<PAGE>
                                       
                    CONTRACT SETTLEMENT AGREEMENT BETWEEN
                       FRONTIER NATURAL GAS CORPORATION
                         AND DAVID B. CHRISTOFFERSON

WHEREAS David B. Christofferson ("Employee") has an employment contract with 
Frontier Natural Gas Corporation ("Frontier") dated effective January 1, 
1993 (the "Contract"); and 

WHEREAS Frontier has negotiated with third parties including Aspect Resources 
LLC and Esenjay Petroleum Corporation and others in regard to a transaction 
which would result in a change of control of Frontier, (which change of 
control shall be defined as a change of the majority of the Board of 
Directors of Frontier and/or a transaction whereby over fifty percent of the 
equity securities of Frontier are issued or committed to be issued to third 
parties, and/or Frontier merges with another company, hereafter a "Change of 
Control"); and

WHEREAS the Board of Directors has determined that it is in the best 
interests of Frontier to satisfy all obligations of Frontier previously 
incurred, or to be incurred in the future, pursuant to the contract, but 
subject to Frontier closing a transaction which results in a Change of 
Control;

                                       
                                 NOW THEREFORE

Frontier agrees that in the event Frontier closes any transaction which 
results in a Change of Control prior to June 30, 1998 that Frontier shall pay 
to Employee the sum of One Hundred and Twelve Thousand Dollars ($112,000.00), 
which amount shall be referred to herein as the "Settlement Payment", and 
Employee shall be, upon closing of a transaction which results in a Change of 
Control, automatically released from all obligations pursuant to the Contract 
other then Employees confidentiality obligations to Frontier as set forth in 
Paragraph 7.a. of the Contract.  Said Settlement Payment and release from 
obligations shall be in full satisfaction of the Contract, but in addition to 
any other obligations owed Employee; and

Employee agrees that, subject only to timely payment of the Settlement 
Payment, that Frontier shall, upon closing of a transaction resulting in a 
Change of Control, have no further obligation to Employee pursuant to the 
Contract; and 

The parties agree that the Settlement Payment shall be due and payable upon 
closing of a transaction resulting in a Change of Control, and that it shall 
be paid by delivery to Employee of a promissory note bearing interest at ten 
percent per annum payable by Frontier to Employee with the principal amount 
being paid at the minimum rate of five thousand dollars per month, beginning 
the first day of the third calendar month after the referenced closing, and 
with all principal and accrued interest being due and payable upon the 
earlier of September 30, 1998 or the completion of the public sale of any 
equity and/or debt securities of Frontier.  The parties further agree that 
Employee, at Employees sole discretion may defer payment of up to fifty 
percent of the principal amount until January 15, 1999. 

___________________________________ January ____, 1998
David B. Christofferson.

Frontier Natural Gas Corporation


By:_________________________________ January ____, 1998

It's:
     -------------------------------