EXHIBIT 10.1

                                  License 1557
                            (translated from Russian)

                                   THE LICENSE
                              to use subsoil assets
                          of the Republic of Kazakhstan

Awarded by the  Government  of the  Republic  of  Kazakhstan  to the Joint Stock
Company  "Caspi Neff" for the  exploration  of the  hydrocarbons  'in the Alibek
Yuzhny oil field located in Mugodzhar region of Aktobe oblast.

1.   Licensee information.

1.1  Location: 465002, Atyrau city, 4 Lenin Street.

1.2. Data  and  number  of  the  state   registration:   State   Re-registration
     Certificate  4 2113 - 1900  AO  issued  05  November  1997  by  Agency  for
     Registration  of Real  Estate and Legal  Entities of Ministry of Justice of
     Republic of Kazakhstan.

Company's Head Officer: Keltir Magrupovich Shanenov

2. The characteristic of the licensed field.

There are pre-salt and post salt deposits of Zhanazhol type have been penetrated
in Alibek Yuzhny field,  where two carbonate  layers  divided by clastic  layer.
Based on the exploration  well data thickness of KT-1 layer in the licensed area
is 678  meters,  KT-11 is 754  meters,  thickness  of the  clastic  layer is 313
meters. Local structure Alibek Yuzhny is extension of large structure Alibekmola
and  located  at its lower  South - Western  portion.  Prognosis  resources  (C3
category) of recoverable  oil on the Alibek Yuzhny field  estimated as from 5 to
10.7 million ton.

3. The space borders of the allotted area of the subsoil assets.

The  space  borders  in terms of the area  have been  determined  by the  Mining
Allotment (Appendixes 1, 2, 3).

4. License term and the date of work commencement.

The license is awarded for the term of 6 years. The  commencement  date is to be
determined by the date of registration of the Exploration Contract.

5. Type and deadline of signing the Contract.

The deadline of  registration  of the Contract is to be established at a term of
six most from the date of signing the License.

6. The Working Program.

Minimal  exploration  expenses for Alibek Yuzhny field must be 2.7 millions USD,
broken down by years in millions  USD: 1st year - $0.26,  2nd year - $0.65,  3rd
year - $3.25,  4th year - $3.51,  5th year - $3.96, 6th year - $1.1 1. There are
social payments envisaged in the amount 0.5 million USD.

7. Terms and procedures of the Contract area returning

To be defined by the Exploration Contract.


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8. Terms of compliance with environmental  requirements,  subsoil protection and
safety regulations.

JSC  "Caspi  Neft"  has to comply  with all  applicable  rules  and  regulations
regarding subsoil protection,  rational conducting of works and safety according
to Kazakhstan Legislation.

9. Terms of the License extension

The  Licensing  Body could  extend the term of the  License  if  Licensee  is in
compliance with the License terms and conditions.

Appendixes:       I. Mining Allotment (Appendix 1)
                  2. Coordinates of the comer points (Appendix 2)
                  3. Map of the Mining Allotment (Appendix 3)

29 April 1999                                   Series AH # 1557

On behalf of the Government of
Republic of Kazakhstan

Prime Minister of the                           By: /S/ N. Balgimbaev
Republic of Kazakhstan                          N. Balgimbaev

                                                                      Appendix I
                                                        To the License AE # 1557

                   Republican Center of Geological Information
                                 "KAZGEOINFORM"
              Committee of Geology and Natural Resources Protection
            Ministry of Natural Resources and Environment Protection
                          Of the Republic of Kazakhstan

                              GEOLOGICAL ALLOTMENT

Issued to Joint Stock  Company  "Caspi Neft" to utilize  subsoil  resources  for
exploration  of  hydrocarbon  reserves  in oil  field  Alibek  Yuzhny  on blocks
XXII-23-D (partially), E (partially).

Geological  Allotment  is located in Aktobe  oblast and  allocated  by the comer
points from # I to # 5 on the map and vertical  cross-section  within the limits
(no limits applied).

The  coordinates  of the comer  points are  described in the Appendix # 2 to the
License for subsoil resources usage series A14 # 1557 (oil).

Area of the  Geological  Allotment is 13,745  (thirteen  and seven hundred forty
five thousandth) square kilometers.

                                                             By: /S/ E. Karibaev
Head of the Republic Center of Geological Information:               E. Karibaev


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                                                                      Appendix 2
                                                        To the License AE # 1557

                         COORDINATS OF THE CORNER POINTS
             OF THE GEOLOGICAL ALLOTMENT OF ALIBEK YUZHNY OIL FIELD

                 Blocks XXII - 23 - D (partially), E (partially)

             1. 48(Degree) 27' 37" NL         57(Degree) 37' 17" EL
             2. 48(Degree) 28' 55" NL         57(Degree) 38' 07" EL
             3. 48(Degree) 27' 04" NL         57(Degree) 40' 14" EL
             4. 48(Degree) 25' 53" NL         57(Degree) 39' 59" EL
             5. 48(Degree) 24' 44" NL         57(Degree) 39' 23" EL

                                                             By: /S/ E. Karibaev
Head of the Republic Center of Geological Information:               E. Karibaev

                                                                      Appendix 3
                                                        To the License AE # 1557

                                       MAP
                        Of the Mining Allotment location
                           For Alibek Yuzhny oil field

                 Blocks XXII - 23 - D (partially), E (partially)
                                 Scale 1:200 000

                    (map showing position of block in region)


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