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

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

  67108   TRACT  1                                                     1057
          --------
          TWP 088 RGE 17 W6M SEC 9W

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          TRACT  2
          --------
          TWP 088 RGE 17 W6M SEC 9E 21 23 24

          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 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
          - 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
          - 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):
          - DENE THA' FIRST NATION


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

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

          - 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)
          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):
          - 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.
          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. 2002004

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












                                   PAGE     2
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  67109   TRACT  1                                                      259
          --------
          TWP 084 RGE 20 W6M SEC 31

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


                                   PAGE     3
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.
          - STREAMS, WETLANDS, LAKES
          - BURIAL SITES
          - HISTORIC AND CURRENT TRANSPORTATION CORRIDORS (LAND 
          AND WATER)
          - HARVESTING
          - HUNTING
          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
          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
          - 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.
          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. 2002001

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







                                   PAGE     4



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                1             1057
            Leases                           1              259

            Grand Total                      2             1316














































