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

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

  67230   TRACT  1                                                     1038
          --------
          TWP 088 RGE 18 W6M SEC 6SE 6W

          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  2
          --------
          TWP 087 RGE 19 W6M SEC 35

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 42005 CADOMIN-DUNLEVY-NIKANASSIN

          42005 CADOMIN-DUNLEVY-NIKANASSIN ZONE DEFINED IN THE 
          INTERVAL 1222.5M-1251.5M ON THE BHC SONIC LOG OF THE 
          WELL W.A. 4455 7-28-87-21 W6M

          TRACT  3
          --------
          TWP 088 RGE 18 W6M SEC 6NE 10

          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  4
          --------
          TWP 088 RGE 18 W6M SEC 8

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34002 ARTEX-HALFWAY-DOIG

          34002 ARTEX-HALFWAY-DOIG ZONE DEFINED IN THE INTERVAL 
          5970.7'-6952.7' ON THE GAMMA RAY NEUTRON LOG OF THE 
          WELL W.A. 238 C-53-D/94-B-09

          PARCEL LOCATED WITHIN TREATY 8 AREA AND WAS REFERRED 
          TO THE FOLLOWING FIRST NATION(S) FOR REVIEW AND 


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

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

          COMMENT (NOTE THAT SUBSEQUENT CONSULTATION WITH FIRST 
          NATIONS, NOT NECESSARILY LIMITED TO THOSE LISTED 
          BELOW, MAY BE REQUIRED PRIOR TO ACTIVITIES BEING 
          AUTHORIZED):
          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:
          - DOIG RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - WEST MOBERLY 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:
          - TRADITIONAL USE AREAS
          - ARCHAEOLOGICAL SITE(S)
          - RIPARIAN HABITATS
          - HISTORIC OR CURRENT TRAIL(S)
          - HISTORIC OR CURRENT CAMP(S)
          - CULTURALLY IMPORTANT PLANTS
          - GATHERING


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

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

          - HUNTING
          - MOOSE
          - DEER
          - ELK
          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):
          - TRAPLINE(S)
          - FISH AND WILDLIFE MANAGEMENT RESERVE
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 
          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF 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. 2106004

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

  67231   TRACT  1                                                      792
          --------
          TWP 088 RGE 17 W6M SEC 11 15

          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  2
          --------
          TWP 088 RGE 17 W6M SEC 12

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 34002 ARTEX-HALFWAY-DOIG


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

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


          34002 ARTEX-HALFWAY-DOIG ZONE DEFINED IN THE INTERVAL 
          5970.7'-6952.7' ON THE GAMMA RAY NEUTRON LOG OF THE 
          WELL W.A. 238 C-53-D/94-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
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - DOIG RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - WEST MOBERLY 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:
          PARCEL IS LOCATED NEAR OR WITHIN AN AREA IDENTIFIED BY 
          THE DOIG RIVER FIRST NATION AS SIGNIFICANT COMMUNITY 
          USE, INCLUDING CULTURAL OR SPIRITUAL AREAS.
          - HISTORIC OR CURRENT TRAIL(S)
          - HISTORIC OR CURRENT CAMP(S)
          - TRAPPING


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

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

          - HUNTING
          PARCEL OVERLAPS TRAPLINE REGISTERED TO FIRST NATION 
          COMMUNITY MEMBER
          - CUMULATIVE EFFECTS
          - TRADITIONAL USE AREAS
          - WILDLIFE VALUES
          - BIODIVERSITY AND RIPARIAN VALUES
          - MIGRATORY BIRDS
          - ARCHAEOLOGICAL SITE(S)
          - CULTURALLY IMPORTANT PLANTS
          - GATHERING
          - HUNTING
          - MOOSE
          - DEER
          - ELK
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          PARCEL IS LOCATED WITHIN A FIRST NATION WATER SUPPLY 
          AREA.
          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):
          - WATER QUALITY AND WATERSHED VALUES
          - WILDLIFE VALUES
          - GRAZING RESERVE/DESIGNATED USE
          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. 2106006

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






                                   PAGE     5
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  67232   TRACT  1                                                     1306
          --------
          TWP 083 RGE 13 W6M SEC 19 30
          TWP 083 RGE 14 W6M SEC 13 14 35E

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 33017 MONTNEY (EXCLUDING BASAL LAG)

          33017 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1633.9M-1950.8M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 16491 
          11-17-83-16 W6M

          TRACT  2
          --------
          TWP 083 RGE 14 W6M SEC 35W

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36003 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36003 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 3879.6'-4929.8' ON THE 
          SIMULTANEOUS GAMMA RAY NEUTRON LOG OF THE WELL W.A. 
          376 11-23-81-22 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 33017 MONTNEY (EXCLUDING BASAL LAG)

          33017 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1633.9M-1950.8M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 16491 
          11-17-83-16 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 OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE STRONGLY ENCOURAGES EARLY 


                                   PAGE     6
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          PRE-APPLICATION ENGAGEMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE BC OIL AND GAS COMMISSION 
          FOR GUIDANCE. PARCEL WAS REFERRED TO THE FOLLOWING 
          FIRST NATION(S) FOR REVIEW AND COMMENT (NOTE THAT 
          SUBSEQUENT CONSULTATION WITH FIRST NATIONS, NOT 
          NECESSARILY LIMITED TO THOSE LISTED BELOW, MAY BE 
          REQUIRED PRIOR TO ACTIVITIES BEING AUTHORIZED ON CROWN 
          LAND):
          - 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:
          - DOIG RIVER FIRST NATION
          - WEST MOBERLY FIRST NATIONS
          - HORSE LAKE 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:
          - HISTORIC OR CURRENT TRAIL(S)
          - HISTORIC OR CURRENT CAMP(S)
          - TRAPPING
          - HUNTING
          - CUMULATIVE EFFECTS
          - FISHING
          - TRADITIONAL USE AREAS
          - WILDLIFE VALUES
          - MIGRATORY BIRDS
          - WILDLIFE AND WILDLIFE HABITAT
             WATERFOWL AREAS IN LAKES AND LARGE PONDS
          - GATHERING
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          PARCEL IS LOCATED NEAR OR WITHIN AN AREA IDENTIFIED BY 
          THE DOIG RIVER FIRST NATION AS SIGNIFICANT COMMUNITY 
          USE, INCLUDING CULTURAL OR SPIRITUAL AREAS.
          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     7
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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):
          - BLUE OR RED LISTED SPECIES
          - WATER QUALITY AND WATERSHED VALUES
          - WILDLIFE VALUES
          - TRAPLINE(S)
          - GRAZING RESERVE/DESIGNATED USE
          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. 2106001

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

  67233   TRACT  1                                                      528
          --------
          TWP 083 RGE 14 W6M SEC 31 32

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 33004 MONTNEY (EXCLUDING BASAL LAG)

          33004 MONTNEY ZONE (EXCLUDING BASAL LAG) DEFINED IN 
          THE INTERVAL 2028.1M-2338.6M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 6717 
          10-18-79-14 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 


                                   PAGE     8
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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
          - 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:
          - DOIG RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - HORSE LAKE FIRST NATION
          - WEST MOBERLY 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:
          - HISTORIC OR CURRENT TRAIL(S)
          - HISTORIC OR CURRENT CAMP(S)
          - TRAPPING
          - HUNTING
          PARCEL OVERLAPS TRAPLINE REGISTERED TO FIRST NATION 
          COMMUNITY MEMBER
          - CUMULATIVE EFFECTS
          - FISHING
          - TRADITIONAL USE AREAS
          - ARCHAEOLOGICAL SITE(S)
          - RIPARIAN HABITATS
          - WATERFOWL HABITAT AND NESTING AREAS
          - CULTURALLY IMPORTANT PLANTS
          - MIGRATORY BIRDS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 


                                   PAGE     9
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          MORE FIRST NATIONS INCLUDE:
          PARCEL IS LOCATED NEAR OR WITHIN AN AREA IDENTIFIED BY 
          THE DOIG RIVER FIRST NATION AS SIGNIFICANT COMMUNITY 
          USE, INCLUDING CULTURAL OR SPIRITUAL AREAS.
          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):
          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.
          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):
          - WATER QUALITY AND WATERSHED VALUES
          - WILDLIFE VALUES
          - QUARRY, SAND AND GRAVEL RESERVE
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - WATERSHED RESERVE
          MAY BE REQUIRED TO COORDINATE ACCESS WITH RANGE TENURE 
          LICENCEES.
          - WATER QUALITY
          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    10
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

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

          NO FURTHER TRACTS                      REF.NO. 2106002

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

  67234   TRACT  1                                                      528
          --------
          TWP 084 RGE 14 W6M SEC 5S 6SE 6W

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          EXC : PETROLEUM AND NATURAL GAS

          IN 33017 MONTNEY (EXCLUDING BASAL LAG)

          33017 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1633.9M-1950.8M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 16491 
          11-17-83-16 W6M

          TRACT  2
          --------
          TWP 084 RGE 14 W6M SEC 5N 6NE

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 36003 CHARLIE LAKE (EXCL. BELOW 'A' 
          MARKER)

          36003 CHARLIE LAKE (EXCLUDING BELOW 'A' MARKER) ZONE 
          DEFINED IN THE INTERVAL 3879.6'-4929.8' ON THE 
          SIMULTANEOUS GAMMA RAY NEUTRON LOG OF THE WELL W.A. 
          376 11-23-81-22 W6M

          EXC : PETROLEUM AND NATURAL GAS

          IN 33017 MONTNEY (EXCLUDING BASAL LAG)

          33017 MONTNEY (EXCLUDING BASAL LAG) ZONE IDENTIFIED IN 
          THE INTERVAL 1633.9M-1950.8M ON THE BOREHOLE 
          COMPENSATED SONIC LOG OF THE WELL W.A. 16491 
          11-17-83-16 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 


                                   PAGE    11
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          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
          - 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:
          - DOIG RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - HORSE LAKE FIRST NATION
          - WEST MOBERLY 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:
          - HISTORIC OR CURRENT TRAIL(S)
          - HISTORIC OR CURRENT CAMP(S)
          - TRAPPING
          - HUNTING
          PARCEL OVERLAPS TRAPLINE REGISTERED TO FIRST NATION 
          COMMUNITY MEMBER
          - CUMULATIVE EFFECTS
          - FISHING
          - TRADITIONAL USE AREAS
          - ARCHAEOLOGICAL SITE(S)
          - RIPARIAN HABITATS
          - WATERFOWL HABITAT AND NESTING AREAS


                                   PAGE    12
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          - CULTURALLY IMPORTANT PLANTS
          - MIGRATORY BIRDS
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          PARCEL IS LOCATED NEAR OR WITHIN AN AREA IDENTIFIED BY 
          THE DOIG RIVER FIRST NATION AS SIGNIFICANT COMMUNITY 
          USE, INCLUDING CULTURAL OR SPIRITUAL AREAS.
          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):
          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.
          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):
          - WATER QUALITY AND WATERSHED VALUES
          - WILDLIFE VALUES
          - QUARRY, SAND AND GRAVEL RESERVE
          - NOTATION OF INTEREST - ENVIRONMENT, CONSERVATION AND 
          RECREATION
          - WATERSHED RESERVE
          - WATER QUALITY
          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    13
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

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

          NO FURTHER TRACTS                      REF.NO. 2106003

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

  67235   TRACT  1                                                      280
          --------
          NTS 094-H-06 BLK D UNITS 58 59 68 69

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


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

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

          - 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:
          - TRADITIONAL USE AREAS
          - WILDLIFE VALUES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          - RIPARIAN HABITATS
          - CARIBOU (BOREAL)
          - HISTORIC OR CURRENT CAMP(S)
          - BURIAL SITES
          - TRAPPING
          - HUNTING
          - LYNX
          - CARIBOU
          - MOOSE
          - GATHERING
          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):
          - TRAPLINE(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           :   10  YEARS
          FEES           :     $500.00
          RENT PER HA    :       $7.50

          NO FURTHER TRACTS                      REF.NO. 2106011

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

  67236   TRACT  1                                                      280
          --------
          NTS 094-H-05 BLK A UNITS 78 79 88 89

          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 


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

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):
          - 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:
          - DOIG RIVER FIRST NATION
          - DENE THA' FIRST NATION
          - BLUEBERRY RIVER FIRST NATIONS
          - WEST MOBERLY 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:
          - TRADITIONAL USE AREAS
          - WILDLIFE VALUES
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          - RIPARIAN HABITATS
          - CARIBOU (BOREAL)
          - TRAPPING
          - HUNTING
          - LYNX
          - CARIBOU
          - MOOSE
          PARCEL IS LOCATED WITHIN HORN RIVER, MONTNEY OR 
          CORDOVA EMBAYMENT BOUNDARIES IN WHICH SHALE GAS 


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

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

          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):
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.

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

          NO FURTHER TRACTS                      REF.NO. 2106012

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


































                                   PAGE    17



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                2             1830
            Leases                           5             2922

            Grand Total                      7             4752














































