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Exhibit 10.3
PURCHASE AND SALE AGREEMENT
THIS AGREEMENT dated as of the 6th day of April, 2000.
BETWEEN:
CABRE EXPLORATION LTD., a body corporate, with offices in the City of
Calgary, in the Province of Alberta (hereinafter referred to as "Vendor")
-- and --
WESTLINKS RESOURCES LTD., a body corporate, with offices in the City of
Calgary, in the Province of Alberta (hereinafter referred to as
"Purchaser")
WHEREAS Vendor has agreed to sell to Purchaser and Purchaser has agreed to
purchase from Vendor the Assets on and subject to the terms and conditions of
this Agreement.
NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the mutual
covenants and agreements set out, the Parties covenant and agree as follows:
1 DEFINITIONS
1.1 DEFINITIONS. In this Agreement, the following terms have the following
respective meanings, unless the context otherwise requires:
(a) "ABANDONMENT AND RECLAMATION OBLIGATION" means the abandonment of any
Wells, Tangible Interests or Miscellaneous Interests including,
without limitation, any closing, decommissioning, dismantling and
removing of any tangible depreciable property, Assets on the Lands, or
lands pooled, unitized or adjacent therewith, in connection with such
abandonment, and restoring the surface of the Lands, or lands pooled
or unitized therewith, all in compliance with laws, regulations,
orders and directives of governmental authorities having jurisdiction
with respect to the said abandonment or the said restoration of the
surface of the lands;
(b) "AGREEMENT" means this document together with the recitals and
Schedules attached hereto;
(c) "ASSETS" means Vendor's entire interest in the Petroleum and Natural
Gas Rights, the Tangible Interests, and the Miscellaneous Interests;
(d) "BUSINESS DAY" means a day other than a Saturday, Sunday or any
statutory holiday in Alberta;
(e) "CLOSING" means the exchange of Conveyance Documents between Vendor
and Purchaser on the Closing Date and the payment of the Purchase
Price and other amounts as contemplated in Clause 3.5;
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(f) "CLOSING DATE" means 2 o'clock p.m. on the 29th day of May, 2000
unless such date is amended by agreement in writing by the Parties by
increments of one week time frames;
(g) "CONVEYANCE DOCUMENTS" means the documents described in Clause 4.3
required to complete the transfer and assignment of the Assets;
(h) "DEPOSIT" means the payment set forth in Clause 3.5(a);
(i) "DOCUMENTS OF TITLE" means collectively any and all certificates of
title, leases, permits, licenses, unit agreements, assignments, trust
declarations, royalty agreements, operating agreements or procedures,
participation agreements, farmin and farmout agreements, sale and
purchase agreements, pooling agreements and other agreements by virtue
of which Vendor is entitled to the Petroleum and Natural Gas Rights
and includes, if applicable all renewals and extensions of such
documents and all documents issued in substitution therefor;
(j) "DOLLARS" or "$" means Canadian dollars;
(k) "EFFECTIVE DATE" means 8.00 o'clock a.m. Calgary time on the 1st day
of January, 2000;
(l) "ENCUMBRANCES" has the meaning ascribed thereto to Clause 1.1(u)(xii);
(m) "ENVIRONMENTAL DAMAGE" means any one or more of the following:
i) ground water, surface water or aquifer contamination,
ii) soil contamination,
iii) corrosion or deterioration of structures, equipment, fences,
gathering lines or any other Tangible Interests;
iv) emissions of toxic or hazardous substances, and
v) the effects of non-compliance with any environmental law,
regulation, order or directive of any governmental authority
having jurisdiction at the relevant time;
(n) "FINAL ADJUSTMENT" means those further accounting and adjustments,
contemplated pursuant to Clause 3.7.1 of this Agreement, to be made
subsequent to the Closing Date;
(o) "GENERAL CONVEYANCES" means the documents substantially in the form of
Schedule "C"; attached hereto and as required in accordance with
Clause 4.3;
(p) "INTERIM ADJUSTMENTS" means those interim accounting and adjustments,
contemplated pursuant to Clause 3.7.1 of this Agreement, to be made on
the Closing Date;
(q) "KNOWLEDGE", for purposes of Clauses 10.1 and 11.1, means Vendor or
Purchaser, as the case may be, shall be deemed to actually know or
have knowledge of a matter, circumstance or thing when such matter,
circumstance or thing has come to the attention of:
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i) an officer of such corporation (who as at the date hereof and at
the Closing Date is an officer of such corporation); or
ii) based upon an examination of Vendor's records, a senior employee
of such corporation with responsibility for matters to which the
matter, circumstance or thing relates (who as at the date hereof
and at the Closing Date is a senior employee of such corporation
with such responsibility),
under circumstances which a reasonable person would take cognizance of
the matter, circumstance or thing;
(r) "LANDS" means the lands in which Vendor is shown to have an interest
as set forth and described in Schedule "A", but only insofar as rights
to those lands are granted by the Documents of Title;
(s) "MISCELLANEOUS INTERESTS" means the entire undivided right, title,
estate and interest of Vendor, at the Effective Date, in and to all
property, assets and rights, to the extent pertaining to Petroleum and
Natural Gas Rights or Tangible Interests (excluding therefrom
materials and supplies used in connection with operations where the
costs have not been charged to the joint account of Persons having an
interest therein and also excluding Petroleum and Natural Gas Rights
or Tangible Interests), but including without limitation to the
generality of the foregoing:
i) all Documents of Title and other agreements to the extent
relating to Petroleum and Natural Gas Rights or Tangible
Interests or any rights in relation thereto, including, without
limitation, royalty agreements, joint operating agreements, gas
processing agreements, gas transmission agreements, gas balancing
agreements, common stream agreements, natural gas transportation
agreements and agreements for the construction, ownership and
operation of facilities;
ii) all books, maps, records, documents, well, plant and other
reports files, data, information, records and non-interpretative
production and engineering information which is not of a
proprietary nature and which relates directly to Petroleum and
Natural Gas Rights or Tangible Interests, that Vendor either has
in its custody or to which Vendor has access, but excluding:
A. tax, legal and financial records;
B. economic evaluations; and,
C. engineering, geophysical and geological information, to the
extent it discloses technology or information which is
proprietary to Vendor or information which Vendor is
contractually prohibited from selling or disclosing to other
Persons;
iii) all well-bores and casing associated with the Wells situate
within the Lands, or lands pooled or unitized including well
licences issued in connection with the Wells;
iv) all rights of Vendor as seller under the Production Sales
Agreements, but only to the extent such Production Sales
Agreements are severable if they contain more
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lands or zones than the relevant Lands or lands pooled or
unitized therewith (the "relevant lands") having a term
exceeding thirty-one (31) days but only to the extent such
agreements are severable if they contain more lands or zones
than the relevant Lands;
v) all subsisting rights to enter upon, use and occupy the surface
of any of the Lands, or to carry out operations thereon or
therein and any other lands with which the Lands have been
pooled or unitized or on which Tangible Interests are situate,
including easements, right of way agreements and agreements for
road crossing rights;
(t) "PARTIES" means all parties to this Agreement, and "PARTY" means any
of them;
(u) "PERMITTED ENCUMBRANCES" means:
i) existing easements, rights of way, servitude's or other similar
rights in lands;
ii) the rights reserved to or vested in any government or other
public authority by the terms of any statutory provision, to
terminate any Documents of Title or to require annual or other
periodic payments as a condition of the continuance thereof;
iii) the right reserved to any governmental authority to levy taxes
on Petroleum Substances or the income or revenue therefrom and
governmental requirements as to production rates on the
operations of any property;
iv) rights reserved to or vested in any municipality or
governmental, statutory or public authority to control or
regulate any of the Assets in any manner, and all applicable
laws, rules and orders of any governmental authority;
v) undetermined or inchoate liens incurred or created as security
in favour of the Person conducting the operation of any of the
Assets for Vendor's proportion of the costs and expenses of such
operations;
vi) liens for taxes, assessments or governmental charges, which are
not due or which are not delinquent;
vii) mechanics', builders' or materialmen's liens in respect of
services rendered or goods supplied for which payment is not at
the time due;
viii) the reservations, limitations, provisos and conditions in any
original grants from the Crown of any of the Lands or interests
therein and statutory exceptions to title;
ix) agreements and plans relating to pooling or unitization;
x) liens granted in the ordinary course of business to a public
utility, municipality or governmental authority in connection
with operations conducted with respect to the Assets;
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xi) the terms and conditions of the Documents of Title, provided
that such terms and conditions do not create additional royalty
burdens, penalties or other encumbrances which are not
specifically set forth in Schedule "A";
xii) such royalty burdens and other encumbrances as are set forth in
Schedule "A" under the heading of "Encumbrances";
xiii) Production Sales Agreements and any other agreements for the
sale of production from the Petroleum and Natural Gas Rights to
the extent that such agreements are terminable on not greater
than 30 days notice without an early termination penalty or
other cost;
xiv) trust obligations in the ordinary course of business.
(v) "PERSON" means any natural person, firm, corporation, partnership,
trustee, trust, unincorporated association, government or government
agency not a Party, and pronouns used in connection therewith have a
similar extended meaning;
(w) "PETROLEUM AND NATURAL GAS RIGHTS" means the entire undivided right,
title and interest of Vendor at the Effective Date, in and to the
Petroleum Substances in the Lands or any lands pooled or unitized
therewith and in and to any royalty rights in the Lands, which
interests are, including without limitation, those interests set forth
in Schedule "A";
(x) "PETROLEUM SUBSTANCES" means petroleum, natural gas and related
hydrocarbons and all other substances, whether liquid, solid or
gaseous and whether hydrocarbons or not, insofar as the rights to such
substances or the proceeds therefrom are granted by the Documents of
Title;
(y) "PRIME RATE" means the rate of interest per annum used by the Canadian
Imperial Bank of Commerce from time to time as the reference rate in
determining rates of interest payable on Canadian dollar demand loans
in Canada;
(z) "PURCHASE PRICE" means the sum referred to in Clause 3.1 less
reductions and adjustments, if any, plus interest which shall have
accrued on such sum, all as calculated in Clause 3.1;
(aa) "RIGHTS OF FIRST REFUSAL" means a right of first refusal, pre-emptive
right of purchase or similar right whereby any Person, other than
Vendor, would have the right to acquire or purchase all or a portion
of the Assets as a consequence of Vendor having agreed to sell the
Assets to Purchaser in accordance herewith;
(bb) "PRODUCTION SALES AGREEMENTS" means those agreements identified in
Schedule "E" hereto;
(cc) "SEISMIC DATA" means all records, reports and data associated with all
seismic lines within a one (1) mile perimeter surrounding the Lands as
set forth on the plats attached as Schedule "G" (EXCLUDING THE 3-D
SEISMIC PROGRAM LABELLED AS "JHE-3D"), which Vendor may currently have
in its possession as part of its data base and may include the
following:
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(i) all permanent records of basic field data including, but not
limited to, any and all microfilm or paper copies of seismic
driller's reports, monitor records, observer's reports and
survey notes and any and all copies of magnetic field tapes or
conversions thereof;
(ii) all permanent records of the processed field data including, but
not limited to, any and all microfilm or paper copies of shot
point maps, pre and post-stacked records sections including
amplitude, phase and structural displays, post-stack data
manipulations including filters, migrations and wavelet
enhancements, and any and all copies of final stacked tapes and
any manipulations and conversions thereof; and
(iii) in the case of 3D seismic, in addition to the foregoing, all
permanent records or bin locations, bin fold, static
corrections, surface elevations and any other relevant
information.
(cc) "TAKE OR PAY AMOUNT" means an amount equal to the Take or Pay payments
outstanding at the Effective Date in respect of production sales
agreements attributable to the Assets;
(dd) "TANGIBLE INTERESTS" means the entire undivided interest of Vendor at
the Effective Date in and to all tangible depreciable property and
assets situated in, on or off the Lands (or lands pooled or unitized
therewith) and to the extent that they are used or intended for use in
connection with producing, gathering, processing, treating, storing,
compressing or transporting Petroleum Substances produced from the
Lands, including, without limitation, all tangible depreciable
property and assets which form part of the Wells, but excluding
surplus items such as tubing and casing, etc. stored as inventory or
the Lands.
(ee) "WELLS" means all producing, suspended, shut-in or abandoned wells and
all water source or injection wells located within or on the Lands or
on any lands with which the Lands have been pooled or unitized or
those wells in which the Vendor's interest in the P&NG Rights have
terminated and the Abandonment and Reclamation Obligations remain as
set forth and described under the heading "Wells" in Schedule "A".
1.2 DERIVATIVES. When a capitalized derivative of a term defined herein is
used, it shall have the corresponding meaning of the defined term, unless the
context otherwise requires.
1.3 INTERPRETATION. If Closing does not occur, each provision of this Agreement
which presumes Purchaser has acquired the Assets shall be construed as having
been contingent upon Closing having occurred.
2. SCHEDULES
2.1 LIST OF SCHEDULES. The following are the Schedules attached to and made a
part of this Agreement:
Schedule "A" - Vendors Interest, Petroleum Substances, Lands, Wells and
Encumbrances
Schedule "B" - Officer's Certificates
Schedule "C" - General Conveyance
Schedule "D" - Tangible Interests, facilities and other
miscellaneous matters
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Schedule "E" - Production Sales Contracts
Schedule "F" - Outstanding Authorities for Expenditure, Cash Call Advances
and Deposits
Schedule "G" - Vendor's Proprietary 2-D and 3-D Seismic Data
2.2 CONFLICTS. In the event of any conflicts between the provisions of the body
of this Agreement and the Schedules, the provisions of the body of this
Agreement shall prevail. In the event of any conflicts between the provisions of
this Agreement and the Documents of Title, the provisions of the Documents of
Title shall prevail.
3. PURCHASE AND SALE
3.1 AGREEMENT OF PURCHASE AND SALE AND PURCHASE PRICE. In accordance with the
terms and conditions of this Agreement, Vendor agrees to sell to Purchaser and
Purchaser agrees to purchase from Vendor, the Assets, subject to Permitted
Encumbrances, for the sum of Eleven Million, Nine Hundred Seventeen Thousand,
One Hundred and Four Dollars ($11,917,104.00), less reductions thereto, if any,
pursuant to Articles 5 and 6. The amount allocated to Petroleum and Natural Gas
Rights in Clause 3.4 shall be increased by the additional amount paid by
Purchaser to Vendor pursuant to this Clause.
3.2 PURCHASED ASSETS ONLY. Unless specifically included in the definition of
Assets, all of the other property and assets of Vendor shall be excluded from
the purchase and sale provided for in this Agreement.
3.3 ENVIRONMENTAL MATTERS. In determining the Purchase Price and subject to
Vendor's representations and warranties contained herein, the Parties have taken
into consideration Purchaser's assumption of all Abandonment and Reclamation
Obligations and of all Environmental Damage associated with the Assets, whether
the same have arisen prior to or subsequent to the Effective Date.
3.4 ALLOCATION OF PURCHASE PRICE. The Purchase Price shall be allocated among
the Assets in the following manner:
<TABLE>
<CAPTION>
Assets
<S> <C> <C>
(a) Petroleum and Natural Gas Rights (80%) $ 9,533,682.40
(b) Tangible Interests (20%) $ 2,383,420.60
(c) Miscellaneous Interests $ 1.00
--------------
SUB-TOTAL $11,917,104.00
GST $ 166,839.44
--------------
TOTAL $12,083,943.44
</TABLE>
3.5 PAYMENT PRICE. The Purchase Price as adjusted for Interim Adjustments shall
be paid in full by Purchaser to Vendor by delivery of certified cheque(s) or
bank draft(s) as follows:
(a) the Vendor acknowledges the receipt of $1,191,710.40, from the
Purchaser representing the Deposit toward the Purchase Price. If Closing
occurs pursuant to the terms of this Agreement, then the principal amount
of the Deposit with accrued interest shall be released by Vendor's legal
counsel to Vendor, on the instruction of Purchaser and Vendor, as part
payment of the Purchase Price.
(b) the balance of the Purchase Price as adjusted for Interim Adjustments
shall be paid on the Closing Date at the place of Closing.
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(c) Should Closing not occur as a result of conditions in Clause 7.1 of
this Agreement not being satisfied or waived by the Purchaser, then,
unless otherwise specified below, the Deposit with accrued interest will
be returned to the Purchaser.
(d) If Vendor properly terminates this Agreement pursuant to Clause 7.2
(Closing Conditions -- Vendor's Conditions) because a condition
precedent set forth in Clause 7.2 is not satisfied and if such
non-satisfaction is due to a failure of Purchaser to perform its
obligations under this Agreement, then the Deposit together with any
interest earned thereon shall be retained by Vendor as a genuine
pre-estimate of the damages which the Parties have estimated Vendor will
suffer, both parties shall then be relieved of any further obligations
respecting this Agreement.
(e) Should all the Closing conditions set forth in Clause 7.1 (Closing
Conditions -- Purchaser's Conditions) be satisfied or waived in writing
by Purchaser, and the Purchaser fails to close, then Vendor shall be
entitled to retain the Deposit and any interest earned thereon as a
genuine pre-estimate of damages which Vendor will suffer both parties
shall then be relieved of any further obligations respecting this
Agreement.
(f) In the event Closing does not place on or before May 29, 2000 on
account of delays caused by the Purchaser, Purchaser shall be required
to remit interest on Purchase Price, calculated at Prime Rate plus one
(1%) percent per annum, from the date of May 29, 2000 until Closing
actually takes place.
3.6 GOODS AND SERVICES TAX. Purchaser shall also remit to Vendor on the
Closing Date the Goods and Services Tax ("GST") applicable to the Assets. The
GST Registration number for Vendor is R100713833. If before the Closing Date
there is a change in that portion of the Purchase Price allocated to
Miscellaneous Interests, or Tangible Interests, which change is the result of
any government authority or the voluntary re-allocation by the Parties, then
the resulting GST amount shall be adjusted accordingly. If there is an increase
in the GST, Purchaser shall promptly remit to Vendor the amount of such
increase together with any interest and penalties associated therewith. If
there is a decrease in the GST, Vendor shall promptly remit to Purchaser the
amount of such decrease.
3.7 ADJUSTMENTS ON AND SUBSEQUENT TO CLOSING DATE.
3.7.1 BASIS OF ADJUSTMENTS. All benefits and obligations of every kind and
nature payable or paid and received or receivable in respect of the Assets,
including without limitation, maintenance, development, operating and capital
costs and the proceeds for the sale of production, shall, except as otherwise
provided herein, be apportioned between Vendor and Purchaser as of the
Effective Date. Costs and expenses for work done, services provided and goods
and services supplied shall be deemed to accrue for the purposes of this
Article when the work is done and the goods or services are provided,
regardless of when such costs and expenses become payable.
(a) INTERIM ADJUSTMENTS
At least five (5) days prior to the Closing Date, Vendor shall
provide to Purchaser an interim accounting and adjustment in draft
form, together with the information in support thereof, for review
and examination by Purchaser. This interim accounting and
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adjustment shall be made by Vendor based upon all revenues, royalties,
operating costs and capital costs accruing to Purchaser and received
by the Vendor for the period commencing after the Effective Date. All
revenues received by the Vendor, which were not accounted for as of
the Closing and which are due to the Purchaser, shall after deducting
any obligations or costs attributable to the Purchaser, be paid to the
Purchaser within thirty (30) days of the receipt by Vendor.
(b) FINAL ADJUSTMENT
Within six (6) months following the Effective Date a further
accounting shall be prepared by Vendor in regard to all charges and
credits to be adjusted between Vendor and Purchaser on a item by item
basis after the Closing Date as soon as reasonably practicable. All
revenues which are received or receivable by Vendor from the Assets
and which are due to Purchaser shall, after deducting the obligations
and costs for which Purchaser is responsible, be paid to Purchaser
either on the Closing if they have been received on or before such
Closing Date or within (30) days of receipt thereof, if they are
received after such Closing Date. Any monies received by Vendor shall
be received as agent for and on behalf of Purchaser. The Vendor shall
not be obligated to make any further adjustments after the six (6)
months unless a specified request in writing is received within six
(6) months following the Closing Date identifying in reasonable detail
an adjustment required by this Agreement. The aforesaid six (6) month
time frame does not apply to sub-clauses (c) and (d) hereof.
(c) CROWN ROYALTY ADJUSTMENT
Notwithstanding Clause 3.7.1(b), accounting or adjustments from Crown
royalty audits or crown re-assessments relating to the period prior to
the Effective Date;
(i) for which audit queries or re-assessments are outstanding as of
the Closing Date; or
(ii) that occur after the Closing Date but no later than forty-eight
(48) months following the end of the calendar year of Closing
shall be made as they occur and payments for them shall be made within
thirty (30) days of each adjustment and shall be made by Purchaser to
Vendor, or vice versa, as the case may be.
(d) ADJUSTMENTS RESULTING FROM AUDITS
Notwithstanding Clause 3.7.1(b), accounting or adjustments resulting
from joint venture audits, or from thirteen month adjustments for gas
plant throughput and gas cost allowance for the Assets, relating to
the period prior to Effective Date:
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(i) for which audit queries or thirteenth month
adjustments are outstanding at Closing Date; or
(ii) with respect to joint venture audits that occur after
the Closing Date but no later than thirty (30) months
following the end of the calendar year of Closing; or
(iii) with respect to thirteen (13) month adjustments
for gas plant throughput and gas cost allowance, that
occur within four (4) years after the Closing Date,
unless Purchaser has provided written notice to the
Vendor within such four (4) year period, that an
adjustment is outstanding.
shall be made as they occur and payments for them shall be
made within thirty (30) days of each adjustment and shall be
made by Purchaser to Vendor, or vice versa, as the case may
be. Vendor may audit the records of Purchaser relating to
such accounting or adjustments for two (2) years from the
date the adjustment is made and accounting or adjustments
resulting from the audit shall be settled between Vendor and
Purchaser on an item-by-item basis as they occur.
(e) INTEREST.
If a Party fails to pay within the time period established
for the payment of any adjustment, interest shall accrue and
be payable on the unpaid amount of such adjustment at the
Prime Rate plus one (1%) percent per annum from the date
such adjustment is payable until paid. All adjustments shall
be settled by payment by the Party required to make payment
hereunder within 30 days of being given notice of the
determination of the amount owing.
(f) PRODUCTION ACCOUNTING. In the event Closing takes place on
or after the 16th day of a calendar month, for purposes of
the Vendor's and Purchaser's respective production
accounting departments, Vendor shall continue to be
responsible for administering the production accounting for
the calendar month in which Closing takes place.
In the event Closing takes place before the 16th day of a
calendar month, for purposes of the Vendor's and
Purchaser's respective production accounting departments,
Purchaser shall be responsible for administering the
production accounting for the calendar month in which
Closing takes place.
3.7.2 RENTALS AND TAXES. Notwithstanding the provisions of Clause 3.7.1,
rentals and all similar payments made by Vendor to preserve the Documents of
Title, freehold mineral taxes and property taxes shall be apportioned as between
Vendor and Purchaser on a per diem basis as of the Effective Date, whether paid
by Vendor before or after the Effective Date if relating to the period after the
Effective Date, unless Vendor elects to waive such apportionment of all or any
portion of those payments which have been paid by Vendor and relate to the
period after the Effective Date. Purchaser shall include in its
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income the proceeds and expenses related to Petroleum Substances produced on or
after the Effective Date and shall be responsible for the payment of all income
tax payable in respect thereto.
3.7.3 PRODUCTION. With the exception of sulphur, all Petroleum Substances in
inventory (i.e. which have been produced from the Lands and are in tanks or in
any other form of storage) and to which Vendor is entitled at the Effective Date
do not comprise part of the Assets and remain the property of Vendor. The
proceeds from the sale therefrom shall accrue and belong to Vendor. Sales of
Petroleum Substances shall be deemed to occur on a "first in, first out" basis.
Vendor shall reimburse Purchaser for any reasonable charges paid by Purchaser to
Persons for storage or sale of such inventory of Vendor, including costs of
transporting such inventory to the point of sale and royalties payable in
respect of such inventory, notwithstanding the provisions of Clause 3.7.1.
3.7.4 ACCOUNTS RECEIVABLE. Purchaser shall provide all reasonable assistance to
Vendor with respect to the collection from others of any accounts receivable of
Vendor which relate to the Assets and which accrued prior to the Effective Date.
3.7.5 CASH CALLS. In making adjustments pursuant to this Clause 3.7, Vendor
shall be entitled to a credit for all cash call advances, operating funds,
deposits and similar advances to operators of all or any of the Assets which
stand to the credit of Vendor at the Closing Date and which are assigned to
Purchaser at Closing, provided only that such cash call advances, operating
funds, deposits and similar advances are identified in Schedule F hereto.
3.7.6 ARBITRATION. If the parties can not agree as to the adjustments referred
to in Clause 3.7.1 (b) herein, the matter may be referred to arbitration by
either Party for determination by one arbitrator in accordance with the
ARBITRATION ACT OF ALBERTA.
3.7.7 OVERHEAD. From the Effective Date to Closing Date, Cabre, where operator,
shall retain all overhead recoveries earned and the purchase adjustments shall
include:
i) Overhead chargeable, net to the assets acquired, pursuant to governing
agreements; and
ii) overhead of 10% on all expenses incurred by the operated Assets (which
are not included above), as well as on any invoices paid by Vendor
subsequent to Closing Date.
4. CLOSING AND CONVEYANCE DOCUMENTS
4.1 TRANSFER OF POSSESSION. Possession of the Assets will pass from Vendor to
Purchaser on the Closing Date and, for all other purposes, if Closing occurs,
the transfer and assignment of the Assets from Vendor to Purchaser will be
effective as of the Effective Date.
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4.2 PLACE OF CLOSING. Unless otherwise agreed in writing by the Parties,
Closing shall take place at the offices of Vendor at 1400, 700 - 9th Avenue, SW
Calgary, Alberta, on the Closing Date.
4.3 CLOSING AND GENERAL CONVEYANCE DOCUMENTS. Vendor shall prepare, execute and
deliver to Purchaser and Purchaser shall execute and deliver to Vendor on the
Closing Date, a General Conveyances of the Assets in the form of Schedule "C"
hereto, and use its best efforts to provide such other assignments, novations,
transfers, trust agreements and documents, in registrable form to the extent
applicable, respecting the Assets, as may be reasonably required by either
Party, to complete the transfer of the Assets, provided no such document shall
require Vendor to assume or incur any obligation or provide any representation
or warranty beyond that contained in this Agreement. It shall not be necessary
for any assignment and novation agreement to have been executed prior to or at
Closing by parties thereto other than Vendor or Purchaser.
4.4 COST OF REGISTRATION. Purchaser shall bear all costs incurred in
registering all Conveyance Documents relating to the Assets and all costs of
preparing and registering any further Conveyance Documents Purchaser may
reasonably require following Closing, including any fees or penalties which are
levied, to the Purchaser or Vendor, due to the late or incorrect filing by the
Purchaser. Vendor shall bear all costs of registering discharges of security
interests registered against Vendor's interest in the Assets.
4.5 CIRCULATION OF CONVEYANCE DOCUMENTS. Purchaser shall be responsible for
promptly:
(b) registering all such conveyance documents relating to the Assets;
(c) obtaining all such novations from or giving notice to other Persons in
respect thereof, and
(d) providing written evidence to the Vendor of the execution of such
novations by Persons thereto or written evidence of the forwarding of
notice to other Persons where novations are not required.
4.6 SUBORDINATION OF AUXILIARY DOCUMENTS. All documents executed by the Parties
and delivered pursuant to the provisions of this Article 4, or otherwise
pursuant to this Agreement, are subordinate to the provisions hereof and the
provisions hereof shall govern and prevail in the event of conflict.
4.7 REGISTRATION OF LEASES. Vendor, shall at the cost of Purchaser, submit for
registration all Crown lease transfers, within two (2) weeks of Closing and
provide to Purchaser written evidence of such registration. Vendor shall
register at Purchaser's cost Well licence or pipeline transfers and change of
Well name applications and provide Purchaser with written evidence of
confirmation of such registration.
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5. PURCHASER'S REVIEW AND TITLE DEFECTS
5.1 ACCESS FOR INVESTIGATION. Vendor shall allow Purchaser and its employees,
agents, legal counsel, accountants or other representatives, between the date of
this Agreement and the Closing Date, to have access during normal business hours
of Vendor to the premises of Vendor and at the location of the Assets in order
to inspect:
(a) all the books, accounts, and other production data of Vendor relating
to the operations of and revenues resulting from the operation of the
Assets in Vendor's possession;
(b) Documents of Title, material correspondence, title opinions (if any)
and technical operating data of Vendor pertaining thereto; and
(c) the tangible portion of the Assets;
to enable Purchaser to carry out its due diligence, subject always to
contractual restrictions imposed upon Vendor relating to disclosure. Provided
Closing occurs, Vendor shall deliver the information referred to in Clause
5.1(b) to Purchaser within ten (10) days following the Closing Date.
5.2 NOTICE OF TITLE DEFECTS. Purchaser shall undertake a title review of the
Assets. As soon as reasonably practicable after completion of its title review
and, in any event, no later than ten (10) Business Days prior to the Closing
Date, Purchaser shall give Vendor written notice of all defects and omissions
which, in the reasonable opinion of Purchaser, materially and adversely affect
the title of Vendor to the Assets and which Purchaser does not waive (all of
which are referred to as "Title Defects"). Title Defects do not include the
Permitted Encumbrances unless Purchaser is of the opinion the royalty burdens or
other encumbrances listed in Schedule "A" under the heading "Encumbrances". are
incorrectly described. Such notice shall include a description of each Title
Defect and the interest affected thereby and to the extent reasonably possible,
Purchaser's requirements for the rectification or curing thereof. Failure to
include any Title Defects in a written notice when required, shall be deemed to
be a waiver of such Title Defects.
5.3 CURING TITLE DEFECTS. Prior to the Closing Date, Vendor shall diligently
make reasonable efforts to cure or remove all Title Defects of which Purchaser
has notified Vendor.
5.4 FAILURE TO REMOVE TITLE DEFECTS. If any Title Defects are not cured or
removed at or before three (3) Business Days prior to the Closing Date,
Purchaser may elect on or before two (2) Business Days prior to the Closing Date
to:
(a) with the agreement of the Vendor, grant a further period of time
within which Vendor may cure or remove the uncured Title Defects; or
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(b) waive the uncured Title Defects and proceed with Closing; or
(c) not purchase at Closing those Assets affected by the uncured Title
Defects which Purchaser does not waive, in which event the Purchase
Price be reduced with the values determined in accordance with Clause
5.5 (EXCEPT AS PROVIDED IN CLAUSE 12.2(a)) and Purchaser shall proceed
with Closing with respect to those Assets not affected by Title
Defects which Purchaser does not waive, or
(d) terminate this Agreement and not proceed with Closing, but only where
the value of the uncured Title Defects in the aggregate exceeds
TWENTY-FIVE (25%) PERCENT of the Purchase Price, with the values
determined in accordance with Clause 5.5.
Failure by Purchaser to elect and give notice of election shall be deemed
conclusively to be an election to waive all Title Defects. NOTWITHSTANDING THE
PROVISIONS SET FORTH IN CLAUSE 3.5, IN THE EVENT THE TITLE DEFECTS EXCEED
TWENTY-FIVE (25%) PERCENT OF THE PURCHASE PRICE AND THE PURCHASER ELECTS NOT TO
PROCEED WITH CLOSING, THE DEPOSIT SHALL BE RETURNED TO THE PURCHASER.
5.5 DETERMINATION OF TOTAL VALUE AMONG ASSETS FOR TITLE DEFECTS. If it is
necessary to allocate value to any particular portion of the Assets for the
purposes of Clause 5.4(c), 5.4(d) or Clause 6.3, the Parties shall allocate a
value they can agree upon, acting reasonably. Failing such agreement, then
within three (3) Business Days of notice being given by one Party to the other:
(a) each of them shall provide to the other, at the same time, a written
statement separately setting forth its proposed value in respect of
each of the affected Assets ("Affected Assets"); and
(b) each Party shall submit the determination of the value of the Affected
Assets to a mutually chosen third party engineering firm (the
"Evaluator"), together with written instructions that:
i) the Evaluation, in accordance with good engineering and
evaluation practices, select a value for each of the Affected
Assets from and based only upon the values submitted by the
Parties; and
ii) such evaluation must be completed within five (5) Business Days
from the date of submission.
The fees and other costs to be paid to the Evaluator in respect to the services
performed by it shall be borne in equal shares between Vendor and Purchaser.
Notwithstanding other provision in this Agreement concerning the Closing Date,
if a value is to be determined by the Evaluator and the Evaluator's decision
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has not been received by the Parties on or before two (2) Business Days prior to
the Closing Date, then the Closing Date shall be extended automatically to two
(2) Business Days after the Evaluator's decision has been given to the Parties.
Provided, however, if a Party fails to provide a determination of value to the
Evaluator together with its written instructions as set out herein, then the
Evaluator shall select the other Party's determination of value and the
transaction shall proceed on the Closing Date.
5.6 CURED TITLE DEFECTS. Notwithstanding the reduction of the Purchase Price
pursuant to Clause 5.4(c), the Purchaser agrees that in the event Vendor is able
to cure or rectify a Title Defect with respect to any particular portion or
portions of the Assets (each a "Cured Asset") within a period of sixty (60) days
after the Closing Date, Purchaser shall purchase Cured Asset from Vendor at a
date ninety (90) days from the Closing Date at the price by which the Purchase
Price was so adjusted. Purchaser has no obligation to purchase any such Cured
Asset where, in the opinion of Purchaser acting reasonably, the value of such
Cured Asset has declined or been diminished in the intervening period as a
result of new Title Defects or physical damage or loss of such Cured Asset.
6. RIGHTS OF FIRST REFUSAL
6.1 RIGHTS OF FIRST REFUSAL. The Parties acknowledge that some of the Assets
may be subject to Rights of First Refusal or material consents. Purchaser may
not waive the existence or operation of any Right of First Refusal and shall
provide Vendor with its bona fide allocations of the portion of the Purchase
Price allocated to the Asset subject to a Right of First Refusal. Thereafter,
Vendor shall promptly serve all notices required by the applicable Right of
First Refusal utilizing Purchaser's allocations, if they are reasonable.
Purchaser shall, if requested by Vendor, provide access to such information,
analysis and calculations as may be necessary to justify such allocations. Each
such notice shall include particulars of this transaction and a request for a
waiver of the applicable Right of First Refusal.
6.2 EFFECTS OF RIGHTS OF FIRST REFUSAL. Notwithstanding anything to the
contrary, express or implied, Purchaser acknowledges and agrees that if any such
Rights of First Refusal are exercised by any other Person, then:
(a) the Assets subject thereto shall be excluded from this Agreement,
without any liability of either Party to the other, and the Purchase
Price shall be adjusted downward by the aggregate amount by which such
Assets are purchased by such Persons pursuant to the agreements
granting the Rights of First Refusal;
(b) the Purchase Price shall be reallocated among the Petroleum and
Natural Gas Rights, Tangible Interests and Miscellaneous Interests as
required; and
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(c) the items "Assets", "Lands", "Documents of Title", "Miscellaneous
Interests", "Petroleum and Natural Gas Rights" and "Tangible
Interests" shall be construed as meaning only that portion of the
subject matter of these terms with respect to which Closing occurs.
6.3 RIGHT OF TERMINATION. In the event the value of the Assets subject to
exercised Rights of First Refusal or for which material consents have been
received exceeds thirty-five (35%) percent of the Purchase Price, then
Purchaser may terminate this Agreement by written notice to Vendor. In such
case, neither Party shall have any further obligation under this Agreement to
the other except for those specified in Article 9.
NOTWITHSTANDING THE PROVISIONS SET FORTH IN CLAUSE 3.5, IN THE EVENT THE
VALUE OF THE RIGHTS OF FIRST REFUSAL WHICH ARE EXERCISED BY THIRD PARTIES,
EXCEED THIRTY-FIVE (35%) PERCENT OF THE PURCHASE PRICE AND THE PURCHASER ELECTS
NOT TO PROCEED WITH CLOSING, THE DEPOSIT SHALL BE RETURNED TO THE PURCHASER.
7. CLOSING CONDITIONS
7.1 PURCHASER'S CONDITIONS. The obligation of Purchaser to complete the
purchase of the Assets on the Closing Date, shall be subject to the fulfilment
of each of the following conditions precedent by the times set forth below or
if not stated, at, or prior to, the Closing Date:
(a) MATERIAL COMPLIANCE OF REPRESENTATIONS AND WARRANTIES AND OFFICER'S
CERTIFICATE. All of the representations and warranties of Vendor made
in this Agreement shall be true and correct in all respects as of the
Closing Date, and Vendor shall have delivered to Purchaser officer's
certificates in the form of Schedule "B" and dated as of the Closing
Date;
(b) MATERIAL COMPLIANCE BY VENDOR. Vendor shall have performed or complied
with, in all material respects, the terms and conditions of this
Agreement to the extent they are to be performed at or prior to the
Closing Date;
(c) DELIVERY OF CONVEYANCE DOCUMENTS. Vendor shall have executed and
delivered to Purchaser the Conveyance Documents;
(d) ENVIRONMENTAL MATTERS. On or before close of business on the fifth
Business Day prior to the Closing Date, Purchaser shall have satisfied
itself, acting reasonably, that no outstanding material Environmental
Damage is associated with the Assets. Unless written notice of
outstanding material Environmental Damage is given by Purchaser to
Vendor on or prior to the third Business Day prior to the Closing
Date, Purchaser shall be deemed to have satisfied itself in respect of
Environmental Damage. Vendor shall not be
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required to conduct or pay for any environmental audit, but, if
Purchaser elects to conduct its own environmental audit, it shall
provide a copy of such report, without charge, to Vendor;
(e) NO SUBSTANTIAL DAMAGE. From the Effective Date to the Closing Date, no
substantial physical damage shall have occurred to the Assets which
would have a material adverse effect on the aggregate value of the
Assets;
(f) NO SECURITY INTERESTS. Purchaser receiving registrable discharges or
letters of no interest from the respective lender in respect of any
and all security interests which are registered against the Assets, or
any part thereof, and which are not to be assumed by Purchaser; and
(g) RIGHTS OF FIRST REFUSAL. No Rights of First Refusal relating to the
Assets shall remain in effect as of the Closing Date, either having
been exercised by the holder thereof or having been waived by the
holder thereof or having expired prior to the Closing Date, after
proper notice being given.
The foregoing conditions are inserted for the sole benefit of Purchaser. In the
event that any of the foregoing conditions are not fulfilled or met at or prior
to the Closing Date, Purchaser may terminate this Agreement by notice to
Vendor, and in that event Purchaser shall be released from all obligations,
other than those specified in Article 9, and unless Purchaser can show that the
condition or conditions, the non-performance thereof by Vendor has caused
Purchaser to terminate this Agreement, are or were reasonably capable of being
performed by Vendor, then Vendor shall also be released from all obligations,
except those specified in Article 9; provided that any condition may be waived
in writing, in whole or in part, by Purchaser without prejudice to its right of
termination in the event of non-fulfilment of any other condition or
conditions. After the Closing Date, Purchaser may not rescind or terminate this
Agreement and Purchaser's remedies, if any, shall be limited to damages:
7.2 VENDOR'S CONDITIONS. The obligation of Vendor to complete the sale of the
Assets on the Closing Date shall be subject to the fulfilment of each of the
following conditions precedent at or prior to the Closing Date:
(a) MATERIAL COMPLIANCE OF REPRESENTATIONS AND WARRANTIES AND OFFICERS'
CERTIFICATE. All of the representations and warranties of Purchaser
made in this Agreement shall be true and correct in all material
respects as of the Closing Date, and Purchaser shall have delivered to
Vendor an officer's certificate in the form of Schedule "B" and dated
as of the Closing Date;
(b) MATERIAL COMPLIANCE BY PURCHASER. Purchaser shall have performed or
complied with,
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in all material respects, the terms and conditions of this Agreement
to the extent they are to be performed at or prior to the Closing
Date;
(c) DELIVERY OF DOCUMENTS. Purchaser shall have executed and delivered to
Vendor at least one copy of the Conveyance Documents;
(d) TENDER OF PURCHASE PRICE. Purchaser shall have tendered to Vendor, in
the form stipulated herein, the Purchase Price together with an amount
equal to the Interim Adjustments payable to Vendor;
(e) RIGHTS OF FIRST REFUSAL. No Rights of First Refusal relating to the
Assets shall remain in effect as of the Closing Date, either having
been exercised by the holder thereof or having been waived by the
holder thereof or having expired at least seven (7) days prior to the
Closing Date, after proper notice being given.
The foregoing conditions are inserted for the sole benefit of Vendor. In the
event that any of the foregoing conditions are not fulfilled or met at or prior
to the Closing Date, Vendor may terminate this Agreement by notice to Purchaser,
and in that event Vendor shall be released from all obligations, except those
specified in Article 9, and unless Vendor can show that the condition or
conditions the non-performance thereof by Purchaser has caused Vendor to
terminate this Agreement, are or were reasonably capable of being performed or
caused to be performed by Purchaser, then Purchaser shall also be released from
all obligations except those specified in Article 9; provided that any condition
may be waived in whole or in part by Vendor without prejudice to its right of
termination in the event of non-fulfilment of any other conditions. After the
Closing Date, Vendor may not rescind or terminate this Agreement and Vendor's
remedies, if any, shall be limited to damages.
7.3 DILIGENCE WITH RESPECT TO CONDITIONS. Each Party shall proceed diligently,
honestly and in good faith and use reasonable efforts in order to satisfy its
respective conditions set forth in Article 7.
8. MAINTENANCE OF ASSETS
8.1 LIMITATIONS ON VENDOR. From the Effective Date hereof until the Closing
Date, and after the Closing Date, until Purchaser is novated into any Documents
of Title governing the Assets and, to the extent the nature of Vendor's
interest permits and subject always to all terms and conditions of the
Documents of Title, Vendor:
(a) shall, to the extent it is operator of the Assets, maintain and
operate the Assets in a proper and prudent manner in accordance with
generally accepted oil and gas practices and procedures, provided that
Vendor shall have no responsibility to maintain or obtain insurance
with respect to the Assets from and after Closing;
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(b) shall not, without the prior written consent of Purchaser:
i) voluntarily assume or initiate any obligation, or make any
commitment with respect to the Assets, the Vendor's share of
which with respect to any single item is estimated to exceed
twenty-five thousand Dollars ($25,000.00) or with respect to any
project or proposal, if Vendor's share of the cost of the project
or proposal is estimated to exceed twenty-five thousand Dollars
($25,000.00);
ii) surrender or abandon any of the Assets;
iii) amend any Document of Title or enter into any new agreement of a
material nature, respecting the Assets;
iv) sell any of the Assets, except sales of the production of
Petroleum Substances in the ordinary course of business;
v) except for Permitted Encumbrances, encumber any of the Assets; or
vi) exercise any Rights of First Refusal or area of mutual interest
option arising out of the Assets.
except Vendor may without the prior written consent of Purchaser exceed the
guidelines set forth in Clause 8.1 (b) i), if reasonably required to protect
life or property in an emergency situation, to comply with laws or to preserve
the value of the Assets if proper and prudent and in accordance with generally
accepted oil and gas practices and procedures, in which case, Vendor shall
promptly notify Purchaser of such action and the estimated cost thereof.
8.2 LIMITATION ON PURCHASER. Until the Closing Date, Purchaser shall not be
entitled to propose to Vendor, or to cause Vendor to propose to others, the
conduct of any operations, or the exercise of any right or option in relation to
the Assets, except with the written consent of Vendor which may be withheld at
Vendor's sole discretion. Vendor shall give prompt notice of any proposal made
to it to Purchaser.
8.3 AFTER CLOSING. After Closing and until novation is completed with respect
to the applicable Documents of Title governing any particular Asset, the
following shall apply with respect to those Assets for which novation is not
completed:
(a) Vendor shall promptly forward to Purchaser all information and
documents it receives from others with respect to such Assets;
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(b) Vendor shall promptly remit to Purchaser, after having received from
others, all revenues (less expenses paid by Vendor), which have
accrued after the Effective Date in respect of such Assets; and
(c) Vendor shall make such elections and respond to all notices received
in respect of such Assets in accordance with the instructions of
Purchaser, provided Vendor may, but shall not be obliged to, follow
instructions it reasonably believes to be harmful or unlawful or in
conflict with the applicable agreement.
(d) In a timely manner, Purchaser shall provide Vendor with copies of any
information, etc., pertaining to Alberta gas cost allowance which it
has filed for the year ending December 31, 2000.
8.4 RATIFICATION OF VENDOR'S ACTIONS. From and after the Effective Date and
until Purchaser is novated into such Documents of Title, Vendor shall be deemed
to be agent of Purchaser and Purchaser ratifies all actions taken or lack of
action taken by Vendor in connection with the Assets on behalf of Purchaser in
accordance with the terms and provisions of this Agreement other than those
actions for which Vendor has been grossly negligent or where Vendor is guilty of
wilful misconduct. Any act or omission of Vendor, its directors, agents or
employees, shall not be considered gross negligence or wilful misconduct if done
or omitted in accordance with the instructions or written concurrence of
Purchaser.
8.5 PURCHASER LIABILITY AND INDEMNITY TO VENDOR. If Closing occurs, Purchaser
hereby agrees:
(a) to be liable to Vendor, its directors, agents and employees, for all
losses, costs, damages and expenses which Vendor, its directors,
agents or employees, may suffer, sustain, pay or incur; and, in
addition
(b) to indemnify and save harmless Vendor, its directors, agents and
employees, from and against all liabilities, losses, costs (including
legal costs on a solicitor/client basis), claims, damages and expenses
which may be brought against or suffered by Vendor or its directors,
agents or employees, in relation to operations as a result of Vendor
maintaining the Assets from and after the Effective Date as agent for
Purchaser pursuant to this Article 8, provided such liability, loss,
cost (including legal costs on a solicitor/client basis), claim,
damage, or expense is not a direct result of the gross negligence or
wilful misconduct of Vendor, its directors, agents or employees. Any
act or omission of Vendor, its directors, agents or employees, shall
not be considered gross negligence or wilful misconduct if done or
omitted in accordance with the instructions or concurrence of
Purchaser.
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9. CONFIDENTIALITY OF PURCHASER
9.1 CONFIDENTIALITY. Until the Closing Date, or in the event of termination of
this Agreement without consummation of the transactions contemplated herein,
Purchaser shall keep confidential all information respecting the Assets obtained
from Vendor. Such confidential information respecting the Assets shall be used
only for the purposes of this acquisition and disclosed only to those of its
employees, agents, legal counsel, accountants or other representatives on a
"need to know" basis. Upon Closing, Purchaser's rights to use or disclose such
information shall be subject only to confidentiality provisions contained in any
operating or other existing agreements that may apply thereto in respect of the
Assets. Any information obtained as a result of such access which does not
relate to the Assets shall continue to be treated as confidential and shall not
be used by Purchaser without the prior written consent of Vendor. The
restrictions on disclosure and use of information obtained in connection with
this Agreement shall not apply to information, to the extent it:
(a) is or becomes publicly available through no act or omission of
Purchaser or its employees, agents, consultants, advisors or other
representatives;
(b) is subsequently obtained lawfully from a Person who, after reasonable
inquiry, Purchaser does not know is bound to Vendor to restrict the
use or disclosure of such information;
(c) is already in Purchaser's possession at the time of disclosure,
without any restriction on its disclosure; or
(d) is required to be disclosed pursuant to the applicable legislation,
regulations, or rules or by the direction of any court, tribunal or
administrative body having jurisdiction.
Specific items of information shall not be considered to be in the public
domain merely because more general information respecting the Assets is in the
public domain.
9.2 PURCHASER'S REPRESENTATIVES. If Purchaser employs consultants, advisors or
agents to assist in its review of the items listed in Clause 5.1, Purchaser
shall be responsible to Vendor for ensuring that such consultants, advisors and
agents comply with the restrictions on the use and disclosure of information
set forth in Clause 9.1 and Purchaser shall be liable to Vendor for all
damages, costs or expenses Vendor may suffer or incur as a result of any
unauthorized use or disclosure of such confidential information in
contravention of this Clause 9.2 by such representatives of Purchaser.
9.3 RETURN OF CONFIDENTIAL INFORMATION. If Closing does not occur and this
Agreement is terminated, then all documents, working papers and other written
material obtained from Vendor in connection with this Agreement shall be
returned to Vendor forthwith. No copies of such information are to be retained
by Purchaser.
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9.4 CONFIDENTIALITY AGREEMENT. The obligations of the Purchaser pursuant to
this Article are in addition to and not in substitution for the obligations
of the Purchaser under the certain confidentiality agreement made as of
February 3, 2000 between the Vendor and the Purchaser with respect to
information pertaining to the Assets.
10. REPRESENTATIONS AND WARRANTIES OF VENDOR
10.1 REPRESENTATIONS AND WARRANTIES OF VENDOR. Vendor hereby represents and
warrants to Purchaser that:
(a) STANDING. It is a corporation duly organized and validly existing
under the laws of its jurisdiction of incorporation and in good
standing under the laws of the jurisdiction in which it is required to
be registered in order to hold the Assets;
(b) REQUISITE AUTHORITY. It has all necessary corporate power, authority
and capacity to enter into and execute this Agreement, to sell the
Assets and to perform its other obligations under this Agreement;
(c) NO CONFLICTS. The execution and delivery of this Agreement and the
consummation of the transactions contemplated by this Agreement will
not violate, nor be in conflict with, its charter, bylaws or similar
constating documents of Vendor, or any provision of any agreement or
instrument of a material nature to which it is a party or is bound, or
any judgement, decree, order, statute, rule or regulations applicable
to it and of which it is aware is in effect in Alberta, except
requirements of Documents of Title to obtain consents of other Persons
who are parties thereto to the sale of the Assets pursuant hereto;
(d) EXECUTION AND ENFORCEABILITY OF DOCUMENTS. This Agreement has been
duly executed and delivered by it and all other documents required
hereunder to be executed and delivered by it at Closing pursuant
hereto shall be duly executed and delivered. This Agreement does, and
such documents will, constitute legal, valid and binding obligations
of it enforceable in accordance with their respective terms, subject
to the qualification that their enforceability may be limited by rules
of equity and by insolvency, bankruptcy and other laws of general
application affecting the enforcement of creditors' rights;
(e) FINDER'S FEES. It has not incurred any obligation or liability,
contingent or otherwise, for brokers' or finders' fees in respect of
this transaction for which Purchaser shall have any obligation or
liability;
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(f) LAWSUITS. To its Knowledge, based upon an examination of its records,
no suit, action or other proceeding is in existence, pending or
threatened against or by it before any court or governmental agency
which would materially adversely affect, Vendor's title to or
ownership of the Assets or the values of the Assets;
(g) CANADIAN RESIDENT. It is not a non-resident of Canada within the
meaning of the Income Tax Act (Canada);
(h) ENCUMBRANCES. The Assets will, to its Knowledge, at the Closing Date,
be free and clear of all liens, encumbrances and adverse claims
created by, through or under it except for the Permitted Encumbrances,
those Title Defects waived by Purchaser and as otherwise set out on
Schedule "A" hereto;
(i) KNOWLEDGE OF DEFAULT. To its Knowledge based upon an examination of
its records, it has not received notice of any material default under
any Documents of Title which default is continuing as of the Closing
Date and where such default would adversely impact upon the value of
the Assets or any part thereof or subject the Documents of Title to
cancellation or termination;
(j) PRODUCTION CONTRACTS. Except as set forth in Schedule "E", there are
no production sales agreements or arrangements under which it, or any
Person acting on its behalf, is obligated to sell or deliver Petroleum
Substances allocable to the Petroleum and Natural Gas Rights to any
Person, other than contracts which are terminable on less than
thirty-two (32) days' notice;
(k) TAKE OR PAY AMOUNT. To its Knowledge, there are no Take or Pay Amounts
outstanding as of the Effective Date;
(l) REDUCTION OF INTEREST. Except for Permitted Encumbrances and as
disclosed in the Documents of Title, to its Knowledge, the Petroleum
and Natural Gas Rights are not subject to reduction by virtue of the
conversion or other alteration of the interest of any Person under
existing agreements created by, through or under Vendor;
(m) GOOD STANDING UNDER AGREEMENTS. To its Knowledge based upon an
examination of its records, it is not in breach in any material
respect under any material agreements and instruments having
application to the Assets or any part thereof to which it is a party
or is bound;
(n) NET CARRIED INTERESTS. Except as disclosed in the Documents of Title,
to its Knowledge based upon an examination of its records, there are
no carried interests whereby it is
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obligated to pay a share of the costs associated with any of the
Assets attributable to the interest of another Person;
(o) PRODUCTION PENALTY. Except as disclosed in Schedule "A", to its
Knowledge based upon an examination of its records, the Wells related
to the Lands are not subject to a production penalty (under Article X
of CAPL Operating Procedure) whereby the production proceeds allocable
to Vendor's interest are payable to a third party until an amount
calculated in respect of certain costs and expenses paid by such third
party are recovered by such third party;
(p) QUIET ENJOYMENT. Subject to the other representations of Vendor
pursuant hereto and to the rents, covenants, conditions and
stipulations in the Documents of Title reserved and contained on the
lessee's or holder's part thereunder to be paid, performed and
observed, Purchase may enter into and upon and hold and enjoy the
Assets for the residue of their respective term thereof for its own
use and benefit without any lawful interruption of or by Vendor or any
other Person claiming by, through or through Vendor except pursuant
to or in respect of Permitted Encumbrances and those Title Defects
waived by Purchaser;
(q) PAYMENT OF TAXES. To its Knowledge based upon an examination of its
records, all ad valorem, property, production, severance and similar
taxes and assessments based on or measured by the ownership of the
Assets or the production of Petroleum Substances from the Lands or the
receipt of proceeds therefrom payable by it to the Effective Date have
been paid and discharged;
(r) LAWS. To its Knowledge, it has not received notice of default in any
material respect of any decrees, statutes and regulations of
governmental authorities which relate to the Assets, the default or
failure of which would have a material adverse effect on the value of
the Assets or any part thereof;
(s) JUDGEMENTS AND LAWS. To its Knowledge, Vendor is not in default of any
judgement, order, writ, injunction or decree of any court, government
department, commission or other administrative agency and it is, to
its Knowledge, substantially complying, in all material respects, with
all decrees, statutes and regulations of governmental authorities,
the default or failure of which by it would have an adverse effect on
the value of the Assets or any part thereof;
(t) ENVIRONMENTAL MATTERS. To its Knowledge, based upon an examination of
its records, it has not received:
i) any orders or directives which relate to environmental matters
and which require any work, repairs, construction or capital
expenditures with respect to the Assets;
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ii) any demand or notice with respect to the breach of any
environmental law applicable to the Assets, including, without
limitation, any regulations respecting the use, storage,
treatment, transportation or disposition of petroleum substances
or contaminants; or
iii) notice from the operator advising of operator's non-compliance
with any laws applicable to the Assets including without
limitation any regulations respecting the use, storage,
treatment, transportation or disposition of petroleum substances
or contaminants;
which orders, directives, demands or notices remain outstanding as of
the Closing Date;
(u) ENVIRONMENTAL CLAIMS. To its Knowledge base upon an examination of its
records, Vendor has not received any notice of any claim by any third
party (including governmental authorities) of pollution or other
Environmental Damage arising from drilling, production or similar
operations on the Lands or lands pooled or unitized therein or of any
claim requesting that any action be taken to prevent pollution or
other Environmental Damage from drilling, production or other
operations on the Lands or lands pooled or unitized therewith which
notice or claim remains outstanding as of the date hereof;
(v) OIL AND GAS FIELD PRACTICE. To its Knowledge, where Vendor was the
operator at the relevant time, the Wells related to the Lands have, in
all material respects, been drilled and if completed, completed and if
abandoned, abandoned in compliance with all statutes, rules and
regulations existing at the relevant time;
(w) RIGHTS OF FIRST REFUSAL. To its Knowledge, based upon an examination
of its records, no Rights of First Refusal relating to the Assets
shall remain in effect as of the Closing Date, either having been
waived or exercised by the holder thereof or having expired after
proper notice being given;
(x) OUTSTANDING AFE'S. Other than as disclosed in Schedule "F", there are
no authorizations for expenditures or other financial commitments or
expenditures approved by it or payable by it with respect to the
Assets pursuant to which amounts in excess of twenty-five thousand
Dollars ($25,000.00) may become payable after the date hereof and
there are no outstanding cash calls in excess of twenty-five thousand
Dollars ($25,000.00) with respect to the Assets;
25
<PAGE> 26
(y) DISCLOSURE OF DOCUMENTS. To its Knowledge, all documents and
agreements affecting the title to the Assets or production of revenue
from the Assets will have been made available by Vendor to Purchaser;
(z) ROYALTIES. All royalties payable by Vendor in respect of the
Petroleum and Natural Gas Rights have been properly paid as of the
Effective Date.
10.2 NO WARRANTY OF TITLE. Except as specifically set forth Article 10, Vendor
does not warrant title to the Assets or purport to convey any better title than
it now has or is entitled to receive.
10.3 NO OTHER VENDOR WARRANTIES. Vendor makes no warranty whatsoever except as
and to the extent set forth in Clause 10.1. Without limiting the generality of
the foregoing, Vendor does not make any representation or warranty with respect
to:
(a) the quality, quantity or recoverability of the Petroleum Substances
within or under the Lands or any lands pooled or unitized therewith;
(b) the value of the Assets or the future revenues applicable thereto;
(c) any economic evaluations respecting the Assets; or
(d) the quality, condition, merchantability or serviceability of all or
any of the Tangible Interests, or their suitability for any
particular purpose.
11. REPRESENTATIONS AND WARRANTIES OF PURCHASER
11.1 REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser hereby represents
and warrants to Vendor that:
(a) STANDING. It is a corporation duly organized and validly existing
under the laws of its jurisdiction of incorporation and in good
standing under the laws of the jurisdiction in which it is required
to be registered in order to hold the Assets;
(b) REQUISITE AUTHORITY. It has all necessary corporate power, authority
and capacity to enter into this Agreement and to purchase and pay for
the Assets, on the terms described herein and to perform its other
obligations under this Agreement;
(c) NO CONFLICTS. The execution and delivery of this Agreement and the
consummation of the transactions contemplated by this Agreement will
not violate nor be in conflict with its charter, bylaws or similar
constating documents of it, or any provision of any
26
<PAGE> 27
agreement or instrument to which it is a party or is bound, or any
judgement, decree, order, statute, rule or regulation applicable to
Purchaser in effect in Alberta of which it is aware;
(d) EXECUTION AND ENFORCEABILITY OF DOCUMENTS. This Agreement has been
duly executed and delivered by it and all other documents required
hereunder to be executed and delivered by it at Closing pursuant
hereto shall be duly executed and delivered. This Agreement does, and
such documents will, constitute legal, valid and binding obligations
of it enforceable in accordance with their respective terms, subject
to the qualification that their enforceability may be limited by
rules of equity and by insolvency, bankruptcy and other laws of
general application affecting the enforcement of creditors' rights;
(e) FINDER'S FEES. It has not incurred any liability, contingent or
otherwise, for brokers' or finders' fees in respect of this
transaction for which Vendor shall have any obligation or liability;
(f) THE INVESTMENT CANADA ACT. Either it is not a "non-Canadian" as such
term is defined in The Investment Canada Act, or, if it is such
"non-Canadian", then either the transaction herein is not notifiable
or reviewable under such Act or such Party will make application to
satisfy the requirements of such Act so that the transaction herein
provided for may be completed on the Closing Date without
contravention of the Act;
(g) PURCHASER AS PRINCIPAL. It is acquiring the Assets in its capacity as
a principal;
(h) FINANCING CAPABILITY OF PURCHASER. It either now has or will have at
Closing sufficient funds to close the transactions hereby
contemplated upon the Closing Date, and
(i) COMPETITION AND SECURITIES ACTS. It has complied with the Competition
Act (Canada) and the relevant Securities Acts to the extent
applicable to the transaction herein;
(j) TRANSFER OF WELL LICENCES. To its Knowledge, Purchaser is not in
breach of any orders or directives of the Alberta Energy Utilities
Board ("AEUB"), nor is Purchaser aware of any other matter, which
would result in an undue delay or an inability to register the
transfer of well licences for the Wells.
11.2 PURCHASER'S OWN EXAMINATION AND EVALUATION. Without detracting from
Purchaser's reliance on Vendor's representation and warranties in Clause 10.1,
Purchaser acknowledges that as of the Closing Date it will have made its own
independent investigation, analysis, evaluation and inspection of Vendor's
interest in the Assets, including a review of Vendor's title thereto and the
state and condition thereof, and will have relied on its own investigation,
analysis, evaluation and inspection as to its assessment of the condition,
quantum and value of the Assets and Vendor's title thereto.
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<PAGE> 28
11.3 OPERATORSHIP. Purchaser acknowledges that nothing in this Agreement shall
be construed to be an assurance by Vendor that Purchaser will be able to serve
as operator of any of the Assets, whether or not such Assets are presently
operated by Vendor provided that Vendor shall cooperate and provide reasonable
assistance to Purchaser in becoming operator of the Assets.
11.4 GAS COST ALLOWANCE. Vendor and Purchaser shall co-operate in the timely
preparation of gas cost allowance filings which may be required of the parties
from time to time. Purchaser agrees to do such reasonable things in a timely
manner, as Vendor may request, to provide to Vendor or to the Crown information
required by Vendor by such filings.
12. SURVIVAL OF REPRESENTATIONS AND WARRANTIES
12.1 DATES REPRESENTATIONS AND WARRANTIES APPLY. The representations and
warranties of the Parties set forth in Clauses 10.1 and 11.1 shall be true or
performed, as the case may be, as at the Effective Date and the Closing Date.
12.2 LIMITATION OF LIABILITY. The representations and warranties contained
herein shall survive the Closing Date, notwithstanding the Closing and delivery
of any covenants, representations and warranties in any other agreements prior
or subsequent thereto, and shall remain in full force and effect for the benefit
of Purchaser with respect to Clause 10.1 and for the benefit of Vendor with
respect to Clause 11.1, but no claim or action in respect of any breach of such
representation or warranty shall be made unless the Party making such claim or
bringing such action has given notice of such claim (including reasonable
particulars of the misrepresentations or breach) to the other within twelve (12)
months following the Closing Date. Notwithstanding any other provision of this
Agreement:
(a) a Party shall not be entitled to any payment from the other Party for
breach of any covenants, representations or warranties referred to in
Clauses 10.1 and 11.1 for misrepresentation pursuant to this
Agreement or for indemnification pursuant to Clause 13.1, unless a
claim(s) by such Party exceeds in aggregate Two Thousand Five Hundred
Dollars ($2,500.00); and
(b) the maximum aggregate liability of Vendor to Purchaser for any
breaches of any covenants, representations or warranties referred to
in Clause 10.1, for misrepresentation pursuant to this Agreement and
in respect of any claims for indemnity pursuant to Clause 13.1, shall
not in any event exceed the Purchase Price, except in the event of
fraud on the part of the Vendor.
12.3 KNOWLEDGE BY PURCHASER. Purchaser shall have no remedy or cause of action
for a breach of representation or warranty for any circumstance, matter or thing
actually known to Purchaser, with Knowledge as defined in Clause 1.1(q).
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<PAGE> 29
12.4 NOT TRANSFERABLE. The representations and warranties set forth in Clauses
10.1 and 11.1 are made for the exclusive benefit of Purchaser and Vendor, as the
case may be, and are not transferable and may not be the subject of any rights
of subrogation in favour of any other Person.
13. INDEMNITY
13.1 INDEMNITY OF VENDOR. Subject to Clauses 12.2 and 13.4, Vendor shall
indemnify Purchaser and its directors, employees and agents from and
against all Losses which Purchaser, its directors, employees or
agents, pays or pay to third parties as a consequence of a breach,
as of the Closing Date, of any representations and warranties of
Vendor contained in Clause 10.1 of this Agreement, excepting any
Losses, if and to the extent caused by the gross negligence or
wilful default of Purchaser, its successors, agents or assigns. The
indemnity granted by Vendor in this Clause 13.1 is not a title
warranty and does not provide an extension of any representation or
warranty contained in Clause 10.1 or any additional remedy with
regard to the breach by Vendor of any representation or warranty.
Furthermore, the indemnity of Vendor to Purchaser granted pursuant
to this Clause 13.1 shall only apply to claims of indemnity made by
Purchaser to Vendor by giving written notice to Vendor within twelve
(12) months following the Closing Date and, in any event, the
maximum aggregate liability and indemnity of Vendor to Purchaser for
Losses suffered by Purchaser pursuant hereto and as a result of any
breaches of any representations or warranties shall not exceed the
Purchase Price, except in the event of fraud on the part of the
Vendor.
13.2 PURCHASER'S LIABILITY AND INDEMNITY TO VENDOR. If Closing occurs and in
addition to indemnity under Clause 8.5, Purchaser hereby agrees:
(a) to be liable to Vendor, its directors, agents and employees, for all
Losses which Vendor, its directors, agents or employees, pay, suffer,
sustain or incur, and, in addition
(b) to indemnify and save harmless Vendor, its directors, agents and
employees, from and against all Losses which may be brought against
or suffered by Vendor, its directors, agents or employees.
in relation to the Assets and arising out of or in connection with operations
which arise on or subsequent to the Effective Date, excepting any Losses if,
and to the extent, caused by the gross negligence or wilful default of Vendor or
its agents or arise as a result of a breach by Vendor of any of the terms of
this Agreement.
13.3 PURCHASER'S ASSUMPTION OF ENVIRONMENTAL DAMAGE AND ABANDONMENT AND
RECLAMATION OBLIGATION. Purchaser acknowledges that it has been given the
opportunity to inspect the Assets prior to
29
<PAGE> 30
Closing Date; that it is familiar with the condition of the Assets, and that it
is acquiring the Assets on an "as is" basis. Upon the Effective Date, Purchaser
assumes the entire responsibility and liability for all Losses which Vendor may
suffer, sustain or incur, and, in addition shall indemnify and save harmless
Vendor and its directors, employees and agents from and against all Losses which
may be brought against Vendor or which Vendor, its directors, employees or
agents, may suffer, sustain or incur in connection with or as a result of each
and every act or omission, matter or thing related to the Assets done, omitted,
occurring or accruing on, prior to or subsequent to the Effective Date with
respect to any Environmental Damage or any Abandonment and Reclamation
Obligation and without regard to how to who caused such Losses, except, subject
to the provisions of Clause 12.2 to the extent that same relate to inaccuracies
or failure of the representations and warranties set forth in Clause 10.1.
13.4 LOSSES. For the purpose of this Article 13, "Losses" means losses, costs,
claims, damages, expenses and liabilities and includes, without limitation,
legal costs on a solicitor and client basis.
14. ONGOING COVENANTS OF PURCHASER
14.1 DOCUMENTS OF TITLE. On and after the Closing Date, Purchaser agrees with
Vendor it shall be bound by, observe and perform, as they become due, all
covenants, obligations and liabilities respecting the Assets, including, without
limitation, the performance of all obligations of Vendor under the Documents of
Title and other agreements respecting the Assets.
14.2 VENDOR'S ACCESS TO RECORDS. On and after the Closing Date, Purchaser
hereby agrees to allow Vendor, its employees, agents, legal counsel, accountants
and other representatives, to have access to the premises of Purchaser during
normal business hours of Purchaser in order to inspect and take copies of such
information delivered by Vendor to Purchaser in accordance with Clause 5.1, if
reasonably required by Vendor, in connection with any joint venture or Crown
audit, any potential or threatened legal or administrative proceeding by or
against Vendor in relation to the Assets, or to enable Vendor to comply with a
law or the requirement of any governmental authority. Nothing herein shall
prevent Vendor from making and retaining copies of any such documents at any
time. Vendor shall hold all information and documents confidential and that same
shall only be used by Vendor for the purpose specified by Vendor.
14.3 INITIATION OF AUDITS. On and after the Closing Date up until Final
Adjustments are made, Purchaser shall advise Vendor of the initiation and
results of any joint venture or Crown audit in relation to the Assets to the
extent it relates to any matters accruing prior to the Effective Date.
15. NO MERGER
15.1 NON-MERGER. The representations and warranties set forth in Clauses 10.1
and 11.1 and the indemnity set forth in Article 13 and the covenants in Article
14 shall be deemed to apply to all assignments, transfers and other Conveyance
Documents and there shall not be any merger of any
30
<PAGE> 31
representation, warranty, indemnity or covenant in such assignments, transfers
or other Conveyance Documents, notwithstanding any rule of law, equity or
statute to the contrary and all such rules are hereby waived.
16. NOTICE
16.1 METHOD OF NOTICE. Any notice, communication or other document (hereinafter
called "Notice") required or permitted to be given under this Agreement by one
Party to the other shall be in writing and shall be sufficiently given and
received if:
(a) personally served on the Person to whose attention the Notice is to be
addressed pursuant to Clause 16.2, at the time of actual delivery, or,
if delivered by hand to a responsible Person at the address of the
Party to which such Notice is directed, two (2) hours following
delivery to such Party; provided that if such time of deemed receipt
is not within the normal business hours of the recipient Party, then
such Notice shall be deemed received at the next commencement of
business on a day that business is normally conducted by the recipient
Party;
(b) sent by telecopy (or by any other like method of telefacsimile by
which a written message may be sent) and directed to the Person to
whose attention the Notice is to be addressed pursuant to Clause 16.2
at that Party's telecopier number set forth below, and such Notice so
given shall be deemed to have been received by the recipient, if the
time of transmission is stated, two (2) hours following the time so
stated; provided that if such time of deemed receipt is not within the
normal business hours of the recipient Party, then such Notice shall
be deemed received at the next commencement of business on a day that
business is normally conducted by the recipient Party; or
(c) mailed by first class registered post, postage prepaid, to the other
Party (such Notice so served shall be deemed to have been received by
the recipient Party on the fourth (4th) Business Day of such recipient
Party following the date of mailing thereof); provided that in the
event of an actual or threatened postal strike or other labour
disruption that may affect the mail service, Notices shall not be
mailed.
16.2 ADDRESS FOR NOTICE. The address for Notice for each of the Parties shall
be as follows:
VENDOR: PURCHASER:
Cabre Exploration Ltd. Westlinks Resources Ltd.
P.O. Box 630, Station "M" 370, 800 - 6 Avenue SW
Calgary, Alberta Calgary, Alberta
T2P 2J3 T2P 3G3
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<PAGE> 32
Attention: Vice President, Attention: Land Manager
Land and Contracts
Fax: (403) 262-5908 FAX: (403) 261-2704
16.3 CHANGES ADDRESS FOR NOTICE. Any Party may, from time to time, change its
address for Notice by giving written Notice to the other.
17. CABRE'S 100% PROPRIETARY SEISMIC
17.1 2-D AND 3-D PROPRIETARY (100%) SEISMIC. Within ten (10) business days
following Closing, Vendor shall provide Purchaser with copies of Vendor's
100% owned 2-D and 3-D proprietary Seismic Data. Such data which shall be
supplied by Purchaser to Vendor shall be restricted to the following:
(1) data which falls within a one mile perimeter surrounding the Lands as
set forth on the plat attached as Schedule "G" (EXCLUDING THE 3D
SEISMIC LABELLED AS "JHE-3D").
17.2 REPRODUCTION COSTS. In consideration of Vendor providing copies of the
aforesaid Seismic Data to Purchaser, all reproduction costs associated with
providing the foregoing copies of Seismic Data shall be payable by the Purchaser
to Vendor at Closing.
17.3 CONFIDENTIALITY. Purchaser shall keep the aforesaid Seismic Data strictly
confidential and shall not provide copies of the aforesaid Seismic Data to any
third party whatsoever without the express written consent of Vendor.
17.4 TITLE TO SEISMIC. The parties hereto specifically acknowledge that Vendor
is not assigning any right, title, estate or interest to the Purchaser in such
Seismic Data.
17.5 OPTION TO PURCHASE COPY OF 3-D SEISMIC "JHE-3D": FOR A 60 DAY PERIOD
FOLLOWING CLOSING, PURCHASER SHALL HAVE THE OPTION TO PURCHASE FROM VENDOR A
COPY OF THE 3-D SEISMIC PROGRAM LABELLED AS "JHE-3D" FOR A COST OF $177,000.00.
SUCH ELECTION SHALL BE MADE IN WRITING, WITH PAYMENT THEREFOR ACCOMPANIED WITH
SUCH ELECTION AND SUCH COPIES SHALL BE DELIVERED TO PURCHASER WITHIN FOURTEEN
CALENDAR DAYS. THE PROVISIONS OF CLAUSE 17.1, 17.2, 17.3 AND 17.4 HEREOF SHALL
APPLY MUTATIS MUTANDIS TO SUCH SEISMIC.
18. MISCELLANEOUS PROVISIONS
18.1 PUBLIC ANNOUNCEMENTS. No Party shall release any information concerning
this Agreement and the transaction herein provided for without the prior
written consent of Vendor, which will not be withheld unreasonably.
Nothing contained herein shall prevent any Party at any time from
furnishing information to any governmental agency or regulatory authority
or to the public if
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<PAGE> 33
required by applicable law or if such Party considers it to be advisable
in the circumstances, provided that the Parties shall advise each other in
advance of any public statement which they propose to make regarding the
said transaction. Nothing herein contained shall prevent Vendor from
furnishing information relating to the said transaction or the identity of
Purchaser in connection with the procurement of the consent of other
Persons or in sending notices concerning any Right of First Refusal where
required pursuant to any Documents of Title.
18.2 SIGNS AND NOTIFICATIONS. After Closing, Vendor shall remove any signs
which indicate Vendor's ownership or operation of the Assets. It shall be the
responsibility of Purchaser, where necessary, to erect or install any signs that
may be required by governmental agencies indicating Purchaser to be the owner of
the Assets and to notify contractors, governmental agencies and any other Person
of Purchaser's interest in the Assets.
18.3 HEADINGS AND DESCRIPTIONS. The headings of all Articles, Clauses and
Subclauses are inserted for convenience of reference only and shall not affect
the construction or interpretation of this Agreement, or any provision thereof.
Use of words "Article", "Clause" or "Subclause" in this Agreement refers to an
Article, Clause or Subclause of this Agreement unless a contrary intention is
specifically stated.
18.4 SINGULAR/PLURAL. Whenever the singular or masculine or neuter is used in
this Agreement or in the Schedules, it shall be interpreted as meaning the
plural or feminine or body politic or corporate or vice versa, as the context
requires.
18.5 CONFLICTS AND ENTIRE AGREEMENT. The provisions contained in all documents
and agreements collateral hereto shall at all times be read subject to the
provisions of this Agreement and, in the event of conflict between the
provisions contained in any documents or agreements collateral hereto and the
provisions of this Agreement, the provisions of this Agreement shall prevail
unless otherwise expressly provided herein.
18.6 WAIVER. Any waiver of any term or condition of this Agreement or consent
to any departure from this Agreement by one Party to the other shall be
effective only if in writing and only in the specific instance and for the
specific purpose for which it is given.
18.7 APPLICABLE LAW. This Agreement shall be construed and enforced in
accordance with the laws in effect in the Province of Alberta. Each Party
attorns to the jurisdiction of the courts of the Province of Alberta and all
courts of appeal therefrom.
18.8 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between
the Parties with respect to the transactions contemplated herein, contains all
of the representations and warranties of the respective Parties and supersedes
all prior agreements, documents, writing and verbal understandings between the
Parties with respect to the sale of the Assets.
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<PAGE> 34
18.9 AMENDMENTS. This Agreement may not be amended or modified in any respect,
except by written instrument executed by the Parties.
18.10 TIME OF THE ESSENCE. Time shall be of the essence of this Agreement and
of every part thereof.
18.11 FURTHER ASSURANCES. After Closing, the Parties shall do all things and
provide all assurances, as may be reasonably required to consummate the
transactions contemplated by this Agreement, and each Party shall provide those
further documents or instruments as may be reasonably required by the other
Parties to give effect to this Agreement and to carry out its provisions.
18.12 ASSIGNMENT. Prior to Closing, neither this Agreement nor any rights or
obligations under it shall be assignable by any Party without the prior written
consent of the other Parties. After the Closing Date, no assignment, transfer of
the Agreement of all or any portion of the Assets, by Purchaser shall relieve
Purchaser from the obligations to Vendor herein, unless Vendor otherwise agrees.
Subject thereto, this Agreement shall enure to the benefit of and be binding
upon the Parties, and their respective successors and permitted assigns.
18.13 COUNTERPART EXECUTION. This Agreement may be executed in counterpart and
all counterparts together shall form one binding Agreement.
IN WITNESS WHEREOF the parties have duly executed this Agreement as of
the date and year first above written.
VENDOR PURCHASER
CABRE EXPLORATION LTD. WESTLINKS RESOURCES LTD.
Per: /s/ R.G. Jensen Per: /s/ Peter R. Sekera
----------------------------- ------------------------------
R.G. Jensen -- Vice President,
Land and Contracts
Per: /s/ J.D. Kay Per:
----------------------------- -------------------------------
J.D. KAY -- President and Chief
Executive Officer
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<PAGE> 35
THIS IS SCHEDULE "A" TO AND FORMING PART OF A PURCHASE AND SALE AGREEMENT
BETWEEN CABRE EXPLORATION LTD., AS VENDOR, AND WESTLINKS RESOURCES LTD., AS
PURCHASER, MADE AS OF THE 6TH DAY OF APRIL, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
LANDS AND PETROLEUM
SUBSTANCES
------------------- VENDOR'S INTEREST ENCUMBRANCES
--------------------------- ---------------------------
</TABLE>
(computer lease record schedule -- see attached)
WELLS
<TABLE>
<CAPTION>
Correction to UWI UWI Description
<S> <C> <C> <C>
100100603603W400 CABRE PROVOST 10-6-36-3-W4 D&A
102123003703W400 CABRE (102) PROVOST 12-30-37-3 W4M D&A
(sometimes referred to as Cabre 12b Provost)
100143003703W400 CABRE PROVOST 14-30-37-03W4 D&A
100013103703W400 CABRE PROVOST 1-31-37-3W4M D&A
102053103703W400 CABRE ET AL 5B PROVOST 5-31-37-3W4M AB ZNE
102053103703W402 CABRE ET AL 5B PROVOST 5-31-37-3W4M H20SRC
100053103703W400 CABRE ET AL PROVOST 05C-31-037-03-W4M OIL
103053103703W400 104053103703W400 CABRE ET AL 5D PROVOST 05-31-037-03-W4M D&A
100113103703W400 CABRE ET AL PROVOST 11-31-37-3W4M OIL
(sometimes referred to as 11b-31)
102113103703W400 CABRE 11C PROVOST 11-31-37-3W4M OIL
105123103703W400 CABRE 12B2 PROVOST 12-31-37-3 W4M OIL
103123103703W400 CABRE ET AL PROVOST 12D-31-37-3 W4M OIL
104123103703W400 CABRE 12D2 PROVOST 12-31-37-3 W4M OIL
102123103703W400 CABRE ET AL PROVOST 12A-31-37-3 W4M H2OINJ
100123103703W400 CABRE ET AL PROVOST 12B-31-37-3 W4M OIL
100143103703W400 CABRE ET AL PROVOST 14-31-37-3 W4M OIL
</TABLE>
35
<PAGE> 36
<TABLE>
<CAPTION>
Correction to UWI UWI Description
<S> <C> <C> <C>
100161003704W400 CHAUVCO PROVOST 16-10-037-041-W4M POTGAS
100141503704W400 CHAUVCO ET AL PROVOST 14-15-037-04-W4M D&A
100112203704W40 INVERNESS ET AL PROVOST 11-22-037-04-W4M D&A
100162203704W400 INVERNESS ET AL PROVOST 16-22-037-04-W4M D&A
1A0132303704W400 STRATH ET AL PROVOST 13A-23-37-4-W4M LOC
100132303704W40 1B0132303704W40 INVERNESS ET AL PROVOST 13C-23-037-04-W4M OIL
1B2132303704W40 1C0132303704W40 INVERNESS ET AL PROVOST 13B-23-037-04-W4M OIL
1D0132303704W40 FCPI ET AL 13D PROVOST 13-23-37-4-W4 SUSP
1B0142303704W40 INVERNESS ET AL PROVOST 14-23-037-04-W4M D&A
(sometimes referred to as 14b-23)
1C0152303704W40 INVERNESS ET AL PROVOST 15-23-037-04-W4M OIL
100102403704W40 INVERNESS ET AL PROVOST 10-24-037-04-W4M D&A
100142403704W40 INVERNESS ET AL PROVOST 14-24-037-04W4M D&A
1B0022603704W400 INVERNESS ET AL PROVOST 2B-26-037-04-W4M D&A
1A0042603704W400 INVERNESS ET AL PROVOST 4A-26-037-04-W4M D&A
1C0042603704W400 INVERNESS ET AL PROVOST 4C-26-037-04-W4M OIL
1D0042603704W400 INVERNESS ET AL PROVOST 4D-26-037-04-W4M OIL
100042603704W400 1B0042603704W400 INVERNESS ET AL PROVOST 4B-26-037-04-W4M OIL
1A0052603704W40 INVERNESS ET AL PROVOST 5A-26-037-04-W4M OIL
1C0052603704W400 INVERNESS ET AL PROVOST 5C-26-037-04-W4M OIL
1B0052603704W400 INVERNESS ET AL PROVOST 5B-26-037-04-W4M OIL
1D0052603704W400 FCPI ET AL 5D PROVOST 5-26-37-4 W4M OIL
100062603704W400 FCPI ET AL 6C PROVOST 6-26-37-4W4M D&A
(sometimes referred to as just 6-26)
1C0112603704W400 FCPI ET AL PROVOST 11C-26-37-4 W4M OIL
102122603704W400 FCPI ET AL PROVOST 12C-26-37-4 W4M OIL
</TABLE>
36
<PAGE> 37
<TABLE>
<CAPTION>
Correction to UWI UWI Description
<S> <C> <C> <C>
100122603704W400 1D0122603704W400 FCPI ET AL PROVOST 12D-26-37-4 W4M OIL
1A0122603704W400 FCPI ET AL 12A PROVOST 12-26-37-4 W4M OIL
1B0122603704W400 FCPI ET AL PROVOST A12B-26-37-4 W4M OIL
1B2122603704W400
100132603704W400 1C0132603704W400 INVERNESS ET AL PROVOST 13C-26-037-04-W4M OIL
1B0132603704W400 INVERNESS ET AL PROVOST 13B-26-037-04-W4M OIL
102132603704W400 103132603704W400 INVERNESS ET AL PROVOST 13-26-037-04-W4M OIL
(sometimes referred to as 13a-26)
1D0012703704W400 FLETCHER ET AL PROVOST 1D-27-037-04-W4M OIL
1A0012703704W400 FLETCHER ET AL PROVOST 1A-27-037-04-W4M OIL
1D0022703704W400 FLETCHER ET AL PROVOST 2D-27-037-04-W4M D&A
1D0052703704W400 FLETCHER ET AL PROVOST 5D-27-037-04-W4M D&A
1A2062703704W400 FLETCHER ET AL PROVOST 6D3-27-037-04-W4M D&A
1D0062703704W400 FLETCHER ET AL PROVOST 6D-27-037-04-W4M OIL
1D2062703704W400 FLETCHER ET AL PROVOST 6D2-27-037-04-W4M OIL
1D3062703704W400 FLETCHER ET AL 6D3 PROVOST 6-27-37-4 W4 D&A
1B0072703704W400 FCE ET AL 7B PROVOST 7-27-37-4W4M D&A
1D0072703704W400 FLETCHER ET AL PROVOST INJ 7D-27-037-04W4M H2ODSP
1C2072703704W4// 1C0072703704W400 FLETCHER ET AL PROVOST 7C-27-037-04-W4M OIL
1A0082703704W400 FLETCHER ET AL PROVOST 8A-27-037-04-W4M OIL
1B0082703704W400 FLETCHER ET AL SOUND LK E 8B-27-037-04W D&A
1D0082703704W400 FLETCHER ET AL PROVOST 8D-27-037-04-W4M OIL
1D0092703704W400 FLETCHER ET AL PROVOST 9D-27-037-04-W4M OIL
1C0092703704W400 FLETCHER ET AL PROVOST 9C-27-037-04-W4M OIL
1B2092703704W400 1B0092703704W400 FLETCHER ET AL PROVOST 9B-27-037-04-W4M OIL
1A0092703704W400 FLETCHER ET AL PROVOST 9A-27-037-04-W4M OIL
1C2092703704W400 FLETCHER ET AL PROVOST 9C2-27-037-04-W4 D&A
</TABLE>
37
<PAGE> 38
<TABLE>
<CAPTION>
Correction to UWI UWI Description
<S> <C> <C> <C>
1D0102703704W40 FLETCHER ET AL PROVOST 10D-27-037-04-W4 OIL
1B0102703704W40 FLETCHER ET AL PROVOST 10B-27-037-04-W4 OIL
1A0102703704W40 FLETCHER ET AL PROVOST 10A-27-37-04W4M OIL
100102703704W400 FLETCHER ET AL 10A2 PROVO 10-27-37-4 W4M LOC
1C0102703704W40 FLETCHER ET AL PROVOST 10C-27-037-04 W4M OIL
1C0112703704W40 FLETCHER ET AL PROVOST INJ 11C-27-037-04 W4M H2OINJ
1A0112703704W40 FLETCHER ET AL PROVOST INJ 11A-27-037-04 W4M H2OINJ
1D0112703704W40 FLETCHER ET AL PROVOST INJ 11D-27-037-04 W4M H2ODSP
1A0132703704W40 FLETCHER ET AL PROVOST 13A-27-037-04-W4M OIL
1B0142703704W40 FLETCHER ET AL PROVOST 14B-27-37-4 W4M OIL
100142703704W40 1A0142703704W40 FLETCHER ET AL PROVOST 14A-27-037-04-W4 OIL
1C0142703704W40 FLETCHER ET AL PROVOST 14C-27-037-04-W4 D&A
1A0152703704W400 FLETCHER ET AL PROVOST 15A-27-037-04-W4M OIL
1C0152703704W400 FLETCHER ET AL PROVOST 15C-27-037-04-W4 OIL
1B0152703704W400 FLETCHER ET AL 15B PROVOST 15-27-37-4 W4 H2ODSP
100152703704W400 1D0152703704W400 FLETCHER ET AL PROVOST 15D-27-037-04-W4 OIL
FLETCHER ET AL PROVOST 15-27-037-04-W4
1D2162703704W400 FLETCHER ET AL PROVOST 16D-27-037-04W4 OIL
1B0162703704W400 FLETCHER ET AL PROVOST 16B-27-037-04-W4 OIL
1A0162703704W400 FLETCHER ET AL PROVOST 16-27-037-04-W4M OIL
1D0162703704W400 FLETCHER ET AL SOUND LK E 16D-27-037-04W4M D&A
1C0052803704W400 POCO ET AL CADOGAN 05-28-037-04-W4M D&A
(sometimes referred to as 5c-28)
100112803704W400 RENAISSANCE PROVOST 11-28-037-04-W4M D&A
100132803704W400 POCO ET AL PROVOST 13-28-037-04-W4M D&A
100063303704W400 TINTAGEL ET AL 6D PROVOST 6-33-37-4-W4M D&A
</TABLE>
38
<PAGE> 39
<TABLE>
<CAPTION>
Correction to UWI UWI Description
<S> <C> <C> <C>
1A0023603704W400 CABRE ET AL 2A-36-037-04-W4M SWD
1B0023603704W400 CABRE ET AL PROVOST 2B-36-037-04-W4M D&A
1D0073603704W400 CABRE ET AL PROVOST 7D-36-37-4-W4
(Surface location 8-36-37-4-W4)
100083603704W400 CABRE ET AL PROVOST 8D-36-37-4 W4M OIL
1A0083603704W400 POLARIS ET AL PROVOST 8A-36-037-04-W4M D&A
1C0083603704W400 CABRE ET AL PROVOST 8C-36-37-4 W4M H2ODSP
100093603704W400 CABRE ET AL PROVOST 9A-36-37-4 W4M AB OIL
1C0093603704W400 CABRE ET AL PROVOST 9C-36-37-4-W4 D&A
1A0103603704W400 CABRE ET AL PROVOST 10A-36-37-4-W4 D&A
1D0110503803W400 CABRE ET AL PROVOST 11D-05-038-03-W4M D&A
100120603803W400 ENCOR ET AL PROVOST 12-06-038-03-W4M D&A
100120603803W400 1C0120603803W400 CABRE ET AL PROVOST 12C-06-038-03-W4M D&A
103160603803W400 1D0160603803W400 REAL ET AL 1D0 PROVOST 16-6-38-3 W4M POTOIL
100160603803W400 CABRE PROVOST 16-6-38-3W4M D&A
103012103803W400 CABRE 1A2 PROVOST 1-21-38-3-W4M LOC
102012103803W400 CABRE 1D PROVOST 1-21-38-3-W4 LOC
100012103803W400 CABRE 1A PROVOST 1-21-38-3-W4M D&A
102062103803W400 CABRE 6C PROVOST 6-21-38-3 W4M OIL
100092103803W400 CABRE 9D PROVOST 9-21-38-3-W4M LOC
102092103803W400 CABRE 9A PROVOST 9-21-38-3 W4M SUOIL
103092103803W400 CABRE 9B PROVOST 9-21-38-3 W4M D&A
100102103803W400 CABRE 10D PROVOST 10-21-38-3 W4M OIL
100112103803W400 CABRE 11A PROVOST 11-21-38-3 W4M OIL
100122103803W400 CABRE 12D PROVOST 12-21-38-3 W4M D&A
100142103803W400 CABRE 14B PROVOST 14-21-38-3 W4M OIL
</TABLE>
39
<PAGE> 40
<TABLE>
<CAPTION>
Correction to UWI UWI Description
<S> <C> <C> <C>
(sometimes referred to as Cabre Provost 14-21-38-3)
102152103803W400 CABRE 15B PROVOST 15-21-38-3W4M D&A
100152103803W400 CABRE 15D PROVOST 15-21-38-3W4M OIL
100162103803W400 CABRE 16C PROVOST 16-21-38-3 W4M OIL
100162103803W400
104162103803W400 CABRE 16B PROVOST 16-21-38-3 W4M POTH2O
102162103803W400 CABRE 16D PROVOST 16-21-38-3 W4M OIL
105162103803W400 CABRE 16C2 PROVOST 16-21-38-3-W4M LOC
104132203803W400 CABRE 13A PROVOST 13-22-38-3 W4M OIL
102132203803W400 CABRE 13D PROVOST 13-22-38-3 W4M OIL
102132203803W400
100022703803W400 CABRE PROVOST 2-27-38-3-W4M LOC
100042703803W400 CABRE PROVOST 4-27-38-3 W4M OIL
100052703803W400 CABRE PROVOST 5-27-38-3 W4M POTOIL
100072703803W400 CABRE PROVOST 7-27-38-3 W4M POT/OG
100102703803W402 CABRE PROVOST 10-27-38-3 W4M OIL
100132703803W400 CABRE PROVOST 13-27-38-3 W4M POTGAS
100152703803W400 CABRE PROVOST 15-27-38-3 W4M D&A
100103303803W400 CABRE PROVOST 10-33-38-3 W4M POTGAS
102123303803W400 CABRE PROVOST 12-33-38-3 W4M SU
102123303803W402 CABRE PROVOST 12-33-38-3 W4M OIL
100110103804W400 CABRE PROVOST 11-1-38-4 W4M D&A
102091203804W400 CABRE 9C PROVOST 9-12-38-4 W4M D&A
100091203804W400 CABRE PROVOST 9-12-38-4 W4M LOC
100161203804W400 CABRE PROVOST 16-12-38-4 W4M OIL
</TABLE>
40
<PAGE> 41
Report Date: Jan 11, 2000 Schedule "A"
Page Number: 1
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Doi Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
205.M048 PET PC Eff: Oct 19, 1997 160.000 205.A030 A No BPO APO Area: SOUNDING LAKE EAST
Sub: A AB 86-29359 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 50.00000000 TWP 038 RGE 03 W4M LSD 1 A SEC
A 160.000 PANCANADIAN RES 50.00000000 21
CABRE EXP LTD. (WELLBORE ONLY)
100.00000000 CABRE EXP LTD. Total Rental: 320.00
Status Acres Net Acres Net -------Related Contracts-------
205.A030 A FO Jan 01, 1998
____________________________________________________________________________________________________________________________________
205.M036 PNG CR Eff: Oct 02, 1997 640.000 205.A000 A WI Area: SOUNDING LAKE EAST
Sub: A 0497100050 Exp: Oct 02, 2002 640.000 CABRE EXP LTD. 100.00000000 TWP 037 RGE 03 W4M SEC 30
A 640.000 (ALL PNG EXCL. NG IN VIKING)
CABRE EXP LTD. Total Rental: 896.00
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net -------Related Contracts------
205.A000 A DUMMY Sep 24, 1996
205.A034 CONVEY Nov 25, 1998
______________________________Royalty/Encumbrances____________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
____________________________________________________________________________________________________________________________________
205.M032 PNG CR Eff: Oct 02, 1997 240.000 205.A000 A WI Area: SOUNDING LAKE EAST
Sub: A 0497100051 Exp: Oct 02, 2002 240.000 CABRE EXP LTD 100.00000000 TWP 037 RGE 03 W4M LSD 3 4 SE
A 240.000 SEC 31
CABRE EXP LTD. Total Rental: 336.00 (ALL PNG EXCL. NG IN VIKING)
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net -------Related Contracts-------
205.A000 A DUMMY Sep 24, 1996
______________________________Royalty/Encumbrances____________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
</TABLE>
<PAGE> 42
Report Date: Jan 11, 2000
Page Number: 2
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Doi Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M032
Sub: A Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M020 PNG CR Eff: Nov 14, 1985 40.000 205.A024 C No WI Area: SOUNDING LAKE EAST
Sub: C 048511A032 Exp: Nov 14, 1990 40.000 CABRE EXP LTD. 100.00000000 TWP 037 RGE 03 W4M LSD 5 SEC 31
A Ext: SEC 95 40.000 (PNG TO BASE MANNVILLE EXCL NG
CABRE EXP LTD. Total Rental: 56.00 IN VIKING)
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net ------ Related Contracts -------
000.A019 ASSETX Jul 22, 1996
----------------------------- ROYALTY/ENCUMBRANCES ----------------------------------- 205.A013 FO Mar 25, 1991
205.A015 FO Jul 09, 1991
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales 205.A017 P&S Jul 29,1992
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.A019 FO Mar 09, 1993
Gas: Royalty: Min Pay: Prod/Sales: 205.A023 CONVEY Dec 09,1993
S/S OIL: Min: Max: Div: Prod/Sales: 205.A024 C JOA MAR 01, 1993
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M020 PNG CR Eff: Nov 14, 1985 40.000 205.A024 B No WI Area: SOUNDING LAKE EAST
Sub: B 048511A032 Exp: Nov 14, 1990 40.000 CABRE EXP LTD. 100.00000000 TWP 037 RGE 03 W4M LSD 6 SEC 31
A Ext: SEC 95 40.000 (PNG TO BASE MANNVILLE EXCL NG
CABRE EXP LTD. Total Rental: 56.00 IN VIKING)
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net ------ Related Contracts -------
</TABLE>
<PAGE> 43
Report Date: Jan 11, 2000
Page Number: 3
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Doi Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
(cont'd)
205.M020
Sub: B 205.A013 FO Mar 25, 1991
______________________________Royalty/Encumbrances____________________________________ 205.A015 FO Jul 09, 1991
205.A017 P&S Jul 29, 1992
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales 205.A019 FO Mar 09, 1993
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.A023 CONVEY Dec 09, 1993
Gas: Royalty: Min Pay: Prod/Sales: 205.A024 B JOA Mar 01, 1993
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
____________________________________________________________________________________________________________________________________
205.M020 PNG CR Eff: Nov 14, 1985 120.000 205.A024 A No WI Area: SOUNDING LAKE EAST
Sub: A 048511A032 Exp: Nov 14, 1990 120.000 CABRE EXP LTD 100.00000000 TWP 037 RGE 03 W4M LSD 11 13 14
A Ext: SEC 95 120.000 SEC 31
CABRE EXP LTD. Total Rental: 168.00 (PNG TO BASE MANNVILLE EXCL NG
100.00000000 CABRE EXP LTD. IN VIKING)
Status Acres Net Acres Net
-------Related Contracts-------
______________________________Royalty/Encumbrances____________________________________ 205.A013 FO Mar 25, 1991
205.A015 FO Jul 09, 1991
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales 205.A017 P&S Jul 29, 1992
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.A019 FO Mar 09, 1993
Gas: Royalty: Min Pay: Prod/Sales: 205.A023 CONVEY Dec 09, 1993
S/S OIL: Min: Max: Div: Prod/Sales: 205.A024 A JOA Mar 01, 1993
Other Percent: Min: Prod/Sales: 205.A035 QUITCL Oct 01, 1999
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
____________________________________________________________________________________________________________________________________
205.M020 PNG CR Eff: Nov 14, 1985 20.000 205.A024 D No WI Area: SOUNDING LAKE EAST
</TABLE>
<PAGE> 44
Report Date: Jan 11, 2000
Page Number: 4
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
(cont'd)
<S> <C> <C> <C> <C> <C>
205.M020
Sub: D 048511A032 Exp: Nov 14, 1990 20.000 CABRE EXP LTD. 100.00000000 TWP 037 RGE 03 W4M LSD 12 (N)
A Ext: SEC 95 20.000 SEC 31
CABRE EXP LTD. Total Rental: 28.00 (QUAD C & D)
100.00000000 CABRE EXP LTD.
(PNG TO BASE MANNVILLE EXCL NG
Status Acres Net Acres Net IN VIKING)
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
------ Related Contracts -------
000.A019 ASSETX Jul 22, 1996
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales 205.A013 FO Mar 25, 1991
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.A015 FO Jul 09, 1991
Gas: Royalty: Min Pay: Prod/Sales: 205.A017 P&S Jul 29, 1992
S/S OIL: Min: Max: Div: Prod/Sales: 205.A019 FO Mar 09, 1993
Other Percent: Min: Prod/Sales: 205.A023 CONVEY Dec 09, 1993
205.A024 D JOA Mar 01, 1993
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M020 PNG CR Eff: Nov 14, 1985 20.000 205.A024 E No WI Area: SOUNDING LAKE EAST
Sub: E 048511A032 Exp: Nov 14, 1990 20.000 CABRE EXP LTD. 100.00000000 TWP 037 RGE 03 W4M LSD 12 (S)
A Ext: SEC 95 20.000 SEC 31
CABRE EXP LTD. Total Rental: 28.00 (QUAD A & B)
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net (PNG TO BASE MANNVILLE EXCL NG
IN VIKING)
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
------ Related Contracts -------
000.A019 ASSETX Jul 22, 1996
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales 205.A013 FO Mar 25, 1991
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.A015 FO Jul 09, 1991
Gas: Royalty: Min Pay: Prod/Sales: 205.A017 P&S Jul 29, 1992
S/S OIL: Min: Max: Div: Prod/Sales: 205.A019 FO Mar 09, 1993
Other Percent: Min: Prod/Sales: 205.A023 CONVEY Dec 09, 1993
205.A024E JOA Mar 01, 1993
</TABLE>
<PAGE> 45
Report Date: Jan 11, 2000
Page Number: 5
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Doi Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
(cont'd)
205.M020
Sub: E Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
____________________________________________________________________________________________________________________________________
205.M033 PNG CR Eff: Oct 02, 1997 320.000 205.A000 A WI Area: SOUNDING LAKE EAST
Sub: A 0497100052 Exp: Oct 02, 2002 320.000 CABRE EXP LTD 100.00000000 TWP 037 RGE 03 W4M E SEC 32
A 320.000 (ALL PNG EXCL NG IN VIKING)
CABRE EXP LTD. Total Rental: 896.00
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net -------Related Contracts-------
205.A000 A DUMMY Sep 24, 1996
______________________________Royalty/Encumbrances____________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
____________________________________________________________________________________________________________________________________
205.M033 PNG CR Eff: Oct 02, 1997 320.000 205.A000 B WI Area: SOUNDING LAKE EAST
Sub: B 0497100052 Exp: Oct 02, 2002 320.000 CABRE EXP LTD 100.00000000 TWP 037 RGE 03 W4M W SEC 32
A 320.000 (PNG BELOW MANNVILLE)
CABRE EXP LTD. Total Rental: 0.00
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net -------Related Contracts-------
205.A000 B DUMMY Sep 24, 1996
______________________________Royalty/Encumbrances____________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
</TABLE>
<PAGE> 46
Report Date: Jan 11, 2000
Page Number: 6
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Doi Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
(cont'd)
<S> <C> <C> <C> <C> <C>
205.M033
Sub: B Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M006 PNG CR Eff: Jun 30, 1988 10.000 205.A007 A No WI Area: SOUNDING LAKE EAST
Sub: A 0488060470 Exp: Jun 30, 1993 10.000 CABRE EXP LTD. * 30.00000000 TWP 037 RGE 04 W4M LSD 16 (NE)
A Ext: SEC 95 3.000 FLETCHER CHALLE 55.00000000 SEC 22
FLETCHER CHALLE WESTLINKS RESOU 15.00000000 (QUAD D)
100.00000000 TALISMAN ENERGY
Total Rental: 50.00 (PNG TO BASE MANNVILLE EXCL NG
IN VIKING)
Status Acres Net Acres Net
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales ------ Related Contracts -------
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.A007 A JOA Jun 29, 1988
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 30.00000000
FLETCHER CHALLE 55.00000000
WESTLINKS RESOU 15.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M007 PNG CR Eff: Jun 30, 1988 30.000 205.A014A No WI Area: SOUNDING LAKE EAST
Sub: A 0488060471 Exp: Jun 30, 1993 30.000 FLETCHER CHALLE 85.00000000 TWP 037 RGE 04 W4M LSD 13 (E)
A Ext: SEC 95 0.000 WESTLINKS RESOU 15.00000000 14 (NE) SEC 23
FLETCHER CHALLE (QUADS A & D OF LSD 13 QUAD D)
</TABLE>
<PAGE> 47
Report Date: Jan 11, 2000
Page Number: 7
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Doi Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
(cont'd)
205.M007
Sub: A
100.00000000 FLETCHER CHALLE Total Rental: 42.00
LSD 14)
Status Acres Net Acres Net (PNG TO BASE MANNVILLE EXCL NG
IN VIKING)
______________________________Royalty/Encumbrances____________________________________
-------Related Contracts-------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales 205.A007 JOA Jun 29, 1988
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.A014 A FO Jul 18, 1991
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 FLETCHER CHALLE 85.00000000
WESTLINKS RESOU 15.00000000
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
OVERRIDING ROYALTY ALL Y N 30.00000000 % of PROD
Gas: Royalty: 15.00000000 Min Pay: Prod/Sales:
S/S OIL: Min: 5.00000000 Max: 15.00000000 Div: 1/23.85 Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
CABRE EXP LTD. 100.00000000 FLETCHER CHALLE 100.00000000
____________________________________________________________________________________________________________________________________
205.M007 PNG CR Eff: Jun 30, 1988 10.000 205.A014 A No WI Area: SOUNDING LAKE EAST
Sub: B 0488060471 Exp: Jun 30, 1993 10.000 FLETCHER CHALLE 85.00000000 TWP 037 RGE 04 W4M LSD 13 (SW)
A Ext: SEC 95 0.000 WESTLINKS RESOU 15.00000000 SEC 23
FLETCHER CHALLE (PNG TO BASE MANNVILLE EXCL NG
100.00000000 FLETCHER CHALLE Total Rental: 14.00 IN VIKING)
Status Acres Net Acres Net
--------Related Contracts-------
______________________________Royalty/Encumbrances____________________________________ 205.A007 JOA Jun 29, 1988
205.A014 A FO Jul 18, 1991
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
</TABLE>
<PAGE> 48
Report Date: Jan 11, 2000
Page Number: 8
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M007
Sub: B Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 FLETCHER CHALLE 85.00000000
WESTLINKS RESOU 15.00000000
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
OVERRIDING ROYALTY ALL Y N 30.00000000 % of PROD
Gas: Royalty: 15.00000000 Min Pay: $0.00 Prod/Sales:
S/S OIL: Min: 5.00000000 Max: 15.00000000 Div: 23.85000000 Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
CABRE EXP LTD. 100.00000000 FLETCHER CHALLE 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M007 PNG CR Eff: Jun 30, 1988 10.000 205.A007 A No WI Area: SOUNDING LAKE EAST
Sub: C 0488060471 Exp: Jun 30, 1993 10.000 CABRE EXP LTD. * 30.00000000 TWP 037 RGE 04 W4M LSD 13 (NW)
A Ext: SEC 95 3.000 FLETCHER CHALLE 55.00000000 SEC 23
FLETCHER CHALLE WESTLINKS RESOU 15.00000000 (PNG TO BASE MANNVILLE EXCL NG
IN VIKING)
100.00000000 FLETCHER CHALLE
Total Rental: 14.00
Status Acres Net Acres Net ------ Related Contracts -------
205.A007 A JOA Jun 29, 1988
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
</TABLE>
<PAGE> 49
Report Date: Jan 11, 2000
Page Number: 9
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
(cont'd)
205.M007
Sub: C Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 30.00000000
FLETCHER CHALLE 55.00000000
WESTLINKS RESOU 15.00000000
____________________________________________________________________________________________________________________________________
205.M007 PNG CR Eff: Jun 30, 1988 10.000 205.A007 C No APO Area: SOUNDING LAKE EAST
Sub: D 0488060471 Exp: Jun 30, 1993 10.000 CABRE EXP LTD * 30.00000000 TWP 037 RGE 04 W4M LSD 15 (NW)
A Ext: SEC 95 3.000 FLETCHER CHALLE 55.00000000 SEC 23
FLETCHER CHALLE WESTLINKS RESOU 15.00000000 (PNG TO BASE MANNVILLE EXCL NG
100.00000000 FLETCHER CHALLE Total Rental: 14.00 IN VIKING)
Status Acres Net Acres Net _______Related Contracts_______
205.A007 C JOA Jun 29, 1988
______________________________Royalty/Encumbrances____________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: APO (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 30.00000000
FLETCHER CHALLE 55.00000000
WESTLINKS RESOU 15.00000000
____________________________________________________________________________________________________________________________________
205.M010 PNG CR Eff: Jun 30, 1988 160.000 205.A007 B No WI Area: SOUNDING LAKE EAST
Sub: B 0488060474 Exp: Jun 30, 1993 320.000 CABRE EXP LTD * 33.33330000 TWP 037 RGE 03 W4M NE SEC 26
A Ext: SEC 95 53.333 FLETCHER CHALLE 55.00000000 (PNG BELOW BASE VIKING TO BASE
FLETCHER CHALLE WESTLINKS RESOU 16.66670000 MANNVILLE)
100.00000000 FLETCHER CHALLE Total Rental: 224.00 _______Related Contracts_______
</TABLE>
<PAGE> 50
Report Date: Jan 11, 2000
Page Number: 10
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
(cont'd)
<S> <C> <C> <C> <C> <C>
205.M010
SUB: A Status Acres Net Acres Net 205.A007 B JOA Jun 29, 1988
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 33.33330000
FLETCHER CHALLE 50.00000000
WESTLINKS RESOU 16.66670000
------------------------------------------------------------------------------------------------------------------------------------
205.M012 PNG FH Eff: Aug 01, 1957 100.000 205.A004 B No WI Area: SOUNDING LAKE EAST
Sub: B FLETCHER CHALLE Exp: Aug 01, 1967 100.000 CABRE EXP LTD. * 25.00000000 TWP 037 RGE 04 W4M LSD 3 4 (SE)
A Ext: HBP 25.000 FLETCHER CHALLE 62.50000000 5 (NE) 6 SEC 26
FLETCHER CHALLE WESTLINKS RESOU 12.50000000 (PNG TO TOP PALEOZOIC EXCL NG
100.00000000 TALISSMAN ENERGY IN VIKING)
Total Rental 100.00
Status Acres Net Acres Net ------ Related Contracts -------
205.A004 B SO Jun 13, 1988
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 20.00000000
Paid to: LESSOR (M) Paid by: WI (C)
FLETCHER CHALLE 100.00000000 CABRE EXP LTD. 25.00000000
FLETCHER CHALLE 62.50000000
WESTLINKS RESOU 12.50000000
</TABLE>
<PAGE> 51
Report Date: Jan 11, 2000
Page Number: 11
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
(cont'd)
205.M012
Sub: B
____________________________________________________________________________________________________________________________________
205.M012 PNG FH Eff: Aug. 01, 1957 30.000 205.A004 No WI Area: SOUNDING LAKE EAST
Sub: C FLETCHER CHALLE Exp: Aug. 01, 1967 20.000 CABRE EXP LTD 25.00000000 TWP 037 RGE 04 W4M LSD 4 (N &
A Ext: HBP 7.500 FLETCHER CHALLE 62.50000000 SW) SEC 26
FLETCHER CHALLE WESTLINKS RESOU 12.50000000 (PNG TO TOP PALEOZOIC EXCL NG
100.00000000 TALISMAN ENERGY IN VIKING)
Total Rental: 30.00
Status Acres Net Acres Net _______Related Contracts_______
205.A004 B SO JUN 13, 1988
______________________________Royalty/Encumbrances____________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 20.00000000
Paid to: LESSOR (M) Paid by: WI (C)
FLETCHER CHALLE 100.00000000 CABRE EXP LTD. 25.00000000
FLETCHER CHALLE 62.50000000
WESTLINKS RESOU 12.50000000
__________________________________________________________________________________________________________________________________
205.M012 PNG FH Eff: Aug 01, 1957 20.000 205.A004 B No WI Area: SOUNDING LAKE EAST
Sub: D FLETCHER CHALLE Exp: Aug 01, 1967 20.000 CABRE EXP LTD 25.00000000 TWP 037 RGE 04 W4M LSD 5 (W)
A Ext: HBP 5.000 FLETCHER CHALLE 62.50000000 SEC 26
FLETCHER CHALLE WESTLINKS RESOU 12.50000000 (PNG TO TOP PALEOZOIC EXCL NG
100.00000000 TALISMAN ENERGY IN VIKING)
Total Rental: 20.00
Status Acres Net Acres Net _______Related Contracts_______
205.A004 B SO Jun 13, 1988
______________________________Royalty/Encumbrances____________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
</TABLE>
<PAGE> 52
Report Date: Jan 11, 2000
Page Number: 12
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
(cont'd)
<S> <C> <C> <C> <C> <C>
205.M012
Sub: D Roy Percent: 20.00000000
Paid to: LESSOR (M) Paid by: WI (C)
FLETCHER CHALLE 100.00000000 CABRE EXPL LTD. 25.00000000
FLETCHER CHALLE 62.50000000
WESTLINKS RESOU 12.50000000
------------------------------------------------------------------------------------------------------------------------------------
205.M012 PNG FH Eff: Aug 01, 1957 10.000 205.A004 B No WI Area: SOUNDING LAKE EAST
Sub: F FLETCHER CHALLE Exp: Aug 01, 1967 10.000 CABRE EXP LTD. 25.00000000 TWP 037 RGE 04 W4M LSD 5 (SE)
A Ext: HBP 2.500 FLETCHER CHALLE 62.50000000 SEC 26
FLETCHER CHALLE WESTLINKS RESOU 12.50000000 (PNG TO TOP PALEOZOIC EXCL NG
100.00000000 TALISMAN ENERGY
Total Rental: 10.00 IN VIKING)
Status Acres Net Acres Net ------ Related Contracts -------
205.A004 B SO Jun 13, 1988
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 20.00000000
Paid to: LESSOR (M) Paid by: WI (C)
FLETCHER CHALLE 100.00000000 CABRE EXP LTD. 25.00000000
FLETCHER CHALLE 62.50000000
WESTLINKS RESOU 12.50000000
------------------------------------------------------------------------------------------------------------------------------------
205.M012 PNG FH Eff: Aug 01, 1957 130.000 205.A004 A No WI Area: SOUNDING LAKE EAST
Sub: A FLETCHER CHALLE Exp: Aug 01, 1967 130.000 CABRE EXP LTD. 25.00000000 TWP 037 RGE 04 W4M LSD 11 12 13
A Ext: HBP 32.500 FLETCHER CHALLE 50.00000000 (NE) 14 SEC 26
FLETCHER CHALLE WESTLINKS RESOU 25.00000000 (PNG TO TOP PALEOZOIC EXCL NG
100.00000000 TALISMAN ENERGY
Total Rental: 130.00 IN VIKING)
</TABLE>
<PAGE> 53
Report Date: Jan 11, 2000
Page Number: 13
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
205.M012
Sub: A Status Acres Net Acres Net ------- Related Contracts -----
205.A004 A SO Jun 13, 1988
----------------------------- Royalty/Encumbrances -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 20.00000000
Paid to: LESSOR (M) Paid by: WI (C)
FLETCHER CHALLE 100.00000000 CABRE EXP LTD. 25.00000000
FLETCHER CHALLE 50.00000000
WESTLINKS RESOU 25.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.MO45 PNG FH Eff: Aug 01, 1957 30.000 205.A004 B No WI Area: SOUNDING LAKE EAST
Sub: E FLETCHER CHALLE Exp: Aug 01, 1967 30.000 CABRE EXP LTD. 25.00000000 TWP 037 RGE 04 W4M LSD 13 (S &
A Ext: HBP 7.500 FLETCHER CHALLE 62.50000000 NW) SEC 26
FLETCHER CHALLE WESTLINKS RESOU 12.50000000 (PNG TO TOP PALEOZOIC EXCL NG
IN VIKING)
100.00000000 TALISMAN ENERGY
Total Rental: 30.00
------Related Contracts-------
Status Acres Net Acres Net 205.A004B SO Jun 13, 1988
----------------------------- Royalty/Encumbrances -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 20.00000000
Paid to: LESSOR (M) Paid by: WI (C)
FLETCHER CHALLE 100.0000000 CABRE EXP LTD. 25.00000000
FLETCHER CHALLE 62.50000000
WESTLINKS RESOU 12.50000000
</TABLE>
<PAGE> 54
Report Date: Jan 11, 2000
Page Number: 14
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Doi Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
205.M011 PNG CR Eff: Jun 30, 1988 620.000 205.A006 A No WI Area: SOUNDING LAKE EAST
Sub: A 0488060475 Exp: Jun 30, 1993 620.000 CABRE EXP LTD. * 47.50000000 TWP 037 RGE 04 W4M E SEC 27
A Ext: SEC 95 294.500 FLETCHER CHALLE 28.75000000 TWP 037 RGE 04 W4M LSDS 3 4 5
FLETCHER CHALLE WESTLINKS RESOU 23.75000000 SEC 27
100.00000000 FLETCHER CHALLE
Total Rental: 868.00 TWP 037 RGE 04 W4M LSD
6(B)(C)(D) SEC 27
Status Acres Net Acres Net TWP 037 RGE 04 W4M LSD
11(A)(B)(D) SEC 27
----------------------------- ROYALTY/ENCUMBRANCES ----------------------------------- TWP 037 RGE 04 W4M LSDS 12 13
14 SEC 27
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales (PNG BELOW BASE VIKING TO BASE
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD MANNVILLE
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales: ------ Related Contracts ------
Other Percent: Min: Prod/Sales: 205.A006 JOA Jun 29, 1988
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 47.75000000
FLETCHER CHALLE 28.75000000
WESTLINKS RESOU 23.75000000
------------------------------------------------------------------------------------------------------------------------------------
205.M011 PNG CR Eff: Jun 30, 1998 10.000 205.A0006 C No APO Area: SOUNDING LAKE EAST
Sub: C 0488060475 Exp: Jun 30, 1993 10.000 FLETCHER CHALLE 28.75000000 TWP 037 RGE 04 W4M LSD 6(A) SEC
A Ext: SEC 95 4.750 CABRE EXP LTD. 47.50000000 27
100.00000000 FLETCHER CHALLE WESTLINKS RESOU 23.75000000 (PNG BELOW BASE VIKING TO BASE
Total Rental: 14.00 MANVILLE)
Status Acres Net Acres Net ------ Related Contracts ------
205.A006 C JOA Jun 29, 1988
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
</TABLE>
<PAGE> 55
Cabre Exploration Ltd.
Mineral Property Report
Report Date: Jan 11, 2000
Page Number: 15
**REPORTED IN ACRES**
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FILE NUMBER LSE TYPE LESSOR TYPE EXPOSURE OPER. CONT. ROFR DOI CODE
FILE STATUS LEASE NO/NAME GROSS
MINERAL INT OPERATOR/PAYOR NET DOL PARTNER(S) * * LEASE DESCRIPTION/RIGHTS HELD
------------------------------------------------------------------------------------------------------------------------------------
(cont'd)
205.M011
Sub: C Paid to: LESSOR (M) Paid by: APO (C)
ALTA ENERGY 100.00000000 FLETCHER CHALLE 28.75000000
CABRE EXP LTD. 47.50000000
WESTLINKS RESOU 23.75000000
------------------------------------------------------------------------------------------------------------------------------------
205.M011 PNG CR Eff: Jun 30, 1988 10.000 205.A006 B No BPO APO Area; SOUNDING LAKE EAST
Sub: B 0488060475 Exp: Jun 30, 1993 10.000 CABRE EXP LTD. * 50.00000000 * 47.50000000 TWP 037 RGE 04 W4M LSD 11(C)
A Ext: SEC 95 5.000 FLETCHER CHALLE 25.00000000 28.75000000 SEC 27
FLETCHER CHALLE WESTLINKS RESOU 25.00000000 23.75000000 (PNG BELOW BASE VIKING TO
100.00000000 FLETCHER CHALLE BASE MANNVILLE)
Total Rental: 14.00
STATUS ACRES NET ACRES NET -------- RELATED CONTRACTS --------
205.A006 B JOA JUN 29, 1988
---------------------------- ROYALTY/ENCUMBRANCES ----------------------------
ROYALTY TYPE PRODUCT TYPE SLIDING SCALE CONVERTIBLE % OF PROD/SALES
LESSOR ROYALTY ALL Y N 100.00000000% of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: BPO (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 50.00000000
FLETCHER CHALLE 25.00000000
WESTLINKS RESOU 25.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M018 PNG CR Eff: Aug 11, 1988 10.000 205.A011 A No WI Area: SOUNDING LAKE EAST
Sub: B 0488080084 Exp: Aug 11, 1993 10.000 CABRE EXP LTD. 93.75000000 TWP 037 RGE 04 W4M PTN LSD 8
A Ext: SEC 95 9.375 WESTLINKS RESOU 6.25000000 SEC 36
CABRE EXP LTD. (8C WELLBORE ONLY)
100.00000000 CABRE EXP LTD. Total Rental: 14.00
(PNG BELOW BASE VIKING TO BASE
</TABLE>
<PAGE> 56
Report Date: Jan 11, 2000
Page Number: 16
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
(cont'd)
<S> <C> <C> <C> <C> <C>
205.M018
Sub: B Status Acres Net Acres Net MANNVILLE (8C WELL ONLY)
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales ------ Related Contracts -------
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 000.A019 ASSETX Jul 22, 1996
Gas: Royalty: Min Pay: Prod/Sales: 205.1209 FACIL Oct 01, 1993
S/S OIL: Min: Max: Div: Prod/Sales: 205.A011 A FO Sep 06, 1990
Other Percent: Min: Prod/Sales: 205.A017 P&S Jul 29, 1992
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 93.75000000
WESTLINKS RESOU 6.25000000
------------------------------------------------------------------------------------------------------------------------------------
205.M018 PNG CR Eff: Aug 11, 1988 70.000 205.A011 B No WI Area: SOUNDING LAKE EAST
Sub:C 0488080084 Exp: Aug 11, 1993 70.000 CABRE EXP LTD. 93.75000000 TWP 037 RGE 04 W4M LSD 8 9
A Ext: SEC 95 65.625 WESTLINKS RESOU 6.25000000 SEC 36
CABRE EXP LTD. (EXCL 8C WELLBORE)
100.00000000 CABRE EXP LTD. Total Rental: 98.00
(PNG BELOW BASE VIKING TO BASE
Status Acres Net Acres Net MANNVILLE
(EXCL 8C WELLBORE)
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
------ Related Contracts -------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales 000.A019 ASSETX Jul 22, 1996
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 205.1209 FACIL Oct 01 1993
Gas: Royalty: Min Pay: Prod/Sales: 205.A011 B FO Sep 06, 1990
S/S OIL: Min: Max: Div: Prod/Sales: 205.A017 P&S Jul 29, 1992
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 93.75000000
WESTLINKS RESOU 6.25000000
</TABLE>
<PAGE> 57
Report Date: Jan 11, 2000
Page Number: 17
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
205.M018 PNG CR Eff: Aug 11, 1988 0.000 205.A011 C No WI Area: SOUNDING LAKE EAST
Sub: D 0488080084 Exp: Aug 11, 1993 0.000 CABRE EXP LTD. 93.75000000 TWP 037 RGE 04 W4M LSD 9 10 SEC
A Ext: SEC 95 0.000 WESTLINKS RESOU 6.25000000 36
CABRE EXP LTD. (9A & 10C WELLBORES ONLY)
100.00000000 CABRE EXP LTD. Total Rental: 0.00
(PNG BELOW BASE VIKING TO BASE
Status Acres Net Acres Net MANNVILLE
(EXCL 8C WELLBORE))
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales ------ Related Contracts -------
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD 000.A019 ASSETX Jul 22, 1996
Gas: Royalty: Min Pay: Prod/Sales: 205.1209 FACIL Oct 01, 1993
S/S OIL: Min: Max: Div: Prod/Sales: 205.A011 B FO Sep 06, 1990
Other Percent: Min: Prod/Sales: 205.A011 C FO Sep 06, 1990
205.A017 P&S Jul 29, 1992
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 93.75000000
WESTLINKS RESOU 6.25000000
------------------------------------------------------------------------------------------------------------------------------------
205.M034 PNG CR Eff: Mar 05, 1998 640.000 205.A000 C WI Area: SOUNDING LAKE EAST
Sub: A 0498030207 Exp: Mar 05, 2003 640.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 02 W4M SEC 4
A 640.000 (ALL PNG)
CABRE EXP LTD. Total Rental: 896.00
100.00000000 CABRE EXP LTD.
------ Related Contracts -------
205.A000 C DUMMY Sep 24, 1996
Status Acres Net Acres Net
205.A036 A SO Dec 14, 1999
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
</TABLE>
<PAGE> 58
Report Date: Jan 11, 2000
Page Number: 18
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M034
Sub: A
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M043 PET PC Eff: Oct 19, 1997 160.000 205.A030 C No WI Area: SOUNDING LAKE EAST
Sub: A AB 86-29358 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M NE SEC 21
A 160.000 (PET TO TOP PALEOZOIC)
CABRE EXP. LTD. Total Rental: 320.00
100.00000000 CABRE EXP. LTD.
------Related Contracts-------
Status Acres Net Acres Net 205.A030C FO Jan 01, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY OIL N N 100.00000000 % of PROD
Roy Percent: 22.50000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY GAS N N 100.00000000 % of PROD
Roy Percent: 18.00000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M044 PET PC Eff: Oct 19, 1997 160.000 205.A030 C No WI Area: SOUNDING LAKE EAST
Sub: A AB 86-29359 Exp: Apr 18, 2000 160.000 CABLE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M NE SEC 21
A 160.000 (PET TO TOP PALEOZOIC)
CABRE EXP LTD. Total Rental: 320.00
100.00000000 CABRE EXP LTD.
------ Related Contracts ------
</TABLE>
<PAGE> 59
Report Date: Jan 11, 2000
Page Number: 19
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M044
Sub: A Status Acres Net Acres Net 205.A030C FO Jan 01, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY OIL N N 100.00000000 % of PROD
Roy Percent: 22.50000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY GAS N N 100.00000000 % of PROD
Roy Percent: 18.00000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.MO45 NG PC Eff: Oct 19, 1997 160.000 205.A030 C No WI Area: SOUNDING LAKE EAST
Sub: A AB 56-0047 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M NE SEC 21
A 160.000 (NG TO TOP PALEOZOIC)
CABRE EXP. LTD. Total Rental: 320.00
100.00000000 CABRE EXP. LTD.
------Related Contracts-------
Status Acres Net Acres Net 205.A030C FO Jan 01, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY OIL N N 100.00000000 % of PROD
Roy Percent: 22.50000000
Paid to: PAIDTO (R) Paid by: WI (C)
</TABLE>
<PAGE> 60
Report Date: Jan 11, 2000
Page Number: 20
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M045
Sub: A PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY GAS N N 100.00000000 % of PROD
Roy Percent: 18.00000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.MO46 NG PC Eff: Oct 19, 1997 160.000 205.A030 C No WI Area: SOUNDING LAKE EAST
Sub: A AB 56-0048 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M SW SEC 21
A 160.000 (NG TO TOP PALEOZOIC)
CABRE EXP. LTD. Total Rental: 320.00
100.00000000 CABRE EXP. LTD.
------Related Contracts-------
Status Acres Net Acres Net 205.A030C FO Jan 01, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY OIL N N 100.00000000 % of PROD
Roy Percent: 22.50000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY GAS N N 100.00000000 % of PROD
Roy Percent: 18.00000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 61
Report Date: Jan 11, 2000
Page Number: 21
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
205.N047 PET PC Eff: Oct 19, 1997 160.000 205.A030 C No WI Area: SOUNDING LAKE EAST
Sub: A AB 86-29354 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M SW SEC 21
A 160.000 (PET TO TOP PALEOZOIC)
CABRE EXP LTD. Total Rental: 320.00
100.00000000 CABLE EXP LTD.
------ Related Contracts ------
Status Acres Net Acres Net 205.A030 FO Jan 01, 1998
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
<Linked> Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY OIL N N 100.00000000 % of PROD
Roy Percent: 22.50000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
<Linked> Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY GAS N N 100.00000000 % of PROD
Roy Percent: 18.00000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M048 PET PC Eff: Oct 19, 1997 0.000 205.A030 C No WI Area: SOUNDING LAKE EAST
Sub: B AB 86-29359 Exp: Apr 18, 2000 0.000 CABLE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M SE SEC 21
A 0.000 (PET TO TOP PALEOZOIC EXCL
CABRE EXP LTD. Total Rental: 0.00 1A-21 WELLBORE)
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net ------ Related Contracts ------
205.A030 FO Jan 01, 1998
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
<Linked> Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY OIL N N 100.00000000 % of PROD
</TABLE>
<PAGE> 62
Report Date: Jan 11, 2000
Page Number: 22
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M048
Sub: A Roy Percent: 18.00000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 CLESSOR ROYALTY GAS N N 100.00000000 % of PROD
Roy Percent: 18.00000000
Paid to: PAIDTO (R) Paid by: WI (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M035 PNG CR Eff: Oct 12, 1995 160.000 205.A032 A No WI Area: SOUNDING LAKE EAST
Sub: A 0495100091 Exp: Oct 12, 2000 160.000 CABRE EXP LTD. 60.00000000 TWP 038 RGE 03 W4M NW SEC 22
A 96.000 ENCAL ENERGY LT 40.00000000 (PNG TO BASE DINA
CABRE EXP. LTD. Total Rental: 224.00 EXCL PET IN LLOYDMINSTER IN
100.00000000 ENCAL ENERGY LT THE 14-22 WELL)
------Related Contracts-------
Status Acres Net Acres Net 205.A031 A FO Nov 27, 1997
205.A032 A JOA Feb 10, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 60.00000000
ENCAL ENERGY LT 40.00000000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 63
Report Date: Jan 11, 2000
Page Number: 23
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
205.M025 PET PC Eff: Dec 01, 1996 640.000 WI Area: SOUNDING LAKE EAST
Sub: A AB 8520402 Exp: Dec 01, 1997 480.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M NE S SEC 27
A Ext: HBP 480.000 (PET TO BASE MANNVILLE)
CABRE EXP LTD. Total Rental: 2400.00
100.00000000 CABRE EXP LTD.
------ Related Contracts ------
215.A006 A RESOLU Nov 28, 1996
Status Acres Net Acres Net
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY SOLUTION GAS N N 100.00000000 % of PROD
Roy Percent: 25.00000000
Paid to: LESSOR (M) Paid by: WI (M)
PANCANADIAN PET 100.00000000 CABRE EXP LTD. 100.00000000
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 25.00000000
Paid to: LESSOR (M) Paid by: WI (M)
PANCANADIAN PET 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M052 NG PC Eff: Dec 01, 1996 640.000 WI Area: SOUNDING LAKE EAST
Sub: A AB 5520401 Exp: Dec 01, 1997 640.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M E SEC 27
A Ext: HBP 640.000 (NG TO BASE MANNVILLE)
PANCANADIAN PET Total Rental: 3200.00
100.00000000 CABRE EXP LTD.
------ Related Contracts ------
215.A006 A RESOLU Nov 28, 1996
Status Acres Net Acres Net
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
</TABLE>
<PAGE> 64
Report Date: Jan 11, 2000
Page Number: 24
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M026
Sub: A Roy Percent: 25.00000000
Paid to: LESSOR (M) Paid by: WI (M)
PANCANADIAN PET 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M037 PET PC Eff: Oct 19, 1997 154.000 205.A030 D No BPO APO Area: SOUNDING LAKE EAST
Sub: A AB 86-29351 Exp: Apr 18, 2000 154.000 CABRE EXP LTD. 100.00000000 50.00000000 TWP 038 RGE 03 W4M NW SEC 33
A 154.000 PANCANADIAN RES 50.00000000 (PET TO TOP PALEOZOIC)
CABRE EXP LTD.
100.00000000 CABRE EXP LTD. Total Rental: 308.00
------Related Contracts-------
Status Acres Net Acres Net 205.A030 D FO Jan 01, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 DOVERRIDING ROYALTY ALL Y Y 100.00000000 % of PROD
Gas: Royalty: 15.00000000 Min Pay: $5.32 10 3M3 Prod/Sales:
S/S OIL: Min 5.00000000 Max:15.00000000 Div: 1/23.97 Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: PAIDTO (R) Paid by: BPO (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS.
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 DLESSOR ROYALTY ALL N N 100.00000000 % of PROD
Paid to: PAIDTO (R) Paid by: BPO (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 65
Report Date: Jan 11, 2000
Page Number: 25
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
205.M038 NG PC Eff: Oct 19, 1997 154.000 205.A030 E No BPO-PE APO-PE Area: SOUNDING LAKE EAST
Sub: A AB 56-0045 Exp: Apr 18, 2000 154.000 CABRE EXP LTD. 100.00000000 50.00000000 TWP 038 RGE 03 W4M NW SEC 33
A 154.000 PANCANADIAN PET 50.00000000 (NG TO TOP PALEOZOIC IN 10-33
CABRE EXP LTD. WELL ONLY)
100.00000000 CABRE EXP LTD. Total Rental: 308.00
Status Acres Net Acres Net -------Related Contracts------
205.A030 E FO Jan 01, 1998
_____________________________ ROYALTY/ENCUMBRANCES ___________________________________
<Linked> Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 ELESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 20.00000000
Paid to: PAIDTO (R) Paid by: PAID BY (R)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS.
____________________________________________________________________________________________________________________________________
205.M039 PET PC Eff: Oct 19, 1997 155.000 205.A030 D No BPO APO Area: SOUNDING LAKE EAST
Sub: A AB 86-29356 Exp: Apr 18, 2000 155.000 CABRE EXP LTD. 100.00000000 50.00000000 TWP 038 RGE 03 W4M NE SEC 33
A 155.000 PANCANADIAN RES 50.00000000 (PET TO TOP PALEOZOIC)
CABRE EXP LTD.
100.00000000 CABRE EXP LTD. Total Rental: 310.00
Status Acres Net Acres Net -------Related Contracts------
205.A030 D FO Jan 01, 1998
_____________________________ ROYALTY/ENCUMBRANCES ___________________________________
<Linked> Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 DOVERRIDING ROYALTY ALL Y Y 100.00000000 % of PROD
Gas: Royalty: 15.00000000 Min Pay: $5.32 10 3M3 Prod/Sales:
S/S OIL: Min: 5.00000000 Max: 15.00000000 Div: 1/23.87 Prod/Sales:
Other percent: Min: Prod/Sales:
Paid to: PAIDTO (R) Paid by: BPO (C)
</TABLE>
<PAGE> 66
Report Date: Jan 11, 2000
Page Number: 26
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M039 PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS.
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 DLESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent:
Paid to: PAIDTO (R) Paid by: BPO (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS.
------------------------------------------------------------------------------------------------------------------------------------
205.M040 PET PC Eff: Oct 19, 1997 160.000 205.A030 D No BPO APO Area: SOUNDING LAKE EAST
Sub: A AB 86-29352 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 50.00000000 TWP 038 RGE 03 W4M SW SEC 33
A 160.000 PANCANADIAN RES 50.00000000 (PET TO TOP PALEOZOIC)
CABRE EXP LTD.
100.00000000 CABRE EXP LTD. Total Rental: 320.00
------Related Contracts-------
Status Acres Net Acres Net 205.A030 D FO Jan 01, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 DOVERRIDING ROYALTY ALL Y Y 100.00000000 % of PROD
Gas: Royalty: 15.00000000 Min Pay: $5.32 10 3M3 Prod/Sales:
S/S OIL: Min 5.00000000 Max:15.00000000 Div: 1/23.97 Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: PAIDTO (R) Paid by: BPO (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS.
</TABLE>
<PAGE> 67
Report Date: Jan 11, 2000
Page Number: 27
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
(cont'd)
<S> <C> <C> <C> <C> <C>
205.M040
Sub: A
------------------------------------ ROYALTY/ENCUMBRANCES ------------------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 DLESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent:
Paid to: PAIDTO (R) Paid by: BPO (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS-
NO DEDUCTIONS.
------------------------------------------------------------------------------------------------------------------------------------
205.M041 NG PC Eff: Oct 19, 1997 160.000 205.A030 F No WI Area: SOUNDING LAKE EAST
Sub: A AB 56-0046 Exp: Dec 12, 2000 0.000 CABRE EXP LTD. 50.00000000 TWP 038 RGE 03 W4M SW SEC 33
A 0.000 PANCANADIAN RES 50.00000000 (NG TO TOP PALEOZOIC EXCL PNG
FROM 10-33 WELL)
CABLE EXP LTD.
100.00000000 CABLE EXP LTD. Total Rental: 0.00
Status Acres Net Acres Net ----- Related Contracts ------
205.A030 FO Jan 01, 1998
------------------------------------ ROYALTY/ENCUMBRANCES ------------------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 FLESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 20.00000000
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS-
NO DEDUCTIONS.
------------------------------------------------------------------------------------------------------------------------------------
205.M041 NG PC Eff: Oct 19, 1997 160.000 205.A030 E No BPO-PE APO-PE Area: SOUNDING LAKE EAST
Sub: B AB-56-0046 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 50.00000000 TWP 038 RGE 03 W4M SW SEC 33
</TABLE>
<PAGE> 68
'
Report Date: Jan 11, 2000
Page Number: 28
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M041
Sub: B 160.000 PANCANADIAN PET 50.00000000 (NG TO TOP PALEOZOIC IN
CABRE EXP LTD. 10-33 WELL ONLY)
100.00000000 CABRE EXP LTD. Total Rental: 320.00
------Related Contracts-------
Status Acres Net Acres Net 205.A030 E FO Jan 01, 1998
----------------------------- Royalty/Encumbrances -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 ELESSOR ROYALTY ALL N N 100.00000000 % of PROD
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS.
------------------------------------------------------------------------------------------------------------------------------------
205.M042 PET PC Eff: Oct 19, 1997 160.000 205.A030 D No BPO APO Area: SOUNDING LAKE EAST
Sub: A AB 86-29357 Exp: Apr 18, 2000 160.000 CABRE EXP LTD. 100.00000000 50.00000000 TWP 038 RGE 03 W4M SE SEC 33
A 160.000 PANCANADIAN RES 50.00000000 (PET TO TOP PALEOZOIC)
CABRE EXP LTD.
100.00000000 CABRE EXP LTD. Total Rental: 320.00
Status Acres Net Acres Net -------Related Contracts------
205.A030 D FO Jan 01, 1998
----------------------------- ROYALTY/ENCUMBRANCES -----------------------------------
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205.A030 DOVERRIDING ROYALTY ALL Y Y 100.00000000 % of PROD
Gas: Royalty: 15.00000000 Min Pay: $5.32 10 3M3 Prod/Sales:
S/S OIL: Min: 5.00000000 Max: 15.00000000 Div: 1/23.87 Prod/Sales:
Other percent: Min: Prod/Sales:
Paid to: PAIDTO (R) Paid by: BPO (C)
</TABLE>
<PAGE> 69
Report Date: Jan 11, 2000
Page Number: 29
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M042
Sub: A PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTIONS -
NO DEDUCTIONS
(LINKED) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
205,A030 DLESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent:
Paid to: PAIDTO (R) Paid by: BPO (C)
PANCANADIAN RES 100.00000000 CABRE EXP LTD. 100.00000000
DEDUCTION -
NO DEDUCTIONS.
------------------------------------------------------------------------------------------------------------------------------------
205.M049 NG FH Eff: Nov 15, 1996 213.340 205.A000 E WI Area: SOUNDING LAKE EAST
Sub: A FULLERTON JAMES Exp: Nov 15, 2000 213.340 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M E SEC 33 (AS
A 213.340 TO A 66.67% INTEREST)
66,67000000 CABRE EXP LTD. Total Rental: 630.00 (ALL NG EXCL NG (INCLUDING)
CABRE EXP LTD.
METHANE AND ALL OTHER
Status Acres Net Acres Net HYDROCARBONS)
CONTAINED, STORED, DERIVED
----------------------------- Royalty/Encumbrances ----------------------------------- FROM, ASSOCIATED OR ABSORBED
WITHIN
ANY COAL MATRIX, DEPOSIT SEAM
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales OR BED)
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 16.00000000
Paid to: LESSOR (M) Paid by: WI (C) ------ Related Contracts ------
FULLERTON JAMES 75.00000000 CABRE EXP LTD. 100.00000000 000.A037 P&S Aug 31, 1999
RECEIVER GEN 25.00000000 205.A000 E DUMMY Sep 24, 1996
331.A017 ORR Aug 31, 1999
GENERAL COMMENT -
LESSOR HAS 66.67% FRACTIONAL INTEREST
(LINKED) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
331.A017 AOVERRIDING ROYALTY ALL N N 100.00000000 % of PROD
</TABLE>
<PAGE> 70
Report Date: Jan 11, 2000
Page Number: 30
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M049
Sub: A
Roy Percent: 5.00000000
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
LONGRIDGE 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M050 NG FH Eff: Nov 16, 1998 26.660 205.A000 E WI Area: SOUNDING LAKE EAST
Sub: A MCCULLOUGH GOODAL Exp: Apr 18, 2000 26.660 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M E SEC 33
A 26.660 (AS TO A 8.33% INTEREST)
CABRE EXP. LTD. Total Rental: 81.00 (ALL NG EXCL NG (INCLUDING
8.33000000 CABRE EXP. LTD. METHANE AND ALL OTHER
HYDROCARBONS)
Status Acres Net Acres Net
----------------------------- Royalty/Encumbrances ----------------------------------- CONTAINED, STORED, DERIVED
FROM, ASSOCIATED OR ABSORBED
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales WITHIN ANY COAL MATRIX,
LESSOR ROYALTY ALL N N 100.00000000 % of PROD DEPOSIT SEAM OR BED)
Roy Percent: 16.00000000
Paid to: LESSOR (M) Paid by: WI (C) -------Related Contracts------
MCCULLOUGH G 75.00000000 CABRE EXP LTD. 100.00000000 000.A037 P&S Aug 31, 1999
RECEIVER GEN 25.00000000 205.A000 E DUMMY Sep 24, 1996
331.A017 ORR Aug 31, 1999
GENERAL COMMENT -
LESSOR HAS 8.33% FRACTIONAL INTEREST
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
331.A017 AOVERRIDING ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 5.00000000
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
LONGRIDGE 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 71
Report Date: Jan 22, 2000
Page Number: 31
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFT DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
205.M051 NG FH Eff: Nov 16, 1996 26.660 205.A000 E WI Area: SOUNDING LAKE EAST
Sub: A MCCULLOUGH JANIS Exp: Nov 16, 2000 26.660 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M E SEC 33 (AS
A 26.660 TO A 8.33% INTEREST)
CABRE EXP LTD. Total Rental: 81.00 (ALL NG EXCL NG (INCLUDING
8.33000000 CABRE EXP LTD. METHANE AND ALL OTHER
HYDROCARBONS)
Status Acres Net Acres Net CONTAINED, STORED, DERIVED
FROM, ASSOCIATED OR ABSORBED
_____________________________ Royalty/Encumbrances ___________________________________ WITHIN
ANY COAL MATRIX, DEPOSIT SEAM
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales OR BED)
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 16.00000000
Paid to: LESSOR (M) Paid by: WI (C) ------ Related Contracts ------
MCCULLOUGH J 75.00000000 CABRE EXP LTD. 100.00000000 000.A037 P&S Aug 31, 1999
RECEIVER GEN 25.00000000 205.A000 E DUMMY Sep 24, 1996
331.A017 ORR Aug 31, 1999
GENERAL COMMENT
LESSOR HAS 8.33% FRACTIONAL INTEREST
(LINKED) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
331.A017 AOVERRIDING ALL N N 100.00000000 % of PROD
ROYALTY
Roy Percent: 5.00000000
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
LONGRIDGE 100.00000000 CABRE EXP LTD. 100.00000000
____________________________________________________________________________________________________________________________________
205.M052 NG FH Eff: Dec 12, 1996 53.340 205.A000 E WI Area: SOUNDING LAKE EAST
Sub: A MCCULLOUGH MARYL Exp: Dec 12, 2000 53.340 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M E SEC 33 (AS
A 53.340 TO A 16.67% INTEREST)
CABRE EXP LTD. Total Rental: 159.00 (ALL NG EXCL NG (INCLUDING
16.67000000 CABRE EXP LTD. METHANE AND ALL OTHER
HYDROCARBONS)
Status Acres Net Acres Net CONTAINED, STORED, DERIVED
FROM, ASSOCIATED OR ABSORBED
_____________________________ Royalty/Encumbrances ___________________________________ WITHIN
ANY COAL MATRIX, DEPOSIT SEAM
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales OR BED)
LESSOR ROYALTY ALL N N 100.00000000 % of PROD
</TABLE>
<PAGE> 72
Report Date: Jan 11, 2000
Page Number: 32
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M052
Sub: A
Roy Percent: 16.00000000
Paid to: LESSOR (M) Paid by: WI (C) -------Related Contracts------
MCCULLOUGH G 75.00000000 CABRE EXP LTD. 100.00000000 000.A037 P&S Aug 31, 1999
RECEIVER GEN 25.00000000 205.A000 E DUMMY Sep 24, 1996
331.A017 ORR Aug 31, 1999
GENERAL COMMENT -
LESSOR HAS 16.67% FRACTIONAL INTEREST
(Linked) Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
331.A017 AOVERRIDING ROYALTY ALL N N 100.00000000 % of PROD
Roy Percent: 5.00000000
Paid to: PAIDTO (R) Paid by: PAIDBY (R)
LONGRIDGE 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
205.M024 PNG CR Eff: Oct 17, 1996 480.000 WI Area: SOUNDING LAKE EAST
Sub: B 0496100498 Exp: Oct 17, 2001 480.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 03 W4M SW SEC 1 E
A 480.000 SEC 11
CABRE EXP. LTD. Total Rental: 672.00 (ALL PNG BELOW BASE VIKING)
100.00000000 CABRE EXP. LTD.
Status Acres Net Acres Net
----------------------------- Royalty/Encumbrances -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (M)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
</TABLE>
<PAGE> 73
Report Date: Jan 11, 2000
Page Number: 33
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
205M028 PNG CR Eff: Mar 06, 1997 160.000 205.A000 D WI Area: SOUNDING LAKE EAST
Sub: A 0497030218 Exp: Mar 06, 2002 160.000 CABRE EXP LTD. 100.00000000 TWP 038 RGE 04 W4M NW SEC 1
A 160.000 (PNG BELOW BASE VIKING)
CABRE EXP LTD. Total Rental: 224.00
100.00000000 CABRE EXP LTD.
________Related Contracts______
Status Acres Net Acres Net 205.A000 D DUMMY Sep 24, 1996
______________________________Royalty/Encumbrances________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
__________________________________________________________________________________________________________________________________
205.M024 PNG CR Eff: Oct 17, 1996 640.000 WI Area: SOUNDING LAKE EAST
Sub: A 0496100498 Exp: Oct 17, 2000 640.000 CABRE EXP LTD 100.00000000 TWP 038 RGE 04 W4M SEC 12
A 640.000 (ALL PNG EXCL NG IN VIKING)
CABRE EXP LTD. Total Rental: 896.00
100.00000000 CABRE EXP LTD.
Status Acres Net Acres Net
______________________________Royalty/Encumbrances________________________________
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min: Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (M)
</TABLE>
<PAGE> 74
Report Date: Jan 11, 2000
Page Number: 34
** REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION: SOUNDING LAKE EAST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(cont'd)
205.M024
Sub: A ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
------------------------------------------------------------------------------------------------------------------------------------
075.M015 PNG CR Eff: Mar 19, 1998 640.000 075.A000 H WI Area: SOUNDING LAKE EAST
Sub: A 0498030722 Exp: Mar 19, 2003 640.000 CABRE EXP LTD. 100.00000000 TWP 039 RGE 03 W4M SEC 4
A 640.000 (ALL PNG)
CABRE EXP. LTD. Total Rental: 896.00
100.00000000 CABRE EXP. LTD.
Status Acres Net Acres Net
----------------------------- Royalty/Encumbrances -----------------------------------
Royalty Type Product Type Sliding Scale Convertible % of Prod/Sales
LESSOR ROYALTY ALL Y N 100.00000000 % of PROD
Gas: Royalty: Min Pay: Prod/Sales:
S/S OIL: Min Max: Div: Prod/Sales:
Other Percent: Min: Prod/Sales:
Paid to: LESSOR (M) Paid by: WI (C)
ALTA ENERGY 100.00000000 CABRE EXP LTD. 100.00000000
</TABLE>
<PAGE> 75
Report Date: Jan 11, 2000
Page Number: 35
**REPORTED IN ACRES**
Cabre Exploration Ltd.
Mineral Property Report
K&A DISPOSITION : SOUNDING LAKE EAST
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
File Number Lse Type Lessor Type Exposure Oper. Cont. ROFR DOI Code
File Status Lease No/Name Gross
Mineral Int Operator/Payor Net Dol Partner(s) * * Lease Description/Rights Held
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Report Total: Gross: 9,093,000 Net: 8,280,583
</TABLE>
** End of Report **
<PAGE> 76
THIS IS SCHEDULE "B" TO AND FORMING PART OF A PURCHASE AND SALE AGREEMENT
BETWEEN CABRE EXPLORATION LTD., AS VENDOR, AND WESTLINKS RESOURCES LTD., AS
PURCHASER, MADE AS OF THE 6TH DAY OF APRIL, 2000
_______________________________________________________________________________
VENDOR'S OFFICER'S CERTIFICATE
RE: Clause 7.1(a) of the Purchase and Sale Agreement ("Agreement") made as of
April 6, 2000 between Cabre Exploration Ltd., as Vendor, and Westlinks
Resources Ltd., as Purchaser.
Unless otherwise stated, the definitions provided for in the Agreement are
adopted in this Certificate.
I, R.G. Jensen, Vice President, Land and Contracts of Cabre Exploration Ltd.
(the "Company"), hereby certify that as of the date of this Certificate:
(a) The covenants, representations and warranties of the Company contained in
Clause 10 of the Agreement are true and correct in all material respects.
(b) This Certificate is made for and on behalf of the Company and is binding
upon it and the deponent herein is not and will not incur any personal
liability whatsoever with respect to it.
IN WITNESS WHEREOF I have executed this Certificate effective the 6th day of
April, 2000.
Vendor
CABRE EXPLORATION LTD.
Per: ____________________________________________
R.G. Jensen -- Vice President, Land and Contracts
41
<PAGE> 77
SCHEDULE "B"
-2-
_______________________________________________________________________________
PURCHASER'S OFFICER'S CERTIFICATE
RE: Clause 7.2(a) of the Purchase and Sale Agreement ("Agreement") made as of
April 6, 2000 between Cabre Exploration Ltd. as Vendor, and Westlinks Resources
Ltd., as Purchaser.
Unless otherwise stated, the definitions provided for in the Agreement are
adopted in this Certificate.
I, ____________________________, President of Westlinks Resources Ltd. (the
"Purchaser"), hereby certify that as of the date of this Certificate:
(a) The covenants, representations and warranties of the Purchaser contained in
Clause 11 of the Agreement are true and correct in all material respects.
(b) This Certificate is made for and on behalf of the Purchaser and is binding
upon it and the deponent herein is not and will not incur any personal
liability whatsoever with respect to it.
IN WITNESS WHEREOF I have executed this Certificate effective the 6th day of
April, 2000.
PURCHASER
WESTLINKS RESOURCES LTD.
Per: ____________________________________
Title
42
<PAGE> 78
THIS IS SCHEDULE "C" TO AND FORMING PART OF A PURCHASE AND SALE AGREEMENT
BETWEEN CABRE EXPLORATION LTD. AS VENDOR, AND WESTLINKS RESOURCES LTD., AS
PURCHASER, MADE AS OF THE 6TH DAY OF APRIL, 2000
------------------------------------------------------------------------------
CONVEYANCE
THIS INDENTURE AND AGREEMENT made as of the 6th day of April, 2000.
BETWEEN:
CABRE EXPLORATION LTD., a body corporate, having an office in the City
of Calgary, in the Province of Alberta, (hereinafter called "Vendor")
OF THE FIRST PART
- and -
WESTLINKS RESOURCES LTD., a body corporate, having an office in the
City of Calgary, in the Province of Alberta, (hereinafter called
"Purchaser")
OF THE SECOND PART
WHEREAS Vendor has agreed, pursuant to a Purchase and Sale Agreement dated
as of the 6th day of April, 2000 (hereinafter called the "Sale Agreement"), to
convey to Purchaser all of its interest in and to the Assets, insofar as those
terms are defined therein.
NOW THEREFORE THIS AGREEMENT WITNESSETH that, for the consideration
provided in the Sale Agreement, the receipt and sufficiency of which is hereby
acknowledged by Vendor has agreed to sell and by these presents does bargain,
sell, assign, transfer and convey to Purchaser all of its right, title, interest
and property whatsoever in, to or arising out of the Assets, to have and to hold
for its own use and benefit on the terms herein provided.
IT IS FURTHER AGREED BETWEEN THE PARTIES AS FOLLOWS:
1. DEFINITIONS
In this Conveyance, the definitions set forth on the Sale Agreement shall
apply hereto.
2. TITLE
Purchaser hereby covenants and agrees with Vendor that nothing herein,
expressed or implied,
43
<PAGE> 79
shall operate to have effect as any warranty or guarantee of title or
covenant for title on the part of Vendor and that the representations and
warranties contained in the Sale Agreement shall apply hereto for the
period provided in the Sale Agreement.
3. EFFECTIVE DATE
Vendor and Purchaser agree that the effective date of this transaction
shall be 8:00 a.m. Calgary time on January 1, 2000.
4. ACCEPTANCE
Purchaser hereby accepts this Conveyance and in consideration thereof,
Purchaser hereby assumes and agrees to perform and be bound by all terms
and conditions of the contracts, agreements and documents included in the
Assets.
5. FURTHER ASSURANCES
Vendor and Purchaser will each from time to time, and at all times
hereafter, at the request and cost of the other, do and perform all such
acts and things, and execute all such assurances, deeds, documents and
writings with respect to the Assets as the other may reasonably require in
order to carry out the purposes of this Conveyance.
6. SALE AGREEMENT
The terms hereof shall be read in conjunction with the terms of the Sale
Agreement and subject thereto. In the event of any conflict between the
provisions of this Conveyance and the Sale Agreement, the Sale Agreement
shall prevail.
7. ENUREMENT
This conveyance shall extend to and be binding upon the parties hereto and
their successors and assigns.
44
<PAGE> 80
8. COUNTERPART EXECUTION
This conveyance may be executed in counterpart and all counterparts
together shall form one binding Agreement.
IN WITNESS WHEREOF the parties hereto have executed this Conveyance by
their proper officers duly authorized in that behalf as of the effective date.
Vendor
CABRE EXPLORATION LTD.
Per:
_________________________________________________
R.G. Jensen - Vice President, Land & Contracts
Per:
__________________________________________________
J. Douglas Kay - President and Chief Operating Officer
Purchaser
WESTLINKS RESOURCES LTD.
Per:
__________________________________________________
Per:
__________________________________________________
45
<PAGE> 81
THIS IS SCHEDULE "D" TO AND FORMING PART OF A PURCHASE AND SALE AGREEMENT
BETWEEN CABRE EXPLORATION LTD. AS VENDOR, AND WESTLINKS RESOURCES LTD., AS
PURCHASER, MADE AS OF THE 6TH DAY OF APRIL, 2000
---------------------------------------------------------------------------
TANGIBLES, FACILITIES AND OTHER MISCELLANEOUS MATTERS
-----------------------------------------------------
<TABLE>
<CAPTION>
Vendor's
10 Digit Code Description Interest
------------- ----------- ---------
<S> <C> <C>
1127TO11C26 Water Disposal Line from 11d-27-37-4-W4 40.6%
to 15B-27-37-4-W4 (AFE 117PL R-1)
0427TO1027 Pipeline to transport solution gas from 100%
4-27-38-3-W4 to 10-27-38-3-W4 where it
enters Fletcher's gathering system
(AFE 3547PL)
12D31T00531 Tie in 12d2-31-37-3-W4 to control battery 100%
via pipeline (AFE 3934PL)
0531TO1035 Line to transport sweetened raw solution 100%
gas from 5-31-37-4-W4 battery to Fletcher
gathering system at 10-345-37-4-W4
(AFE 131 PL)
0531TO2A36 Water disposal line from 5-31-37-3-W4 72.9008%
battery to well in 2a-36-37-4-W4
13A263704T4 Inverness Satellite 13a-26-37-4 Group 29.5%
Header
15A273704T4 Inverness Satellite 15a-27-37-4 Group 47.5%
Header
05313703B4 Sounding Lake Battery 5-31-37-3-W4 100%
05313703G4 Gas Sweetener Facility at 5-31-37-3-W4 100%
11273704B4 Sounding Lake E Oil Battery 11-27-37-4 40.6%
5B313703F4 Cabre 5B Provost 5-31-37-3-W4 100%
SDLKEASTPL Inverness Sounding Lake E Gathering System 39.55%
</TABLE>
(See Attached Tangible Listing)
46
<PAGE> 82
<TABLE>
<CAPTION>
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 14B-21-38-3-W4M (SINGLE WELL BATTERY)
<S> <C> <C>
FLARE STACK (MFG) N/A
(SIZE) 3" X 30'
(PILOT) PROPANE (FLARE TUBE LIGHT)
PUMP JACK (MFG) LUFKIN
(SER.#) N/A
(SIZE) 160
(YEAR) N/A
MOTOR SHACK (SIZE) NONE
(TYPE) NONE
MOTOR (TYPE) GAS 1 CYCLE
(MFG) WITTE
(MOD) N/A
(SER #) N/A
SATT. BLDG (TYPE) TIN (INSULATED) - SKID"
(SIZE) 6' X 6'6" X 8'H
SEPARATOR (MFG) ARGO SALES LTD.
(SER.#) 2244
(SIZE) 2' X 6'
(MWP) 235 PSi
(YEAR) 1986
METER (TYPE) GAS (100 X 100")
(MFG) ITT BARTON
(SER.#) 202E-10422
PROD. TANK (SIZE) 400 BBL
(MFG) WINCHESTER SUPPLY INC.
(SER.#) 1986 266
(YEAR) 1986
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) ARGO SALES LTD.
(SER.#) 4268-1
(YEAR) 1981
</TABLE>
47
<PAGE> 83
<TABLE>
<CAPTION>
AREA - SOUNDING LAKE EAST
INVENTORY LOCATION - 6c-21-38-3-W4M (SINGLE WELL BATTERY)
<S> <C> <C>
FLARE STACK (MFG) N/A
(SIZE) 3" X 30"
(PILOT) PROPANE (FLARE TUBE LIGHT)
PUMP JACK (MFG) LEGRAND
(SER#) 780474 9506
(SIZE) 160
(YEAR) 1986
MOTOR SHACK (SIZE) 10' X 10' X 8'H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 1 CYCLE
(MFG) ARROW
(MOD) C-66
(SER#) 85856
SATT. BLDG (TYPE) TIN (INSULATED)--SKID "0020
(SIZE) 6' X 6' X 7'6"H
SEPARATOR (MFG) PLAINS OIL LTD.
(SER#) 225 V12
(SIZE) 2' X 5'
(MWP) 125 PSi
(YEAR) 1988
METER (TYPE) GAS (100 X 100")
(MFG) BARTON
(SER#) 202AC-31651
PROD. TANK (SIZE) 400 BBL
(MFG) NWP
(SER#) 400555
(YEAR) 1987
POP TANK (SIZE) 50 BBL
(MFG) RECON MFG LTD.
(SER#) 00372
(YEAR) 1982
</TABLE>
48
<PAGE> 84
<TABLE>
<CAPTION>
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 10-27-38-3-W4M (Single Well Battery)
<S> <C> <C>
FLARE STACK (MFG) UNKNOWN
(SIZE) 3" X 30'
(PILOT) PROPANE (BATON WINCH)
PUMP JACK (MFG) L.S.I.
(SER.#) 87-1436
(SIZE) 114
(YEAR) 1987
MOTOR SHACK (SIZE) 9'6" X 9'6" X 8'H
(TYPE) WOOD (TIN CLAD)
MOTOR (TYPE) GAS 2 CYCLE
(MFG) LISTER
(MOD) HR2AGAS
(SER.#) 3400756
SATT. BLDG (TYPE) TIN (INSULATED) - SKID "0010
(SIZE) 6' X 6' X 8'H
SEPARATOR (MFG) PLAINS OIL LTD.
(SER.#) 225 VI
(SIZE) 2' X 5'
(MWP) 125 PSi
(YEAR) 1988
METER (TYPE) GAS (250 X 100")
(MFG) ITT BARTON
(SER.#) 202E-0914168
PROD. TANK (SIZE) 400 BBL
(MFG) G.L.M.
(SER.#) 1436 7D-9107
(YEAR) 1988
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) UNKNOWN
(SER.#) UNKNOWN
(YEAR) UNKNOWN
</TABLE>
49
<PAGE> 85
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 13A-22-38-3-W4M (Single Well Battery)
FLARE STACK (MFG) UNKNOWN
(SIZE) 3" X 3'
(PILOT) PROPANE (FLARE TUBE LIGHT)
PUMP JACK (MFG) OILWELL
(SER#) T233E-270I
(SIZE) 228
(YEAR) 1986
MOTOR SHACK (SIZE) 7'8" X 9'8" X 8'H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 1 CYCLE
(MFG) ARROW
(MOD) C-66
(SER#) 74119
SATT. BLDG (TYPE) TIN (INSULATED) - SKID #0013
(SIZE) 7' X 7' X 8'H
SEPARATOR (MFG) WELLS-HALL
(SER#) 829161
(SIZE) 2' X 5'
(MWP) 275 PSi
(YEAR) 1982
METER (TYPE) GAS (100 X 100")
(MFG) BARTON
(SER#) 202AC-31959
PROD. TANK (SIZE) 400 BBL
(MFG) UNKNOWN
(SER#) 98-09-01
(YEAR) UNKNOWN
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) UNKNOWN
(SER#) 4268-2
(YEAR) UNKNOWN
50
<PAGE> 86
<TABLE>
<CAPTION>
AREA - SOUNDING LAKE EAST
INVENTORY LOCATION - 13D-22-38-3-W4M (Single Well Battery)
<S> <C> <C>
FLARE STACK (MFG) UNKNOWN
(SIZE) 3" X 30'
(PILOT) PROPANE (BATON WINCH)
PUMP JACK (MFG) UNIVERSAL
(SER.#) C83.11.641
(SIZE) 228
(YEAR) 1986
MOTOR SHACK (SIZE) 9'6" X 10" X 7'6"H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 2 CYCLE
(MFG) LISTER
(MOD) HR2A GAS
(SER#) 35 00530
SATT. BLDG (TYPE) TIN (INSULATED) - SKID #0011
(SIZE) 6' X 6' X 7'6"H
SEPARATOR (MFG) PLAINS OIL LTD.
(SER#) 225 V5
(SIZE) 2' X 5'
(MWP) 125 PSi
(YEAR) 1988
METER (TYPE) GAS (100 X 100")
(MFG) BARTON
(SER#) 202A-034963
PROD. TANK (SIZE) 400 BBL
(MFG) NUSCO MFG. LTD.
(SER#) 86564
(YEAR) 1986
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) UNKNOWN
(SER#) 226-1
(YEAR) 1988
</TABLE>
51
<PAGE> 87
<TABLE>
<CAPTION>
AREA - SOUNDING LAKE EAST
INVENTORY LOCATION - 15D-21-38-3- W4M (Single Well Battery)
---------
<S> <C> <C>
FLARE STACK (MFG) UNKNOWN
(SIZE) 3" X 30'
(PILOT) PROPANE (FLARE TUBE LIGHT)
PUMP JACK (MFG) LEGRAND
(SER.#) 910224 9188C
(SIZE) 160
(YEAR) 1986
MOTOR SHACK (SIZE) 9'6" X 10' X 8'H
(TYPE) WOOD/TIN CLAD (NON-INSULATED)
MOTOR (TYPE) GAS 1 CYCLE (14 HP)
(MFG) ARROW
(MOD) C-66
(SER#) 86314
SATT.BLDG (TYPE) TIN (INSULATED) - SKID #0014
(SIZE) 6'6" X 6'6" X 8'H
SEPARATOR (MFG) LARSEN & D'AMICO
(SER#) V5-2827
(SIZE) 2' X 5'
(MWP) 125 PSi
(YEAR) 1982
METER (TYPE) GAS (100 X 100")
(MFG) BARTON
(SER#) 202AC1632024
PROD. TANK (SIZE) 400 BBL
(MFG) NWP
(SER#) 400556
(YEAR) 1987
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) UNKNOWN
(SER#) 1998 03
(YEAR) UNKNOWN
</TABLE>
52
<PAGE> 88
<TABLE>
<CAPTION>
AREA - SOUNDING LAKE EAST
INVENTORY LOCATION - 4-27-38-3-W4M (Single Well Battery)
---------
<S> <C> <C>
FLARE STACK (MFG) UNKNOWN
(SIZE) 3" X 30'
(PILOT) PROPANE (BOOM LIFT)
PUMP JACK (MFG) AMERICAN MFG. COMPANY
(SER#) I15F6F 3B C75 6852
(SIZE) 160
(YEAR) 1979
MOTOR SHACK (SIZE) 9'6" X 9'6" X 8'H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 2 CYCLE
(MFG) LISTER
(MOD) HR2AGAS
(SER#) 3600071
SATT. BLDG (TYPE) TIN (INSULATED) - SKID #0012
(SIZE) 7'6" X 7'6" X 7'6"H
SEPARATOR (MFG) PLAINS OIL LTD.
(SER#) 147 V3
(SIZE) 2' X 5'
(MWP) 125 PSI
(YEAR) 1988
METER (TYPE) GAS (250 X 100")
(MFG) ITT BARTON
(SER#) 202E-376730
PROD. TANK (SIZE) 400 BBL
(MFG) PLAINS OIL PROCESSORS LTD.
(SER#) 1060-1
(YEAR) 1993
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) BS+B
(SER#) 03797
(YEAR) 1955
</TABLE>
53
<PAGE> 89
<TABLE>
<CAPTION>
AREA - SOUNDING LAKE EAST
INVENTORY LOCATION - 16-12-38-4- W4M (Single Well Battery)
<S> <C> <C>
FLARE STACK (MFG) UNKNOWN
(SIZE) 4" X 30'
(PILOT) PROPANE (FLARE TUBE LIGHT)
PUMP JACK (MFG) LEGRAND
(SER.#) 83414 9325
(SIZE) 114
(YEAR) 1983
MOTOR SHACK (SIZE) 7' 6" X 7' 6" X 8'H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 2 CYCLE
(MFG) LISTER
(MOD) HR2AGAS
(SER#) 34 00339
SATT.BLDG (TYPE) TIN (INSULATED)
(SIZE) 6' X 6' X 7' 6"H
SEPARATOR (MFG) PLAINS OIL LTD.
(SER#) 225 V6
(SIZE) 2' X 5'
(MWP) 125 PSi
(YEAR) 1988
METER (TYPE) GAS (100 X 100")
(MFG) ITT BARTON
(SER#) 202E-C881462
PROD. TANK (SIZE) 400 BBL -- (20' X 40' X 48"H CEMENT BURM)
(MFG) UNKNOWN
(SER#) 776-1
(YEAR) 1992
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) ARGO SALES LTD.
(SER#) 1022
(YEAR) 1979
</TABLE>
54
<PAGE> 90
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 16C-21-38-3-W4M (Single Well Battery)
<TABLE>
<S> <C> <C>
FLARE STACK (MFG) N/A
(SIZE) 3" X 30'
(PILOT) PROPANE (SWING BOOM LIGHT)
PUMP JACK (MFG) UNIVERSAL
(SER#) L87.04.1074
(SIZE) 228
(YEAR) 1986
MOTOR SHACK (SIZE) 9'6" X 9'6" X 7'6" H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 6 CYCLE 225 CUBIC INCHES
(MFG) CHRYSLER
(MOD) INDUSTRIAL
(SER#) N/A
SATT. BLDG (TYPE) TIN (INSULATED) - SKID #0016
(SIZE) 6'6" X 7'6" X 7'6" H
SEPARATOR (MFG) RJV GASFIELD SERVICE LTD.
(SER#) 1284
(SIZE) 2' X 6'
(MWP) 250 PSi
(YEAR) 1988
METER (TYPE) GAS (250 X 100")
(MFG) ITT BARTON
(SER#) 202E-C885471
PROD. TANK (SIZE) 400 BBL
(MFG) G.L.M.
(SER#) D8908-S6
(YEAR) 1988
POP TANK (SIZE) 100 BBL (CLOSED TOP)
(MFG) PLAINS OIL PROCESSORS LTD.
(SER#) 436
(YEAR) 1989
</TABLE>
55
<PAGE> 91
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 16D-21-38-3- W4M (Single Well Battery)
<TABLE>
<S> <C> <C>
FLARE STACK (MFG) )
(SIZE) ) SHARED WITH 16C-21 TWP 38 RGE 3 W4M
(PILOT) )
PUMP JACK (MFG) UNIVERSAL
(SER#) C82.06.0560
(SIZE) 228
(YEAR) 1986
MOTOR SHACK (SIZE) 8' X 8' X 7'6" H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 2 CYCLE
(MFG) LISTER
(MOD) HR2AGAS
(SER#) 3600075
SATT. BLDG (TYPE) TIN (INSULATED) SKID "0015
(SIZE) 5'6" X 5'6" X 7'6" H
SEPARATOR (MFG) PLAINS OIL LTD.
(SER#) 254 V6
(SIZE) 2' X 5'
(MWP) 125 PSi
(YEAR) 1989
METER (TYPE) GAS (100 X 100")
(MFG) ITT BARTON
(SER#) 202E-376944
PROD. TANK (SIZE) 400 BBL
(MFG) RP TRUCKING
(SER#) PT 410
(YEAR) N/A
POP TANK (SIZE) )
(MFG) ) SHARED WITH 16C-21 TWP 38 RGE 3 W4M
(SER#) )
(YEAR)
</TABLE>
56
<PAGE> 92
<TABLE>
<CAPTION>
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 10D-21-38-3- W4M (SINGLE WELL BATTERY)
<S> <C> <C>
FLARE STACK (MFG) N/A
(SIZE) 3" X 30'
(PILOT) PROPANE (FLARE TUBE LIGHT)
PUMP JACK (MFG) UNIVERSAL
(SER.#) C81.11.8406
(SIZE) 228
(YEAR) 1981
MOTOR SHACK (SIZE) 9'6" X 9'6" X 8'H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 2 CYCLE
(MFG) LISTER
(MOD) HR2AGAS
(SER#) 3500371
SATT.BLDG (TYPE) TIN (INSULATED) - SKID "0017
(SIZE) 6' X 7'6" X 8'H
SEPARATOR (MFG) LAN-DALE OILFIELD WELDING
(SER#) 1214
(SIZE) 2' X 6'
(MWP) 250 PSi
(YEAR) 1988
METER (TYPE) GAS (250 X 100")
(MFG) ITT BARTON
(SER#) 202E-C884591
PROD. TANK (SIZE) 400 BBL
(MFG) VERMILLION IND. PRODUCTS LTD.
(SER#) 40 295
(YEAR) 1988
POP TANK (SIZE) 100 BBL
(MFG) G.L.M.
(SER#) 01003
(YEAR) 1985
</TABLE>
57
<PAGE> 93
<TABLE>
<CAPTION>
AREA - SOUNDING LAKE EAST
INVENTORY LOCATION - 11A-21-38-3-W4M (SINGLE WELL BATTERY)
<S> <C> <C>
FLARE STACK (MFG) N/A
(SIZE) 4" X 30'
(PILOT) PROPANE (FLARE TUBE LIGHT)
PUMP JACK (MFG) CHURCHILL
(SER.#) 320128301417
(SIZE) 320
(YEAR) 1986
MOTOR SHACK (SIZE) 9'6" X 9'6" X 8'H
(TYPE) WOOD (NON-INSULATED)
MOTOR (TYPE) GAS 3 CYCLE
(MFG) LISTER
(MOD) HR3AGAS
(SER.#) 320030
SATT. BLDG (TYPE) TIN (INSULATED) - SKID #0018
(SIZE) 6'6" X 6'6" X 8'H
SEPARATOR (MFG) WELL-HALL FABRICATION
(SER#) 88-3915-13
(SIZE) 2' X 6'
(MWP) 275 PSi
(YEAR) 1988
METER (TYPE) GAS (100 X 100")
(MFG) ITT BARTON
(SER#) 202E-C885590
PROD. TANK (SIZE) 400 BBL C/W STAIRWAY
(MFG) NUSCO MFG LTD.
(SER#) 89745
(YEAR) 1989
POP TANK (SIZE) 100 BBL (OPEN TOP)
(MFG) N.W.P
(SER#) 100118
(YEAR) N/A
</TABLE>
58
<PAGE> 94
DOWNHOLE INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 10d-21-38-3-W4M
TUBING 89 JOINTS - 73mm
RODS 42 - 19mm PLAIN
67 - 19mm SCRAPER
PUMP 2.5 X 2.0 RWAC X 14 X 2 X JF
LOCATION - 11A-21-38-3-W4M
TUBING 88 JOINTS - 73mm
RODS 52 - 19mm PLAIN
57 - 19mm SCRAPER
PUMP 25 X 125 X RWAC X 12 X 1 X 0
LOCATION - 14B-21-38-3-W4M
TUBING 88 JOINTS - 73mm
RODS 50 - 19mm PLAIN
58 - 19mm SCRAPER
PUMP 25 X 200 X RWAC X 14 X 2 X 0
LOCATION - 15D-21-38-3-W4M
TUBING 90 JOINTS - 73mm
RODS 55 - 19mm PLAIN
54 - 19mm SCRAPER
PUMP 25 X 200 X RWAC X 14 X 2 X 0
59
<PAGE> 95
DOWNHOLE INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 16C-21-38-3-W4M
TUBING 87 JOINTS - 73mm
RODS 52 - 19mm PLAIN
56 - 19mm SCRAPER
PUMP 2.5 X 2.0 RWAC X 14 X 2
LOCATION - 16D-21-38-3-W4M
TUBING 91 JOINTS - 73mm
RODS 113 - 19mm SCRAPER
PUMP 2.5 X 1.25 RWAC X 14 X 2
LOCATION - 13A-22-38-3-W4M
TUBING 86 JOINTS - 73mm
RODS 114 - 19mm SCRAPER
PUMP 2.5 X 2.0 RWAC X 14 X 2 X 0
LOCATION - 13D-22-38-3-W4M
TUBING 87 JOINTS - 73mm
RODS 106 - 19mm SCRAPER
PUMP 2.5 X 2.0 RWAC X 14 X 2 X 0
LOCATION - 4-27-38-3-W4M
TUBING 87 JOINTS - 73mm
RODS 57 - 19mm SCRAPER
50 - 19mm SCRAPER
PUMP 25 X 200 RWAC X 14 X 2 X 0
LOCATION - 10-27-38-3-W4M
TUBING 82 JOINTS - 73mm
RODS 62 - 19mm PLAIN
42 - 19mm SCRAPER
PUMP 25 X 125 RWAC X 14 X 2
60
<PAGE> 96
DOWNHOLE INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 12-33-38-3-W4M
TUBING 83 JOINTS - 73mm
RODS 44 - 19mm PLAIN
57 - 19mm SCRAPER
PUMP 2.5 X 1.25 RWAC X 14 X 2
61
<PAGE> 97
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 5-31-37-3-W4M BATTERY
<TABLE>
<S> <C> <C>
FLARE STACK (MFG) N/A
(SIZE) DUAL 4" X 30'
(PILOT) PROPANE (BATON/WINCH LIGHTING SYSTEM)
MCC/OFFICE (MGF) ATCO TRAILER
(TYPE) TIN CLAD -- INSULATED
(SIZE) 10' X 48' X 10'H
(YEAR) N/A
DISPOSAL PUMP (BLDG) TIN/INSULATED -- 12' X 18' X 9'H (SKID #0027)
(PUMP) NATIONAL OILWELL
MODEL 100T-4
SER #10391
(MOTOR) WESTINGHOUSE
60 HP
SER #93002
1180 RPM
(METER) HALLIBURTON ELECTRONIC 2" TURBINE C/W MCU ANALYZER
TREATER (BLDG) TIN/INSULATED -- 6' X 9.5' X 7.5'H (SKID 0025#)
(TREATER) LARSEN+D'AMICO
5' X 12'
SER #HT-4630
MAWP 50 PSi
(GAS METER) CANADIAN METER COMPANY
SER #E1339
2" METER RUN
F.W.K.0. (BLDG) TIN/INSULATED
14' X 15' X 13'H (SKID #0024)
(FWKO) FLO-SKID MFG INC.
8' X 32'
SER #1642
MAWP 100 PSi
(GAS METER) ITT BARTON
SER #202E-C9303191
2" METER RUN
SEPARATOR/ (BLDG) TIN/INSULATED
HEADER 12' X 25' X 10'H (SKID #0023)
(SEPARATOR) PENFABCO
2.5' X 11'
SER #1095
MAWP 275 PSi
(GAS METER) ITT BARTON
SER #202E-C884127
2" METER RUN
(OIL METER) BARTON FLOCO
SER #C-74-1557
2" MECHANICAL
(AIR COMP.) BRITANNIA 2 CYCLE (7 HP MOTOR)
1993
</TABLE>
62
<PAGE> 98
<TABLE>
<CAPTION>
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 5-31-37-3-W4M BATTERY
<S> <C> <C>
SEPARATOR/ (RECYCLE) MOYNO
MODEL 56701
5 HP MOTOR
(VALVES) 10 - NUTRON 3" 300 FULL PORT
2 - NUTRON 3" 300 REG. PORT
15 - NUTRON 2" 300 REG. PORT
10 - CROWN 3" 300 CHECKS
1 - KITZ 3" 300 E.S.D. C/W ACCUATOR
1 - KITZ 4" 300 FULL PORT
PROD. TANK VERMILLION IND. LTD.
750 BBL
SER# 88176
1988
NO COATING
SHIP. TANK VERMILLION IND. LTD.
750 BBL
SER# 88161
1988
NO COATING
SLOP TANK UNIVERSAL IND. LTD.
750 BBL
SER#6.19.4673
1981
NO COATING
#1 H(2)O TANK G.L.M.
750 BBL
SER#B751726
1987
COATED BOTTOM 4'/EPOXY TOP
#2 H(2)O TANK UNIVERSAL IND. LTD.
750 BBL
SER#05.08.6872
COATED BOTTOM 4'
POP TANK BIRD OIL EQUIP. LTD.
400 BBL
SER#239
1984
NO COATING
</TABLE>
63
<PAGE> 99
<TABLE>
<CAPTION>
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 11B-31-3713-W4M
<S> <C>
DRIVE UNIT ROTARY
MFG ALKOMA IND.
SER# ML 300 A
MODE GRAYLING
SIZE --
YEAR N/A
MOTOR ELECTRIC
MFG TOSHIBA
MODE B0406FLF3UD
SER# 6X04274
HP 35
VLTS 230/460
RPM 1175
CONTROLLER 3 PHASE
MFG TITAN ELECTRIC
SER# TE0C 0577
VLTS 480
AMP/HP 70 AMP/40 HP
YR 1993
LOCATION - 12D-31-37-3-W4M
DRIVE UNIT ROTARY
MFG ALKOMA IND.
SER# N/A
MOD GRAYLING
SIZE --
YEAR N/A
MOTOR ELECTRIC
MFG TOSHIBA
MOD B0406FLF3OK
SER# 8508550C
HP 40
VLTS 460
RPM 1175
CONTROLLER 3 PHASE
MFG TITAN ELECTRIC
SER# TE0C 0578
VLTS 480
AMP/HP 70 AMP/40 HP
YR 1993
</TABLE>
64
<PAGE> 100
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 5B-31-37-3-W4M Source
DRIVE UNIT ROTARY
MFG ALKOMA IND.
SER# 379
MOD GRAYLING
SIZE --
YEAR N/A
MOTOR ELECTRIC
MFG US ELECTRICAL MOTORS
MOD N/A
SER# 05071/V05V082R001R-20
HP 20
VLTS 460
RPM 1160
CONTROLLER 3 PHASE
MFG SQUARE D
SER# N/A
VLTS 480
AMP/HP 50 AMP
YR 1993
LOCATION - 8D-36-37-4-W4M
DRIVE UNIT ROTARY
MFG ALKOMA IND.
SER# 305
MOD GRAYLING
SIZE --
YEAR N/A
MOTOR ELECTRIC
MFG TOSHIBA
MOD B0206FLF1UM
SER# 91704933
HP 20
VLTS 230/460
RPM 1165
CONTROLLER 3 PHASE
MFG SQUARE D
SER# N/A
VLTS 480
AMP/HP 50 AMP
YR 1993
65
<PAGE> 101
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 5C-31-37-3-W4M
DRIVE UNIT ROTARY
MFG ALKOMA IND.
SER# N/A
MOD GRAYLING
SIZE --
YEAR N/A
MOTOR ELECTRIC
MFG TOSHIBA
MOD 80406FLF3UMW
SER# 97X04628
HP 40
VLTS 230/460
RPM 1170
CONTROLLER 3 PHASE
MFG SQUARE D
SER# N/A
VLTS 480
AMP/HP 50 AMP
YR 1993
LOCATION - 12B-31-37-3-W4M
DRIVE UNIT PUMPJACK
MFG AMPSCOT
SER# 984
MOD N/A
SIZE 320
YEAR 1997
MOTOR ELECTRIC
MFG WESTINGHOUSE
MOD OPTIM
SER# EF 7541110006
HP 30
VLTS 460
RPM 1175
CONTROLLER 3 PHASE
MFG SQUARE D
SER# N/A
VLTS 480
AMP/HP 50 AMP
YR N/A
66
<PAGE> 102
INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 14-31-37-3-W4M
DRIVE UNIT PUMPJACK
MFG RIG MASTER
SER# 160D-358-3168
MOD D
SIZE 160
YEAR 1954
MOTOR ELECTRIC
MFG GENERAL ELECTRIC
MOD 133395
SER# N/A
HP 10/15/20
VLTS 460
RPM 1140
CONTROLLER 3 PHASE
MFG WESTINGHOUSE
SER# 822160
VLTS 480
AMP/HP 25 HP
YR N/A
LOCATION - 12D2-31-37-3-W4M
DRIVE UNIT PUMPJACK
MFG LEGRAND
SER# 980097
MOD
SIZE 160
YEAR 1986
MOTOR ELECTRIC
MFG GENERAL ELECTRIC
MOD 107781
SER# 828612
HP 10/15/20
VLTS 440
RPM 1125
CONTROLLER 3 PHASE
MFG PYRAMID ELECTRIC CORP.
SER# C2119
VLTS 480
AMP/HP 100 AMP
YR 1999
67
<PAGE> 103
<TABLE>
<CAPTION>
DOWNHOLE INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 5B-31-37-3-W4M
<S> <C>
TUBING 26 JOINTS - 73mm
RODS 30 - 22mm SPIN THROUGH
PUMP KUDU 400 TP - 900
LOCATION - 5C-31-37-3-W4M
TUBING 87 JOINTS - 73mm
RODS 90 - 22mm PLAIN
PUMP KUDU 200 TP 1200
LOCATION - 11B-31-37-3-W4M
TUBING 85 JOINTS - 73mm
RODS 108 - 22mm PLAIN
PUMP KUDU 200 TP 1200
LOCATION - 11C-31-37-3-W4M
TUBING 93 JOINTS - 73mm
RODS 92 - 22mm SCRAPER
20 - 19mm PLAIN
PUMP 2.5 X 2.00 X RWAC X 14 X 2
</TABLE>
68
<PAGE> 104
DOWNHOLE INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 12A-31-37-3-W4M
TUBING 92 JOINTS - 73mm COATED
LOCATION - 12B-31-37-3-W4M
TUBING 89 JOINTS - 73mm
RODS 110 - 22mm SCRAPER
PUMP 25 X 2.00 RWAC X 16 X 3 X 0
LOCATION - 12B2-31-37-3-W4M
TUBING 86 JOINTS - 73mm
LOCATION - 12D-31-37-3-W4M
TUBING 89 JOINTS - 73mm
RODS 42 - 22mm SPIN THROUGH
73 - 22mm PLAIN
PUMP KUDU 200 TP 1200
LOCATION - 12D2-31-37-3-W4M
TUBING 88 JOINTS - 73mm
RODS 107 - 22mm PLAIN
PUMP 250 X 200 RWAC X 14 X 2
LOCATION - 14-31-37-3-W4M
TUBING 85 JOINTS - 73mm
RODS 50 - 19mm PLAIN
58 - 19mm SCRAPER
PUMP 25 X 150 RWAC X 14 X 2 X 0
LOCATION - 8C-36-37-4-W4M
TUBING 88 JOINTS - 73mm COATED
LOCATION - 8D-36-37-4-W4M
TUBING 90 JOINTS - 73mm
RODS 51 - 22mm PLAIN
69
<PAGE> 105
59 - 22mm SPIN THROUGH
PUMP TARBY 12T31
DOWNHOLE INVENTORY AREA - SOUNDING LAKE EAST
LOCATION - 16-12-38-4-W4M
TUBING 85 JOINTS - 73mm
RODS 34 - 19mm PLAIN
69 - 19mm SCRAPER
PUMP 25 X 2.00 RWAC X 14 X 1 X 0
LOCATION - 6C-21-38-3-W4M
TUBING 88 JOINTS - 73mm
RODS 48 - 19mm PLAIN
59 - 19mm SCRAPER
PUMP 25 X 200 RWAC X 14 X 2 X 0
70
<PAGE> 106
THIS IS SCHEDULE "E" TO AND FORMING PART OF A PURCHASE AND SALE AGREEMENT
BETWEEN CABRE EXPLORATION LTD., AS VENDOR, AND WESTLINKS RESOURCES LTD., AS
PURCHASER, MADE AS OF THE 6TH DAY OF APRIL, 2000.
________________________________________________________________________________
PRODUCTION SALES AGREEMENTS
Other than the following there are no production sales agreements or
arrangements under which Vendor, or any Person acting on its behalf, is
obligated to sell or deliver Petroleum Substances allocable to the Petroleum
and Natural Gas Rights to any Person which are not terminable on less than
thirty-two (32) days' notice:
(1) Portion of Crude Oil Purchase Contract dated November 25, 1999 between
Mobil Oil Canada and Cabre Exploration Ltd. (Cancellation on 30 days notice)
insofar only as it affects the Delivery Point at 5-31-37-3-W4 (Sounding Lk)
(2) No Gas Purchase Contracts
Processing, Sales and Transportation Agreements
(1) Effluent Processing & Water Disposal Agreement dated Jan 25/99
Encal Energy Ltd. and Cabre Exploration Ltd.-13a and 13d-22-38-3-W4
(File 152.1209)
(2) Agreement for the Use of the Provost Viking Sand Gas Unit dated Jan 1/98
Wells tied in 4-27 and 10-27-38-W4M between Fletcher Challenge Energy
Canada Inc. and Cabre Exploration Ltd. (File 152.1208)
(3) Agreement to Process Outside Effluent through the Sounding Lake East
Fieldgate Facility (unexecuted) (Cabre 1993 Ltd. and Inverness Energy Ltd.)
File 152.1204
(4) Agreement for the Use of the Provost Viking Sand Gas Unit Processing
Facilities dated September 1, 1993 between Fletcher Challenge Petroleum Inc.
and Cabre Exploration Ltd. (Battery 5-31-37-3-W4 Sounding Lake) (File
152.1203)
(5) Agreement for the Construction, Ownership and Operation of the Sounding
Lake 11-27-37-4-W4 Battery (Effective Date-Sep 1/94) (File 205.1208) (Cabre
40.6%)
Battery at 11-27-37-4-W4
Satellite Separator at 4-26-37-4-W4
Satellite Separator at 16a-27-37-4-W4
Water disposal flowlines/disposal wells at 11a-27-37-4-W4,
11c-27-37-4-W4, 11d-27-37-4-W4, 7d-27-37-4-W4 and 15b-27-37-4-W4
Battery Fuel well/dehydrator at 16a-27-37-4-W4
Fuel gas flowline from battery fuel well to 11-27-37-4-W4 battery
facility
Access Roads
71
<PAGE> 107
THIS IS SCHEDULE "F" TO AND FORMING PART OF A PURCHASE AND SALE AGREEMENT
BETWEEN CABRE EXPLORATION LTD., AS VENDOR, AND WESTLINKS RESOURCES LTD., AS
PURCHASER, MADE AS OF THE 6TH DAY OF APRIL, 2000
OUTSTANDING AUTHORIZATIONS FOR EXPENDITURE
------------------------------------------
Other than the following there are not outstanding authorizations for
expenditure approved by Vendor with respect to the Assets pursuant to which
amounts in excess of twenty-five thousand Dollars ($25,000.00) may become
payable after the date hereof, which Purchaser shall be responsible for:
<TABLE>
<S> <C> <C> <C>
(1) AFE 4781 CP Cabre 10d-21-38-3-W4 Gross Cost $50,000 Cabre 100%
Suspend Dina with bridge
Plug and complete for
Cummings oil prod
(2) AFE 4812 CP Cabre 16d-21-38-3W4 Gross Costs $65,200 Cabre 100%
Complete Cummings Sand.
Suspend Dina prod
temporarily
(3) AFE 4824 CP Cabre 13d-22-38-3-W4 Gross Cost $37,900 Cabre 60%
Compl Upper Cummings Sand
(4) AFE 4418 XP Cabre 12D2-31-37-3-W4 Gross Costs $19,000 Cabre 100%
Full Fibreglass line inside
Existing flowline
(5) Cabre et al 5c31-37-3-W4 Cost per workover report Cabre 100%
Change out PC Pump $20,804
</TABLE>
Cash Call Advances and Deposits -- (None)
-----------------------------------------
Cabre is in the process of filing a suit for the recovery of legal costs which
it has incurred involving an environmental appeal hearing on 12c-6-38-3-W4
(Lessor-Dzurko). Any funds recovered by Cabre and/or its counsel, shall be for
the benefit of Cabre (not Purchaser) and the working interest partners which
participated in such appeal.
72
<PAGE> 108
THIS IS SCHEDULE "G" TO AND FORMING PART OF A PURCHASE AND SALE AGREEMENT
BETWEEN CABRE EXPLORATION LTD., AS VENDOR, AND WESTLINKS RESOURCES LTD., AS
PURCHASER, MADE AS OF THE 6TH DAY OF APRIL, 2000.
________________________________________________________________________________
VENDOR'S PROPRIETARY (100%) 2-D AND 3-D SEISMIC DATA--PLATS
73
<PAGE> 109
Schedule "G"
[CABRE EXPLORATION LTD. PROSPECT: SOUNDING LAKE]
<PAGE> 110
Schedule "G"
<TABLE>
<CAPTION>
AreaRef AFERef Name WISum Length Acquis Year Ownership
<S> <C> <C> <C> <C> <C> <C>
DAVID LAKE WEST 927 ZLR-014 100 7.2 1983 Proprietary op
DAVID LAKE WEST 927 ZLR-019 100 19.81 1983 Proprietary op
DAVID LAKE WEST 927 ZLR-023 100 26.9 1983 Proprietary op
DAVID LAKE EAST 926 ZLQ-038M 100 11.24 1983 Proprietary op
DAVID LAKE WEST 927 ZLR-095 100 4.15 1983 Proprietary op
DAVID LAKE WEST 927 ZLR-002W 100 25.34 1983 Proprietary op
NEUTRAL HILLS 59S CG-002 100 27.85 1984 Proprietary op
DAVID LAKE WEST 927 ZLR-017 100 29.24 1983 Proprietary op
DAVID LAKE EAST 926 ZLQ-081 100 6.78 1983 Proprietary op
NEUTRAL HILLS 59S CG-004 100 6.25 1984 Proprietary op
DAVID LAKE WEST 927 ZLR-002E 100 9.57 1983 Proprietary op
DAVID LAKE EAST 926 ZLQ-036 100 36.74 1983 Proprietary op
SOUNDING LAKE 20168 PCS-002 100 4.73 1988 Proprietary op
SOUNDING LAKE 20168 PCS-001 100 4.2 1988 Proprietary op
DAVID LAKE EAST 926 ZLQ-040E 100 16.16 1983 Proprietary op
CADOGAN 1212SS JPM-010 100 3.11 1998 Proprietary op
CADOGAN 1212SS JPM-020 100 2.98 1998 Proprietary op
SOUNDING LAKE 21091 PCD-112 100 1.59 1991 Proprietary op
</TABLE>
total km's 243.84
