AMENDMENT TO PURCHASE AND SALE AGREEMENT
BETWEEN NIELSON & ASSOCIATES, INC. AND
RANCHER ENERGY CORP. DATED OCTOBER 1, 2006

This Amendment to Purchase and Sale Agreement (this "Amendment") is made and
entered into effective December 15, 2006, by and between Nielson & Associates,
Inc., a Wyoming corporation ("Seller") and Rancher Energy Corp., a Nevada
corporation, doing business in Wyoming as Rancher Energy Oil & Gas Corp.
("Buyer").

WHEREAS, Buyer and Seller entered into a Purchase and Sale Agreement dated
October 1, 2006 (the "PSA"); and

WHEREAS, the parties desire to amend the PSA as provided herein;

NOW, THEREFORE, in consideration of the mutual benefits derived from this
Amendment, Buyer and Seller agree as follows:

1. Buyer will pay to Seller an extension fee of Two Hundred Fifty Thousand
Dollars ($250,000.00). This amount has been wired to Seller's account as
directed by Seller. This amount shall be considered fully earned and
nonrefundable upon execution of this Amendment by Buyer and Seller and the fee
shall not be credited against the purchase price at closing.

2. On the Closing Date, the Buyer shall deliver to the Seller a Warrant to
Purchase Common Stock (the “Warrant”), which shall provide that the Seller may
purchase from Buyer up to 250,000 shares of the Buyer’s common stock (the
“Warrant Shares”) at an exercise price of $1.50 per share at any time, or from
time to time, during the period beginning six months after the Closing Date and
ending five years after the Closing Date. The Warrant shall further provide that
on the next registration statement filed by the Buyer with the Securities and
Exchange Commission, but in no event later than March 7, 2007, the Buyer shall
include therein, at no cost to Seller, the Warrant Shares for resale by the
Seller.

3. Section 3.1 of the PSA is hereby amended to change the Closing Date from "on
or before December 15, 2006" to "on or before December 22, 2006."

4. In lieu of the Three Million Dollar ($3,000,000) payment provided for in
Section 2.1 of the PSA, which amount is payable when average total production
from the Assets equals or exceeds 1,000 barrels of oil per day, Buyer shall pay
to Seller, at closing, the sum of One Million Seven Hundred Fifty Thousand
Dollars ($1,750,000). Accordingly, Section 2.1 of the PSA is hereby deleted in
its entirety and is replaced with the following:

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2.1 Purchase Price. The purchase price for the Assets is Forty-Six Million Seven
Hundred Fifty Thousand Dollars ($46,750,000.00) (the "Base Purchase Price"),
subject to the adjustments provided for herein, which amount shall be due at
Closing.

5. Seller acknowledges that the time for asserting title defects pursuant to
Section 5.3 (A) of the PSA has passed and that Seller will not be asserting
further title defects with respect to the Assets.

6.  Seller acknowledges that the time for asserting title defects pursuant to
Section 6.3 of the PSA has passed and that Seller will not be asserting further
title defects with respect to the Assets.

7. All other terms, covenants, and conditions of the PSA shall remain unaffected
and in full force.

8. This Amendment may be executed in counterparts pursuant to Section 15.14 of
the PSA.

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DATED this 15th day of December, 2006.

SELLER:
 
NIELSON & ASSOCIATES, INC.
             
By:
/s/ Tom Fitzsimmons
   
Tom Fitzsimmons
 
Title:
Executive Vice President and Chief Operating Officer
                       
BUYER:
 
RANCHER ENERGY CORP.
             
By:
/s/ John Works
    John Works  
Title:
President and Chief Executive Officer

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