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

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

  66727   TRACT  1                                                      528
          --------
          TWP 085 RGE 16 W6M SEC 23 24

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE STRONGLY ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE BC OIL AND GAS COMMISSION 
          FOR GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING 
          FIRST NATION(S) FOR REVIEW AND COMMENT (NOTE THAT 
          SUBSEQUENT CONSULTATION WITH FIRST NATIONS, NOT 
          NECESSARILY LIMITED TO THOSE LISTED BELOW, MAY BE 
          REQUIRED PRIOR TO ACTIVITIES BEING AUTHORIZED ON CROWN 
          LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - BLUEBERRY RIVER FIRST NATIONS
          - 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):
          - 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:
          - HARVESTING
          - HUNTING
          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).
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 


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

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

          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - GRAZING RESERVE
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          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. 1804001

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

  66728   TRACT  1                                                      528
          --------
          TWP 087 RGE 17 W6M SEC 31
          TWP 087 RGE 18 W6M SEC 36

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

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

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


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

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

          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HARVESTING
          - HUNTING
          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
          - QUARRY, SAND AND GRAVEL 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.
          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. 1804002

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



















                                   PAGE     3
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  66729   TRACT  1                                                      268
          --------
          NTS 094-I-14 BLK H UNITS 34 35 44 45

          INC : PETROLEUM AND NATURAL GAS

          FROM BASE OF 17504 MUSKWA-WATERWAYS

          17504 MUSKWA-WATERWAYS ZONE IDENTIFIED IN THE INTERVAL 
          7282'-7460' ON THE BOREHOLE COMPENSATED SONIC LOG (RUN 
          #1) OF THE WELL W.A. 2265 C-57-G/94-H-15

          INC : PETROLEUM AND NATURAL GAS

          TO BASE OF 14002 SULPHUR POINT-KEG RIVER-PINE POINT

          14002 SULPHUR POINT-KEG RIVER-PINE POINT ZONE DEFINED 
          IN THE INTERVAL 6662.2'-7778.8' ON THE SIMULTANEOUS 
          GAMMA RAY NEUTRON LOG OF THE WELL W.A. 532 
          D-39-J/94-I-14

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE STRONGLY ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE BC 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:
          - FORT NELSON 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):
          - FORT NELSON 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:
          - TRADITIONAL USE AREAS
          - TRAPPING


                                   PAGE     4
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - HUNTING
          - CULTURALLY SIGNIFICANT SITE(S)
          - GATHERING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - GROUNDWATER
          - WATER QUALITY AND WATERSHED VALUES
          PARCEL OVERLAPS TRAPLINE REGISTERED TO FIRST NATION 
          COMMUNITY MEMBER
          NORTHERN ROCKIES REGIONAL MUNICIPALITY REQUESTS 
          ENGAGEMENT PRIOR TO UNDERTAKING ANY EXPLORATION 
          ACTIVITIES.
          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. 1706011

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





























                                   PAGE     5



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                2             1056
            Leases                           1              268

            Grand Total                      3             1324














































