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

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

  65892   TRACT  1                                                      259
          --------
          TWP 079 RGE 16 W6M SEC 28

          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

          PARCEL LOCATED WITHIN TREATY 8 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).
          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):
          - BLUE OR RED LISTED SPECIES
          COAL TENURE MAY CURRENTLY EXIST OR IN THE FUTURE BE 
          ISSUED IN THIS LOCATION, UNDER THE PROVISIONS OF THE 
          COAL ACT, SBC2004, C. 15 AS AMENDED FROM TIME TO TIME, 
          OR ANY FORMER COAL ACT.  BEFORE COMMENCING ANY 
          EXPLORATION OR DEVELOPMENT WORK ON THE LOCATION, 
          REASONABLE EFFORTS MUST BE MADE TO NEGOTIATE A 
          COMPATIBLE EXPLORATION AND DEVELOPMENT PROGRAM WITH 
          THE HOLDER OF COAL TENURE OVER THE LOCATION AS 
          SPECIFIED IN INFORMATION LETTER TITLES-05-02 OR AS 
          AMENDED.
          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 WEEDS AND PLANT DISEASES.
          POTENTIAL FOR ARCHAEOLOGICAL RESOURCES EXISTS; 
          ARCHAEOLOGICAL IMPACT ASSESSMENT MAY BE REQUIRED.






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

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

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

          NO FURTHER TRACTS                      REF.NO. 1602001

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

  65893   TRACT  1                                                      261
          --------
          TWP 079 RGE 16 W6M SEC 29

          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

          PARCEL LOCATED WITHIN TREATY 8 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).
          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):
          - BLUE OR RED LISTED SPECIES
          COAL TENURE MAY CURRENTLY EXIST OR IN THE FUTURE BE 
          ISSUED IN THIS LOCATION, UNDER THE PROVISIONS OF THE 
          COAL ACT, SBC2004, C. 15 AS AMENDED FROM TIME TO TIME, 
          OR ANY FORMER COAL ACT.  BEFORE COMMENCING ANY 
          EXPLORATION OR DEVELOPMENT WORK ON THE LOCATION, 
          REASONABLE EFFORTS MUST BE MADE TO NEGOTIATE A 
          COMPATIBLE EXPLORATION AND DEVELOPMENT PROGRAM WITH 
          THE HOLDER OF COAL TENURE OVER THE LOCATION AS 
          SPECIFIED IN INFORMATION LETTER TITLES-05-02 OR AS 
          AMENDED.
          PARCEL WITHIN OR PARTIALLY WITHIN THE AGRICULTURAL 
          LAND RESERVE; RESTORATION OF SURFACE SOIL ON DISTURBED 


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

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

          AREAS REQUIRED. PRECAUTIONS REQUIRED TO PREVENT THE 
          INTRODUCTION OR SPREAD OF WEEDS 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. 1602002

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









































                                   PAGE     3
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

  65894   TRACT  1                                                      282
          --------
          NTS 094-A-15 BLK I UNITS 76 77 86 87

          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

          PARCEL OVERLAPS CROWN LAND LOCATED WITHIN THE TREATY 
          #8 AREA AND THE PROVINCE ENCOURAGES EARLY 
          PRE-APPLICATION ENGAGMENT WITH THE RELEVANT FIRST 
          NATIONS; PLEASE CONTACT THE 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
          THE FOLLOWING FIRST NATION(S) HAS/HAVE ADVISED THAT 
          THE AREA IS USED FOR PRACTISING THEIR TREATY RIGHTS:
          - 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
          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
          - CARIBOU (BOREAL)
          - UNCONVENTIONAL OIL AND GAS DEVELOPMENT
          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 


                                   PAGE     4
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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

          WITHIN RIPARIAN RESERVE ZONES (FOR MORE INFORMATION 
          CONTACT THE COMMISSION).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES
          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. 1602003

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

  65895   TRACT  1                                                      282
          --------
          NTS 094-H-01 BLK B UNITS 36 37 46 47

          INC : PETROLEUM AND NATURAL GAS

          ALL ZONES

          PARCEL LOCATED WITHIN TREATY 8 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).
          PARCEL OVERLAPS WILDLIFE HABITAT AREA AND/OR UNGULATE 
          WINTER RANGE ESTABLISHED UNDER THE ENVIRONMENTAL 
          PROTECTION AND MANAGEMENT REGULATION OF THE OIL AND 
          GAS ACTIVITIES ACT. ACCESS RESTRICTIONS MAY APPLY; 
          CONTACT THE BC OIL AND GAS COMMISSION FOR MORE 
          INFORMATION.
          ACCESS AND CONSTRUCTION RESTRICTIONS MAY APPLY. PRIOR 
          TO ON-THE-GROUND ACTIVITY, CONTACT THE APPROPRIATE 
          PROVINCIAL MINISTRY FOR APPLICABLE MANAGEMENT AND 
          PROTECTION MEASURES TO MINIMIZE DISTURBANCE AND 
          ADDRESS THE FOLLOWING (NOT LIMITED TO):
          - BLUE OR RED LISTED SPECIES


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

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

          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. 1602004



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

  65898   TRACT  1                                                      282
          --------
          NTS 094-A-14 BLK I UNITS 58 59 68 69

          INC : PETROLEUM AND NATURAL GAS


                                   
PETROLEUM AND NATURAL GAS LEASE
-------------------------------

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


          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

          PARCEL LOCATED WITHIN TREATY 8 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).
          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.
          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 WEEDS 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. 1511013

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




















                                   PAGE     6



                       Parcels Offered and Hectares Summary


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

            Permits                          0                0
            Drilling Licences                2              520
            Leases                           3              846

            Grand Total                      5             1366














































