DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

  66571   TRACT  1                                                     1038
          --------
          TWP 080 RGE 16 W6M SEC 2

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 48014 PADDY-CADOTTE-HARMON

          48014 PADDY-CADOTTE-HARMON ZONE DEFINED IN THE 
          INTERVAL 851.6M-948.9M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 5364 12-25-79-16 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 44014 BLUESKY-GETHING

          44014 BLUESKY-GETHING ZONE DEFINED IN THE INTERVAL 
          1309.6M-1468.6M ON THE BHC SONIC LOG OF THE WELL W.A. 
          5364 12-25-79-16 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 42014 CADOMIN-DUNLEVY-NIKANASSIN

          42014 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 1468.6M-1576.4M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 5364 12-25-79-16 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 33004 MONTNEY (EXCLUDING BASAL LAG)

          33004 MONTNEY ZONE (EXCLUDING BASAL LAG) DEFINED IN 
          THE INTERVAL 2028.1M-2338.6M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 6717 
          10-18-79-14 W6M

          TRACT  2
          --------
          TWP 080 RGE 16 W6M SEC 3 11

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 33004 MONTNEY (EXCLUDING BASAL LAG)

          33004 MONTNEY ZONE (EXCLUDING BASAL LAG) DEFINED IN 
          THE INTERVAL 2028.1M-2338.6M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 6717 
          10-18-79-14 W6M

          TRACT  3


                                   PAGE     1
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          --------
          TWP 080 RGE 16 W6M SEC 10

          INC : PETROLEUM AND NATURAL GAS

          DOWN TO BASE OF 42014 CADOMIN-DUNLEVY-NIKANASSIN

          42014 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 1468.6M-1576.4M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 5364 12-25-79-16 W6M

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 33004 MONTNEY (EXCLUDING BASAL LAG)

          33004 MONTNEY ZONE (EXCLUDING BASAL LAG) DEFINED IN 
          THE INTERVAL 2028.1M-2338.6M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 6717 
          10-18-79-14 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HORSE LAKE FIRST NATION
          - MCLEOD LAKE INDIAN BAND
          - SAULTEAU FIRST NATIONS
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 


                                   PAGE     2
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          COAL TENURE MAY CURRENTLY EXIST OR IN THE FUTURE BE 
          ISSUED IN THIS LOCATION, UNDER THE PROVISIONS OF THE 
          COAL ACT, SBC2004, C. 15 AS AMENDED FROM TIME TO TIME, 
          OR ANY FORMER COAL ACT.  BEFORE COMMENCING ANY 
          EXPLORATION OR DEVELOPMENT WORK ON THE LOCATION, 
          REASONABLE EFFORTS MUST BE MADE TO NEGOTIATE A 
          COMPATIBLE EXPLORATION AND DEVELOPMENT PROGRAM WITH 
          THE HOLDER OF COAL TENURE OVER THE LOCATION AS 
          SPECIFIED IN INFORMATION LETTER TITLES-05-02 OR AS 
          AMENDED.
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712001

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

  66572   TRACT  1                                                      252
          --------
          TWP 082 RGE 17 W6M SEC 33

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM

          DOWN TO BASE OF 36003 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36003 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 3879.6'-4929.8' ON THE 
          SIMULTANEOUS GAMMA RAY NEUTRON LOG OF THE WELL W.A. 
          376 11-23-81-22 W6M

          EXC : NATURAL GAS

          DOWN TO BASE OF 31501 BASAL MONTNEY LAG-BELLOY-TAYLOR 
          FLAT



                                   PAGE     3
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          31501 BASAL MONTNEY LAG-BELLOY-TAYLOR FLAT ZONE 
          DEFINED IN THE INTERVAL 7039'-8053.8' MD ON THE SONIC 
          LOG-GAMMA RAY-CALIPER LOG OF THE WELL W.A. 1355 
          10-26-81-16 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HORSE LAKE FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          DISTRICT OF TAYLOR REQUESTS CONSULTATION PRIOR TO 
          UNDERTAKING ANY EXPLORATION AND DEVELOPMENT 
          ACTIVITIES.
          THE DISTRICT OF TAYLOR REQUESTS CONSULTATION ON 
          EMERGENCY RESPONSE PRIOR TO THE DEVELOPMENT OF 
          EMERGENCY PLANS. EMERGENCY PLANS MUST BE SUBMITTED TO 
          TAYLOR FIRE DEPARTMENT PRIOR TO DRILLING ACTIVITIES.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          PARCEL LOCATED WITHIN SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO FORT ST. JOHN LRMP.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          COAL TENURE MAY CURRENTLY EXIST OR IN THE FUTURE BE 
          ISSUED IN THIS LOCATION, UNDER THE PROVISIONS OF THE 


                                   PAGE     4
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          COAL ACT, SBC2004, C. 15 AS AMENDED FROM TIME TO TIME, 
          OR ANY FORMER COAL ACT.  BEFORE COMMENCING ANY 
          EXPLORATION OR DEVELOPMENT WORK ON THE LOCATION, 
          REASONABLE EFFORTS MUST BE MADE TO NEGOTIATE A 
          COMPATIBLE EXPLORATION AND DEVELOPMENT PROGRAM WITH 
          THE HOLDER OF COAL TENURE OVER THE LOCATION AS 
          SPECIFIED IN INFORMATION LETTER TITLES-05-02 OR AS 
          AMENDED.
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712002

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

  66573   TRACT  1                                                      255
          --------
          TWP 083 RGE 17 W6M SEC 3

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM

          DOWN TO BASE OF 36003 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36003 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 3879.6'-4929.8' ON THE 
          SIMULTANEOUS GAMMA RAY NEUTRON LOG OF THE WELL W.A. 
          376 11-23-81-22 W6M

          EXC : NATURAL GAS

          DOWN TO BASE OF 31501 BASAL MONTNEY LAG-BELLOY-TAYLOR 
          FLAT

          31501 BASAL MONTNEY LAG-BELLOY-TAYLOR FLAT ZONE 
          DEFINED IN THE INTERVAL 7039'-8053.8' MD ON THE SONIC 
          LOG-GAMMA RAY-CALIPER LOG OF THE WELL W.A. 1355 
          10-26-81-16 W6M



                                   PAGE     5
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HORSE LAKE FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          DISTRICT OF TAYLOR REQUESTS CONSULTATION PRIOR TO 
          UNDERTAKING ANY EXPLORATION AND DEVELOPMENT 
          ACTIVITIES.
          THE DISTRICT OF TAYLOR REQUESTS CONSULTATION ON 
          EMERGENCY RESPONSE PRIOR TO THE DEVELOPMENT OF 
          EMERGENCY PLANS. EMERGENCY PLANS MUST BE SUBMITTED TO 
          TAYLOR FIRE DEPARTMENT PRIOR TO DRILLING ACTIVITIES.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          COAL TENURE MAY CURRENTLY EXIST OR IN THE FUTURE BE 
          ISSUED IN THIS LOCATION, UNDER THE PROVISIONS OF THE 
          COAL ACT, SBC2004, C. 15 AS AMENDED FROM TIME TO TIME, 
          OR ANY FORMER COAL ACT.  BEFORE COMMENCING ANY 
          EXPLORATION OR DEVELOPMENT WORK ON THE LOCATION, 
          REASONABLE EFFORTS MUST BE MADE TO NEGOTIATE A 
          COMPATIBLE EXPLORATION AND DEVELOPMENT PROGRAM WITH 
          THE HOLDER OF COAL TENURE OVER THE LOCATION AS 
          SPECIFIED IN INFORMATION LETTER TITLES-05-02 OR AS 
          AMENDED.
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.



                                   PAGE     6
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712003

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

  66574   TRACT  1                                                     1037
          --------
          TWP 085 RGE 18 W6M SEC 26NE 26S

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 44008 BLUESKY-GETHING

          44008 BLUESKY-GETHING ZONE DEFINED IN THE INTERVAL 
          3170.6'-3497.2' ON THE BHC ACOUSTILOG LOG OF THE WELL 
          W.A. 4082 10-15-84-19 W6M

          TRACT  2
          --------
          TWP 085 RGE 18 W6M SEC 36

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 38002 PARDONET-BALDONNEL

          38002 PARDONET-BALDONNEL ZONE DEFINED IN THE INTERVAL 
          4752.4'-5001.2' ON THE GAMMA RAY NEUTRON LOG OF THE 
          WELL W.A. 238 C-53-D/94-B-09

          TRACT  3
          --------
          TWP 085 RGE 17 W6M SEC 30
          TWP 085 RGE 18 W6M SEC 24 26NW

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36002 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5001.2'-5970.7' ON THE GAMMA 
          RAY NEUTRON LOG OF THE WELL W.A. 238 C-53-D/094-B-09

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 


                                   PAGE     7
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 
          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          DIRECTIONAL DRILLING ONLY WILL BE ALLOWED UNDER THE 
          PORTION OF THE PARCEL WITHIN THE BEATTON-DOIG CANYON 
          PROTECTED AREA.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - PROPOSED UNGULATE WINTER RANGE
          - FISH AND WILDLIFE MANAGEMENT RESERVE
          - MINERAL, COAL AND/OR PLACER RESERVES
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.








                                   PAGE     8
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712004

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

  66575   TRACT  1                                                      789
          --------
          TWP 088 RGE 18 W6M SEC 22 26 27

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36002 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5001.2'-5970.7' ON THE GAMMA 
          RAY NEUTRON LOG OF THE WELL W.A. 238 C-53-D/094-B-09

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.



                                   PAGE     9
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712005

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

  66576   TRACT  1                                                      284
          --------
          NTS 094-A-10 BLK L UNITS 32 33 42 43

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 44005 BLUESKY-GETHING

          44005 BLUESKY-GETHING ZONE DEFINED IN THE INTERVAL 
          1142.6M-1222.5M ON THE BHC SONIC LOG OF THE WELL W.A. 
          4455 7-28-87-21 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.


                                   PAGE    10
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------


          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712006

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

  66577   TRACT  1                                                      284
          --------
          NTS 094-A-10 BLK L UNITS 34 35 44 45

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 42005 CADOMIN-DUNLEVY-NIKANASSIN

          42005 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 1222.5M-1251.5M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 4455 7-28-87-21 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 


                                   PAGE    11
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712007

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

  66578   TRACT  1                                                      852
          --------
          NTS 094-A-10 BLK I UNITS 60 70 80 90
          NTS 094-A-10 BLK J UNITS 51-53 61-63 71 81

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

          43001 BLUESKY-GETHING-DUNLEVY ZONE DEFINED IN THE 
          INTERVAL 1007.9M-1100.4M ON THE BHC ACOUSTILOG GAMMA 
          RAY LOG OF THE WELL W.A. 6790 A-7-E/94-H-02

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 


                                   PAGE    12
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712008

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

  66579   TRACT  1                                                      851
          --------
          NTS 094-A-15 BLK B UNITS 20 30
          NTS 094-A-15 BLK C UNITS 11 21

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36002 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5001.2'-5970.7' ON THE GAMMA 
          RAY NEUTRON LOG OF THE WELL W.A. 238 C-53-D/094-B-09

          TRACT  2
          --------
          NTS 094-A-10 BLK J UNITS 98 99
          NTS 094-A-15 BLK B UNITS 8 9 18 19 28 29

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34007 ARTEX-HALFWAY-DOIG

          34007 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1359.4-1419.9M ON THE MONOPOLE-DIPOLE ACOUSTIC LOG AND 
          THE SPECTRAL PE DENSITY COMPENSATED NEUTRON GAMMA RAY 
          LOG OF THE WELL W.A. 17462 2-13-88-14 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):


                                   PAGE    13
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - GRAZING RESERVE
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712009

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

  66580   TRACT  1                                                      277
          --------
          NTS 094-G-09 BLK E UNITS 92 93
          NTS 094-G-09 BLK L UNITS 2 3

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34001 ARTEX-HALFWAY-DOIG

          34001 ARTEX-HALFWAY-DOIG ZONE DEFINED IN THE INTERVAL 
          5258.2'-5772.0' ON THE BHC SONIC LOG OF THE WELL W.A. 
          3406 A-7-L/94-G-01

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 


                                   PAGE    14
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - DOIG RIVER FIRST NATION
          - PROPHET RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - PROPHET RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - PROPHET RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712015

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

  66581   TRACT  1                                                      554
          --------
          NTS 094-G-09 BLK E UNITS 80 90
          NTS 094-G-10 BLK H UNITS 71-73 81-83

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):


                                   PAGE    15
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          - DOIG RIVER FIRST NATION
          - PROPHET RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - PROPHET RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - PROPHET RIVER FIRST NATION
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1712016

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

  66582   TRACT  1                                                      281
          --------
          NTS 094-H-01 BLK G UNITS 38 39 48 49

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

          43001 BLUESKY-GETHING-DUNLEVY ZONE DEFINED IN THE 
          INTERVAL 1007.9M-1100.4M ON THE BHC ACOUSTILOG GAMMA 
          RAY LOG OF THE WELL W.A. 6790 A-7-E/94-H-02

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:


                                   PAGE    16
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - CARIBOU (BOREAL)
          - TRADITIONAL USE AREAS
          - TRAPLINE(S)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PORTION OF THE PARCEL OVERLAPS AN AREA IDENTIFIED BY 
          THE DOIG RIVER FIRST NATION AS A COMPLEX CONSULTATION 
          ZONE. PROPOSED ACTIVITIES SPECIFICALLY WITHIN THE ZONE 
          HAVE A LONGER FIRST NATION REVIEW AND RESPONSE PERIOD, 
          CONTACT THE OIL AND GAS COMMISSION FOR FURTHER 
          INFORMATION.
          PARCEL LOCATED IN AN AREA IDENTIFIED BY THE DOIG RIVER 
          FIRST NATION AS AN AREA OF CRITICAL COMMUNITY USE.  
          CONTACT THE FIRST NATION PRIOR TO ON-THE-GROUND 
          ACTIVITIES.
          PARCEL OVERLAPS WILDLIFE HABITAT AREA OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT, FOR THE PROTECTION OF BOREAL 
          CARIBOU.  THE MINISTRY OF ENVIRONMENT HAS ESTABLISHED 
          INTERIM OPERATING PRACTICES FOR OIL AND GAS ACTIVTIES 
          IN IDENTIFIED BOREAL CARIBOU HABITAT IN BRITISH 
          COLUMBIA.  THE OIL AND GAS COMMISSION WILL CONSIDER 
          THESE OPERATING PRACTICES BEFORE AUTHORIZING 
          ACTIVITIES IN THESE AREAS.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1507002A

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

  66583   TRACT  1                                                      842


                                   PAGE    17
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          --------
          NTS 094-H-01 BLK J UNITS 16-20 26-30
          NTS 094-H-01 BLK K UNITS 11 21

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - CARIBOU (BOREAL)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PORTION OF THE PARCEL OVERLAPS AN AREA IDENTIFIED BY 
          THE DOIG RIVER FIRST NATION AS A COMPLEX CONSULTATION 
          ZONE. PROPOSED ACTIVITIES SPECIFICALLY WITHIN THE ZONE 
          HAVE A LONGER FIRST NATION REVIEW AND RESPONSE PERIOD, 
          CONTACT THE OIL AND GAS COMMISSION FOR FURTHER 
          INFORMATION.
          PARCEL LOCATED IN AN AREA IDENTIFIED BY THE DOIG RIVER 


                                   PAGE    18
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          FIRST NATION AS AN AREA OF CRITICAL COMMUNITY USE.  
          CONTACT THE FIRST NATION PRIOR TO ON-THE-GROUND 
          ACTIVITIES.
          PARCEL LOCATED WITHIN SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO FORT ST. JOHN LRMP.
          PARCEL OVERLAPS WILDLIFE HABITAT AREA OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT, FOR THE PROTECTION OF BOREAL 
          CARIBOU.  THE MINISTRY OF ENVIRONMENT HAS ESTABLISHED 
          INTERIM OPERATING PRACTICES FOR OIL AND GAS ACTIVTIES 
          IN IDENTIFIED BOREAL CARIBOU HABITAT IN BRITISH 
          COLUMBIA.  THE OIL AND GAS COMMISSION WILL CONSIDER 
          THESE OPERATING PRACTICES BEFORE AUTHORIZING 
          ACTIVITIES IN THESE AREAS.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - SENSITIVE PLANTS AND ECOSYSTEMS
          - BLUE OR RED LISTED SPECIES
          - CARIBOU
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1410033

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

  66584   TRACT  1                                                     1405
          --------
          NTS 094-H-01 BLK E UNITS 71 81
          NTS 094-H-01 BLK F UNITS 56 66 67 78-80 88-90

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 
          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          TRACT  2


                                   PAGE    19
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          --------
          NTS 094-H-01 BLK E UNITS 51 61
          NTS 094-H-01 BLK F UNITS 57-60 68-70

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34007 ARTEX-HALFWAY-DOIG

          34007 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1359.4-1419.9M ON THE MONOPOLE-DIPOLE ACOUSTIC LOG AND 
          THE SPECTRAL PE DENSITY COMPENSATED NEUTRON GAMMA RAY 
          LOG OF THE WELL W.A. 17462 2-13-88-14 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - CARIBOU (BOREAL)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 


                                   PAGE    20
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1612011

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

  66585   TRACT  1                                                     1405
          --------
          NTS 094-H-01 BLK E UNITS 54 55 64 65 74 75 84 85

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

          43001 BLUESKY-GETHING-DUNLEVY ZONE DEFINED IN THE 
          INTERVAL 1007.9M-1100.4M ON THE BHC ACOUSTILOG GAMMA 
          RAY LOG OF THE WELL W.A. 6790 A-7-E/94-H-02

          TRACT  2
          --------
          NTS 094-H-01 BLK E UNITS 72 73 83

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 
          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          TRACT  3
          --------
          NTS 094-H-01 BLK E UNITS 32 33 42 43 52 53 62 63 82

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34007 ARTEX-HALFWAY-DOIG


                                   PAGE    21
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------


          34007 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1359.4-1419.9M ON THE MONOPOLE-DIPOLE ACOUSTIC LOG AND 
          THE SPECTRAL PE DENSITY COMPENSATED NEUTRON GAMMA RAY 
          LOG OF THE WELL W.A. 17462 2-13-88-14 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - CARIBOU (BOREAL)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES


                                   PAGE    22
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1612012

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

  66586   TRACT  1                                                     1687
          --------
          NTS 094-H-01 BLK E UNITS 11 21
          NTS 094-H-01 BLK F UNITS 18-20 28-30

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

          43001 BLUESKY-GETHING-DUNLEVY ZONE DEFINED IN THE 
          INTERVAL 1007.9M-1100.4M ON THE BHC ACOUSTILOG GAMMA 
          RAY LOG OF THE WELL W.A. 6790 A-7-E/94-H-02

          TRACT  2
          --------
          NTS 094-H-01 BLK E UNITS 31 41
          NTS 094-H-01 BLK F UNITS 16 17 26 27 36-40 46-50

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 
          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 


                                   PAGE    23
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - CARIBOU (BOREAL)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1703008

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

  66587   TRACT  1                                                      281


                                   PAGE    24
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          --------
          NTS 094-H-01 BLK E UNITS 91
          NTS 094-H-01 BLK F UNITS 100
          NTS 094-H-01 BLK K UNITS 10
          NTS 094-H-01 BLK L UNITS 1

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - CARIBOU (BOREAL)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 


                                   PAGE    25
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1703009

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

  66588   TRACT  1                                                     1682
          --------
          NTS 094-H-01 BLK K UNITS 52-55 62-65

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

          TRACT  2
          --------
          NTS 094-H-01 BLK J UNITS 60 70 80 90
          NTS 094-H-01 BLK K UNITS 51 61 71-75 81-85

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 


                                   PAGE    26
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - CARIBOU (BOREAL)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 


                                   PAGE    27
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1703010

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

  66589   TRACT  1                                                      840
          --------
          NTS 094-H-08 BLK C UNITS 12 13 22 23

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

          TRACT  2
          --------
          NTS 094-H-01 BLK K UNITS 92 93
          NTS 094-H-08 BLK C UNITS 2 3 14 15 24 25

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 
          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):


                                   PAGE    28
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - SAULTEAU FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          - SAULTEAU FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - CARIBOU (BOREAL)
          - TRAPPING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.






                                   PAGE    29
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1703011

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

  66590   TRACT  1                                                     1121
          --------
          NTS 094-H-01 BLK L UNITS 72 73 82 83 92 93
          NTS 094-H-08 BLK D UNITS 2 3

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

          TRACT  2
          --------
          NTS 094-H-01 BLK L UNITS 74 75 84 85 94 95
          NTS 094-H-08 BLK D UNITS 4 5

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 
          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION


                                   PAGE    30
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          - BLUEBERRY RIVER FIRST NATIONS
          - SAULTEAU FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          - SAULTEAU FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - CARIBOU (BOREAL)
          - TRAPPING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          DIRECTIONAL DRILLING ONLY WILL BE ALLOWED UNDER THE 
          PORTION OF THE PARCEL WITHIN THE CHINCHAGA LAKES 
          PROTECTED AREA.
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
          - CONSERVATION RESERVE
          - MINERAL, COAL AND/OR PLACER RESERVES
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.






                                   PAGE    31
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1703012

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

  66591   TRACT  1                                                      563
          --------
          NTS 094-H-01 BLK B UNITS 100
          NTS 094-H-01 BLK C UNITS 91
          NTS 094-H-01 BLK F UNITS 1
          NTS 094-H-01 BLK G UNITS 10

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 094-H-01 BLK F UNITS 11 21
          NTS 094-H-01 BLK G UNITS 20 30

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34007 ARTEX-HALFWAY-DOIG

          34007 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1359.4-1419.9M ON THE MONOPOLE-DIPOLE ACOUSTIC LOG AND 
          THE SPECTRAL PE DENSITY COMPENSATED NEUTRON GAMMA RAY 
          LOG OF THE WELL W.A. 17462 2-13-88-14 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 


                                   PAGE    32
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1709016

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

  66592   TRACT  1                                                      562
          --------
          NTS 094-H-01 BLK G UNITS 92 93
          NTS 094-H-01 BLK J UNITS 2 3

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER



                                   PAGE    33
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

  66592   TRACT  2
          --------
          NTS 094-H-01 BLK G UNITS 94 95
          NTS 094-H-01 BLK J UNITS 4 5

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

          43001 BLUESKY-GETHING-DUNLEVY ZONE DEFINED IN THE 
          INTERVAL 1007.9M-1100.4M ON THE BHC ACOUSTILOG GAMMA 
          RAY LOG OF THE WELL W.A. 6790 A-7-E/94-H-02

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 


                                   PAGE    34
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1709017

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

  66593   TRACT  1                                                     1122
          --------
          NTS 094-H-01 BLK I UNITS 18-20 28-30 40 50
          NTS 094-H-01 BLK J UNITS 11 21 31 41

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

          TRACT  2
          --------
          NTS 094-H-01 BLK I UNITS 38 39 48 49

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36001 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36001 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5261.2'-5930.8' ON THE SONIC 


                                   PAGE    35
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          LOG WITH GAMMA AND CALIPER LOG OF THE WELL W.A. 757 
          C-54-H/094-G-02

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES


                                   PAGE    36
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1709018

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

  66594   TRACT  1                                                      842
          --------
          NTS 094-H-01 BLK J UNITS 34 35 44 45

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 094-H-01 BLK J UNITS 12-15 22-25

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

          46009 SPIRIT RIVER ZONE DEFINED IN THE INTERVAL 
          779M-1017.6M ON THE COMPENSATED DENSITY COMPENSATED 
          NEUTRON GAMMA RAY LOG OF THE WELL W.A. 8095 
          B-86-A/94-H-03

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE OIL AND GAS COMMISSION FOR 
          GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING FIRST 
          NATION(S) FOR REVIEW AND COMMENT (NOTE THAT SUBSEQUENT 
          CONSULTATION WITH FIRST NATIONS, NOT NECESSARILY 
          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 


                                   PAGE    37
DRILLING LICENCE
----------------

PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DENE THA' FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    4  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 1709019

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














                                   PAGE    38



                       Parcels Offered and Hectares Summary


                                   No. Offered         Hectares
                                   -----------         --------

            Permits                          0                0
            Drilling Licences               24            19106
            Leases                           0                0

            Grand Total                     24            19106














































