties, however this was not completed prior to the dismissal of Sadler Gibb.
This difference of opinion was not resolved prior to the Corporation’s dismissal of Sadler Gibb, and therefore Sadler Gibb did not complete its audit and render a report of its opinion on the Corporation’s consolidated financial statements for the fiscal year ended September 30, 2015.
There are no “reportable events” listed in paragraphs (A) through (D) of Item 304(a)(1)(v) of Regulation S-K.
Management of the Corporation discussed the disagreements with the Board of Directors of the Corporation and Sadler Gibb. The Corporation provided to Sadler Gibb a copy of the disclosures contained herein and has requested that Sadler Gibb provide the Corporation with a letter addressed to the U.S. Securities and Exchange Commission stating whether or not Sadler Gibb agrees with the Corporation’s statements contained in this current report on Form 8-K and if not, stating the respects in which it does not agree. A copy of Sadler Gibb’s response letter is attached hereto as exhibit 16.1.
The Corporation’s Board of Directors, acting as the Audit Committee, has engaged Turner, Stone & Company, L.L.P., (“Turner Stone”) as the Corporation’s new independent registered public accounting firm, effective July 14, 2017, to audit and render an opinion on the consolidated financial statements of the Corporation for the fiscal years ending September 30, 2015 and September 30, 2016 and to review the Corporation’s quarterly consolidated financial statements for the periods ending December 31, 2015, March 31, 2016 and June 30, 2016. The Corporation has authorized Sadler Gibb to respond fully to the inquiries of Turner Stone. The Corporation provided Turner Stone with this current report on Form 8-K for its review and has given Turner Stone the opportunity to furnish to the Corporation with a letter addressed to the U.S. Securities and Exchange Commission containing any new information, clarification of the Corporation’s expression of its views, or the respects in which it does not agree with the statements made by the Corporation in this Form 8-K.
| ITEM 9.01 | Financial Statements and Exhibits. |
(a) Financial Statements
Not Applicable.
(d) Exhibits to subject matter reported on this Form 8-K
DEEP WELL OIL & GAS INC ExhibitEX-16.1 2 f8k071417ex16i_deepwelloil.htm LETTER FROM SADLER GIBB TO THE SECURITIES AND EXCHANGE COMMISSION,…To view the full exhibit click here
About DEEP WELL OIL & GAS, INC. (OTCMKTS:DWOG)
Deep Well Oil & Gas, Inc. is an independent junior oil and gas exploration and development company. The Company is in the business of exploring for, developing, producing and selling crude oil. It is focused on developing the existing land base where it has working interests ranging from 25 % to 100% in the Peace River oil sands area in Alberta, Canada. Its projects include SAGD Thermal Recovery Project and HCSS Thermal Recovery Project. Its Sawn Lake oil sands properties are located within the Peace River oil sands area of Alberta. It has approximately 90% working interest in over 50 sections on approximately six oil sands leases and over 100% working interest in approximately five sections on one oil sands lease in the Peace River oil sands area of Alberta. In addition, it has over 25% working interest in another approximately 10 sections on over two oil sands leases in the Peace River oil sands area of Alberta.
