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

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

  66970   TRACT  1                                                     1042
          --------
          TWP 083 RGE 17 W6M SEC 18 20 25

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 083 RGE 17 W6M SEC 27

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 44012 BLUESKY-GETHING

          44012 BLUESKY-GETHING ZONE DEFINED IN THE INTERVAL 
          3447.2'-3898.9' ON THE BHC SONIC LOG OF THE WELL W.A. 
          3148 7-27-81-18 W6M

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 


                                   PAGE     1
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
          - FISHING
          - UNGULATE WINTER RANGE AND BIRTHING AREAS
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - UNGULATE BIRTHING AND CALVING AREAS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          PARCEL IS WITHIN THE DISTRICT OF TAYLOR WATERSHED. 
          PRECAUTIONS ARE REQUIRED TO PREVENT CONTAMINATION OF 
          THE DISTRICT'S WATER SOURCE.
          THIS PARCEL FALLS OUTSIDE OR PARTIALLY OVERLAPS THE 
          DISTRICT OF TAYLOR�S RURAL FIRE PROTECTION AREA AND 
          FIRE SUPPRESSION OR RESCUE SERVICES MAY BE LIMITED; 
          THE DISTRICT REQUESTS CONSULTATION PRIOR TO 
          UNDERTAKING ANY EXPLORATION AND DEVELOPMENT 
          ACTIVITIES.
          THE DISTRICT OF TAYLOR REQUESTS CONSULTATION ON 
          EMERGENCY RESPONSE PRIOR TO THE DEVELOPMENT OF 
          EMERGENCY PLANS. EMERGENCY PLANS MUST BE SUBMITTED TO 
          TAYLOR FIRE DEPARTMENT PRIOR TO DRILLING ACTIVITIES.
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 
          RECOVERY AND TECHNOLOGY IS ANTICIPATED; PARTICIPATION 
          IN A WATER OR ACCESS PLANNING PROCESS WITH OTHER 
          TENURE HOLDERS MAY BE REQUIRED TO COORDINATE 
          ACTIVITIES, EXPLORATION AND DEVELOPMENT.
          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
          - PROPOSED WILDLIFE HABITAT AREA(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 INVASIVE PLANTS AND PLANT 
          DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.






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

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

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

          NO FURTHER TRACTS                      REF.NO. 1905001

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

  66971   TRACT  1                                                     1411
          --------
          NTS 094-A-16 BLK I UNITS 51-55 61-65 71-75 81-85

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 


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

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

          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - CARIBOU
          - RIPARIAN HABITATS
          - UNGULATE WINTER RANGE
          - STREAMS, WETLANDS, LAKES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 1905007

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

  66972   TRACT  1                                                      846
          --------
          NTS 094-A-16 BLK I UNITS 56 57 66 67 76 77 86 87



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

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

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46005 NOTIKEWIN-FALHER-WILRICH

          46005 NOTIKEWIN-FALHER-WILRICH ZONE DEFINED IN THE 
          INTERVAL 780.9M-1032.9M ON THE BHC-SONIC-MICROSONIC 
          LOG OF THE WELL W.A. 7623 D-76-I/94-A-11

  66972   TRACT  2
          --------
          NTS 094-A-16 BLK I UNITS 96 97
          NTS 094-H-01 BLK A UNITS 6 7

          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

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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, 


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

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

          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - UNGULATE WINTER RANGE
          - RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          - CARIBOU
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.










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

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

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

          NO FURTHER TRACTS                      REF.NO. 1905008

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

  66973   TRACT  1                                                      282
          --------
          NTS 094-A-16 BLK I UNITS 58 59 68 69

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46005 NOTIKEWIN-FALHER-WILRICH

          46005 NOTIKEWIN-FALHER-WILRICH ZONE DEFINED IN THE 
          INTERVAL 780.9M-1032.9M ON THE BHC-SONIC-MICROSONIC 
          LOG OF THE WELL W.A. 7623 D-76-I/94-A-11

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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):


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

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

          - DOIG RIVER FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - UNGULATE WINTER RANGE
          - CARIBOU
          - RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.











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

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

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

          NO FURTHER TRACTS                      REF.NO. 1905009

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

  66974   TRACT  1                                                      282
          --------
          NTS 094-A-16 BLK I UNITS 78 79 88 89

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46005 NOTIKEWIN-FALHER-WILRICH

          46005 NOTIKEWIN-FALHER-WILRICH ZONE DEFINED IN THE 
          INTERVAL 780.9M-1032.9M ON THE BHC-SONIC-MICROSONIC 
          LOG OF THE WELL W.A. 7623 D-76-I/94-A-11

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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):


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

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

          - DOIG RIVER FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - UNGULATE WINTER RANGE
          - CARIBOU
          - RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.











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

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

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

          NO FURTHER TRACTS                      REF.NO. 1905010

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

  66975   TRACT  1                                                      282
          --------
          NTS 094-A-16 BLK I UNITS 80 90
          NTS 094-A-16 BLK J UNITS 71 81

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46005 NOTIKEWIN-FALHER-WILRICH

          46005 NOTIKEWIN-FALHER-WILRICH ZONE DEFINED IN THE 
          INTERVAL 780.9M-1032.9M ON THE BHC-SONIC-MICROSONIC 
          LOG OF THE WELL W.A. 7623 D-76-I/94-A-11

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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, 


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

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

          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - UNGULATE WINTER RANGE
          - CARIBOU
          - RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.










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

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

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

          NO FURTHER TRACTS                      REF.NO. 1905011

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

  66976   TRACT  1                                                      846
          --------
          NTS 094-A-16 BLK I UNITS 98 99
          NTS 094-H-01 BLK A UNITS 8 9 20 30
          NTS 094-H-01 BLK B UNITS 11 21

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

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

          TRACT  2
          --------
          NTS 094-H-01 BLK A UNITS 18 28 29

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

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

          TRACT  3
          --------
          NTS 094-H-01 BLK A UNITS 19

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34007 ARTEX-HALFWAY-DOIG

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

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 


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

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

          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - UNGULATE WINTER RANGE
          - CARIBOU
          - RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).


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

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

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

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

          NO FURTHER TRACTS                      REF.NO. 1905012

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

  66977   TRACT  1                                                      845
          --------
          NTS 094-H-01 BLK A UNITS 11-13 21-23

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 094-H-01 BLK A UNITS 31-33 41-43

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

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

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 


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

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

          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - UNGULATE WINTER RANGE
          - CARIBOU
          - RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 


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

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

          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BOREAL CARIBOU HABITAT
          - BLUE OR RED LISTED SPECIES
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          RECORDED AND POTENTIAL ARCHAEOLOGICAL SITES EXIST; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 1905013

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

  66978   TRACT  1                                                      704
          --------
          NTS 094-H-01 BLK A UNITS 51-53 61-63

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          NTS 094-H-01 BLK A UNITS 54 55 64 65

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 46009 SPIRIT RIVER

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



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

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

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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:
          - 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
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - UNGULATE WINTER RANGE
          - CARIBOU
          - RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 


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

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

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

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

          NO FURTHER TRACTS                      REF.NO. 1905014

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























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

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

  66979   TRACT  1                                                      259
          --------
          TWP 084 RGE 21 W6M SEC 15

          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

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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):
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 


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

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

          INCLUDE BUT ARE NOT LIMITED TO:
          - WILDLIFE VALUES
          - CULTURALLY SIGNIFICANT SITE(S) AND CULTURAL HERITAGE 
          RESOURCES.
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - SURFACE WATER
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - UNGULATE WINTER RANGE AND BIRTHING AREAS
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - UNGULATE BIRTHING AND CALVING AREAS
          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.
          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 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
           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - PROPOSED WILDLIFE HABITAT AREA(S)
          - FLOODING RESERVE
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - PLANNING AND MARKETING DEVELOPMENT RESERVE


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

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

          - 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 INVASIVE PLANTS 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. 1905003

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

  66980   TRACT  1                                                      260
          --------
          TWP 084 RGE 20 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

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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


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

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

          - 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):
          - DOIG RIVER FIRST NATION
          - HALFWAY RIVER FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - WILDLIFE VALUES
          - CULTURALLY SIGNIFICANT SITE(S) AND CULTURAL HERITAGE 
          RESOURCES.
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - SURFACE WATER
          - STREAMS, WETLANDS, LAKES
          - HUNTING
          - UNGULATE WINTER RANGE AND BIRTHING AREAS
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - UNGULATE BIRTHING AND CALVING AREAS
          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):


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

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

           - CRITICAL WILDLIFE/FISHERIES VALUES; HABITAT IMPACT 
          ASSESSMENT MAY BE REQUIRED PRIOR TO ACCESS OR 
          DEVELOPMENT
          - PROPOSED WILDLIFE HABITAT AREA(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 INVASIVE PLANTS 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. 1905004

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

  66981   TRACT  1                                                       64
          --------
          TWP 086 RGE 18 W6M SEC 23NW

          INC : PETROLEUM AND NATURAL GAS

          DOWN TO BASE OF 34009 ARTEX-HALFWAY-DOIG

          34009 ARTEX-HALFWAY-DOIG (BASE 'A' MARKER TO BASE DOIG 
          PHOSPHATE) ZONE IDENTIFIED IN THE INTERVAL 
          1332.4M-1447.4M ON THE PHOTO DENSITY DUAL SPACED 
          NEUTRON LOG OF THE WELL W.A. 19768 15-5-86-16 W6M

          THE GRANT OF TENURE DOES NOT GUARANTEE THE ISSUANCE OF 
          A PERMIT TO CONDUCT OIL AND GAS ACTIVITY. SUCCESSFUL 
          BIDDERS MUST APPLY FOR ACTIVITY PERMITS FROM THE BC 
          OIL AND GAS COMMISSION (COMMISSION) UNDER THE OIL AND 
          GAS ACTIVITIES ACT AND/OR FROM OTHER AGENCIES WHERE 
          APPLICABLE. THE COMMISSION MAY DENY PERMIT 
          APPLICATIONS OR MAY IMPOSE CONDITIONS ON ACTIVITY 
          PERMITS.
          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 


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

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

          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 
          OIL AND GAS COMMISSION, TO PROVIDE THE PROPONENT WITH 
          THE OPPORTUNITY TO DISCUSS FIRST NATION(S) INTERESTS 
          (ASSESSMENTS; MONITORING STUDIES; AND MITIGATION, 
          MANAGEMENT AND/OR RECLAMATION PLANS MAY BE REQUESTED):
          - DOIG RIVER FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - HUNTING
          - RIPARIAN HABITATS
          - UNGULATE WINTER RANGE AND BIRTHING AREAS
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - MOOSE
          - UNGULATE BIRTHING AND CALVING AREAS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - CUMULATIVE EFFECTS
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES
          - MINERAL, COAL AND/OR PLACER TENURE
          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 INVASIVE PLANTS 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. 1905006

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






                                   PAGE    25



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                9             6540
            Leases                           3              583

            Grand Total                     12             7123














































