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

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

  66306   TRACT  1                                                      879
          --------
          NTS 093-P-09 BLK D UNITS 14 15 24 25

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 093-P-07 BLK I UNITS 91
          NTS 093-P-08 BLK L UNITS 100
          NTS 093-P-09 BLK D UNITS 10 16 17 26 27
          NTS 093-P-10 BLK A UNITS 1

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 42015 CADOMIN-DUNLEVY-NIKANASSIN

          42015 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 2695.8M-3084.7M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 5468 D-84-I/93-P-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
          - 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):
          - SAULTEAU FIRST NATIONS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          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 


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

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

          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          PARCEL LOCATED WITHIN THE KISKATINAW RIVER WATERSHED, 
          RESTRICTIONS ON SURFACE WATER WITHDRAWAL MAY APPLY.
          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):
          - FISH AND WILDLIFE MANAGEMENT RESERVE
          - WATERSHED RESERVE
          - MINERAL, COAL AND/OR PLACER RESERVES.
          - 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 
          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. 1703001

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

  66307   TRACT  1                                                      518
          --------
          TWP 080 RGE 16 W6M SEC 14 23

          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



                                   PAGE     2
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
          - 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
          - SAULTEAU FIRST NATIONS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          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.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.







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

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

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

          NO FURTHER TRACTS                      REF.NO. 1703002

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

  66308   TRACT  1                                                      521
          --------
          TWP 083 RGE 16 W6M SEC 14 23

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          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
          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
          - FISHING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          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):


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

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

          - PROPOSED UNGULATE WINTER RANGE
          - BLUE OR RED LISTED SPECIES
          - FISH AND WILDLIFE MANAGEMENT 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.
          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. 1703004

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

  66309   TRACT  1                                                      264
          --------
          TWP 087 RGE 22 W6M SEC 8

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 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

          EXC : PETROLEUM AND NATURAL GAS

          IN 33012 MONTNEY (EXCLUDING BASAL LAG)

          33012 MONTNEY ZONE (EXCLUDING BASAL LAG) DEFINED IN 


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

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

          THE INTERVAL 1666.2M-1939.2M ON THE COMPENSATED 
          NEUTRON-LITHODENSITY 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
          - HALFWAY 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
          - 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):
          - DENE THA' FIRST NATION
          - 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:
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - SURFACE WATER
          - WATER QUALITY AND WATERSHED VALUES
          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):
          - BLUE OR RED LISTED SPECIES
          - GRAZING LICENCE
          - FOREST ACT TENURE(S)


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

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

          AREA HAS POTENTIAL FOR FUTURE WIND POWER 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.
          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. 1703005

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

  66310   TRACT  1                                                     1115
          --------
          NTS 094-H-05 BLK G UNITS 92 93
          NTS 094-H-05 BLK J UNITS 2 3 14-17 24-27 36 37 46 47

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 38001 PARDONET-BALDONNEL

          38001 PARDONET-BALDONNEL ZONE DEFINED IN THE INTERVAL 
          5115.1'-5261.2' ON THE SONIC LOG WITH GAMMA RAY AND 
          CALIPER LOG OF THE WELL W.A. 757 C-54-H/94-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
          - 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
          - 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):
          - PROPHET RIVER FIRST NATION


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

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

          - DENE THA' 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:
          - TRAPPING
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          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. 1703015

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

  66311   TRACT  1                                                     1391
          --------
          NTS 094-H-12 BLK C UNITS 14 15 24 25

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 094-H-05 BLK K UNITS 94 95
          NTS 094-H-12 BLK C UNITS 4 5 16-19 26-29 38 39 48 49

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43002 BLUESKY-GETHING-DUNLEVY

          43002 BLUESKY-GETHING-DUNLEVY ZONE DEFINED IN THE 
          INTERVAL 4191.2'-4350.1' ON THE SIMULTANEOUS 
          CN/FD/SAND MTX LOG OF THE WELL W.A. 4097 
          A-47-D/94-H-05

          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 


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

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

          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - 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
          - 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):
          - PROPHET RIVER FIRST NATION
          - DENE THA' 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:
          - TRAPPING
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          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. 1703016

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

  66312   TRACT  1                                                      556
          --------
          NTS 094-G-08 BLK J UNITS 94 95
          NTS 094-G-09 BLK B UNITS 4 5 14 15 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 


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

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

          LIMITED TO THOSE LISTED BELOW, MAY BE REQUIRED PRIOR 
          TO ACTIVITIES BEING AUTHORIZED ON CROWN LAND):
          - 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
          - 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):
          - PROPHET RIVER FIRST NATION
          - DENE THA' 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:
          - TRAPPING
          - HUNTING
          DIRECTIONAL DRILLING ONLY WILL BE ALLOWED UNDER THE 
          PORTION OF THE PARCEL WITHIN THE SIKANNI CHIEF CANYON 
          PARK.
          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):
          - MINERAL, COAL AND/OR PLACER RESERVES.
          - 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. 1703017

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

  66313   TRACT  1                                                      832
          --------
          NTS 094-G-09 BLK E UNITS 16 17 26 27 36-39 46-49


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

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):
          - 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
          - 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):
          - PROPHET RIVER FIRST NATION
          - DENE THA' 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:
          - TRAPPING
          - HUNTING
          PARCEL OVERLAPS TRAPLINE REGISTERED TO FIRST NATION 
          COMMUNITY MEMBER
          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.










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

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

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

          NO FURTHER TRACTS                      REF.NO. 1703019

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

  66314   TRACT  1                                                     1302
          --------
          TWP 087 RGE 19 W6M SEC 36

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 087 RGE 18 W6M SEC 34

          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  3
          --------
          TWP 087 RGE 19 W6M SEC 34

          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

          TRACT  4
          --------
          TWP 087 RGE 18 W6M SEC 29
          TWP 087 RGE 19 W6M SEC 31

          INC : PETROLEUM AND NATURAL GAS

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

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 


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

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

          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 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):
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - BLUEBERRY RIVER FIRST NATIONS
          - DENE THA' 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
          - TRADITIONAL USE AREAS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          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
          - FISH AND WILDLIFE MANAGEMENT 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. 1701004

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








                                   PAGE    13
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  66315   TRACT  1                                                      280
          --------
          NTS 094-H-05 BLK C UNITS 36 37 46 47

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 38001 PARDONET-BALDONNEL

          38001 PARDONET-BALDONNEL ZONE DEFINED IN THE INTERVAL 
          5115.1'-5261.2' ON THE SONIC LOG WITH GAMMA RAY AND 
          CALIPER LOG OF THE WELL W.A. 757 C-54-H/94-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
          - 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
          - 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):
          - PROPHET RIVER FIRST NATION
          - DENE THA' 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:
          - TRAPPING
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          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; 


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

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

          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 1703013

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

  66316   TRACT  1                                                      279
          --------
          NTS 094-H-05 BLK E UNITS 34 35 44 45

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : NATURAL GAS

          IN 36701 BALDONNEL-SIPHON-NANCY

          36701 BALDONNEL-SIPHON-NANCY ZONE IDENTIFIED IN THE 
          INTERVAL 4382'-4612' M.D. ON THE GAMMA RAY - NEUTRON 
          LOG RECORDED FEBRUARY 26, 1958 IN THE WELL W.A. 327 
          DOME BASCO LAPRISE A-35-H/94-G-8

          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
          - 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
          - 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):
          - PROPHET RIVER FIRST NATION
          - DENE THA' FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 


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

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

          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - TRAPPING
          - HUNTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          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. 1703014

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

  66317   TRACT  1                                                      264
          --------
          TWP 082 RGE 21 W6M SEC 4

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34011 ARTEX-HALFWAY-DOIG

          34011 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1674.5M-1944.7M ON THE PHOTO-DENSITY DUAL SPACED 
          NEUTRON LOG AND THE ARRAY INDUCTION LOG OF THE WELL 
          W.A. 24456 1-28-81-20 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):
          - MCLEOD LAKE INDIAN BAND
          - SAULTEAU FIRST NATIONS
          - WEST MOBERLY FIRST NATIONS


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

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

          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - 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):
          - 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:
          - GRAVESITES IN AREA
          - WILDLIFE, VEGETATION AND CULTURAL VALUES OF A FIRST 
          NATION
          - HISTORIC OR CURRENT TRAIL(S)
          - ARCHAEOLOGICAL SITE(S)
          - CULTURALLY SIGNIFICANT SITE(S)
          - AREAS OF CRITICAL COMMUNITY USE
          - TRADITIONAL USE AREAS
          - CULTURALLY IMPORTANT PLANTS
          - TRAPLINE(S)
          - HISTORIC OR CURRENT TRAIL(S)
          - HISTORIC OR CURRENT CAMP(S)
          - TRANSPORTATION CORRIDORS (LAND AND WATER)
          - FIRST NATION CAMP OR CABIN
          - HUNTING CAMP
          - FIRST NATION HISTORICAL CAMPSITE
          - FIRST NATION TRAPPING, HUNTING AND FISHING VALUES
          - HISTORICAL TRAIL
          - TRAPPER'S CABIN
          - GRAVESITES IN AREA
          - HUNTING
          - CULTURAL AND SPIRITUAL VALUES
          - HARVESTING
          - ECOLOGICAL VALUES
          - TRAPPING
          - UNGULATE HABITAT
          - MOOSE
          - DEER
          - ELK
          - BEAR
          - BEAVER
          - SENSITIVE WILDLIFE
          - FUR BEARING WILDLIFE
          - BIODIVERSITY
          - WILDLIFE AND WILDLIFE HABITAT
          - VEGETATION
          - MINERAL LICKS


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

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

          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - SENSITIVE RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          - BIODIVERSITY AND RIPARIAN VALUES
          THE PARCEL IS LOCATED NEAR EXISTING INFRASTRUCTURE.� 
          ADDITIONAL SURFACE DISTURBANCE, INCLUDING ACCESS AND 
          WELLSITE CONSTRUCTION, �MAY BE UNNECESSARY OR 
          RESTRICTED IN ORDER TO AVOID �OR MINIMIZE CUMULATIVE 
          IMPACTS ON FIRST NATION AND ENVIRONMENTAL VALUES.
          PARCEL OVERLAPS REGISTERED TRAPLINE HELD BY SAULTEAU 
          MEMBER.� SAULTEAU REQUESTS EARLY ENGAGEMENT WITH 
          TRAPLINE HOLDER.� CONTACT TRAPLINE HOLDER DIRECTLY, OR 
          CONTACT SAULTEAU FOR CONTACT INFORMATION.
          PARCEL IS LOCATED WITHIN AN AREA IDENTIFIED BY THE 
          SAULTEAU AND WEST MOBERLY FIRST NATIONS AS AREA OF 
          CRITICAL COMMUNITY INTEREST (ACCI);  CONSULTATION MAY 
          BE REQUESTED BY THE FIRST NATIONS.
          PARCEL IS LOCATED WITHIN AN AREA IDENTIFIED BY THE 
          MCLEOD LAKE INDIAN BAND AS CONSULTATION AREA;  
          CONSULTATION MAY BE REQUESTED BY THE 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
          - WILDLIFE HABITAT AREA(S)
          - AGRICULTURE RESERVE
          - PLANNING AND MARKETING DEVELOPMENT RESERVE
          - 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.


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

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

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

          NO FURTHER TRACTS                      REF.NO. 1004013

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







































                                   PAGE    19



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                9             7378
            Leases                           3              823

            Grand Total                     12             8201














































