NOTICE TO DEFER SECOND NOTICE OF PENDING PUBLIC OFFERING OF CROWN PETROLEUM AND NATURAL GAS RIGHTS JULY 14, 1999 12 NOON, CALGARY NOTICE TO DEFER SECOND NOTICE OF PENDING PUBLIC OFFERING OF CROWN PETROLEUM AND NATURAL GAS RIGHTS On 1998 November 10 the Department of Energy published a Second Notice Of Pending Public Offering Of Crown Petroleum And Natural Gas Rights to be included in the 1999 July 14 Public Offering. The Department has decided to reserve these rights from disposition and to defer their posting indefinitely. A further notice will be published when these rights become available. The rights are described on the attached pages. 1999 March 24 Eugene Saldanha - Manager, EDMONTON, Alberta P & NG Sales and Offsets ------------------------------------------------------------------------------------------------------------------------------------ --- PLAINS AREA --- LEASE HECTARES LAND DESCRIPTION ---------- ---------------- ----------------------------- ADV01 256 5-02-026: 6 PETROLEUM AND NATURAL GAS -------------------------------------------------------------------------------------------------------- ADV02 256 (APPENDIX 3) TRACT ONE 5-02-026: 18NW PETROLEUM AND NATURAL GAS TRACT TWO 5-02-026: 18S,NE PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) -------------------------------------------------------------------------------------------------------- ADV03 128 5-02-026: 20E PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------------------------- ADV04 192 5-02-026: 30S,NE PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) ------------------------------------------------------------------------------------------------------ ADV05 256 5-03-026: 2 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------------------------ ADV06 256 5-03-026: 4 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------------------------ ADV07 256 5-03-026: 10 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------------------------ ADV08 256 5-03-026: 11 PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------------------------ LEASE HECTARES LAND DESCRIPTION ---------- ----------------- ---------------------------- ADV09 192 TRACT ONE 5-03-026: 12S PETROLEUM AND NATURAL GAS TRACT TWO 5-03-026: 12NE PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) -------------------------------------------------------------------------------------------------------- ADV10 256 TRACT ONE 5-03-026: 14N,SE PETROLEUM AND NATURAL GAS TRACT TWO 5-03-026: 14SW PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) --------------------------------------------------------------------------------------------------------- ADV11 256 (APPENDIX 3) 5-03-026: 16 PETROLEUM AND NATURAL GAS --------------------------------------------------------------------------------------------------------- ADV12 256 (APPENDIX 3) 5-03-026: 20 PETROLEUM AND NATURAL GAS --------------------------------------------------------------------------------------------------------- ADV13 256 5-03-026: 22 PETROLEUM AND NATURAL GAS --------------------------------------------------------------------------------------------------------- ADV14 256 TRACT ONE 5-03-026: 24SW PETROLEUM AND NATURAL GAS TRACT TWO 5-03-026: 24N,SE PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) ---------------------------------------------------------------------------------------------------------- ADV15 256 5-03-026: 28 PETROLEUM AND NATURAL GAS ---------------------------------------------------------------------------------------------------------- LEASE HECTARES LAND DESCRIPTION ---------- -------- -------- ------------------------------ ADV16 256 (APPENDIX 3) 5-03-026: 29 PETROLEUM AND NATURAL GAS ---------------------------------------------------------------------------------------------------------- ADV17 256 5-03-026: 32 PETROLEUM AND NATURAL GAS ---------------------------------------------------------------------------------------------------------- ADV18 128 5-03-026: 36E PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) --------------------------------------------------------------------------------------------------------- ADV19 64 5-02-027: 6SW PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) --------------------------------------------------------------------------------------------------------- ADV20 256 5-02-027: 18 PETROLEUM AND NATURAL GAS --------------------------------------------------------------------------------------------------------- ADV21 256 5-02-027: 30 PETROLEUM AND NATURAL GAS --------------------------------------------------------------------------------------------------------- ADV22 256 5-03-027: 2 PETROLEUM AND NATURAL GAS --------------------------------------------------------------------------------------------------------- ADV23 256 5-03-027: 4 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) -------------------------------------------------------------------------------------------------------- ADV24 128 5-03-027: 6W PETROLEUM AND NATURAL GAS ------------------------------------------------------------------------------------------------------- LEASE HECTARES LAND DESCRIPTION ---------- -------- -------- ----------------------------- ADV25 256 TRACT ONE 5-03-027: 14E PETROLEUM AND NATURAL GAS TRACT TWO 5-03-027: 14W PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) --------------------------------------------------------------------------------------------------------- ADV26 256 5-03-027: 16 PETROLEUM AND NATURAL GAS --------------------------------------------------------------------------------------------------------- ADV27 256 5-03-027: 18 PETROLEUM AND NATURAL GAS -------------------------------------------------------------------------------------------------------- ADV28 256 5-03-027: 20 PETROLEUM AND NATURAL GAS -------------------------------------------------------------------------------------------------------- ADV29 128 5-03-027: 22W PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) -------------------------------------------------------------------------------------------------------- ADV30 256 5-03-027: 24 PETROLEUM AND NATURAL GAS -------------------------------------------------------------------------------------------------------- END --- PLAINS AREA --- LICENCE HECTARES LAND DESCRIPTION ------------- ----------------- ----------------------------- ADV31 64 5-03-027: 26NE PETROLEUM AND NATURAL GAS ----------------------------------------------------------------------------------------------------------- ADV32 256 5-03-027: 28 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) ----------------------------------------------------------------------------------------------------------- ADV33 256 5-03-027: 29 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) ---------------------------------------------------------------------------------------------------------- ADV34 128 5-03-027: 30N PETROLEUM AND NATURAL GAS ----------------------------------------------------------------------------------------------------------- ADV35 256 5-03-027: 32 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) ---------------------------------------------------------------------------------------------------------- ADV36 256 5-03-027: 34 PETROLEUM AND NATURAL GAS BELOW THE BASE OF THE CARDIUM FM (DRRZD 3) --------------------------------------------------------------------------------------------------------- END DEEPER RIGHTS REVERSION ZONE DESIGNATIONS APPLICABLE TO THE 1999, JULY 14 PUBLIC OFFERING NOTICE DRRZD: 3 Zone: 1700 CARDIUM FM KEY WELL: 00/16-16-041-06W5/0 INTERVAL: 6,303.00 - 6,436.00 Feet LOG TYPE: ELECTRICAL -------------------------------------------------------------------------------------------------------------- END ADDENDA AND CONTACTS APPLICABLE TO THE 1999, JULY 14 PUBLIC OFFERING NOTICE LEASE ADV02 THE FREEHOLD WELL 00/16-13-026-03 W5/0 CREATES AN OFFSET DRILLING OBLIGATION. THE DEPARTMENT WILL GIVE THE OFFSET NOTICE PURSUANT TO SECTION 20 OF THE PETROLEUM AND NATURAL GAS TENURE REGULATION, FOLLOWING THE ISSUANCE OF THIS LEASE. FOR FURTHER INFORMATION, PLEASE CONTACT: EUGENE SALDANHA MANAGER P & NG ADMINISTRATION DEPARTMENT OF ENERGY MINERAL OPERATIONS DIVISION MINERALS TENURE BRANCH 9945 108 ST NW FLOOR 2 EDMONTON AB T5K 2G6 (403) 422-9426 --------------------------------------------------------------------------------------------------------------------------------- LEASE ADV11 THE FREEHOLD WELL 00/06-21-026-03 W5/0 CREATES AN OFFSET DRILLING OBLIGATION. THE DEPARTMENT WILL GIVE THE OFFSET NOTICE PURSUANT TO SECTION 20 OF THE PETROLEUM AND NATURAL GAS TENURE REGULATION, FOLLOWING THE ISSUANCE OF THIS LEASE. FOR FURTHER INFORMATION, PLEASE CONTACT: EUGENE SALDANHA MANAGER P & NG ADMINISTRATION DEPARTMENT OF ENERGY MINERAL OPERATIONS DIVISION MINERALS TENURE BRANCH 9945 108 ST NW FLOOR 2 EDMONTON AB T5K 2G6 (403) 422-9426 ----------------------------------------------------------------------------------------------------------------------------------- ADDENDA AND CONTACTS APPLICABLE TO THE 1999, JULY 14 PUBLIC OFFERING NOTICE LEASE ADV12 THE FREEHOLD WELL 00/06-21-026-03 W5/0 CREATES AN OFFSET DRILLING OBLIGATION. THE DEPARTMENT WILL GIVE THE OFFSET NOTICE PURSUANT TO SECTION 20 OF THE PETROLEUM AND NATURAL GAS TENURE REGULATION, FOLLOWING THE ISSUANCE OF THIS LEASE. FOR FURTHER INFORMATION, PLEASE CONTACT: EUGENE SALDANHA MANAGER P & NG ADMINISTRATION DEPARTMENT OF ENERGY MINERAL OPERATIONS DIVISION MINERALS TENURE BRANCH 9945 108 ST NW FLOOR 2 EDMONTON AB T5K 2G6 (403) 422-9426 -------------------------------------------------------------------------------------------------------------------------------------- LEASE ADV16 LAND DESCRIPTION 5-03-026: 29L10W,L10SESW,L10SENW,L10NESW,L10NENW,L11NE, L11SESE,L11SENW,L11SENE,L11NWSE,L11NWNW,L11NWNE,L13NW, L13SESE,L13SENE,L13SWNW,L13SWNE,L14SWSE,L14SWSW,L14SWNW IS/ARE WITHIN A PROVINCIAL PARK. SURFACE ACCESS IS NOT PERMITTED FOR FURTHER INFORMATION, PLEASE CONTACT: DOUG BOWES LAND REFERRALS CO-ORDINATOR DEPARTMENT OF ENVIRONMENTAL RECREATION AND PROTECTED AREAS PROTECTION SYSTEMS PLANNING AND PROGRAM DEVELOPMENT BRANCH 9820 106 ST NW FLOOR 2 EDMONTON AB T5K 2J6 (403) 427-9384 -------------------------------------------------------------------------------------------------------------------------------------- END