PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on May 28, 1997, offers to purchase oil sands development leases contained in this public offering will not be accepted. AMOUNT OF PAYMENT (Canadian Funds Only) 1. State only the one total dollar amount submitted in your bid letter. A breakdown of the Bonus, Fee and Rent is not required. 2. The rent is $3.50 per hectare and the fee is $450 per parcel. 3. The minimum acceptable price is $2.50 per hectare (development leases) and $1.25 per hectare (permits). Offers lower than this will be rejected. 4. The Department reserves the right to reject a bid. FORM OF PAYMENT 1. ELECTRONIC FUNDS TRANSFER (EFT) - The Department prefers this method of payment (see IL 95-16 for information on EFT). 2. Cheque. - Company cheques or certified personal cheques are acceptable. If payment is being made by cheque, each bid should be accompanied by an individual cheque. 3. All cheques should be made payable to: PROVINCIAL TREASURER HOW TO SUBMIT BIDS 1. The types of acceptable bids are: BID TYPE I and BID TYPE II. The type of bid and its format are identified in attachments to Information Letter 94-21. Bids may be rejected if they do not comply with these standards. 2. One envelope may contain more than one bid as long as they are for the same agreement type. 3. Bid(s) should be enclosed in a sealed envelope and clearly marked as follows: "1997 May 28 OIL SANDS DEVELOPMENT LEASE BIDS" for Development Leases. 4. Bids should be deposited in the box marked "OIL SANDS BIDS", or handed or mailed to any person acting for the manager at either the Calgary or Edmonton address: 3rd. Floor, Monenco Place 9th Floor, North Petroleum Plaza 801-6 Ave. SW 9945-108 Street Calgary, Alberta T2P 3W2 Edmonton, Alberta T5K 2G8 BIDS ARE ACCEPTED UNTIL 12:00 NOON ON THE PUBLIC OFFERING DATE. NO EXCEPTIONS. POINTS TO REMEMBER 1. Those who request a specific parcel(s) to be posted in a public offering are expected to bid on the posting(s). If the parcel(s) is not sold, the person or company that requested the posting may be charged a fee of $450 for each unsold parcel. 2. The full name of the person(s) or corporation(s) submitting a bid and their official address for service must be identified. 3. The maximum undivided interest is seven decimal places. Anything greater than this will be rounded to the seventh decimal place. ATTACHMENTS TO THIS PUBLIC OFFERING APPENDIX 2 - Contains applicable Deeper Rights Reversion Zone Designations (Drrzd's). APPENDIX 3 - Contains applicable addenda and contacts. RESULTS OF THIS PUBLIC OFFERING 1. Accepted bids will be published on Thursday, May 29, 1997 at 10:00 a.m. at the two addresses shown under the section entitled "HOW TO SUBMIT BIDS." 2. All agreements are issued in accordance with the Mines & Minerals Act and its regulations. April 02, 1997 Brian Hudson, Manager EDMONTON, AB Mineral Agreements 1997 MAY 28 SCHEDULE A OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 2 DEVELOPMENT LEASES D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ COLD LAKE OIL SANDS AREA ------ OS 751 256.00 4 7 053: 2 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 752 256.00 4 7 053: 12 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 753 36.84 4 2 055: 15EP PORTION(S) DESIGNATED AS LAKE NO. 3 ON A PLAN OF SURVEY, CONFIRMED BY E.DEVILLE, SURVEYOR GENERAL, AT OTTAWA IN 1906/06/30 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 754 128.00 4 2 055: 22N OIL SANDS IN THE MANNVILLE GRP DRRZD 4 ------ ATHABASCA OIL SANDS AREA ------ OS 755 5,632.00 4 19 082: 7;16-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 OS 756 9,216.00 4 20 082: 10-15;19-36 4 21 082: 22-27;31-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 OS 757 6,144.00 4 19 083: 1-24 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 OS 758 8,704.00 4 19 083: 25-36 APPENDIX 3 4 20 083: 7;18;19;25-36 4 21 083: 3-5;9-12 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 ================================================================================= SCHEDULE A Page 2 of 2 1997 MAY 28 OIL SANDS PUBLIC OFFERING NOTICE DEVELOPMENT LEASES D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ ATHABASCA OIL SANDS AREA (Continued) ------ OS 759 5,888.00 4 20 083: 1-6;8-17;20-24 APPENDIX 3 4 21 083: 1;2 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 OS 760 2,560.00 4 16 084: 19-21;27-33 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 OS 761 2,304.00 4 16 086: 18;19;30 APPENDIX 3 4 17 086: 13;14;23-26 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND DRRZD 258 11 41,124.84 ha total END ================================================================================= APPENDIX 2 Page 1 of 1 1997 MAY 28 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS DRRZD :4 Zone: 2480 MANNVILLE GROUP INTERVAL: 2 557.00 - 2985.00 FEET KEY WELL: 00/06-16-041-08W4/0 LOG TYPE: INDUCTION ELECTRICAL DRRZD: 6 Zone: 2140 VIKING FM INTERVAL: 2 600.0 - 2 680.0 FEET KEY WELL: 00/10-10-042-14W4/0 LOG TYPE: INDUCTION ELECTRICAL DRRZD: 258 Zone: 7040 WOODBEND GRP INTERVAL: 1 284.0 - 2 251.0 FEET KEY WELL: 00/10-29-077-18W4/0 LOG TYPE: SONIC END ================================================================================ APPENDIX 3 Page 1 of 3 ADDENDA AND CONTACTS APPLICABLE TO THE 1997 MAY 28 OIL SANDS PUBLIC OFFERING NOTICE D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 751 4 07 053: 2E CONTAIN(S) PRIVATELY-OWNED LAND WITH RESTRICTIVE TOPOGRAPHIC AND/OR GROUND CONDITIONS ASSOCIATED WITH A RIVER AND/ OR CREEK VALLEY . PRIOR TO ANY SURFACE DISTURBANCE AND/OR SITE DEVELOPMENT CONTACT THE RECLAMATION INSPECTOR SHOWN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: MIKE SMITH RECLAMATION INSPECTOR ENVIRONMENTAL PROTECTION MAIN FLOOR, PROVINCIAL BUILDING LAND RECLAMATION DIVISION BOX 2169, 810 -14 AVENUE ENVIRONMENTAL REGULATORY SERVICE WAINWRIGHT AB TOB 4P0 (403) 842-7535 OS 752 4 07 053: 12N,SW CONTAIN(S) PRIVATELY-OWNED LAND WITH RESTRICTIVE TOPOGRAPHIC AND/OR GROUND CONDITIONS ASSOCIATED WITH A RIVER AND/ OR CREEK VALLEY . PRIOR TO ANY SURFACE DISTURBANCE AND/OR SITE DEVELOPMENT CONTACT THE RECLAMATION INSPECTOR SHOWN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: MIKE SMITH RECLAMATION INSPECTOR ENVIRONMENTAL PROTECTION MAIN FLOOR, PROVINCIAL BUILDING LAND RECLAMATION DIVISION BOX 2169, 810 -14 AVENUE ENVIRONMENTAL REGULATORY SERVICE WAINWRIGHT AB TOB 4P0 (403) 842-7535 OS 753 THE LANDS IN THIS LEASE CONTAINS PRIVATELY-OWNED LAND WITH RESTRICTIVE TOPOGRAPHIC AND/OR GROUND CONDITIONS ASSOCIATED WITH A RESERVOIR OR LAKE. PRIOR TO ANY SURFACE DISTURBANCE AND/OR SITE DEVELOPMENT, CONTACT THE RECLAMATION INSPECTOR SHOWN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: MIKE SMITH RECLAMATION INSPECTOR ENVIRONMENTAL PROTECTION MAIN FLOOR, PROVINCIAL BUILDING LAND RECLAMATION DIVISION BOX 2169, 810 -14 AVENUE ENVIRONMENTAL REGULATORY SERVICE WAINWRIGHT AB TOB 4P0 (403) 842-7535 ------------------------------------------------------------------------- APPENDIX 3 Page 2 of 3 ADDENDA AND CONTACTS APPLICABLE TO THE 1997 MAY 28 OIL SANDS PUBLIC OFFERING NOTICE D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s) ADDENDA DESCRIPTION & CONTACT OS 755 THE LANDS IN THIS LEASE IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. OS 757 OS 760 SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAN SLAGHT REGIONAL LAND MANAGEMENT OFFICER ENVIRONMENTAL PROTECTION PROVINCIAL BUILDING NORTHEAST BOREAL REGION BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 (403) 623-5240 OS 756 THE LANDS IN THIS LEASE IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. OS 759 SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAVE LAING LAND MANAGEMENT OFFICER ENVIRONMENTAL PROTECTION BOX 390, 301 BIRCH ROAD NE NORTHWEST BOREAL REGION SLAVE LAKE AB T0G 2A0 LAND & FOREST SERVICE (403) 849-3061 OS 758 4 19 083: 25-36 PART ONE OF TWO IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAN SLAGHT REGIONAL LAND MANAGEMENT OFFICER ENVIRONMENTAL PROTECTION PROVINCIAL BUILDING NORTHEAST BOREAL REGION BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 (403) 623-5240 OS 758 4 20 083: 7;18;19;25-36 PART TWO 4 21 083: 3-5;9-12 OF TWO IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAVE LAING LAND MANAGEMENT OFFICER ENVIRONMENTAL PROTECTION BOX 390, 301 BIRCH ROAD NE NORTHWEST BOREAL REGION SLAVE LAKE AB T0G 2A0 LAND & FOREST SERVICE (403) 849-3061 ------------------------------------------------------------------------- APPENDIX 3 Page 3 of 3 ADDENDA AND CONTACTS APPLICABLE TO THE 1997 MAY 28 OIL SANDS PUBLIC OFFERING NOTICE D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 761 4 16 086: 18;19;30 4 17 086: 13;14;23;24;25;26E,WP IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAN SLAGHT REGIONAL LAND MANAGEMENT OFFICER ENVIRONMENTAL PROTECTION PROVINCIAL BUILDING NORTHEAST BOREAL REGION BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 (403) 623-5240 END ######################################################################################