2004 DECEMBER 15 12 noon, CALGARY PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS ENERGY PUBLIC OFFERING CONTROL COUNTS FOR 2004.12.15 From To Total Area LEASES: L0861 L0880 20 101,696.0000 ha. PERMITS: P0881 P0881 1 2,624.0000 ha. -------------------------- 21 104,320.0000 ha. PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on 2004 December 15,offers to purchase oil sands 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 $625.00 per parcel. 3. The minimum acceptance offer is $2.50 per hectare (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. Companies and individuals that do not have a GST registration number are liable for payment of the Goods and Services Tax on various charges. All registrants must ensure that their GST number is provided in writing to Financial Services Branch @ Fax No. (780) 422-4281. 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 99-12. 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: "2004 December 15, --- OIL SANDS LEASE BIDS" for Leases. "2004 December 15, --- OIL SANDS 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 address: - 3rd Floor, Monenco Place, 801-6 Avenue SW, T2P 3W2 or the Edmonton address - 7th Floor, Petroleum Plaza North Tower, 9945-108 Street, T5K 2G6. BIDS ARE ACCEPTED UNTIL 12:00 NOON ON THE PUBLIC OFFERING DATE. NO EXCEPTIONS. POINTS TO REMEMBER 1. It can take up to midnight on the day following the sale to see your funds debited from your bank account for an accepted offer. 2. Requestors of parcel(s) posted in a public offering are expected to bid on the posting(s). If the parcel(s) is not sold, the requestor will be charged a penalty of $625.00 plus GST for each unsold parcel. 3. Effective January 01, 2000, all Oil Sands Agreements acquired include Solution Gas. Please refer to information letter 99-38 for the definition of Solution Gas and any other relevant information. ATTACHMENTS TO THIS PUBLIC OFFERING WHEN APPLICABLE 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 contracts 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 2004 December 16 at 9:00 a.m. at the two addresses shown under the section above entitled "HOW TO SUBMIT BIDS", and on the Internet. 2. All agreements are issued in accordance with the Mines & Minerals Act and its regulations. 2004 October 20 Steve Tkalcic - Director Operations EDMONTON, Alberta Oil Sands Development LEASE SCHEDULE OIL SANDS LEASES 2004, DECEMBER 15 LEASE HECTARES LAND DESCRIPTION ----- -------- ---------------- --- COLD LAKE OS AREA --- L0861 2304 (IRS000602) 4-06-062: 8;9;10W;15SE;16S,NW;17;18;19E;20-22 OIL SANDS BELOW THE TOP OF THE MANNVILLE GRP (DRRZD 4) TO THE BASE OF THE MANNVILLE GRP (DRRZD 4) EXCEPTING OIL SANDS IN THE SUB U COLONY CRETACEOUS (ZD 2920) ------------------------------------------------------------------------------------- L0862 1536 (IRS000602) 4-06-062: 27SW;28-30;31N,SW;32;33 OIL SANDS BELOW THE TOP OF THE MANNVILLE GRP (DRRZD 4) TO THE BASE OF THE MANNVILLE GRP (DRRZD 4) EXCEPTING OIL SANDS IN THE SUB U COLONY CRETACEOUS (ZD 2920) ------------------------------------------------------------------------------------- L0863 1408 (IRS000602) 4-07-062: 13-15;22;23;24N OIL SANDS BELOW THE TOP OF THE MANNVILLE GRP (DRRZD 4) TO THE BASE OF THE MANNVILLE GRP (DRRZD 4) EXCEPTING OIL SANDS IN THE SUB U COLONY CRETACEOUS (ZD 2920) ------------------------------------------------------------------------------------- L0864 1984 (IRS000305) (IRS000602) 4-07-062: 25-27;28S,NE;34-36 4-07-063: 11 OIL SANDS BELOW THE TOP OF THE MANNVILLE GRP (DRRZD 4) TO THE BASE OF THE MANNVILLE GRP (DRRZD 4) EXCEPTING OIL SANDS IN THE SUB U COLONY CRETACEOUS (ZD 2920) ------------------------------------------------------------------------------------- --- ATHABASCA OS AREA --- L0865 7680 (CRG000121) (CRG000122) 4-11-074: 5-8;17-21;27-35 4-11-075: 1-5 4-12-074: 1;11-14;23;24 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0866 5376 (CRG000122) 4-12-074: 27;33;34 4-12-075: 3;4;9;10;13-15;16E;21E;22-27;28E;33E;34-36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0867 5120 (CRG000118) (CRG000121) 4-10-075: 7;17-20;29-32 4-11-075: 9-15;23-25;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0868 512 4-04-076: 18;19 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) EXCEPTING OIL SANDS IN THE WABISKAW-MCMURRAY (ZD 3162) ------------------------------------------------------------------------------------- L0869 256 4-04-076: 31 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) EXCEPTING OIL SANDS IN THE WABISKAW-MCMURRAY (ZD 3162) ------------------------------------------------------------------------------------- L0870 256 4-04-076: 32 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) EXCEPTING OIL SANDS IN THE WABISKAW-MCMURRAY (ZD 3162) ------------------------------------------------------------------------------------- L0871 9216 (CRG000122) (CRG000123) (PFR000601) 4-12-076: 3-10;15-22;27-34 4-12-077: 3-7 4-13-076: 25;35;36 4-13-077: 1;2;11;12 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0872 9216 (CRG000121) (CRG000123) 4-12-079: 28-33 4-12-080: 4-9;16-21;28-33 4-13-079: 25-27;34-36 4-13-080: 1;12;13;24;25;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0873 5888 (CRG000121) 4-11-080: 8-17;20-23;26-28;31-36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0874 9216 (CRG000120) (CRG000121) 4-10-081: 6;7;16-21;29-32 4-11-081: 1-5;8-17;20-26;35;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0875 4608 (CRG000121) (CRG000123) 4-12-081: 5-8;17-20 4-13-081: 1-3;10-14;23;24 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0876 9216 (CRG000121) (CRG000122) (CRG000123) 4-12-081: 25-36 4-12-082: 1-7;18;19;30;31 4-13-081: 25;26;35;36 4-13-082: 1;2;11-14;24;25;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0877 7168 (CRG000120) (CRG000121) 4-10-082: 6;7;18;31-33 4-11-082: 1;2;9-16;21-28;33-36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0878 2304 (CRG000119) (CRG000120) 4-09-083: 5-8;18 4-10-083: 1;12;13;24 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0879 9216 (CRG000120) (CRG000121) 4-10-083: 2-11;14-23;26-35 4-11-083: 1;12;13;24;25;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0880 9216 (CRG000121) 4-11-083: 2-11;14-23;26-35 4-12-083: 1;12;13;24;25;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- 20 101,696.00 HA TOTALS END PERMIT SCHEDULE OIL SANDS PERMITS 2004, DECEMBER 15 PERMIT HECTARES LAND DESCRIPTION ------ -------- ---------------- --- COLD LAKE OS AREA --- P0881 2624 (IRS000602) 4-06-061: 21NW;23-25;27E;28;29;33;34;35N,SE;36 4-06-062: 2NE;3W OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- 1 2,624.00 HA TOTALS END APPENDIX 1 ZONE DESIGNATIONS APPLICABLE TO THE 2004, DECEMBER 15 PUBLIC OFFERING NOTICE ZD: 2920 ZONE: 2581 SUB U COLONY CRETACEOUS INTERVAL: 1,018.00 - 1,503.00 FEET KEY WELL: 00/10-29-062-06W4/0 LOG TYPE: DUAL INDUCTION-LATEROLOG ------------------------------------------------------------------------------------- ZD: 3162 ZONE: 3062 WABISKAW-MCMURRAY INTERVAL: 1,190.00 - 1,488.00 FEET KEY WELL: 00/10-10-076-05W4/0 LOG TYPE: DUAL INDUCTION-LATEROLOG ------------------------------------------------------------------------------------- END APPENDIX 2 DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 2004, DECEMBER 15 PUBLIC OFFERING NOTICE DRRZD: 4 ZONE: 2480 MANNVILLE GRP INTERVAL: 2,557.00 - 2,985.00 FEET KEY WELL: 00/06-16-041-08W4/0 LOG TYPE: INDUCTION ELECTRICAL ------------------------------------------------------------------------------------- DRRZD: 6 ZONE: 2140 VIKING FM INTERVAL: 2,600.00 - 2,680.00 FEET KEY WELL: 00/10-10-042-14W4/0 LOG TYPE: INDUCTION ELECTRICAL ------------------------------------------------------------------------------------- DRRZD: 258 ZONE: 7040 WOODBEND GRP INTERVAL: 1,284.00 - 2,251.00 FEET KEY WELL: 00/10-29-077-18W4/0 LOG TYPE: SONIC ------------------------------------------------------------------------------------- END APPENDIX 3 ADDENDA AND CONTACTS APPLICABLE TO THE 2004, DECEMBER 15 PUBLIC OFFERING NOTICE CRG000118 LAND DESCRIPTION LEASE L0867 4-10-075: 7;17-20;29-32 IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- CRG000119 LAND DESCRIPTION LEASE L0878 4-09-083: 5-8;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 DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- CRG000120 LAND DESCRIPTION LEASE L0874 4-10-081: 6;7;16-21;29-32 LEASE L0877 4-10-082: 6;7;18;31-33 LEASE L0878 4-10-083: 1;12;13;24 LEASE L0879 4-10-083: 2-11;14-18;19P;20S,NP;21-23;26;27S,NW,NEP; 28SP,NEP;29SEP;34SP;35E,WP IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- CRG000121 LAND DESCRIPTION LEASE L0865 4-11-074: 5;6;7S,NP;8;17SP;21E,WP;27;28E,WP;32SP,NWP, NE;33-35 4-11-075: 1-4;5NP,SEP LEASE L0867 4-11-075: 9-15;23-25;36 LEASE L0872 4-12-079: 28-33 4-12-080: 4-9;16-21;28-33 LEASE L0873 LEASE L0874 4-11-081: 1-5;8-17;20-26;35;36 LEASE L0875 4-12-081: 5-8;17-20 LEASE L0876 4-12-081: 25-36 LEASE L0877 4-11-082: 1;2;9-16;21-28;33S,NP;34-36 LEASE L0879 4-11-083: 1SE,SWP,NEP;12EP;13SP,NWP,NE;24NP,SE,SWP LEASE L0880 4-11-083: 2SP;3SP;4SEP;6SEP IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- CRG000122 LAND DESCRIPTION LEASE L0865 4-12-074: 1;11S,NP;12S,NP LEASE L0866 4-12-074: 33SEP 4-12-075: 3NP,SWP;4N,SEP,SW;9;10;13N,SEP,SW;14;15;16E; 21E;22-27;28E;33E;34-36 LEASE L0871 4-12-076: 3;4;5SP,NEP;6SEP;8SEP;9SP,NEP;10S,NWP,NE; 15SP;16NP;17NEP;19SP,NWP,NE;20P;21N,SEP,SW; 22SP,N;27;28;29SP,N;30-34 4-12-077: 3;4;5S,NP;6S,NP LEASE L0876 4-12-082: 1-5;6NP,SE,SWP;7SEP IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- CRG000123 LAND DESCRIPTION LEASE L0871 4-13-076: 25SP,N;35E,WP;36 4-13-077: 1S,NP;2SP,NEP LEASE L0872 4-13-079: 25-27;34-36 4-13-080: 1;12;13;24;25;36 LEASE L0875 4-13-081: 1;2;3EP;10SEP;11S,NWP,NE;12;13;14SP,NEP; 23SEP;24E,WP LEASE L0876 4-13-081: 25SP,NEP;36EP IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- IRS000305 LAND DESCRIPTION LEASE L0864 4-07-062: 28SEP IS/ARE WITHIN THE LAKELAND INTEGRATED RESOURCE PLAN. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: WAYNE HOLLAND LCRC MEMBER DEPT. OF SUSTAINABLE RESOURCE DEV SHERWOOD PARK OFFICE - PUBLIC LANDS 182 CHIPPEWA RD SHERWOOD PARK AB T8A 4H5 (780) 464-7955 ------------------------------------------------------------------------------------- IRS000602 LAND DESCRIPTION LEASE L0861 4-06-062: 20L9,L15,L16;21N;22N,SE LEASE L0862 4-06-062: 28SW;29S;30S LEASE L0863 4-07-062: 24L14 LEASE L0864 4-07-062: 25S,NW,L9,L10,L15;26NE,L1,L7,L8,L11,L14;34; 35S,NW,L9,L10;36L3-L5 PERMIT P0881 4-06-061: 21NWP 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 DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- PFR000601 LAND DESCRIPTION LEASE L0871 4-12-077: 5NP;6NP,SE,SWP;7SEP,SW 4-13-077: 1SE,NEP IS/ARE WITHIN A PROPOSED FOREST RECREATION AREA. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LIND LAND USE SPECIALIST DEPT. OF SUSTAINABLE RESOURCE DEV LAC LA BICHE REGIONAL OFFICE - LAND AND FOREST SERVICE PO BOX 450 LAC LA BICHE AB T0A 2C0 (780) 623-5240 ------------------------------------------------------------------------------------- END