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

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

  66824   TRACT  1                                                     3167
          --------
          TWP 084 RGE 23 W6M SEC 29NW 30 31
          TWP 085 RGE 23 W6M SEC 6

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 34008 ARTEX-HALFWAY-DOIG

          34008 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1630.7M-1777.0M ON THE DIGITAL ACOUSTILOG AND THE 
          COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG OF THE 
          WELL W.A. 11374 13-36-84-21 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 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

          EXC : PETROLEUM AND NATURAL GAS

          IN 42007 CADOMIN-DUNLEVY-NIKANASSIN

          42007 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 760.1M-965.2M ON THE SONIC LOG OF THE WELL 
          W.A. 6547 6-2-83-22 W6M

          TRACT  2
          --------
          TWP 085 RGE 23 W6M SEC 7

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES


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

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


          EXC : PETROLEUM AND NATURAL GAS

          IN 34008 ARTEX-HALFWAY-DOIG

          34008 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1630.7M-1777.0M ON THE DIGITAL ACOUSTILOG AND THE 
          COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG OF THE 
          WELL W.A. 11374 13-36-84-21 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 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

          EXC : PETROLEUM AND NATURAL GAS

          IN 42006 CADOMIN-DUNLEVY-NIKANASSIN

          42006 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 3090.8'-3800.3' ON THE BHC SONIC LOG OF THE 
          WELL W.A. 3543 7-19-84-24 W6M

  66824   TRACT  3
          --------
          TWP 084 RGE 23 W6M SEC 28 29NE 29S
          TWP 084 RGE 24 W6M SEC 23 25 26 34-36

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 


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

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

          #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
          - HALFWAY RIVER FIRST NATION
          - 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)
          - UNGULATE BIRTHING AND CALVING AREAS
          - STREAMS, WETLANDS, LAKES
          - BIODIVERSITY AND RIPARIAN VALUES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - TRADITIONAL USE AREAS
          - HUNTING
          - CULTURALLY SIGNIFICANT SITE(S)
          - WILDLIFE VALUES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS
          PARCEL OVERLAPS "AREAS OF CULTURAL SIGNIFICANCE" AS 


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

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

          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.
          ALL OR A PORTION OF THIS PARCEL OVERLAPS A HALFWAY 
          RIVER FIRST NATION (HRFN) HIGH VALUE TRADTIONAL USE 
          AREA. MANAGEMENT PRACTICES, CONSERVATION MEASURES AND 
          ACCESS RESTRICTIONS MAY APPLY TO MANAGE, PROTECT AND 
          MAINTAIN TRADTIONAL USES AND CULTURAL VALUES.
          THE TENURE HOLDER MAY BE REQUIRED TO COORDINATE ACCESS 
          AND EXPLORATION DEVELOPMENT PLANS WITH HALFWAY RIVER 
          FIRST NATION AND, WHERE APPROPRIATE, USE EXISTING 
          ACCESS.
          MOOSE MANAGEMENT STRATEGY UNDER DEVELOPMENT; OPERATION 
          IMPACT MITIGATION STRATAGIES MAY BE REQUIRED.
          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):
          - PROPOSED UNGULATE WINTER RANGE
          - TRAPPER'S CABIN
          - AGRICULTURE LEASE
          - GRAZING LICENCE
          - FOREST ACT TENURE(S)
          - RANGE ACT TENURE(S)
          - QUARRY, SAND AND GRAVEL RESERVE
          - MINERAL, COAL AND/OR PLACER RESERVES
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 


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

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

          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. 1611005A

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

  66825   TRACT  1                                                      264
          --------
          TWP 088 RGE 23 W6M SEC 10

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 33012 MONTNEY (EXCLUDING BASAL LAG)

          33012 MONTNEY ZONE (EXCLUDING BASAL LAG) DEFINED IN 
          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 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
          - HALFWAY 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:
          - HALFWAY RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - HALFWAY RIVER FIRST NATION


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

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

          - 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:
          - STREAMS, WETLANDS, LAKES
          - MOOSE
          - MIGRATORY BIRDS
          - WATER QUALITY AND WATERSHED VALUES
          - RIPARIAN HABITATS
          - WILDLIFE VALUES
          - CULTURALLY SIGNIFICANT SITE(S)
          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):
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - FISHING
          - TRAPPING
          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.
          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).
          - GRAZING RESERVE
          - FOREST ACT TENURE(S)
          AREA HAS POTENTIAL FOR FUTURE WIND POWER DEVELOPMENT.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.








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

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

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

          NO FURTHER TRACTS                      REF.NO. 1808009

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

  66826   TRACT  1                                                      264
          --------
          TWP 088 RGE 23 W6M SEC 11

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 33012 MONTNEY (EXCLUDING BASAL LAG)

          33012 MONTNEY ZONE (EXCLUDING BASAL LAG) DEFINED IN 
          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 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
          - HALFWAY 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:
          - HALFWAY RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - HALFWAY RIVER 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 


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

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

          INCLUDE BUT ARE NOT LIMITED TO:
          - STREAMS, WETLANDS, LAKES
          - MOOSE
          - MIGRATORY BIRDS
          - WATER QUALITY AND WATERSHED VALUES
          - RIPARIAN HABITATS
          - WILDLIFE VALUES
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - FISHING
          - TRAPPING
          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.
          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):
          - GRAZING RESERVE
          - FOREST ACT TENURE(S)
          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.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.









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

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

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

          NO FURTHER TRACTS                      REF.NO. 1808010

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

  66827   TRACT  1                                                      779
          --------
          TWP 082 RGE 16 W6M SEC 13 24

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 082 RGE 15 W6M SEC 31

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34010 ARTEX-HALFWAY-DOIG

          34010 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1468.0M-1633.9M ON THE BOREHOLE COMPENSATED SONIC LOG 
          OF THE WELL W.A. 16491 11-17-83-16 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HORSE LAKE FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 


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

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:
          - HUNTING
          - GATHERING
          - FISHING
          - TRAPPING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          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 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - PROPOSED UNGULATE WINTER RANGE
          - BLUE OR RED LISTED SPECIES
          - SHARP-TAILED GROUSE LEKS
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - MINERAL, COAL AND/OR PLACER RESERVES
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 1808001

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

  66828   TRACT  1                                                     1029
          --------
          TWP 083 RGE 15 W6M SEC 4 5

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 082 RGE 16 W6M SEC 25 36


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

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


          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34010 ARTEX-HALFWAY-DOIG

          34010 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1468.0M-1633.9M ON THE BOREHOLE COMPENSATED SONIC LOG 
          OF THE WELL W.A. 16491 11-17-83-16 W6M

          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
          - HORSE LAKE FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - 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
          - GATHERING
          - FISHING
          - TRAPPING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          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 


                                   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):
          - PROPOSED UNGULATE WINTER RANGE
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - MINERAL, COAL AND/OR PLACER RESERVES
          - 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. 1808002

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

  66829   TRACT  1                                                      264
          --------
          TWP 086 RGE 17 W6M SEC 1

          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
          - 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):


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

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

          - 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
          - TRAPPING
          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):
          - 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. 1808007

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





















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

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

  66830   TRACT  1                                                      260
          --------
          TWP 084 RGE 20 W6M SEC 18

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HALFWAY 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:
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - 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
          - 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
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES


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

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

          - HUNTING
          - HARVESTING
          - MOOSE
          - DEER
          - ELK
          - FISHING
          - TRAPPING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 
          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          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 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1810001

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

  66831   TRACT  1                                                      260
          --------
          TWP 084 RGE 20 W6M SEC 19


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

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


          INC : PETROLEUM AND NATURAL GAS

          DOWN TO 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

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 31005 BASAL MONTNEY LAG-BELLOY-STODDART

          31005 BASAL MONTNEY LAG-BELLOY-STODDART ZONE DEFINED 
          IN THE INTERVAL 6400'-6598' MD ON THE BHCS-GR LOG OF 
          THE WELL W.A. 1510 6-14-85-21 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HALFWAY 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:
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - 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
          - 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
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES


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

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

          - HUNTING
          - HARVESTING
          - TRAPPING
          - FISHING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 
          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          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):
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1810002

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

  66832   TRACT  1                                                      260
          --------
          TWP 084 RGE 21 W6M SEC 24NE

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 31502 BASAL MONTNEY LAG-BELLOY-TAYLOR 
          FLAT



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

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

          31502 BASAL MONTNEY LAG-BELLOY-TAYLOR FLAT ZONE 
          DEFINED IN THE INTERVAL 1896.1M-2455.0M MD ON THE 
          BHCS-GR LOG OF THE WELL W.A. 4878 7-27-82-21 W6M

  66832   TRACT  2
          --------
          TWP 084 RGE 21 W6M SEC 24SE 24W

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 31005 BASAL MONTNEY LAG-BELLOY-STODDART

          31005 BASAL MONTNEY LAG-BELLOY-STODDART ZONE DEFINED 
          IN THE INTERVAL 6400'-6598' MD ON THE BHCS-GR LOG OF 
          THE WELL W.A. 1510 6-14-85-21 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HALFWAY 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:
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - 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
          - 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
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - HUNTING


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

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

          - HARVESTING
          - MOOSE
          - DEER
          - ELK
          - TRAPPING
          - FISHING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 
          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          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):
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS AND PLANT DISEASES.
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 1810003

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

  66833   TRACT  1                                                      260
          --------
          TWP 084 RGE 21 W6M SEC 25

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 31005 BASAL MONTNEY LAG-BELLOY-STODDART


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

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


          31005 BASAL MONTNEY LAG-BELLOY-STODDART ZONE DEFINED 
          IN THE INTERVAL 6400'-6598' MD ON THE BHCS-GR LOG OF 
          THE WELL W.A. 1510 6-14-85-21 W6M

          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
          - HALFWAY 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:
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - 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
          - 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
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - HARVESTING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 


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

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

          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          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 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):
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - GRAZING LEASE
          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. 1810004

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

  66834   TRACT  1                                                      259
          --------
          TWP 084 RGE 21 W6M SEC 19

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 


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

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

          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HALFWAY 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:
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - 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
          - 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
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - HARVESTING
          - MOOSE
          - DEER
          - ELK
          - TRAPPING
          - FISHING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 


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

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

          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          PARCEL LOCATED WITHIN 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 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1810005

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

  66835   TRACT  1                                                      259
          --------
          TWP 084 RGE 21 W6M SEC 20

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M


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

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


          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
          - HALFWAY 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:
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - 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
          - 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
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - HARVESTING
          - MOOSE
          - DEER
          - ELK
          - TRAPPING
          - FISHING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS


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

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

          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 
          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          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 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 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - PROPOSED UNGULATE WINTER RANGE
          - MOOSE
          - DEER
          - ELK
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - GRAZING LEASE
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - 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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1810006

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

  66836   TRACT  1                                                      260
          --------


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

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

          TWP 084 RGE 21 W6M SEC 30

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HALFWAY 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:
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - 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
          - 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
          - CULTURALLY SIGNIFICANT SITE(S)
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - HARVESTING


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

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

          - MOOSE
          - DEER
          - ELK
          - TRAPPING
          - FISHING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WATER QUALITY AND WATERSHED VALUES
          - CUMULATIVE EFFECTS
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 
          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          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):
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1810007

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

  66837   TRACT  1                                                      259
          --------
          TWP 085 RGE 19 W6M SEC 21N 21SE

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES



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

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

          EXC : PETROLEUM AND NATURAL GAS

          IN 33015 MONTNEY (EXCLUDING BASAL LAG)

          33015 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1777.0M-2061.7M ON THE DIGITAL ACOUSTILOG 
          AND THE COMPENSATED Z-DENSILOG COMPENSATED NEUTRON LOG 
          OF THE WELL W.A. 11374 13-36-84-21 W6M

  66837   TRACT  2
          --------
          TWP 085 RGE 19 W6M SEC 21SW

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 32002 MONTNEY-BELLOY-STODDART

          32002 MONTNEY-BELLOY-STODDART ZONE DEFINED IN THE 
          INTERVAL 1984.7M-3240.9M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 5396 7-6-82-23 W6M

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DOIG RIVER FIRST NATION
          - 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
          - 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
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)


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

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

          - TRAPPING
          - FISHING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          PARCEL IS LOCATED NEAR COMMUNITY WATER SOURCE. THE 
          CITY OF FORT ST. JOHN REQUESTS ENGAGEMENT TO DISCUSS 
          EXPLORATION AND DEVELOPMENT PLANS PRIOR TO 
          ON-THE-GROUND ACTIVITIES.
          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
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          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           :    5  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 1810008

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

  66838   TRACT  1                                                      839
          --------
          NTS 094-H-05 BLK A UNITS 60 70 80 90
          NTS 094-H-05 BLK B UNITS 51 61 71-73 81-83

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

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


                                   PAGE    29
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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:
          - DOIG RIVER FIRST NATION
          - 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
          - 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:
          - CULTURALLY SIGNIFICANT SITE(S)
          - TRADITIONAL USE AREAS
          - WILDLIFE VALUES
          - HUNTING
          - CARIBOU (BOREAL)
          - TRAPPING
          - FISHING
          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.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES


                                   PAGE    30
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - 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.

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

          NO FURTHER TRACTS                      REF.NO. 1810010

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

  66839   TRACT  1                                                      280
          --------
          NTS 094-H-05 BLK A UNITS 76 77 86 87

          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:
          - PROPHET RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - PROPHET RIVER FIRST NATION
          - DOIG RIVER FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 


                                   PAGE    31
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:
          - HUNTING
          - FISHING
          - GATHERING
          - TRAPPING
          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.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 1808011

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

  66840   TRACT  1                                                      279
          --------
          NTS 094-H-05 BLK G UNITS 32 33 42 43

          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 


                                   PAGE    32
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          LAND):
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - PROPHET 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:
          - PROPHET RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - PROPHET RIVER 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
          - GATHERING
          - TRAPPING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          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. 1808012

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                                   PAGE    33



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                6             5767
            Leases                          11             3475

            Grand Total                     17             9242














































