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

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

  67130   TRACT  1                                                      777
          --------
          TWP 088 RGE 19 W6M SEC 2 3 11

          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 LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 
          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - 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
          - DOIG 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):
          - BLUEBERRY RIVER FIRST NATIONS
          - 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
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - CULTURALLY SIGNIFICANT SITE(S) AND CULTURAL HERITAGE 
          RESOURCES.


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

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

          - ARCHAEOLOGICAL SITE(S)
          - TEMPORARY HABITATION
          - BIODIVERSITY AND RIPARIAN VALUES
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - STREAMS, WETLANDS, LAKES
          - WILDLIFE VALUES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          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):
          - PRIVATE LAND
          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           :    3  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $3.50

          NO FURTHER TRACTS                      REF.NO. 2003006

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

  67131   TRACT  1                                                      264
          --------
          TWP 087 RGE 17 W6M SEC 23N 23SW

          EXC : PETROLEUM AND NATURAL GAS

          IN 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

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES


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

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


  67131   TRACT  2
          --------
          TWP 087 RGE 17 W6M SEC 23SE

          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):
          - DENE THA' FIRST NATION
          - 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
          - DOIG 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):
          - BLUEBERRY RIVER FIRST NATIONS
          - 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:


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

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

          - HUNTING
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - WILDLIFE VALUES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          A 2 KM SETBACK FROM INJECTION WELLS MAY BE REQUIRED. 
          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):
          - GRAZING RESERVE/DESIGNATED USE
          - SCIENCE RESEARCH RESERVE
          - RANGE ACT TENURE(S)
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF INVASIVE PLANTS AND PLANT 
          DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 2003001

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

  67132   TRACT  1                                                      792
          --------
          TWP 088 RGE 17 W6M SEC 22

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 088 RGE 17 W6M SEC 14


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

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


          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

  67132   TRACT  3
          --------
          TWP 088 RGE 17 W6M SEC 13

          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 
          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):
          - DENE THA' FIRST NATION
          - 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
          - DOIG RIVER FIRST NATION
          THE FOLLOWING FIRST NATION(S) HAS/HAVE REQUESTED EARLY 
          ENGAGEMENT, PRIOR TO SUBMITTING AN APPLICATION TO THE 


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

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

          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):
          - BLUEBERRY RIVER FIRST NATIONS
          - 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
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - STREAMS, WETLANDS, LAKES
          - WILDLIFE VALUES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - FOREST ACT TENURE(S)
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF INVASIVE PLANTS AND PLANT 
          DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 2003002

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

  67133   TRACT  1                                                     1054


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

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

          --------
          TWP 088 RGE 17 W6M SEC 18

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

  67133   TRACT  2
          --------
          TWP 088 RGE 17 W6M SEC 8
          TWP 088 RGE 18 W6M SEC 12E

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 43001 BLUESKY-GETHING-DUNLEVY

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

          TRACT  3
          --------
          TWP 088 RGE 18 W6M SEC 12W 14

          INC : PETROLEUM AND NATURAL GAS

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

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5001.2'-5970.7' ON THE GAMMA 
          RAY NEUTRON LOG OF THE WELL W.A. 238 C-53-D/094-B-09

          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):


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

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

          - DENE THA' FIRST NATION
          - 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
          - DOIG 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):
          - BLUEBERRY RIVER FIRST NATIONS
          - 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
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - ARCHAEOLOGICAL SITE(S)
          - WILDLIFE VALUES
          - BIODIVERSITY AND RIPARIAN VALUES
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - STREAMS, WETLANDS, LAKES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          A 2 KM SETBACK FROM INJECTION WELLS MAY BE REQUIRED. 
          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):
          - QUARRY, SAND AND GRAVEL RESERVE
          - SCIENCE RESEARCH RESERVE
          - RANGE ACT TENURE(S)
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF INVASIVE PLANTS AND PLANT 


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

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

          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. 2003003

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

  67134   TRACT  1                                                     1304
          --------
          TWP 088 RGE 18 W6M SEC 9 11 15

          INC : PETROLEUM AND NATURAL GAS

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

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5001.2'-5970.7' ON THE GAMMA 
          RAY NEUTRON LOG OF THE WELL W.A. 238 C-53-D/094-B-09

          TRACT  2
          --------
          TWP 088 RGE 18 W6M SEC 7 17

          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 
          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 


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

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

          FOR GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING 
          FIRST NATION(S) FOR REVIEW AND COMMENT (NOTE THAT 
          SUBSEQUENT CONSULTATION WITH FIRST NATIONS, NOT 
          NECESSARILY LIMITED TO THOSE LISTED BELOW, MAY BE 
          REQUIRED PRIOR TO ACTIVITIES BEING AUTHORIZED ON CROWN 
          LAND):
          - DENE THA' FIRST NATION
          - 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
          - DOIG 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):
          - BLUEBERRY RIVER FIRST NATIONS
          - 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
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - ARCHAEOLOGICAL SITE(S)
          - WILDLIFE VALUES
          - BIODIVERSITY AND RIPARIAN VALUES
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - STREAMS, WETLANDS, LAKES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          A 2 KM SETBACK FROM INJECTION WELLS MAY BE REQUIRED. 
          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):
          - SHARP-TAILED GROUSE LEKS


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

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

          - QUARRY, SAND AND GRAVEL RESERVE
          - RANGE ACT TENURE(S)
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF INVASIVE PLANTS 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. 2003004

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

  67135   TRACT  1                                                      528
          --------
          TWP 088 RGE 18 W6M SEC 25 26

          INC : PETROLEUM AND NATURAL GAS

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

          36002 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 5001.2'-5970.7' ON THE GAMMA 
          RAY NEUTRON LOG OF THE WELL W.A. 238 C-53-D/094-B-09

          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):
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS


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

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

          - 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
          - DOIG 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):
          - BLUEBERRY RIVER FIRST NATIONS
          - 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
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - ARCHAEOLOGICAL SITE(S)
          - WILDLIFE VALUES
          - BIODIVERSITY AND RIPARIAN VALUES
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - STREAMS, WETLANDS, LAKES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          PORTION OF THE PARCEL OVERLAPS AN AREA IDENTIFIED BY 
          THE DOIG RIVER FIRST NATION AS A COMPLEX CONSULTATION 
          ZONE. PROPOSED ACTIVITIES SPECIFICALLY WITHIN THE ZONE 
          HAVE A LONGER FIRST NATION REVIEW AND RESPONSE PERIOD, 
          CONTACT THE OIL AND GAS COMMISSION FOR FURTHER 
          INFORMATION.
          A 2 KM SETBACK FROM INJECTION WELLS MAY BE REQUIRED. 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          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.



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

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

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

          NO FURTHER TRACTS                      REF.NO. 2003005

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














































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

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

  67136   TRACT  1                                                      264
          --------
          TWP 088 RGE 20 W6M SEC 9

          INC : 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

          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):
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - HORSE LAKE FIRST NATION
          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 ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - DENE THA' FIRST NATION
          ACCESS, EXPLORATION AND CONSTRUCTION RESTRICTIONS MAY 
          APPLY TO PROTECT ACTIVITIES AND INTERESTS IDENTIFIED 
          IN THE AREA BY ONE OR MORE FIRST NATIONS. THESE 
          INCLUDE BUT ARE NOT LIMITED TO:
          - TRADITIONAL USE AREAS
          - HUNTING
          - TRAPLINE(S)
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:


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

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

          - CUMULATIVE EFFECTS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          PARCEL IS LOCATED WITHIN/OVERLAPS BLUEBERRY RIVER 
          FIRST NATIONS IDENTIFIED CRITICAL AREAS; ACTIVITY, 
          LOCATION, ACCESS, TIMING AND OTHER RESTRICTIONS AND 
          REQUIREMENTS MAY APPLY. OFF-SITE ENVIRONMENTAL 
          MITIGATION ACTIVITY MAY BE REQUIRED IN PLANNING FOR 
          AND UNDERTAKING DEVELOPMENT; CONTACT THE BC OIL AND 
          GAS COMMISSION FOR GUIDANCE. TRADITIONAL USES, 
          INTERESTS AND THE PRACTICE OF TREATY RIGHTS HAVE BEEN 
          IDENTIFIED BY BLUEBERRY RIVER FIRST NATIONS, INCLUDING 
          BUT NOT LIMITED TO:
          - TRAPLINE(S)
          - HUNTING
          - RESTORE AND PROTECT AREA
          PARCEL OVERLAPS TRAPLINE REGISTERED TO FIRST NATION 
          COMMUNITY MEMBER
          THE BC OIL AND GAS COMMISSION USES AREA BASED ANALYSIS 
          (ABA) AS A TOOL IN THE APPLICATION REVIEW PROCESS; 
          THIS PARCEL OVERLAPS ABA "ENHANCED MANAGEMENT" STATUS 
          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - FOREST ACT TENURE(S)
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF 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. 1609017

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








                                   PAGE    15



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                6             4719
            Leases                           1              264

            Grand Total                      7             4983














































