2005 MARCH 09 12 noon, CALGARY PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS ENERGY PUBLIC OFFERING CONTROL COUNTS FOR 2005.03.09 From To Total Area LEASES: L0001 L0034 34 27,072.0000 ha. PERMITS: P0000 P0000 0 0.0000 ha. -------------------------- 34 27,072.0000 ha. PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS (AVAILABLE ON INTERNET AT HTTP://WWW.ENERGY.GOV.AB.CA:) DEADLINE After 12:00 noon on 2005 March 09,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. Bids for leases should be enclosed in one sealed envelope with "Lease Bids - 2005 March 09" indicated on the outside of the envelope. 2. Bids for permits should be enclosed in one sealed envelope with "Permit Bids - 2005 March 09" indicated on the outside of the envelope. 3. 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 parcel(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 2005 March 10 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. 2005 January 12 Steve Tkalcic - Director Operations EDMONTON, Alberta Oil Sands Development LEASE SCHEDULE OIL SANDS LEASES 2005, MARCH 09 LEASE HECTARES LAND DESCRIPTION ----- -------- ---------------- --- COLD LAKE OS AREA --- L0001 64 4-11-060: 4SE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0002 64 4-11-060: 4SW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0003 64 4-11-060: 4NW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0004 64 4-11-060: 4NE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0005 64 4-11-060: 10SE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0006 64 4-11-060: 10SW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0007 64 4-11-060: 10NW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0008 64 4-11-060: 10NE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0009 64 4-11-060: 15SE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0010 64 4-11-060: 15SW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0011 64 4-11-060: 15NW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0012 64 4-11-060: 15NE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0013 64 4-11-060: 16SE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0014 64 4-11-060: 16SW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0015 64 4-11-060: 16NW OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0016 64 4-11-060: 16NE OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- --- ATHABASCA OS AREA --- L0017 768 (CRG000118) 4-08-080: 31-33 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0018 512 (CRG000119) 4-09-080: 35;36 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0019 512 (CRG000118) (CRG000119) 4-08-081: 19 4-09-081: 24 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0020 768 (CRG000118) (CRG000119) 4-08-081: 29;30 4-09-081: 25 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0021 512 (CRG000119) 4-09-081: 36 4-09-082: 1 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0022 512 (CRG000119) 4-09-082: 11;12 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- L0023 256 4-10-090: 12 OIL SANDS BELOW THE TOP OF THE VIKING FM (DRRZD 6) TO THE BASE OF THE WOODBEND GRP (DRRZD 258) ------------------------------------------------------------------------------------- --- PEACE RIVER OS AREA --- L0024 2048 5-20-078: 19-22;27-30 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0025 1280 5-19-079: 1;2;11;12;14 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0026 2048 5-19-079: 15;16;21;22;27;28;33;34 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0027 1920 5-18-080: 2-4;9;10N;11;14;15 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0028 1280 5-18-080: 5-8;17 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0029 1792 5-18-080: 20-23;27-29 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0030 3584 (CMP001301) TRACT ONE 5-18-081: 1-4;9-12 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) TRACT TWO 5-18-080: 25;26;33-36 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0031 1536 5-21-080: 7-10;17;18 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0032 3840 5-21-080: 11-14;19;23;26-34 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0033 1536 5-17-082: 4-9 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- L0034 1344 5-19-082: 13;14;15S,NE;22S,NW;23S,NW;24 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- 34 27,072.00 HA TOTALS END APPENDIX 2 DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 2005, MARCH 09 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: 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: 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: 174 ZONE: 6420 PEKISKO FM INTERVAL: 6,468.00 - 6,654.00 FEET KEY WELL: 00/10-27-067-22W5/0 LOG TYPE: 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 2005, MARCH 09 PUBLIC OFFERING NOTICE CMP001301 LAND DESCRIPTION LEASE L0030 5-18-081: 4L3N,L3SEP,L4N,L4SWP IS/ARE WITHIN AN ALBERTA FOREST SERVICE STAGING CAMP BUFFER AREA SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: GLEN GACHE FOREST AREA MANAGER DEPT. OF SUSTAINABLE RESOURCE DEV PEACE RIVER REGIONAL OFFICE - LAND AND FOREST SERVICE 9621 96 AVE FLOOR 2 PEACE RIVER AB T8S 1T4 (780) 836-2881 ------------------------------------------------------------------------------------- CRG000118 LAND DESCRIPTION LEASE L0017 4-08-080: 31SP,NW,NEP;32NWP;33SEP LEASE L0019 4-08-081: 19 LEASE L0020 4-08-081: 29;30 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 L0018 4-09-080: 35;36N,SEP,SW LEASE L0019 4-09-081: 24 LEASE L0020 4-09-081: 25 LEASE L0021 LEASE L0022 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 ------------------------------------------------------------------------------------- END