CONTRACT No.
                                              -------
                Gravimetric work on Zapadno-Suersky licensed plot

     Kurgan                                                   February 26, 2004

     Limited Liability Company "Zauralneftegaz", hereinafter referred to as  the
Customer in the person of Sergey Stanislavovich Potapov, the executive director,
acting  under  the  articles  on  one part and Federal State Unitary Geophysical
Enterprise  "Bazhenovskaya  Geophysical  Expedition", hereinafter referred to as
the  Executor  in  the  person of Yury Valentinovich Shilin, alternate director,
acting under the articles on the other part, have concluded the present Contract
as  follows:

                           1. SUBJECT OF THE CONTRACT

     The Customer commits to work and undertakes to finance it, and the Executor
is  to accomplish the following work: "Gravimetric operations on Zapadno-Suersky
licensed  plot"  in  Eastern  of  Kurgan  province.  The  operations are held in
accordance with the geological assignment (appendix 1) and the current normative
documents regulating gravimetric operations. Gravitational survey is carried out
on  the  area  925  sq.  km

                               2. TERM OF CONTRACT

     2.1. The term of contract is set from March, 1, 2004 till January, 31, 2005
and  is  valid  till  the full accomplishment of the contract obligations of the
parties  of  the  present  Contract.

                   3. WORK COSTS AND PROCEDURE OF SETTLEMENTS

     3.1.  The  work costs is 6,150,000 (six million one hundred fifty thousand)
rubles, value added tax included, in accordance with the agreement minutes about
the  agreed  price ( appendix 2 ) and the estimate of expenditures ( appendix 3)
which  are  the  integral  part  of  the  Contract.
     3.2. The cost of one square kilometer of gravitational survey is 6,649 (six
thousand  six  hundred  forty  nine)  rubles.
     3.3  The  Customer  transfers  the  Executor  30%  prepayment  of the total
performed work according to Acts of performed work, form 2-   for mobilizing the
                                                           --
field  party,  the  paper  work  with  authorizing documents and commencement of
works.
     3.4  The  Customer  makes  payment  of  the  performed works every month in
accordance  with  the  invoice  of  the  Executor  with the attached acts of the
performed  works,  form 2- -. The acts of the performed work are to be presented
not  later  then  on  the  5th  of  each  month  after  the  report  month.
     3.5  The  payment  of the performed work is to be made during 10 (ten) days
after  signing  the Act with the transferring funds to the settlement account of
the  Executor.

                          4. OBLIGATIONS OF THE PARTIES
     4.1. The  Customer  is  to:
          4.1.1.  Take over the performed work and make payments to the executor
in  time  in  accordance  with  the  present  Contract  and  Attachments  to it.
          4.1.2.  Assist  the  Executor  to get the authorized documents to hold
field  work.
          4.1.3.  The  Customer  assists  the  Executor  in  timely  receiving
geological-geophysical  materials  necessary for the holding of the work, mostly
seismic  exploration  data,  which  will  be obtained on Zapadno-Suersky plot in
2004.
     4.2. The  Executor  is  to:
          4.2.1.  Guarantee  the  holding  of  the  works in accordance with the
Geological  task  (Attachment  1)  and  the  planned  schedule  (attachment  4)
          4.2.2.  Inform  the  Customer  about  the  partial  progress  on  the
Customer's  demand.

<PAGE>

                        5. ORDER OF ACCEPTANCE OF WORK.

     5.1. The  Executor  is  to prepare the final geological report on performed
work  according  to general requirements to the content and the geological paper
work  and  gives  it  to  the  Customer.
     5.2  The  Customer  considers  the report within 15 days after receiving it
at  the session of the technical committee in the presence of the representative
of  the  Executor,  accept  the  performed  work  and  or sends the Executor the
reasonable  refusal  to  accept  the  performed  work.
     5.3  The  Executor is to correct the report observations at his own expense
on  term  agreed  with  the  Customer

                                6. RESPONSIBILITY

     6.1.  The  Executor  and  the Customer have the property accountability for
the  appropriate  fulfillment  of  engagements  of  the  present  Contract  in
accordance  with  the  current  legislation.
     6.2.  The  Executor has the personal account for the confidentiality of the
materials  provided  to  the  Executor  by  the  Customer.
     6.3.  Any  disputes  which  may  arise under or in the connection with this
Contract will be settled by the Parties to the utmost by the mutual negotiating.
If  the Parties do not come to  an agreement, such disputes are to be settled in
arbitrage  in  accordance  with  the procedure established by the     of Russian
Federation.
     6.4.  All  questions  which  are not stipulated in this Contract have to be
settled  in  accordance  with the current legislation of the Russian Federation.

                                7. FORCE MAJEUR

     The  Parties do not account for the default on an obligation of the present
Contract  partially  or  in  full,  if  any  circumstances  arise as a result of
contingencies  that  is  force  majeur  (war,  acts  of  elements  etc.

                               8. CONFIDENTIALTITY

     The  Executor  has  the  right to  pass the information obtained during the
work operation or the results of work (or their display) to the third party only
if  there  is  a  written  permission  of  the  Customer.

                          9. OTHER TERMS AND CONDITIONS

     9.1. The Customer has the right to exercise control  and the supervision of
the  performance  and  the quality of work,  keeping  the terms of the Contract,
and  the  quality  if  the  materials  presented  by  the  Executor.
     9.2. Any  amendments  or  additions  to  present  Contract  are  to  be
valid  only  if  made  in  writing  and  signed  duly  by  both  parties.
     9.3.  A  party  has  the right to denounce the present Contract if there is
disregard  of  provision  giving written notice to the opposite party in 30 days
before  the  denouncement.       If  the  Customer  refuses  to  fulfill  the
obligations  of the Contract due to the other reasons than  improper fulfillment
of the obligations by the Executor, the Customer is to pay the executor the full
costs of performed work and the expenses of  closing down the field party of the
Executor.
     9.4. The  Executor  has  the  right  to  change  the  terms  of  the
accomplishment  of  work  if  the  performed  work  is  not  paid  in  time.
     9.5. The  Customer  pays  the  actual  expense  of  the project examination
(examinations)  costs
     9.6. The  present  Contract  is  made  in  two  copies - one to each party.

<PAGE>

The  following  papers are attached to the present Contract and are its integral
part:

1.  Geological  task                                               (Appendix  1)
2.  Minutes  of  the  agreement  on  agreed  price                 (Appendix  2)
3.  Estimate  of  expenditures  (stated  per  artcicle)            (Appendix  3)
4.  Planned  schedule                                              (Appendix  4)

                      11. LEGAL ADDRESSES OF THE PARTIES.

THE  CUSTOMER:                                THE  EXECUTOR:
--------------                                --------------
LLC  "ZAURALNEFTEGAZ"                         FSUGE  'Bazhenovskaya  geophysical
Legal  address:                               Expedition
---------------
640000, Kurgan, Lenin Street, 27/X            Legal address: 624250, Sverdlovsk
                                              --------------
                                              province, Zarechny, Kommunarov
                                              Street, 17
Bank  accounts:                               Bank  accounts:
Settlement account                            Settlement account
--------------------                          -----------------------
correspondent account                         correspondent account
----------------------                        -------------------------
in Kurgan department of                       "subsidiary of Public Corporation
Saving Bank No.8599                           Uralvneshtorgbank" in Zarechny.
-----------,                                  ------------------
Individual tax number -------------           Individual tax number -----------

THE REPRESENTATIVE OF THE                     THE REPRESENTATIVE OF THE
-------------------------                     -------------------------
CUSTOMER:                                     EXECUTOR:
---------                                     ---------

Executive  director                           alternate director of FSUGE
LLc  "Zauralneftegaz"                         "Bazhenovskaya geophysical
                                              Expedition"

/s/ S.S. Potapov                              /s/ Y.  V.Shilin
--------------                                --------------

<PAGE>