DRILLING LICENCE
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PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

  67175   TRACT  1                                                      518
          --------
          TWP 082 RGE 14 W6M SEC 1 2

          INC : PETROLEUM AND NATURAL GAS

          BELOW BASE OF 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 
          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
          - HORSE LAKE FIRST NATION
          - MCLEOD LAKE INDIAN BAND
          - SAULTEAU FIRST NATIONS
          - WEST MOBERLY FIRST NATIONS
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - BLUEBERRY RIVER FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - HORSE LAKE FIRST NATION
          - MCLEOD LAKE INDIAN BAND
          - SAULTEAU 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):


                                   PAGE     1
DRILLING LICENCE
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PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          - BLUEBERRY RIVER FIRST NATIONS
          - SAULTEAU FIRST NATIONS
          - DOIG RIVER FIRST NATION
          - MCLEOD LAKE INDIAN BAND
          - WEST MOBERLY 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
          - WILDLIFE VALUES
          - BIODIVERSITY AND RIPARIAN VALUES
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - ARCHAEOLOGICAL SITE(S)
          - MIGRATORY BIRDS
          - CULTURALLY IMPORTANT PLANTS
          - WATERFOWL HABITAT AND NESTING AREAS
          - CULTURALLY SIGNIFICANT SITE(S) AND CULTURAL HERITAGE 
          RESOURCES.
          - AREAS OF CRITICAL COMMUNITY USE
          - TRADITIONAL USE AREAS
          - HISTORIC OR CURRENT TRAIL(S)
          - HUNTING CAMP
          - HARVESTING
          - MEDICINAL PLANTS
          - FIREWOOD COLLECTION
          - TRAPPING
          - GATHERING
          - WILD HORSES AND HORSE RANGE INCLUDING GRAZING/HAY 
          MEADOWS
          - BERRY HARVESTING
          - WILDLIFE VALUES
          - WILDLIFE, VEGETATION AND CULTURAL VALUES OF A FIRST 
          NATION
          - CULTURAL AND SPIRITUAL VALUES
          - MOOSE
          - DEER
          - ELK
          - FUR BEARING WILDLIFE
          CONCERNS AND ISSUES IN THE AREA IDENTIFIED BY ONE OR 
          MORE FIRST NATIONS INCLUDE:
          - CUMULATIVE EFFECTS
          - WILDLIFE AND WILDLIFE HABITAT INCLUDING CONNECTIVITY
          - WATER QUALITY AND WATERSHED VALUES
          - FISH HABITAT
          - WATERFOWL HABITAT AND NESTING AREAS
          - RIPARIAN HABITATS
          - GROUNDWATER AND AQUIFERS
          - SENSITIVE RIPARIAN HABITATS
          - STREAMS, WETLANDS, LAKES
          - SURFACE WATER


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DRILLING LICENCE
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PARCEL    LEGAL DESCRIPTION                                            HA  
-------   -------------------------------------------------------    ------

          - TIMBER VALUES
          - SENSITIVE PLANTS AND ECOSYSTEMS
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          - SLOPE STABILITY
          - ERODIBLE SOILS
          - UNSTABLE SOILS AND SLOPE STABILITY
          - GROUNDWATER AND AQUIFERS
          - 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.
          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 SPECIAL MANAGEMENT ZONE. 
          PRE-ASSESSMENTS AND MITIGATION STRATEGIES MAY BE 
          REQUIRED. REFER TO DAWSON CREEK LRMP.
          - BLUE OR RED LISTED SPECIES
             SEDIMENTATION FROM WATER COURSES
          - SLOPE STABILITY
          - OLD GROWTH MANAGEMENT AREA
          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. 2105001

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                                   PAGE     3



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                1              518
            Leases                           0                0

            Grand Total                      1              518














































