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

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

  66414   TRACT  1                                                      509
          --------
          TWP 082 RGE 16 W6M SEC 28 33

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          - HORSE LAKE 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):
          - PROPOSED UNGULATE WINTER RANGE
          - FOREST ACT TENURE(S)
          - MINERAL, COAL AND/OR PLACER RESERVES.
          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.





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

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

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

          NO FURTHER TRACTS                      REF.NO. 1707001

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

  66415   TRACT  1                                                      522
          --------
          TWP 083 RGE 14 W6M SEC 24 25

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          - HORSE LAKE 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):
          - BLUE OR RED LISTED SPECIES
          - RANGE ACT TENURE(S)
          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 


                                   PAGE     2
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. 1707002

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

  66416   TRACT  1                                                     1056
          --------
          TWP 087 RGE 21 W6M SEC 15 16 20SW

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 087 RGE 21 W6M SEC 19 20N 20SE

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34006 ARTEX-HALFWAY-DOIG

          34006 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1516.3M-1666.2M ON THE COMPENSATED 
          NEUTRON-LITHODENSITY LOG AND THE DUAL INDUCTION-SFL 
          LOG OF THE WELL W.A. 6571 6-28-86-21 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          - HALFWAY RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - HALFWAY RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 


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

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

          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):
          - HALFWAY 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:
          - WILDLIFE VALUES
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - SURFACE WATER
          PARCEL OVERAPS "AREAS OF CULTURAL SIGNIFICANCE" AS 
          IDENTIFIED BY THE HALFWAY RIVER FIRST NATION
          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; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          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
          - WATERSHED RESERVE
          - FOREST ACT TENURE(S)
          - RANGE ACT TENURE(S)
          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     4
DRILLING LICENCE
----------------

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

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

          NO FURTHER TRACTS                      REF.NO. 1707003

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

  66417   TRACT  1                                                      792
          --------
          TWP 087 RGE 21 W6M SEC 30
          TWP 087 RGE 22 W6M SEC 36
          TWP 088 RGE 22 W6M SEC 2

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34006 ARTEX-HALFWAY-DOIG

          34006 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1516.3M-1666.2M ON THE COMPENSATED 
          NEUTRON-LITHODENSITY LOG AND THE DUAL INDUCTION-SFL 
          LOG OF THE WELL W.A. 6571 6-28-86-21 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          - HALFWAY RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - HALFWAY 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):
          - HALFWAY 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:
          - WILDLIFE VALUES


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

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

          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - SURFACE WATER
          PARCEL OVERAPS "AREAS OF CULTURAL SIGNIFICANCE" AS 
          IDENTIFIED BY THE HALFWAY RIVER FIRST NATION
          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; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          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):
          - FOREST ACT TENURE(S)
          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. 1707005

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

  66418   TRACT  1                                                      528
          --------
          TWP 088 RGE 21 W6M SEC 12

          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


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

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


  66418   TRACT  2
          --------
          TWP 088 RGE 21 W6M SEC 14

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 38008 BALDONNEL

          38008 BALDONNEL ZONE DEFINED IN THE INTERVAL 
          4026'-4140' ON THE BHCS-GR LOG OF THE WELL W.A. 4159 
          7-34-85-17 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          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; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          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):
          - FOREST ACT TENURE(S)
          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     7
DRILLING LICENCE
----------------

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


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

          NO FURTHER TRACTS                      REF.NO. 1707006

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

  66419   TRACT  1                                                      835
          --------
          NTS 094-G-08 BLK J UNITS 72 73 82 83 92 93
          NTS 094-G-09 BLK B UNITS 2 3 12 13 22 23

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          DIRECTIONAL DRILLING ONLY WILL BE ALLOWED UNDER THE 
          PORTION OF THE PARCEL WITHIN THE SIKANNI FALLS 
          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.


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

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

          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):
          - RANGE ACT TENURE(S)
          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. 1707015

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

  66420   TRACT  1                                                      554
          --------
          NTS 094-G-09 BLK F UNITS 56 57 66 67 76 77 86 87

          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 
          PRE-APPLICATION ENGAGMENT 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 


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

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

          MORE FIRST NATIONS INCLUDE:
          - 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):
          - RANGE ACT TENURE(S)
          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. 1707017

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

  66421   TRACT  1                                                      554
          --------
          NTS 094-G-09 BLK E UNITS 54-57 64-67

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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


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

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

          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):
          - RANGE ACT TENURE(S)
          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. 1707018

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

  66422   TRACT  1                                                      555
          --------
          NTS 094-G-09 BLK E UNITS 40 50
          NTS 094-G-10 BLK H UNITS 31-33 41-43

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 


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

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

          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
          - CARIBOU (NORTHERN)
          - RANGE ACT TENURE(S)
          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. 1707019

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

  66423   TRACT  1                                                     5542
          --------
          TWP 085 RGE 24 W6M SEC 3-8 10 13-17 20-23 29
          TWP 085 RGE 25 W6M SEC 1 2 11 12N 12SW

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 085 RGE 25 W6M SEC 12SE

          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 ENGAGMENT 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
          - HALFWAY RIVER FIRST NATION


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

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

          - SAULTEAU FIRST NATIONS
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - HALFWAY 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):
          - HALFWAY 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:
          - FIRST NATION CAMP OR CABIN
          - FIRST NATION HISTORICAL VILLAGE SITE
          - FIRST NATION TRAPPING, HUNTING AND FISHING VALUES
          - BIODIVERSITY
          - RIPARIAN HABITATS
          - MEDICINAL PLANTS
          - MINERAL LICKS
          - UNGULATE HABITAT
          - TRAPLINE(S)
          - HISTORIC OR CURRENT TRAIL(S)
          PARCEL OVERAPS "AREAS OF CULTURAL SIGNIFICANCE" AS 
          IDENTIFIED BY THE HALFWAY RIVER FIRST NATION
          PARCEL IS LOCATED NEAR A RESERVE OF THE HALFWAY RIVER 
          FIRST NATION AND TSAA NUNA. HALFWAY RIVER FIRST NATION 
          VIEWS TSAA NUNA AS AN AREA OF CONTINUING CULTURAL 
          SIGNIFICANCE FOR THE PRACTICE OF TRADITIONAL 
          ACTIVITIES.
          HALFWAY FIRST NATION HAS IDENTIFIED CRITICAL 
          TRADITIONAL USE VALUES WITHIN THE PARCEL, INCLUDING 
          WITHIN 2 KM OF TSAA NUNA. PROPONENTS ARE ENCOURAGED TO 
          ENGAGE WITH HALFWAY FIRST NATION TO IDENTIFY THESE 
          VALUES FOR CONSIDERATION IN PROJECT PLANNING PRIOR TO 
          SUBMITTING APPLICATIONS FOR OIL AND GAS ACTIVITY TO 
          THE BC OIL AND GAS COMMISSION.
          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 MAJOR RIVER CORRIDOR SPECIAL 
          MANAGEMENT ZONE. PRE-ASSESSMENTS AND MITIGATION 
          STRATEGIES MAY BE REQUIRED; SEE FORT ST. JOHN LRMP.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 


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

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

          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - UNGULATE WINTER RANGE
          - RED AND BLUE LISTED AVIAN HABITAT
          - FOREST MANAGEMENT RESEARCH RESERVE
          - QUARRY, SAND AND GRAVEL RESERVE
          - PLANNING AND MARKETING DEVELOPMENT RESERVE
          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.

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

          NO FURTHER TRACTS                      REF.NO. 1106007A

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





















                                   PAGE    14
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  66424   TRACT  1                                                      264
          --------
          TWP 088 RGE 15 W6M SEC 24

          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 ENGAGMENT 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
          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.

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1707010

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

  66425   TRACT  1                                                      280
          --------
          NTS 094-H-05 BLK C UNITS 32 33 42 43


                                   PAGE    15
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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


          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          - 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:
          - 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1707013

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

  66426   TRACT  1                                                      279
          --------
          NTS 094-G-08 BLK H UNITS 51 61


                                   PAGE    16
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          NTS 094-H-05 BLK E UNITS 60 70

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : NATURAL GAS

          FROM BASE OF 40001 FERNIE-NORDEGG

          40001 FERNIE-NORDEGG ZONE DEFINED IN THE INTERVAL 
          4610.0'-4907.8' ON THE SIMULTANEOUS GAMMA RAY NEUTRON 
          LOG OF THE WELL W.A. 277 C-85-E/94-B-16

          EXC : NATURAL GAS

          TO 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 ENGAGMENT 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
          - 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:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 


                                   PAGE    17
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

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

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1707014

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

  66427   TRACT  1                                                      264
          --------
          TWP 087 RGE 23 W6M SEC 6

          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 ENGAGMENT 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
          - HALFWAY RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - HALFWAY 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):
          - HALFWAY RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 


                                   PAGE    18
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - FIRST NATION CAMP OR CABIN
          - FIRST NATION HISTORICAL VILLAGE SITE
          - FIRST NATION TRAPPING, HUNTING AND FISHING VALUES
          - BIODIVERSITY
          - RIPARIAN HABITATS
          - MEDICINAL PLANTS
          - MINERAL LICKS
          - UNGULATE HABITAT
          - TRAPLINE(S)
          - HISTORIC OR CURRENT TRAIL(S)
          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.
          MAY BE REQUIRED TO COORDINATE ACCESS WITH TIMBER 
          TENURE HOLDER.
          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):
          - UNGULATE WINTER RANGE
          - RED AND BLUE LISTED AVIAN HABITAT
          - LAND ACT TENURE(S)
          - FOREST ACT TENURE(S)
          - RANGE ACT TENURE(S)
          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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1204007

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

  66428   TRACT  1                                                      264
          --------
          TWP 087 RGE 24 W6M SEC 1

          INC : PETROLEUM AND NATURAL GAS



                                   PAGE    19
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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
          - HALFWAY RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - HALFWAY 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):
          - HALFWAY 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:
          - FIRST NATION CAMP OR CABIN
          - FIRST NATION HISTORICAL VILLAGE SITE
          - FIRST NATION TRAPPING, HUNTING AND FISHING VALUES
          - BIODIVERSITY
          - RIPARIAN HABITATS
          - MEDICINAL PLANTS
          - MINERAL LICKS
          - UNGULATE HABITAT
          - TRAPLINE(S)
          - HISTORIC OR CURRENT TRAIL(S)
          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.
          MAY BE REQUIRED TO COORDINATE ACCESS WITH TIMBER 
          TENURE HOLDER.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 


                                   PAGE    20
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - UNGULATE WINTER RANGE
          - RED AND BLUE LISTED AVIAN HABITAT
          - LAND ACT TENURE(S)
          - FOREST ACT TENURE(S)
          - RANGE ACT TENURE(S)
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1204011

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

  66429   TRACT  1                                                     2628
          --------
          NTS 094-P-06 BLK I UNITS 94-99
          NTS 094-P-11 BLK A UNITS 4-9 14-20 24-30 40 50
          NTS 094-P-11 BLK B UNITS 11-13 21-23 31-33 41-43

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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):
          - DENE THA' FIRST NATION
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - FORT NELSON 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


                                   PAGE    21
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - FORT NELSON 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:
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - HUNTING
          - FISHING
          - TRAPPING
          - GATHERING
          - VEGETATION
          - WATER QUALITY AND WATERSHED VALUES
          - CARIBOU
          - FUR BEARING WILDLIFE
          - CULTURAL AND SPIRITUAL VALUES
          - HARVESTING
          - ECOLOGICAL VALUES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - AIR QUALITY
          NORTHERN ROCKIES REGIONAL MUNICIPALITY REQUESTS 
          ENGAGEMENT PRIOR TO UNDERTAKING ANY EXPLORATION 
          ACTIVITIES.
          PARCEL LOCATED WITHIN SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO FORT NELSON LRMP.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1209014

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

  66430   TRACT  1                                                      264
          --------
          NTS 094-P-07 BLK E UNITS 64 65

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 094-P-07 BLK E UNITS 54 55



                                   PAGE    22
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 28003 SHUNDA-PEKISKO

          28003 SHUNDA-PEKISKO ZONE DEFINED IN THE INTERVAL 
          1636.1'-2071.8' ON THE COMPENSATED FORMATION DENSITY 
          LOG OF THE WELL W.A. 3350 C-30-K/94-P-06

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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):
          - DENE THA' FIRST NATION
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - FORT NELSON 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
          - FORT NELSON 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:
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - HUNTING
          - FISHING
          - TRAPPING
          - GATHERING
          - VEGETATION
          - WATER QUALITY AND WATERSHED VALUES
          - CARIBOU
          - FUR BEARING WILDLIFE
          - CULTURAL AND SPIRITUAL VALUES
          - HARVESTING
          - ECOLOGICAL VALUES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT


                                   PAGE    23
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - AIR QUALITY
          NORTHERN ROCKIES REGIONAL MUNICIPALITY REQUESTS 
          ENGAGEMENT PRIOR TO UNDERTAKING ANY EXPLORATION 
          ACTIVITIES.
          PARCEL LOCATED WITHIN SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO FORT NELSON 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1209015

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

  66431   TRACT  1                                                      527
          --------
          NTS 094-P-07 BLK E UNITS 76-79 86-89

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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):
          - DENE THA' FIRST NATION
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - FORT NELSON FIRST NATION


                                   PAGE    24
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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
          - FORT NELSON 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:
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - HUNTING
          - FISHING
          - TRAPPING
          - GATHERING
          - VEGETATION
          - WATER QUALITY AND WATERSHED VALUES
          - CARIBOU
          - FUR BEARING WILDLIFE
          - CULTURAL AND SPIRITUAL VALUES
          - HARVESTING
          - ECOLOGICAL VALUES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - AIR QUALITY
          NORTHERN ROCKIES REGIONAL MUNICIPALITY REQUESTS 
          ENGAGEMENT PRIOR TO UNDERTAKING ANY EXPLORATION 
          ACTIVITIES.
          PARCEL LOCATED WITHIN SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO FORT NELSON 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.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.






                                   PAGE    25
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1209016

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

  66432   TRACT  1                                                      264
          --------
          NTS 094-P-07 BLK E UNITS 94 95
          NTS 094-P-07 BLK L UNITS 4 5

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT 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):
          - DENE THA' FIRST NATION
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - FORT NELSON 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
          - FORT NELSON 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:
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - HUNTING
          - FISHING
          - TRAPPING
          - GATHERING
          - VEGETATION
          - WATER QUALITY AND WATERSHED VALUES


                                   PAGE    26
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - CARIBOU
          - FUR BEARING WILDLIFE
          - CULTURAL AND SPIRITUAL VALUES
          - HARVESTING
          - ECOLOGICAL VALUES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - AIR QUALITY
          NORTHERN ROCKIES REGIONAL MUNICIPALITY REQUESTS 
          ENGAGEMENT PRIOR TO UNDERTAKING ANY EXPLORATION 
          ACTIVITIES.
          PARCEL LOCATED WITHIN SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO FORT NELSON 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.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

          TERM           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1209017

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

  66433   TRACT  1                                                      792
          --------
          NTS 094-P-07 BLK E UNITS 32 33 42 43 51-53 61-63
          NTS 094-P-07 BLK F UNITS 60 70

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

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


                                   PAGE    27
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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):
          - DENE THA' FIRST NATION
          - FORT NELSON FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - FORT NELSON 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
          - FORT NELSON 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:
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - HUNTING
          - FISHING
          - TRAPPING
          - GATHERING
          - VEGETATION
          - WATER QUALITY AND WATERSHED VALUES
          - CARIBOU
          - FUR BEARING WILDLIFE
          - CULTURAL AND SPIRITUAL VALUES
          - HARVESTING
          - ECOLOGICAL VALUES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - AIR QUALITY
          NORTHERN ROCKIES REGIONAL MUNICIPALITY REQUESTS 
          ENGAGEMENT PRIOR TO UNDERTAKING ANY EXPLORATION 
          ACTIVITIES.
          PARCEL LOCATED WITHIN SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO FORT NELSON 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 


                                   PAGE    28
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1210016

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







































                                   PAGE    29



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences               10            11447
            Leases                          10             5826

            Grand Total                     20            17273














































