PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.RESDEV.GOV.AB.CA:) DEADLINE After 12:00 noon on December 15, 1999, offers to purchase oil sands development leases and/or permits 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 annual rental is $3.50 per hectare or $50.00 whichever is the greater. The issuance fee is $500 per parcel. 3. The minimum acceptable offer is $2.50 per hectare (development leases) and $1.25 per hectare (permits). 4. The Department reserves the right to reject any bid. FORM OF PAYMENT 1. ELECTRONIC FUNDS TRANSFER (EFT). 2. Payment by cheque will be accepted if it meets the criteria for exception mentioned in Information Letter 99-3. 3. All cheques should be made payable to: PROVINCIAL TREASURER HOW TO SUBMIT BIDS 1. The types of acceptable bids are BID TYPE1 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: "1999 December 15 ---OIL SANDS DEVELOPMENT LEASE BIDS" for Development Leases. "1999 December 15 ---PERMIT BIDS" for Permits. 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 7th 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 $500 for each unsold parcel. · INDICATES ATTACHMENTS TO THIS PUBLIC OFFERING APPENDIX 1 - Contains applicable Zone Designations (zd's). · APPENDIX 2 - Contains applicable Deeper Rights Reversion Zone Designations (Drrzd's). · APPENDIX 3 - Contains applicable addenda and contacts also terms and conditions for acquisition of parcel(s) within Metis Settlements (See IL 92-19). RESULTS OF THIS PUBLIC OFFERING 1. Accepted offers will be published on Thursday December 16, 1999 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. ---------------------------------------------------------------------------------------- 1999 DECEMBER 15 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 1 of 2 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION ------ATHABASCA OIL SANDS AREA ------ OS 006 256.00 4 10 078: 21 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 007 256.00 4 10 079: 3 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 008 256.00 4 10 079: 4 APPENDIX 3 OIL SANDS BELOW THE TOP OF VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 ------PEACE RIVER OIL SANDS AREA ------ OS 009 512.00 5 21 080: 15;16 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF BLUESKY-BULLHEAD DRRZD 21 OS 010 256.00 5 20 089: 34 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 --------------------------------------------------------------------------- 1999 DECEMBER 15 OIL SANDS PUBLIC OFFERING NOTICE SCHEDULE A DEVELOPMENT LEASES Page 2 of 2 D.LEASE PARCELS HECTARES M RG TWP LAND DESCRIPTION OS 011 256.00 5 20 089: 35 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 012 256.00 5 21 089: 31 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 013 256.00 5 21 089: 32 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 014 256.00 5 20 090: 2 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 OS 015 256.00 5 20 090: 3 OIL SANDS BELOW THE TOP OF PEACE RIVER DRRZD 40 TO THE BASE OF THE PEKISKO FM DRRZD 174 10 2,816.00 ha Total END ------------------------------------------------------------------------- 1999 DECEMBER 15 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 1 PERMITS SCHEDULE B PERMIT PARCELS HECTARES M RG TWP LAND DESCRIPTION -----ATHABASCA OIL SANDS AREA ------ OS 071 7,680.00 4 7 091: 4;5;7-9;16-21;28-33 4 8 091: 11-14;22-27;34-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 072 9,216.00 4 4 093: 1-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 073 9,216.00 4 5 093: 1-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 074 6,656.00 4 6 093: 1-25;36 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 075 9,216.00 4 4 094: 1-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 OS 076 9,216.00 4 4 095: 1-36 APPENDIX 3 OIL SANDS BELOW THE TOP OF THE VIKING FM DRRZD 6 TO THE BASE OF THE WOODBEND GRP DRRZD 258 6 51,200.00 ha Total END ----------------------------------------------------------------------------- Page 1 of 1 1999 DECEMBER 15 APPLICABLE DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPENDIX 2 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: 2 Zone: 7040 WOODBEND GRP INTERVAL: 1 284.0 - 2 251.0 FEET KEY WELL: 00/10-29-077-18W4/0 LOG TYPE: SONIC DRRZD: 40 Zone: 2280 PEACE RIVER FM INTERVAL: 3 760.00 - 4 008.00 FEET KEY WELL: 00/07-09-076-08W6/0 LOG TYPE: BOREHOLE COMPENSATED SONIC DRRZD:21 Zone: 3052 BLUESKY-BULLHEAD INTERVAL: 2 754.00 - 3 043.00 FEET KEY WELL: 00/10-32-081-01W6/0 LOG TYPE: DUAL INDUCTION SPHERICALLY FOCUSED DRRZD: 174 Zone: 6420 PEKISKO FM INTERVAL: 6 468.00 - 6 654.00 FEET KEY WELL: 00/10-27-067-22W5/0 LOG TYPE : ELECTRICAL END ----------------------------------------------------------------------------- ADDENDA AND CONTACTS APPLICABLE TO THE 1999 DECEMBER 15 OIL SANDS PUBLIC OFFERING NOTICE Page 1 of 2 APPENDIX 3 D.LEASE (DEVELOPMENT LEASES) PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 006 OS 007 OS 008 THE LANDS IN THIS LEASE IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST PROVINCIAL BUILDING DEPARTMENT OF ENVIRONMENT BOX 450 LAND & FOREST SERVICE LAC LA BICHE AB T0A 2C0 NORTHEAST BOREAL REGION (780) 623-5263 PERMITS OS 071 4 7 091: 4SP,NEP;5SWP;9EP; 16ALLP;21SP,NWP 4 8 091: 11 ALLP;12SWP;14WP;22W,EP;27SP IS/ARE WITHIN THE FORT MCMURRAY-ATHABASCA OIL SANDS INTEGRATED RESOURCE PLAN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION PLEASE CONTACT: CHRIS HALE LAND USE OFFICER DEPARTMENT OF ENVIRONMENT FORT MCMURRAY OFFICE NORTHEAST BOREAL FOREST 168 AIRPORT ROAD LAND & FOREST SERVICE FORT MCMURRAY AB T9H 4P1 (780) 743-7120 OS 072 4 4 093: 3-24;25S,NW;26-35;36W IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPARTMENT OF ENVIRONMENT PROVINCIAL BUILDING LAND & FOREST SERVICE BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 (780) 623-5263 OS 073 4 5 093: 1-4;5N;6N,SW;7-36 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPARTMENT OF ENVIRONMENT PROVINCIAL BUILDING LAND & FOREST SERVICE BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 (780) 623-5263 ---------------------------------------------------------------------------- ADDENDA AND CONTACTS APPLICABLE TO THE 1999 DECEMBER 15 OIL SANDS PUBLIC OFFERING NOTICE Page 2 of 2 APPENDIX 3 PERMIT PERMITS PARCEL NO(s). ADDENDA DESCRIPTION & CONTACT OS 074 THE LANDS IN THIS PERMIT IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPARTMENT OF ENVIRONMENT PROVINCIAL BUILDING LAND & FOREST SERVICE BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 (780) 623-5263 OS 075 4 4 094: 1SW;2-11;14-23;26-35 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPARTMENT OF ENVIRONMENT PROVINCIAL BUILDING LAND & FOREST SERVICE BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 (780) 623-5263 OS 076 4 4 095: 1W;2-10;11S,NW;12SW;15SW;16S; 17S,NW;18 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS. FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPARTMENT OF ENVIRONMENT PROVINCIAL BUILDING LAND & FOREST SERVICE BOX 450 NORTHEAST BOREAL REGION LAC LA BICHE AB T0A 2C0 (780) 623-5263 END =============================================================================