Exhibit 4.51

DAYWORK DRILLING CONTRACT-U.S

THIS AGREEMENT CONTAINS PROVISIONS RELATING TO INDEMNITY,
RELEASE OF LIABILITY, AND ALLOCATION OF RISK

THIS AGREEMENT(The Contract" is made and entered
  into on the date hereinafter set forth by and between the parties herein designated
  as "Operator" and "Contractor".

|OPERATOR:   | Nevada Geothermal Power
      Company
|----------- | -------------------------------------
|Address:    | 900  409 Granville
      Street     
|            | Vancouver, BC Canada
      V6C 172   
|            |                                      
|CONTRACTOR: | Calco Oil Field Industries, Inc      
|Address:    | 305, 5208  53 Avenue                
|            | Red Deer, AB Canada 74N 5K2          

IN CONSIDERATIONof the mutual promises, conditions and
agreements herein contained and the specifications and special provisions set
forth in Exhibit "A" and Exhibit "8" attached hereto and made a part hereof,
Operator engages Contractor as an Independent Contractor to drill the
hereinafter designated well or wells in search of geothermal resources on a
daywork basis.

For purposes hereof, the term "daywork basis" means Contractor
  shall furnish equipment, labor and perform services as herein provided, for
  a specified sum per day under the direction, supervision and control of Operator
  (inclusive of any employee, agent, consultant or subcontractor engaged by Operator
  to direct drilling operations). When operating on a daywork basis, Contractor
  shall be fully paid at the applicable rates of payment and assumes only the
  obligations and liabilities stated herein. Except for such obligations and liabilities
  specifically assumed by Contractor, Operator or shall be solely responsible
  and assumes liability for all consequences of operations by both parties while
  on a daywork basis, including results and all other risks or liabilities incurred
  in or incident to such operations.

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|1. | LOCATION OF WELL:
|-- | -----------------

Well Name and Number
____________________________________________

Parish/County: HumboldtState:
  Nevada Field Name: Blue Mountain Geothermal

Well location and land description            
  ________________________________

1.1 Additional Well Locations or Areas   ________________________________

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Locations described above are for well and Contract
identification only and Contractor assumes no liability whatsoever for a proper
survey or location stake on Operator's lease.

|2. | COMMENCEMENT DATE:
|-- | ------------------

Contractor agrees to use reasonable
efforts to commence operations for the drilling of the well on or before the
19 day of June, 2006

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DAYWORK DRILLING CONTRACT  U.S.

|Thereafter, subject to Rig availability. | 
|---------------------------------------- | 
|                                         | 

|3. | DEPTH:
|-- | ------

3.1 Well Depth:The well(s) shall be serviced to a depth
  of approximately 6,000 feet, or to the formation, whichever is
  deeper, but the Contractor shall not be required hereunder to drill said walks)
  below a maximum depth of 8,500 feet, unless Contractor and Operator
  mutually agree to drill to a greater depth.

|4. | DAYWORK RATES:
|-- | --------------

Contractor shall be paid at the following rates for the work
  performed hereunder,

4.1 Mobilization: Operator shall
  pay Contractor a mobilization fee of $36,000.00 plus all
  transport costs 
  This sum shall be due and payable in full at the time the rig is rigged up or
  positioned at the well site ready to spud. Transportation costs may be such
  items, but limited to: trucking, cranes, documentation costs, brokerage
  and or customs, security fees, etc

4.2 Demobilization:Operator shall
  pay Contractor a demobilization fee not to exceed $120, 000.00
  and a demobilization day rate per day of $ 0 per day, provided
  however that no demobilization fee shall be payable if the Contract is terminated
  due to the total loss or destruction of the rig. Demobilization fee shall
  be for actual labor and transportation costs

4.3 Moving Rate:During the time
  the rig is in transit to or from a drill site, or between drill sites, commencing
  on _______ Operator shall pay Contractor a sum of $ 18.866.00
  per twenty-four (24) hour day.

4.4 Operating Day Rate:For work performed per
twenty-four (24) hour day with One Rig Manager and two 5-man crews operating day rate shall be:

|Depth                       |  |    |  |                    |                 |         |  
|--------------------------- |  | -- |  | ------------------ | --------------- | ------- | -
|Intervals                   |  |    |  |                    |                 |         |  
|From                        |  | To |  | Without Drill Pipe | With Drill Pipe
|                            |  |    |  | $                  | **18,866.00**   | per day | $
|                            |  |    |  | $                  |                 | per day | $
|                            |  |    |  | $                  |                 | per day | $
|Using Operators drill pipe |  | $  |  | per day            |                 |         |  

If under the above column With Drill Pipe" no day rates are
specified, the daywork rate per twenty-four hour day when drill pipe is in use
shall be the applicable daywork rate specified in the column "Without Drill
Pipe" plus compensation for any drill pipe actually used at the rates specified
below, computed on the basis of the maximum drill pipe in use at any time during
each twenty-four hour day.

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DAYWORK DRILLING CONTRACT - U.S.

DRILL PIPE RATE PER 24-HOUR DAY

|  |                   |         |  |      |  |       |   | Directional or |  |          |      |  |      
|- | ----------------- | ------- |  | ---- |  | ----- | - | -------------- |  | -------- | ---- |  | -----
|  |                   |         |  |      |  |       |   | Uncontrollable |  | Deviated |      |  |      
|  | **Straight Hole** |         |  | Size |  | Grade |   | Hole           |  |          | Size |  | Grade
|  |                   | per ft. |  |      |  |       | $ |                |  | per ft.  |      |  |      
|$ |                   | per ft. |  |      |  |       | $ |                |  | per ft.  |      |  |      
|$ |                   | per ft. |  |      |  |       | $ |                |  | per ft.  |      |  |      

Directional or uncontrolled deviated hole will be deemed to exist
  when deviation exceeds ________________ degrees or when the change of angle
  exceeds _______________ degrees per one hundred feet.

Drill pipe shall be considered in use not only when in actual
  use but also while it is being picked up or laid down. When drill pipe is standing
  in the derrick, it shall not be considered in use, provided, however, that if
  Contractor furnishes special strings of drill pipe, drill collars, and handling
  tolls as provided in Exhibit "A", the same shall be considered in use at all
  times when on location or until released by Operator. In no event shall fractions
  of an hour be considered in computing the amount of time drill pipe is in use
  but such time shall be computed to the nearest hour, with thirty minutes or
  more being considered a full hour and less than thirty minutes not to be counted.

Operating rate will begin when the drilling unit is rigged up
at the drilling location, or positioned over the location. during marine work,
and ready to commence operations; and will cease when the rig Is ready to be
moved off the location.

4.5 Repair Time:In the event it is necessary to shut
  down Contractors rig for repairs, excluding routine rig servicing, Contractor
  shall be allowed compensation at the applicable daywork rate for such shut down
  time up to a maximum of 2 hours for any one rig repair job or
  8 hours for any calendar month. Thereafter, Contractor shall be
  compensated at a rate of $ 9,220.00 per twenty-four (24) hour
  day. Routine rig servicing shall include, but not be limited to, cutting and
  slipping drilling line, changing pump or swivel expendables, lubricating rig,
  and _________________________________

|4.6 | Standby Time Rate with Crews:$16,212.00 per twenty-four (24) day. Standby time shall be defined to include
        time when the rig is shut down although in readiness to begin or resume
        operations but Contractor is waiting on orders of Operator or on materials,
        services, or other items to be furnished by Operator.                                                                                                                                                                           
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|4.7 | Force Majeure Rate: $9,220.00 per
        twenty-four (24) hour day for any continuous period that normal operations
        are suspended or cannot be carried on due to conditions of force majeure
        as defined in Paragraph 17 hereof. It is however, understood that subject
        to Subparagraph 6.3 below, Operator can release the rig in accordance
        with Operators right to direct stoppage of the work, effective when conditions
        will permit the rig to be moved from the location.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|4.8 | Reimbursable Costs:Operator shall reimburse
        Contractor for the costs of material, equipment, work or services which
        are to be furnished by Operator as provided for herein but which for                                                                                                                                                                                                                                                                                                               

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DAYWORK DRILLING CONTRACT U.S.

|    | convenience are actually furnished by Contractor
        at Operator's request, plus 15 percent for such cost of handling,                                                                                                                                                                                                                                                                                         
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                    
|4.9 | Revision in Rates:The rates and/or
        payments herein set forth due to Contractor from Operator shall be revised
        to reflect the change in costs if the costs of any of the items hereinafter
        listed shall vary by more than 4 percent from the costs
        thereof on the date of this Contract or by the same percent after the
        date of any revision pursuant to this Subparagraph"
|    |                                                                                                                                                                                                                                                                                                                                                                                                                    
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|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                
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|5.  | TIME OF PAYMENT                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | Payment is due by Operator to Contractor as
        follows:                                                                                                                                                                                                                                                                                                                                                       

5.1Payment for mobilization, drilling and other work
  performed at applicable day rates, and all other applicable charges shall be
  due, upon presentation of invoice therefore, upon completion of mobilization,
  demobilization, rig release or at the end of the month in which such work was
  performed or other charges are incurred, whichever shall first occur. All invoices
  may be mailed to Operator at the address hereinabove shown, unless Operator
  does hereby designate that such invoices shall be mailed as follows:

________________________________________

5.2 Disputed Invoices and Late Payment: Operator shall pay all invoices
  within 45 days after receipt except that if Operator disputes an invoice or
  any part thereof. Operator shall, within fifteen days after receipt of the invoice,
  notify Contractor of the item disputed, specifying the reason therefore, and
  payment of the disputed item may be withheld until settlement of the dispute,
  but timely payment shall be made of any undisputed portion. Any sums (including
  amounts ultimately paid with respect to a disputed invoice) not paid within
  the above specified days shall bear interest at the rate of 15
  percent or the maximum legal rate, whichever is less, annum from the due date
  until paid. If Operator does not pay undisputed items within the above stated
  time, Contractor may terminate this Contract as specified under Subparagraph
  6.3 .

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DAYWORK DRILLING CONTRACT  U.S.

|6. | TERM:
|-- | -----

6.1 Duration of ContractThis Contract shall remain in
  full force and effect until drilling operations are completed on any well spudded
  prior to August 20, 2005, subject to early termination.

6.2 Early Termination:

(a) By Either Party:Upon giving of written notice, either
  party may terminate this Contract when total loss or destruction of the rig,
  or a major breakdown with indefinite repair time necessitate stopping operations
  hereunder.

(b) By Operator:Notwithstanding the provisions of Paragraph
  3 with respect to the depth to be drilled, Operator shall have the right to
  direct the stoppage of the work to be performed by Contractor hereunder at any
  time prior to reaching the specified depth, and even though Contractor has made
  no default hereunder. In such event, Operator shall reimburse Contractor as
  set forth in Subparagraph 6.3 hereof.

(c) By Contractor:Notwithstanding the provisions of Paragraph
  3 with respect to the depth to be drilled, in the event Operator shall become
  insolvent, or be adjudicated a bankrupt, or file, by way of petition or answer,
  a debtor's petition or other pleading seeking adjustment of Operator's debts,
  under any bankruptcy or debtor's relief laws now or hereafter prevailing, or
  if any such be filed against Operator, or in case a receiver be appointed of
  Operator or Operator's property, or any part thereof, or Operator's affairs
  be placed in the hands of a Creditor's Committee, or following ten days prior
  written notice to Operator if Operator does not pay Contractor within the time
  specified in Subparagraph 5.2 all undisputed items due and owing, Contractor
  may, at its option, elect to terminate further performance of any work under
  this Contract and Contractor's right to compensation shall be as set forth in
  Subparagraph 6.3 hereof. In addition to Contractor's right to terminate performance
  hereunder, Operator hereby expressly agrees to protect, defend and indemnify
  Contractor from and against any claims, demands and causes of action, including
  all costs of defense, in favor of Operator, Operator's joint ventures, or other
  parties arising out of any drilling commitments or obligations contained in
  any lease, farmout agreement or other agreement, which may be affected by such
  termination of performance hereunder.

6.3 Early Termination Compensation:

(a) Prior to Commencement:In the event Operator terminates
  this Contract prior to commencement of operations hereunder, Operator shall
  pay Contractor as liquidated damages and not as a penalty a sum equal to the
  Standby Rate with Crews (Subparagraph 4.6) for a period of 7 days or
  a lump sum of $_________________

(b) Prior to Spudding:If such termination occurs after
  commencement of operations but prior to the spudding of the well, Operator shall
  pay to Contractor the sum of the following: (1) all expenses reasonably and
  necessarily incurred and to be incurred by Contractor by reason of the Contract
  and by reason of the premature termination of the work, including the expense
  of drilling or other crew members and supervision directly assigned to the rig;
  (2) a sum calculated at the standby rate with crew for all time from the date
  upon which Contractor commences any operations hereunder down to such date subsequent
  to the date

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DAYW ORK DRILLING CONT RAC 1 - U.S.

of termination as will afford Contractor reasonable time to
dismantle its rig and equipment; and (3) demobilization fee.

(c) Subsequent tospudding: If such termination occurs
  after the spudding of the first well, Operator shall pay Contractor (1) the
  amount for all applicable daywork rates and all other charges and reimbursements
  due to Contractor; and (2) demobilization fee.

|7. | CASING PROGRAM
|-- | --------------

Operator shall have the right to designate the points at which
  casing will be set and the manner of setting, cementing and testing. Operator
  may modify the casing program, however, any such modification which materially
  increases Contractor's hazards or costs can only be made by mutual consent of
  Operator and Contractor and upon agreement as to the additional compensation
  to be paid Contractor as a result thereof.

|8. | DRILLING METHODS AND
PRACTICES:
|-- | -------------------------------

8.1Contractor shall maintain well control equipment in
  good condition at all times and shall use all reasonable means to prevent and
  control fires and blowouts and to protect the hole.

8.2Subject to the terms hereof,
  and at Operator's cost, at ail times during the drilling of the well, Operator
  shall have the right to control the mud program, and the drilling fluid must
  be of a type and have characteristics and be maintained by Contractor in accordance
  with the specifications shown in Exhibit A ,

8.3 Each party hereto agrees to
  comply with all laws, rules, and regulations of any federal, state or local
  governmental authority which are now or may become applicable to that party's
  operations covered by or arising out of the performance of this Contract. When
  required by law, the terms of Exhibit NB" shall apply to this Contract.
  in the event any provision of this Contract is inconsistent with or contrary
  to any applicable federal, state or local law, rule or regulation, said provision
  shall be deemed to be modified to the extent required to comply with said law,
  rule or regulation, and as so modified said provision and this Contract shall
  continue in furl force and effect.

8.4 Contractor shall keep and furnish to Operator an accurate
  record of the work performed and formations drilled on the IADC-API Daily Drilling
  Report Form or other form acceptable to Operator, A legible copy of said form
  shall be furnished by Contractor to Operator.

8.5If requested by Operator, Contractor shall furnish
  Operator with a copy of delivery tickets covering any material or supplies provided
  by Operator and received by Contractor.

|9. | INGRESS, EGRESS, AND
LOCATION
|-- | -----------------------------

Operator hereby assigns to Contractor all necessary rights of
  ingress and egress with respect to the tract on which the well is to be located
  for the performance by Contractor of all work contemplated by this Contract.
  Should Contractor be denied free access and movement to the location for any
  reason not reasonably within the Contractors control, any time lost by Contractor
  as a result of such denial shall be paid for at the applicable rate. Operator
  agrees at all times to maintain the road and location in such a condition

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DAYWORK DRILLING CONTRACT - U.S.

that will allow free access to and from the drilling site in an
ordinarily equipped highway type vehicle. If Contractor is required to use
bulldozers, tractors, four-wheel drive vehicles, or any other specialized
transportation equipment for the movement of necessary personnel, machinery, or
equipment over access roads or on the drilling location, Operator shall furnish
the same at its expense and without cost to Contractor. The actual cost of
repairs to any transportation equipment furnished by Contractor or its personnel
damaged as a result of improperly maintained access roads or location will be
charged to Operator. Operator shall reimburse Contractor for all amounts
reasonably expended by Contractor for repairs and/or reinforcement of roads,
bridges and related or similar facilities (public and private) required as a
direct result of a rig move pursuant to performance hereunder.

|10. | SOUND LOCATION:
|--- | ---------------

Operator shall prepare a sound location adequate in size and
  capable of properly supporting the drilling rig, and shall be responsible for
  a conductor pipe program adequate to prevent soil and subsoil wash out It is
  recognized that Operator has superior knowledge of the location and access routes
  to the location, and must advise Contractor of any subsurface conditions, or
  obstructions including, but not limited to, mines, caverns, sink holes, streams,
  pipelines, power lines and telephone lines which Contractor might encounter
  while en route to the location or during operations hereunder. In the event
  subsurface conditions cause a cratering or shifting of the location surface,
  or if seabed conditions prove unsatisfactory to properly support the rig during
  marine operations hereunder, and loss or damage to the rig or its associated
  equipment results therefrom, Operator shall, without regard to other provisions
  of this Contract, including Subparagraph 14.1 hereof, reimburse Contractor to
  the extent not covered by Contractor's insurance, for all such loss or damage
  including payment of force majeure rate during repair and/or demobilization
  if applicable.

|11. | EQUIPMENT CAPACITY
|--- | ------------------

If applicable hereunder, operations shall not be attempted where
  canal or water depths are in excess of NAfeet, or under any other conditions
  which exceed the capacity of the equipment specified to be used hereunder. Contractor
  shall make final decision as to when an operation or attempted operation would
  exceed the capacity of specified equipment.

|12. | TERMINATION OF LOCATION
  LIABILITY:
|--- | ------------------------------------

When Contractor has compiled with all obligations of the Contract
  regarding restoration of Operator's location, Operator shall thereafter be liable
  for damage to property, personal injury or death of any person which occurs
  as a result of conditions of the location and Contractor shall be relieved or
  such liability; provided, however, if Contractor shall subsequently reenter
  upon the location for any reason, including removal of the rig, any term of
  the Contract relating to such reentry activity shall become applicable during
  such period,

|13. | INSURANCE
|--- | ---------

During the life of this Contract, Contractor shall at Contractor's
  expense maintain, with an insurance company or companies authorized to do business
  in the state where the work is to be performed, insurance

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DAYW ORK DRILLING CO NT RACT - U.S.

coverages of the kind and in the amount set forth in Exhibit
"A", insuring the liabilities specifically assumed by Contractor in Paragraph 14
of this Contract. Contractor shall, if requested to do so by Operator, procure
from the company or companies writing said insurance a certificate or
certificates that said insurance is in full force and effect and that the same
shall not be canceled or materially changed without ten (10) days prior written
notice to Operator. For liabilities assumed hereunder by Contractor, its
insurance shall be endorsed to provide that the underwriters waive their right
of subrogation against Operator. Operator will, as well, cause its insurer to
waive subrogation against Contractor for liability it assumes and shall
maintain, at Operators expense, or shall self insure, insurance, insurance
coverage of the same kind and in the same amount as it required of Contractor,
insuring the liabilities specifically assumed by Operator in Paragraph 14 of
this Contract

**14.**
    **RESPONSIBILITY** 
      **FOR** LOSS OR DAMAGE,
      INDEMNITY, RELEASE OF LIABILITY AND
      **ALLOCATION OF RISK:**


14.1 Contractor's Surface Equipment: Contractor shall
  assume liability at all times for damage to or destruction of Contractor's surface
  equipment, regardless of when or how such damage or destruction occurs, and
  Contractor shall release Operator of any liability for any such loss, except
  loss or damage under the provisions of Paragraph 10, Subparagraph 14.3 or except
  where damage or destruction of Contractor's equipment arises from gross negligence
  of Operator.

14.2 Contractor's In-Hole Equipment: Operator shall assume
  liability at all times for damage to or destruction of Contractor's in-hole
  equipment, including, but not limited to, drill pipe, drill collars, and tool
  joints, and Operator shall reimburse Contractor for the value of any such loss
  or damage; the value to be determined by agreement between Contractor and Operator
  as current repair costs or 100 percent of current new replacement cost of such
  equipment delivered to the well site.

14.3 Contractors Equipment- Environmental Loss or Damage:
  Notwithstanding the provisions of Subparagraph 14.1 above, Operator shall assume
  liability at all times for damage to or destruction of Contractor's equipment
  caused by exposure to highly corrosive or otherwise destructive elements, Including
  those introduced into the drilling fluid.

14.4 Operator's Equipment: Operator shall assume liability
  at all times for damage to or destruction of Operator's equipment, including,
  but not limited to, casing, tubing, well head equipment, and platform if applicable,
  regardless of when or how such damage or destruction occurs, and Operator shall
  release Contractor of any liability for any such loss or damage, except where
  damage or destruction of Operators equipment arises from gross negligence of
  Contractor.

14.5 The Hole: In the event the hole should be lost or
  damaged, Operator shall be solely responsible for such damage to or loss of
  the hole, including the casing therein. Operator shall release Contractor of
  any liability for damage to or loss of the hole, and shall protect, defend and
  indemnify Contractor from and against any and all claims, liability, and expenses
  relating to such damage to or loss of the hole.

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DAYWORK DRILLING CONTRACT U.S.

14.6 Underground Damage: Operator shall release Contractor
  of any liability for, and shall protect, defend and Indemnify Contractor from
  and against any and all claims, liability, and expense resulting from operations
  under this Contract on account of injury to, destruction of, or loss or impairment
  of any property right In or to oil, gas, or other mineral substance or water,
  If at the time of the act or omission causing such injury, destruction, loss,
  or impairment, said substance had not been reduced to physical possession above
  the surface of the earth, and for any loss ar damage to any formation, strata,
  or reservoir beneath the surface of the earth.

14.7 Inspection of Materials Furnished by Operator: Contractor
  agrees to visually inspect all materials furnished by Operator before using
  same and to notify Operator of any apparent defects therein. Contractor shall
  not be liable for any loss or damage resulting from the use of materials furnished
  by Operator, and Operator shall release Contractor from, and shall protect,
  defend and Indemnify Contractor from and against , any such liability.

14.8 Contractor's Indemnification of Operator: Contractor
  shall release Operator of any liability for, and shall protect, defend and indemnify
  Operator, its officers, directors, employees and joint owners from and against
  all claims, demands, and causes of action of every kind and character, without
  limit and without regard to the cause or causes thereof or the negligence of
  any party or parties, arising in connection herewith in favor of Contractor's
  employees or Contractor's subcontractors or their employees, or Contractor's
  invitees, on account of bodily Injury, death or damage to property. Contractor's
  indemnity under this Paragraph shall be without regard to and without any right
  to contribution from any Insurance maintained by Operator pursuant to Paragraph
  13. if it Judicially determined that the monetary limits of insurance required
  hereunder or of the Indemnities voluntarily assumed under Subparagraph 14.6
  (which Contractor and Operator hereby agree will be supported either by available
  liability insurance, under which the insurer has no right of subrogation against
  the indemnities, or voluntarily self-insured, in part or whole) exceed the maximum
  limits permitted under applicable law, it is agreed that said insurance requirements
  or indemnities shall automatically be amended to conform to the maximum monetary
  limits permitted under such law.

14.9 Operator's Indemnification of Contractor: Operator
  shall release Contractor of any liability for, and shall protect, defend and
  indemnify Contractor, its officers, directors, employees and joint owners from
  and against all claims, demands, and causes of action of every kind and character,
  without limit and without regard to the cause or causes thereof or the negligence
  of any party or parties, arising in connection herewith in favor of Operator's
  employees or Operator's contractors or their employees, or Operator's invitees,
  other than those parties identified in Subparagraph 14.8 on account of bodily
  injury, death or damage to property. Operator's indemnity under this Paragraph
  shall be without regard to and without any right to contribution from any insurance
  maintained by Contractor pursuant to Paragraph 13. If it is judicially determined
  that the monetary limits of insurance required hereunder or of the indemnities
  voluntarily assumed under Subparagraph 14.9

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DAYWORK DRILLING CONTRACTOR - U.S.

(which Contractor and Operator hereby agree will be supported
either by available liability insurance, under which the insurer has no right of
subrogation against the indemnities, or voluntarily self-insured, in part or
whole) exceed the maximum limits permitted under applicable law, it is agreed
that said Insurance requirements or indemnities shall automatically be amended
to conform to the maximum monetary limits permitted under such law.

14.10 Liability for Wild Well: Operator shall be liable
  for the cost of regaining control of any wild well, as well as for cost of removal
  of any debris, and shall release Contractor of, and Operator shall protect,
  defend and Indemnify Contractor from and against any liability for such cost.

14.11 Pollution and Contamination:
  Notwithstanding anything to the contrary contained herein, except the provisions
  of Paragraphs 10 and 12, it is understood and agreed by and between Contractor
  and Operator that the responsibility for pollution and contamination shall be
  as follows:

(a) Unless otherwise provided herein,
  Contractor shall assume all responsibility for, including control and removal
  of, and shall protect, defend and indemnify Operator from and against all claims,
  demands and causes of action of every kind and character arising from pollution
  or contamination, which originates above the surface of the land or water from
  spills of fuels, lubricants, motor oils, pipe dope, paints, solvents, ballast
  , bilge and garbage, except unavoidable pollution from reserve pits, wholly
  in Contractor's possession and control and directly associate with Contractor's
  equipment and facilities.

(b) Operator shall assume all responsibility
  for, including control and removal of, and shall protect, defend and indemnify
  Contractor from and against all claims, demands, and causes of action of every
  kind and character arising directly or indirectly from all other pollution or
  contamination which may occur during the conduct of operations hereunder, including,
  but not limited to, that which may result from fire, blowout, cratering, seepage
  or any other uncontrolled flow of oil, gas, water or other substance, as well
  as the use or disposition of all drilling fluids, including, but not limited
  to, oil emulsion, oil base or chemically treated drilling fluids, contaminated
  cuttings or cavings, lost circulation and fish recovery materials and fluids.
  Operator shall release Contactor of any liability for the foregoing.

(c) In the event a third party commits
  an act or omission which results In pollution or contamination for which either
  Contractor or Operator, for whom such party is performing work, is held to be
  legally liable, the responsibility therefore shall be considered, as between
  Contractor and Operator, to be the same as if the party for whom the work was
  performed had performed the same and all of the obligations respecting protection,
  defense, indemnity and limitation of responsibility and liability, as set forth
  in (a) and (b) above, shall be specifically applied.

14.12 Consequential Damages; Neither
  Party shall be liable to the other for special, Indirect or consequential damages
  resulting from or arising out of this Contract, including, without limitation,
  loss of profit or business interruptions including loss or delay of production,
  however same may be caused.

---

DAYWORK DRILLING CONTRAC  U.S.

14.13Indemnity Obligation: Except as otherwise expressly
  limited herein, It Is the intent of parties hereto that all releases, indemnity
  obligations and/or liabilities assumed by such parties under terms of this Contract,
  including, without limitation, Subparagraphs 14.1 through 14.12 hereof, be without
  limit and without regard to the cause or causes thereof (including preexisting
  conditions), strict liability, regulatory or statutory liability, breach of
  warranty (express or implied), any theory of tort, breach of contract or the
  negligence of any party or parties, whether such negligence be sole, joint or
  concurrent, active or passive. The Indemnities and releases and assumptions
  of liability extended by the parties hereto under the provisions of Paragraph
  14 shall Inure to the benefit of the parties, their parent, holding and affiliated
  companies and their respective officers, directors, employees, agents and servants.
  The terms and provisions of Subparagraphs 14.1 through 14.12 shall have no application
  to claims or causes of action asserted against Operator or Contractor by reason
  of any agreement of indemnity with a person or entity not a party hereto.

|15. | AUDIT
|--- | -----

If any payment provided for hereunder is made on the basis of
  Contractor's costs, Operator shall have the right to audit Contractor's books
  and records relating to such costs. Contractor agrees to maintain such books
  and records for a period of two (2) years from the date such costs were incurred
  and to make such books and records readily available to Operator at any reasonable
  time or times within the period.

|16. | NO WAIVER EXCEPT IN
WRITING
|--- | ---------------------------

It is fully understood and agreed that none of the requirements
  of this Contract shall be considered as waived by either party unless the same
  is done in writing, and then only by the persons executing this Contract, or
  other duly authorized agent or representative of the party.

|17. | FORCE MAJEURE
|--- | -------------

Except for the duty to make payments hereunder when due, and
  the indemnification provisions under this Contract, neither Operator nor Contractor
  shall be responsible to the other for any delay, damage, or failure, caused
  by or occasioned by a Force Majeure Event. As used in this Contract, 'Force
  Majeure Event" includes: acts of God, action of the elements, warlike action,
  insurrection, revolution or civil strife, piracy, civil war or hostile action,
  strikes, differences with workmen, acts of public enemies, federal or state
  laws, rules and regulations of any governmental authorities having jurisdiction
  in the premises or of any other group, organization or informal association
  (whether or not formally recognized as a government), inability to procure material,
  equipment or necessary labor in the open market, acute and unusual labor or
  material or equipment shortages, or any other causes except financial) beyond
  the control of either party. Neither Operator nor Contractor shall be required
  against its will to adjust any labor or similar disputes except in accordance
  with applicable law. In the event that either party hereto is rendered unable,
  wholly or in party, by any of these causes to carry out its obligation under
  this Contract, it is agreed that such party shall give notice and details of
  Force Majeure in writing to the other party as promptly as possible after is
  occurrence. In such cases, the obligations of the party giving the notice shall
  be suspended during the continuance of any inability so caused

---

DAYWORK DRILLING CONTRACT - U.S.

except that Operator shall be obligated to pay to Contractor
the Force Majeure Rate provided for in Subparagraph 4.7 above.

|18. | GOVERNING LAW:
|--- | --------------

This Contract shall be construed, governed, interpreted, enforced,
  and litigated, and the relations between the parties determined in accordance
  with the laws of

|19. | INFORMATION CONFIDENTIAL:
|--- | -------------------------

Upon written request by Operator, information obtained by Contractor
  in the conduct of drilling operations on this well, including, but not limited
  to, depth, formations penetrated, the results of coring, testing and surveying
  , shall be considered confidential and shall not be divulged by Contractor or
  its employees, to any person, firm or corporation other than Operators designated
  representatives.

|20. | SUBCONTRACTS BY OPERATOR:
|--- | -------------------------

Operator may employ other contractors to perform any of the operation
  or services to be provided or performed by it according to Exhibit A.

|21. | ATTORNEY'S FEES
|--- | ---------------

If this Contract Is placed in the hands of an attorney for collection
  of any sums due hereunder, or suit is brought on same, or sums due hereunder
  are collected through bankruptcy or arbitration proceedings, then the prevailing
  party shall be entitled to recover reasonable attorneys fees and costs.

|22. | CLAIMS AND LIENS:
|--- | -----------------

Contractor agrees to pay all valid claims for labor, material,
  services, and supplies to be furnished by Contractor hereunder, and agrees to
  allow no lien by such third parties to be fixed upon the lease, the well, or
  other property of the Operator or the land upon which said well is located.

|23. | ASSIGNMENT:
|--- | -----------

Neither party may assign this Contract without the prior written
  consent of the other, and prompt notice of any such intent to assign shall be
  given to the other party. In the event of such assignment the assigning party
  shall remain liable to the other party as a guarantor of the performance by
  the assignee of the terms of this Contract. If any assignment is made that materially
  alters Contractors financial burden, Contractor's compensation shall be adjusted
  to give effect to any increase or decrease in Contractor's operating costs.

|24. | NOTICES AND PLACE OF
PAYMENT:
|--- | -----------------------------

Notices, reports and other communications required or permitted
  by this Contract to be given or sent by one party to the other shall be delivered
  by hand, mailed or telecopied to the address hereinabove show. All sums payable
  hereunder to Contractor shall be payable at its address hereinabove shown unless
  otherwise specified herein.

---

DAYWORK DRILLING CONTRACT - U.S.

|25. | SPECIAL PROVISIONS:
|--- | -------------------
|    |                    
|    | 25.1               
|    |                    
|    | 25.2               
|    |                    
|    |                    
|    |                    
|    |                    
|    |                    
|    |                    
|    |                    
|    | 25.3               
|    |                    
|    | 25.4               

---

DAYWORK DRILLING CONTRACT - U.S.

|26. | ACCEPTANCE OF CONTRACT:
|--- | -----------------------

The foregoing Contract is agreed to and
accepted by Operator this 20 day of June, 2006.

| | Operator | /s/ Brian D. Fairbank
| | -------- | ---------------------
| | By       | Brian D. Fairbank    
| | Title    | President            

The foregoing Contract is
accepted by the undersigned as Contractor this 19 day of June,
2006, which is the effective date of this agreement, subject to rig
availability, and subject to all of its terms and provisions, with the
understanding that unless said Contract is thus executed by Operator within days
of the above date, Contractor shall be in no manner bound by its signature
thereto.

| | Contractor | /s/ R.H (Ron) Rowbotham
| | ---------- | -----------------------
| | By         | R.H (Ron) Rowbotham    
| | Title      | President              

---

DAYWORK DRILLING CONTRACT - U.S.

EXHIBIT A

EXHIBIT "A"

To Daywork Contract dated June 19 2006

Operator: Nevada Geothermal Power Company

Contractor: Calco Oil Field Industries, Inc.

Well Name and Number: various, Blue Mountain Geothermal
Field

SPECIFICATIONS AND SPECIAL PROVISIONS

|1. | CASING PROGRAM (See Paragraph7)
|-- | -------------------------------

|           | Hole |     | **Casing** |     | **Weight** |         | **Grade** |  | Approximate   |         | Wait on |        
|---------- | ---- | --- | ---------- | --- | ---------- | ------- | --------- |  | ------------- | ------- | ------- | -------
|           | Size |     | **Size**   |     |            |         |           |  | Setting Depth |         | Cement  |        
|           |      |     |            |     |            |         |           |  |               |         | Time    |        
|Conductor  |      | in. |            | in. |            | lbs/ft. |           |  |               | **ft.** |         | **hrs**
|Surface    |      | in. |            | in. |            | lbs/ft. |           |  |               | **ft.** |         | **hrs**
|Protection |      | in. |            | in. |            | lbs/ft. |           |  |               | **ft.** |         | **hrs**
|           |      | in. |            | in. |            | lbs/ft. |           |  |               | **ft.** |         | **hrs**
|Production |      | in. |            | in. |            | lbs/ft. |           |  |               | **ft.** |         | **hrs**
|Liner      |      | in. |            | in. |            | lbs/ft. |           |  |               | **ft.** |         | **hrs**
|           |      | in. |            | in. |            | lbs/ft. |           |  |               | **ft.** |         | **hrs**

|2. | MUD CONTROL PROGRAM (See Subparagraph
  8.2)
|-- | --------------------------------------------

|Depth Interval |  |    |  |              |  |             |  |           |  |           
|-------------- |  | -- |  | ------------ |  | ----------- |  | --------- |  | ----------
|(ft)           |  |    |  |              |  |             |  |           |  |           
|               |  |    |  |              |  | Weight      |  | Viscosity |  | Water Loss
|               |  |    |  |              |  | (lbs./gal.) |  | (Secs)    |  | (cc)      
|From           |  | To |  | **Type Mud** |  |             |  |           |  |           
|               |  |    |  |              |  |             |  |           |  |           
|               |  |    |  |              |  |             |  |           |  |           
|               |  |    |  |              |  |             |  |           |  |           
|               |  |    |  |              |  |             |  |           |  |           

Other mud specifications:
____________________________________________________

|3. | INSURANCE (See Paragraph
13)
|-- | ----------------------------

3.1 AdequateWorkers' Compensation Insurance complying
  with State Laws applicable or Employers' Liability Insurance with limits of
  $1000,000.00 covering all of Contractor's employees working under
  this contract.

---

DAYWORK DRILLING CONTRACT -.U.S. 
  EXHIBIT A

3.2 Commercial ( or Comprehensive ) General Liability
  Insurance, including contractual obligations as respects this Contract and proper
  coverage for all other obligations assumed in this Contract. The limit shall
  be $2,000,000.00 combined single limit per occurrence for Bodily
  Injury and Property Damage.

3.3 AutomobilePublic Liability
  Insurance with limits of $1,000,000,00 for the death or injury
  of each person and $1,000,000,00 for each accident; and Automobile
  Public Liability Property Damage Insurance with limits of $1,000,000,00 for each accident.

3.4 In the event operations are
  over water, Contractor shall early in addition to the Statutory Workers' Compensation
  Insurance, endorsements covering liability under the Longshoremen's & Harbor
  Workers' Compensation Act and Maritime liability including maintenance and cure
  with limits of $N/A for each death or injury to one person and $ NAfor any one accident

3.5 Other:Contractor shall
  provide certificates of insurance as per 13 of the Daywork DrillingContract. naming Nevada Geothermal Power Company and Nevada Geothermal
  PowerInc, asadditional insureds to the coverages required
  herein.

|4. | EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY CONTRACTOR:
|-- | ----------------------------------------------------------------

The machinery, equipment, tools, material,
  supplies, instruments, services and labor hereinafter listed, including any
  transportation required for such items, shall be provided at the well location
  at the expense of Operator unless otherwise noted by this Contract.

4.1 Rig

Complete drilling rig, designated by
  Contractor as its Rig No. 14 , the major Items of equipment as
  per the attached inventory

|5. | EQUIPMENT, MATERIALS, AND SERVICES TO BE FURNISHED BY OPERATOR:
|-- | ---------------------------------------------------------------

The machinery, equipment, tools, materials, supplies, instruments,
  services and labor hereinafter listed, including any transportation required
  for such items, shall be provided at the well location at the expense of Operator
  unless otherwise noted by this Contract.

| | **5.1**  | Furnish and maintain adequate roadway and/or canal to location,
      right-of-way, including rights- of-way for fuel and water lines, river crossings,
      highway crossings, gates and cattle guards.
| | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | **5.2**  | Stake location, clear and grade location, and provide turnaround,
      including surfacing when necessary.                                                                                              
| | **5.3**  | Test tanks with pipe and fittings.                                                                                                                                                                       
| | **5.4**  | Mud storage tanks with pipe and fittings.                                                                                                                                                                
| | **5,5**  | Separator with pipe and fittings.                                                                                                                                                                        
| | **5.6**  | Labor to connect and disconnect mud tank, test tank,
      and separator.                                                                                                                                
| | **5.7**  | Labor to disconnect and clean test tanks and separator.                                                                                                                                                  
| | **5.8**  | Drilling mud, chemicals, lost circulation materials
      and other additives.                                                                                                                           
| | **5.9**  | Pipe and connections for oil circulating lines.                                                                                                                                                          
| | **5.10** | Labor to lay, bury and recover oil circulating lines.                                                                                                                                                    
| | **5.11** | Drilling bits, reamers, reamer cutters, stabilizers
      and special tools,                                                                                                                             

---

DAYWORK DRILLING CONTRACT - U.S.
  EXHIBIT A

| | 5.12     | Contract fishing tool services and tool rental.                                                                                                                                
| | -------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 5.13     | Wire line core bits or heads, core barrels and wire
        line core catchers if required.                                                                                    
| | 5.14     | Conventional core bits, core catchers and core barrels.                                                                                                                        
| | 5.15     | Diamond core barrel with head.                                                                                                                                                 
| | 5.16     | Cement and cementing service,                                                                                                                                                  
| | 5.17     | Electrical wireline loggings services.                                                                                                                                         
| | 5.18     | Directional, caliper, or other special services.                                                                                                                               
| | 5.19     | Gun or jet perforating services.                                                                                                                                               
| | 5.20     | Explosives and shooting devices.                                                                                                                                               
| | 5.21     | Formation testing, hydraulic fracturing, acidizing and
        other related services,                                                                                         
| | 5.22     | Equipment for drill stern testing.                                                                                                                                             
| | 5.23     | Mud logging services.                                                                                                                                                          
| | 5.24     | Sidewall coring service.                                                                                                                                                       
| | 5.25     | Welding service for welding bottom joints of casing,
        guide shoe, float shoe, float collar and in connection with installing
        of well head equipment if required.
| | 5.26     | Casing, tubing, liners, screen, float collars, guide
        and float shoes and associate equipment 5.27 Casing scratchers and centralizers.                                  
| | 5.28     | Well head connections and all equipment to be installed
        in or on well or on the premises for use in connection with testing, completion
        and operation of well. 
| | 5.29     | Special or added storage for mud and chemicals.                                                                                                                                
| | 5.30     | Casinghead, API series, to conform to that shown for
        the blowout preventers specified in Subparagraph 4.1 above.                                                       
| | 5.31     | Blowout preventer testing packoff.                                                                                                                                             
| | 5.32     | Casing Thread Protectors and Casing Lubricants.                                                                                                                                
| | 5.33     | H2S training and equipment as necessary or as required
        by law.                                                                                                         
| | 5.34     | All downhole
        equipment                                                                                                                                                 
| | 5.35     | All fuel                                                                                                                                                                       
| | **5.36** | BOP equipment,
        including well hea adapter, rotary head, diverters and lines                                                                                            
| | **5.37** | Drill pipe,
        drill collars, heavy weight pipe                                                                                                                           
| | **5.38** |                                                                                                                                                                                
| | **5.39** |                                                                                                                                                                                
| | **5.40** |                                                                                                                                                                                

---

DAYWORK DRILLING CONTRACT  U.S. 
  EXHIBIT A

|6. | EQUIPMENT, MATERIALS, AND SERVICES TO BE FURNISHED BY DESIGNATED PARTY:
|-- | -----------------------------------------------------------------------

The machinery, equipment, tools, materials, supplies, instruments,
  services. and labor listed as the following numbered items, including any transportations
  required for such items unless otherwise specified, shall be provided at the
  well location and at the expense of the party hereto as designated by and X
  mark in the appropriate column.

To Be Provided By and 
  At The Expense Of

Item
      Operator
      
      Contractor6.1
      Cellar and Runways
      P&E6.2
      Fuel ( located at         
        )
      P&E6.3
      Fuel Lines ( length        
        )
      
      
      P&E6.4
      Water at source, including required permits
      P&E6.5
      Water well, including required permits
      P&E6.6
      Water lines, including required permits
      P&E6.7
      Water storage tanks capacity
      P&E6.8
      Labor to operate water well or water pump
      P&E6.9
      Maintenance of water well, if required
      P&E6.10
      Water pump
      P&E6.11
      Fuel for water pump
      P&E6.12
      Mats for engines and boilers, or motors and mud pumps, as
        per inventory
      
      
      P&E6.13
      Transportation of Contractors property:Move in
      E
      
      PMove out
      E
      
      P6.14
      Materials for boxing in rig and derrick
      
      NA6.15
      Special strings of drill pipe and drill collars as follows:
      P&E6.16
      Kelly joints, subs, elevators, tongs and slips for use with
        drill string As Per Rig inventory
      
      
      P&E6.17
      Drill pip protectors for Kelly joint and each join of drill
        pipe running inside of Surface Casing as required, for use with normal
        strings of drill pipe
      P&E6.18
      Drill pipe protectors for Kelly joint and drill pipe running
        inside of Protection Casing
      P&E6.19
      Rate of penetration recording device
      
      
      P&E6.20
      Extra labor for running and cementing casing (Casing
      P&E6.21
      Casing tools
      P&E6.22
      Power casing tongs
      P&E6.23
      Laydown and pickup machine
      P&E6.24
      Tubing tools, as per inventory
      
      
      P&E6.25
      Power tubing tong
      
      
      P&E6.26
      Crew boats, Number
      
      NA6.27
      Service Barge
      
      NA6.28
      Service Tug Boat
      
      NA6.29
      Rat Hole
      P&E6.30
      Mouse Hole
      P&E6.31
      Reserve Pits
      P&E6.32
      Upper Kelly Cock
      
      
      P&E


---

DAYWORK DRILLING CONTRACT - U.S. EXHIBIT "A"

|6.33 | Lower Kelly Valve                                                                                                                                       |       |  | P & E
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------- | ----- |  | -----
|6.34 | Drill Pipe Safety Valve                                                                                                                                 |       |  | P & E
|6.38 | Inside Blowout Preventer                                                                                                                                | P & E |  |      
|6.36 | Drilling hole for or driving for conductor pipe                                                                                                         | P & E |  |      
|6.37 | Charges, cost of bonds for public roads                                                                                                                 | P & E |  |      
|6.38 | Cost of all labor and material to clean rig after use of oil-
      base mud                                                                            | P & E |  |      
|6.39 | Portable Toilet                                                                                                                                         | P & E |  |      
|6.40 | Trash Receptacle                                                                                                                                        | P & E |  |      
|6.41 | Linear Motion Shale Shaker                                                                                                                              |       |  | P & E
|6.42 | Shale Shaker Screens                                                                                                                                    | E     |  | P    
|6.43 | Mud Cleaner                                                                                                                                             | P & E |  |      
|6.44 | Mud/Gas Separator                                                                                                                                       | P & E |  |      
|6.45 | Desander                                                                                                                                                | P & E |  |      
|6.46 | Desilter                                                                                                                                                | P & E |  |      
|6.47 | Degasser                                                                                                                                                | P & E |  |      
|6.48 | Centrifuge                                                                                                                                              | P & E |  |      
|6.49 | Rotating Head                                                                                                                                           | P & E |  |      
|6.50 | Rotating Head Rubbers ,,                                                                                                                                | P & E |  |      
|6.51 | Hydraulic Adjustable Choke                                                                                                                              | P & E |  |      
|6.52 | Pit Volume Totalizer                                                                                                                                    | P & E |  |      
|6.53 | Communication, type                                                                                                                                     | P & E |  |      
|6.54 | Forklift, capacity                                                                                                                                      |       |  |      
|6.55 | Corrosion Inhibitor for protecting drill string                                                                                                         |       |  |      
|6.56 | Transportation charges for Contractor parts and supplies, at
      cost                                                                                 |       |  | P & E
|6.57 | Pre-employment drug screens and physical testing for Contractor
      personnel, at cost                                                                | E     |  | P    
|6.58 | Disposal of all Contractor and Operator waste, including but
      not limited to trash, oily waste, oil filters, rubber products, wire rope
      etc. | P & E |  |      
|6.59 | Crew Travel                                                                                                                                             |       |  | P & E
|6.60 | Crew Travel on location and between accommodation and rig site                                                                                          |       |  | P & E
|6.61 | Crew accommodation                                                                                                                                      |       |  | P & E
|6.62 | Drill String inspection and repair at end of contract                                                                                                   | P & E |  |      

---







---

DAYWORK DRILLING CONTRACT - U.S. EXHIBIT "A"

|**7.** | **OTHER PROVISIONS**                                                                                                   |                              
|------ | ---------------------------------------------------------------------------------------------------------------------- | -----------------------------
|       |                                                                                                                        |                              
|7.1    | Second Rig Manager                                                                                                     | $ 975.00/day                 
|       | Day rate                                                                                                               | $ 100.00/day                 
|       | Subsistence                                                                                                            | $ 100.00/day/man             
|7.2    | Crew Subsistence                                                                                                       | $ 100.00/day/man             
|7.3    | Crew Travel Allowance                                                                                                  | $ 1,000.00/man/ work rotation
|       |                                                                                                                       
|       | As per the attached Calco Oil Field Industries,
        Inc. Employee Travel Allowance Policy.                        
|       |                                                                                                                        |                              
|7.4    | Extra Labor rate for calculation of +/- personnel 
        $36.00/hr/man regular time 
        $55.00/hr/man over time |                              
|       |                                                                                                                        |                              
|7.6    | Additional Rig Matting, when used                                                                                      | $35/day/piece                

|Signed by the       |                | 
|------------------- | -------------- | 
|Parties as correct: |                | 
|                    | For Contractor | 
|                    |                | 
|                    |                | 
|                    | For Operator   | 

---

DA YWORK DRILLING CONTRACT U.S. Exhibit "B"

EXHIBIT"B" (See Subparagraph 8.3)

The following clauses, when required by law, are incorporated
in the Contract by reference as if fully set out

|(1) | The Equal Opportunity Clause prescribed in 41 CFR
      60-1.4.                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                      
|(2) | The Affirmative Action Clause prescribed in 41 CFR
      60-250.4 regarding veterans and veterans of the Vietnam era.
|    |                                                                                                                      
|(3) | The Affirmative Action Clause for handicapped workers
      prescribed in 41 CFR 60- 741.4.                          
|    |                                                                                                                      
|(4) | The Certification of Compliance with Environmental Laws
      prescribed in 40 CFR 15.20.                            

---

CALCO RIG #14RE-ENTRY RIG INVENTORY

|DRAWWORKS:Kremco K-750T double drum,                    |  | COMBINATION BUILDING:3m x 13.4m
      x 2.7m;         
|------------------------------------------------------- |  | ------------------------------------------------------
|main drum has 29mm Lebus grooving, sandline             |  | 3-compartment change house with lockers,              
|drum has 4200m of 14mm sandline.                        |  | knowledge box, tool room &
      accumulator.         
|                                                        |  |                                                       
|ENGINE:Caterpillar 3412 rated at 800 hp. Air            |  | ACCUMULATOR: Wagner, 5 station,
      545L            
|starter; Allison 6061 6-speed transmission.             |  | capacity, air remote at driller's
      position.     
|                                                        |  |                                                       
|CARRIER: PRLS/Page mounted on 16 wheel                  |  | GENERATORS: For Calco Equipment                       
|Peerless Page 60,000 lb suspension.                     |  | only Caterpillar 3306TA, 210 kw                       
|                                                        |  | generator. Caterpillar 150 kva backup                 
|AUXILIARY BRAKE:Kobelt air cooled 4" x
      71x 48.    |  | generator.                                            
|                                                        |  |                                                       
|SUBSTRUCTURE:Oreco parallelogram type                   |  | AIR COMPRESSORS:                                      
|substructure, 155,000daN. G.L. to table beams           |  | Quincy Model 325, drawworks, engine                   
|5.6m. Drill string racked on rig floor,                 |  | driven. Quincy Model 325, electric
      driven at    
|                                                        |  | drawworks.                                            
|**ROTARY TABLE:**444mm
      National S-175, rated      |  |                                                       
|155,000daN,                                             |  | COMBINATION WATER/FUEL TANK:
      40,000L            
|                                                        |  | capacity for water (primary supply).
      31,622L    
|UPPER DOGHOUSE:2.4m high x 1.8m wide x 6m
      long    |  | capacity for water (secondary supply).
      13,638/. 
|equipped with knowledge box, tool board, steam          |  | capacity for fuel with 1.8m x 3m storage              
|heaters S storage area,                                 |  | compartment for fuel & water pumps.                   
|                                                        |  |                                                       
|MAST:Kremco 34m (112'), 159,000daN                      |  | HANDLING EQUIPMENT:                                   
|(350,000 lb) hook load, telescoping 8 lines.            |  |                                                       
|Racking capacity 6096m of 89mm tubing or drill          |  | TONGS:Power tubing tongs: Foster
      54-93          
|pipe.                                                   |  | equipped with 63.3mm, 73mm, & 89mm,
      Manual      
|                                                        |  | rotary rig tongs with jaws 3-1/2 to
      10-5/8".    
|HOOK BLOCK:McKissick blocks, 136 tonne,                 |  |                                                       
|4 sheaves, grooved for 28.6mrn line, 134,000daN         |  | ELEVATORS;Tubing elevators for
      63.3 mm, 73mm    
|c/w Web Wilson hydra hook rated at                      |  | & 89mm. Drill pipe elevators for
      4-112          
|134,000daN.                                             |  |                                                       
|                                                        |  | SLIPS:Rotary table slips, Drill
      collar slips and
|LINKS:BJ, 247 m, 155,000daN.                            |  | safety clamp.                                         
|                                                        |  |                                                       
|SWIVEL: TSM 150, 134,000daN.                            |  |                                                       
|                                                        |  | WINCH: Dne Gearmaster M7 boom
      line, One         
|                                                        |  | Pulimaster PL8 tugger line; 12.7mm wire
      rope on 
|KELLY: 4-1/4 Square                                     |  | each winch.                                           
|                                                        |  |                                                       
|KELLY DRIVE:Square drive.                               |  | INSTRUMENTATION:One 170,000daN
      Martin           
|                                                        |  | Decker weight indicator. Mud pressure
      gauge,    
|KELLY SPINNER:Foster 77.                                |  | geolograph, PVT, survey equipment
      rental       
|                                                        |  | items as per client requirements.                     
|KELLY COCKS: Upper 6-5/8 Reg LH Griffith                |  |                                                       
|style. Lower: 3-1/2 IF Griffith style,                  |  | PIPE RACKS & CATWALK:One
      12,2m long x           
|                                                        |  | 2.3m wide x 1rn high catwalk. Four sets
      tumble  
|#1 PUMP:OPI 700, 178mrn x 203mm stroke.                 |  | racks, 1.07m high.                                    
|Dressed with 6" pistons, powered by 3412 Cat            |  |                                                       
|coupled to Allison 6061 transmission clw remote         |  | MATTING:Eight 2.4m x 11m and
      four 2.4m x 6.1m   
|control, air shutdowns & 74,2mm x 35,000kPa             |  | rig mats.                                             
|discharge line.                                         |  |                                                       
|                                                        |  | SAFETY EQUIPMENT:                                     
|#2 PUMP; OPI 700, 178mm x 203mm stroke.                 |  | 5 General 30 lb fire extinguishers                    
|Dressed with 6" pistons, powered by 3412 Cat            |  | 1 stretcher (basket, backboard)                       
|coupled to Allison 6061 transmission ciw remote         |  | 2 6C#3 first aid kits                                 
|control, air shutdowns & 74.2mm x 35,000kPa             |  | 1 Geronimo escape buddy w/12.7m braided
      wire    
|discharge line.                                         |  | rope                                                  
|                                                        |  | 2 Scott air packs                                     
|**MUD TANK**: 63m' capacity, 4
      compartment & trip |  | 1 crown saver                                         
|tank with Swaco linear shale shaker, mix hopper,        |  | 1 derrickman assist climbing device                   
|cylindrical degasser & agitators,                       |  | 1 Retractalock fall arrest                            

---

|CALCO OIL FIELD INDUSTRIES, INC. |                                  
|-------------------------------- | ---------------------------------
|                                 |                                  
|                                 | HEAD OFFICE                      
|                                 | #305, 5208 - 53 Avenue           
|                                 | Red Deer, Alberta. Canada T4N 5K2
|                                 | Telephone:(403) 343-1710         
|                                 | 1 . 800-662-7139                 
|TRAVEL
      ALLOWANCE POLICY    | Fax: (403) 342-5310              

Effective June 1, 2006, Calco Oil Field Industries, Inc.
employees will be provided with a $ 1000.00/work rotation travel allowance.
Employees will be expected to make their own travel arrangements.

The Travel Allowance will be paid as follows:

1. When the employee receives wages earned for last work day of
first work rotation (i.e. last day 20 of 20-day work schedule) after June 1,
2006, they will receive $500.00.

2. When the employee receives wages earned for first work day
of next work rotation (i.e. first work day of next 20-day work schedule), they
will receive $500.00.

3. This will continue thereafter, with $500,00 being paid at
the beginning and the end of each work rotation.

When the rig finishes the job, any unpaid travel allowance will
be paid out with wages earned for last day worked.

To be eligible for Travel Allowance, employees must:

|1. | Complete scheduled work rotations and return to work
      after days off as requested.
|-- | ---------------------------------------------------------------------------------------
|   |                                                                                        
|2. | Not quit or be released or leave during the work
      rotation.                       
|   |                                                                                        
|3. | Arrive at designated locations on time as
    requested.                               

Additional information:

|I. | The Travel Allowance is a taxable allowance and required
      taxes will be deducted.                     | 
|-- | ---------------------------------------------------------------------------------------------------------- | 
|   |                                                                                                            | 
|2. | This form must be completed and returned to Payroll
      office prior to any Travel Allowance being paid. | 

EMPLOYEE STATEMENT: By executing the below acknowledgement, I
confirm and accept this policy and agree to the terms and conditions listed
above. I have retained the attached copy for my future reference.

|Employee Name:      |           |  | Rig Manager Name:                                 |          
|------------------- | --------- |  | ------------------------------------------------- | ---------
|                    | (printed) |  |                                                   | (printed)
|                    |           |  |                                                   |          
|Employee Signature: |           |  | Rig Manager Signature:                            |          
|                    |           |  |                                                   |          
|Date:               |           |  | *employee will retain attached copy
      of this
|                    |           |  | policy*                                           |          
|Employee SSN:       |           |  |                                                   |