2005 JUNE 01 12 noon, CALGARY PUBLIC OFFERING OF CROWN OIL SANDS RIGHTS ENERGY PUBLIC OFFERING CONTROL COUNTS FOR 2005.06.01 From To Total Area LEASES: L0332 L0340 9 13,632.0000 ha. PERMITS: P0000 P0000 0 0.0000 ha. -------------------------- 9 13,632.0000 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 June 01,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. 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 June 01" indicated on the outside of the envelope. 2. Bids for permits should be enclosed in one sealed envelope with "Permit Bids - 2005 June 01" 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 - 300, AMEC 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 June 02 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 April 06 Jerry MacPherson - Director Operations EDMONTON, Alberta Oil Sands Development LEASE SCHEDULE OIL SANDS LEASES 2005, JUNE 01 LEASE HECTARES LAND DESCRIPTION ----- -------- ---------------- --- COLD LAKE OS AREA --- L0332 256 4-13-059: 30 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0333 256 4-12-060: 31 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0334 256 4-13-060: 20 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- L0335 256 4-13-060: 29 OIL SANDS IN THE MANNVILLE GRP (DRRZD 4) ------------------------------------------------------------------------------------- --- PEACE RIVER OS AREA --- L0336 3072 5-18-078: 20-23;26-29;32-35 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0337 3584 5-16-081: 3-10;16;17 5-17-081: 1;12;13;24 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- L0338 5440 (PRP008401) 5-20-081: 6;7N,SW;18;19;30;31 5-21-081: 1N,SE;2S,NE;3E;10SW;11-13;14N,SE;15;22S,NE; 23;24;25S,NE;26;27;34-36 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE BLUESKY-BULLHEAD (DRRZD 21) ------------------------------------------------------------------------------------- L0339 256 (CRG000154) 5-08-096: 36 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- L0340 256 (CRG000103) 5-07-097: 19 OIL SANDS BELOW THE TOP OF THE PEACE RIVER FM (DRRZD 40) TO THE BASE OF THE PEKISKO FM (DRRZD 174) ------------------------------------------------------------------------------------- 9 13,632.00 HA TOTALS END APPENDIX 2 DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 2005, JUNE 01 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: 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 ------------------------------------------------------------------------------------- END APPENDIX 3 ADDENDA AND CONTACTS APPLICABLE TO THE 2005, JUNE 01 PUBLIC OFFERING NOTICE CRG000103 LEASE L0340 ALL LAND(S) IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: RALPH WOODS LAND MANAGEMENT FORESTER DEPT. OF SUSTAINABLE RESOURCE DEV PEACE RIVER OFFICE - LAND USE AREA- PUBLIC LANDS AND FORESTS 9621 96 AVE FLOOR MAIN PEACE RIVER AB T8S 1T4 (780) 624-6331 ------------------------------------------------------------------------------------- CRG000154 LEASE L0339 ALL LAND(S) IS/ARE WITHIN AN IMPORTANT CARIBOU RANGE. SURFACE ACCESS IS SUBJECT TO SPECIFIC RESTRICTIONS FOR FURTHER INFORMATION, PLEASE CONTACT: DAVE LAING FORESTER DEPT. OF SUSTAINABLE RESOURCE DEV SLAVE LAKE OFFICE - LAND USE AREA - PUBLIC LANDS AND FORESTS 301 BIRCH RD NE SLAVE LAKE AB T0G 2A2 (780) 849-7400 ------------------------------------------------------------------------------------- PRP008401 LAND DESCRIPTION LEASE L0338 5-21-081: 34NE;35W IS/ARE WITHIN A PROVINCIAL PARK. SURFACE ACCESS IS NOT PERMITTED FOR FURTHER INFORMATION, PLEASE CONTACT: BILL RICHARDS RESOURCE TECHNOLOGIST COMMUNITY DEVELOPMENT PARKS AND PROTECTED AREAS SYSTEMS PLANNING BRANCH 9820 106 ST NW FLOOR 5 EDMONTON AB T5K 2J6 (780) 427-9445 ------------------------------------------------------------------------------------- END