PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on September 03, 1997, offers to purchase oil sands development leases contained in this public offering will not be accepted. AMOUNT OF PAYMENT (Canadian Funds Only) 1. The total dollar offer should be stated 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 any bid. FORM OF PAYMENT 1. ELECTRONIC FUNDS TRANSFER (EFT) - The Department prefers this method of payment (see IL 97-14 for information on EFT). 2. Cheque - Company or personal cheques are acceptable. Note - if this form of payment is used, each bid should be accompanied by an individual cheque attached to the back of the letter. 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 97-14. 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 September 03 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, September 04, 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. July 09, 1997 Brian Hudson, Manager EDMONTON, AB Mineral Agreements ----------------------------------------------------------------------------- 1997 SEPTEMBER 03 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A Page 1 of 2 DEVELOPMENT LEASES D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ COLD LAKE OIL SANDS AREA ------ OS 845 256.00 4 5 053: 11 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 846 256.00 4 5 053: 14 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 847 256.00 4 7 053: 10 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 848 256.00 4 7 053: 11 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 849 256.00 4 7 053: 14 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 850 128.00 4 5 054: 36W OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 851 512.00 4 1 055: 28;33 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 852 512.00 4 1 055: 29;32 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 853 512.00 4 1 055: 30;31 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 854 256.00 4 2 055: 36 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 1997 SEPTEMBER 03 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 2 of 2 D.LSE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 855 256.00 4 1 056: 4 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 856 256.00 4 1 056: 6 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 857 768.00 4 1 056: 8;17;18 APPENDIX 3 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 858 256.00 4 7 057: 4 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 859 256.00 4 6 060: 27 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 860 256.00 4 6 060: 30 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 861 256.00 4 6 061: 26 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 862 256.00 4 7 061: 15 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 OS 863 256.00 4 8 061: 12 OIL SANDS IN THE MANNVILLE GRP DRRZD 4 19 6,016.00 ha total END ================================================================================= 1997 SEPTEMBER 03 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPENDIX 2 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 ================================================================================ ADDENDA AND CONTACTS APPLICABLE TO THE 1997 SEPTEMBER 03 OIL SANDS OFFERING NOTICE Page 1 of 1 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 857 4 1 056: 17NP,SWP,L2,L7,L8; 18NP,SEP,L3,L5,L6 IS/ARE WITHIN THE COLD LAKE INTEGRATED RESOURCE PLAN SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST LAKELAND DISTRICT ENVIRONMENTAL PROTECTION BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 LAND & FOREST SERVICE (403) 623-5263 END #############################################################################