EXHIBIT  10.27

THIS  AGREEMENT  made  effective  as  of  the  10th  day of February, 1998.

BETWEEN

ABACAN  RESOURCE  CORPORATION,  a body corporate, incorporated under the laws of
the  Province  of  Alberta,  Canada  (hereinafter  called  the  "Corporation")

                                      -and-

TIMOTHY  T.  STEPHENS,  of  the  City  of Houston, Texas (hereinafter called the
"Employee");


                          EMPLOYMENT SERVICES AGREEMENT
                          -----------------------------

RECITALS:

A.     The Corporation is principally engaged in the business of exploration and
development  of  oil  and gas properties located principally in Nigeria, Africa;

B.     The  parties  desire  to enter into this Agreement to set forth the terms
pursuant  to  which  the Employee's services will be provided to the Corporation
and  the  respective  rights  and  obligations  of  the  parties  hereto.

     NOW  THEREFORE  THIS  AGREEMENT  WITNESSES  that  in  consideration  of the
premises,  the  mutual  covenants and agreements herein contained and other good
and  valuable  consideration,  the  receipt of which is hereby acknowledged, the
parties  hereto  mutually  covenant  and  agree  as  follows:

                                   ARTICLE 1.
                              CONTRACT FOR SERVICES
                              ---------------------

1.01     Subject  to  the  earlier  termination of this Agreement as hereinafter
provided,  the Corporation hereby agrees to contract for and engage the services
of  the Employee as the President and Chief Executive Officer of the Corporation
(hereafter  the "Employment Services") details of which are described herein all
in  accordance  with  the  terms  and  provisions  hereof.

1.02     The  Employee shall be responsible for and shall have such authority as
is  consistent with the position of President and Chief Executive Officer of the
Corporation  with the full power and authority to control, supervise, manage and
direct  the  day  to  day  business  and  affairs of the Corporation except such
matters  and  duties  as  by law must be transacted or performed by the board of
directors  and/or the shareholders of the Corporation, all subject to the power,
direction  and  control  of  the  board  of  directors  of  the Corporation (the
"Board").

1.03     Notwithstanding  Clause  1.02  hereof,  the  Employment  Services shall
include  the  services  set forth below, and which services shall be provided on
the  basis  of  the  following  terms  and  conditions:

(a)     the  Employee  shall  control,  supervise,  manage and direct all of the
business  affairs  of  the  Corporation;

(b)     in  addition  to  the duties set forth above, the Employee shall assume,
obey,  implement  and  execute  such  duties,  directions,  responsibilities,
procedures,  policies  and  lawful  orders  as may be determined or given by the
Board  of  the  Corporation  from time to time and report results of same as may
from  time  to  time  be  determined  by  the  Board  of  the  Corporation;


<PAGE>
(c)     the  Employee  shall perform such duties and may exercise such powers as
may  from  time  to  time  be assigned to or vested in him by the by-laws of the
Corporation;

(d)     the  Employee  shall  faithfully,  honestly  and  diligently  serve  the
Corporation  and cooperate with the Corporation and utilize maximum professional
skill  and  care  to  ensure  that  all  services  rendered hereunder are to the
satisfaction  of  the  Corporation,  acting reasonably, and to provide any other
services  not  specifically  mentioned  herein,  but  which  by  reason  of  his
capability  he  knows  or  ought to know to be necessary to ensure that the best
interests  of  the  Corporation  are  maintained;

(e)     the  Employee's  title with the Corporation shall be President and Chief
Executive  Officer;

(f)     the  Employee  will, subject to the prior approval of the Board, join in
or  participate  with  organizations,  clubs,  associations  or  groups that may
provide  good  business  contacts and learning facilities for the benefit of the
Corporation.

1.04     The  Employee  agrees  to  devote all or substantially all of his time,
attention  and  best  efforts necessary to further the business and interests of
the  Corporation during the period of this Agreement to the exclusion of any and
all  other employment except as may specifically be approved by the directors of
the  Corporation.  Nothing  herein  shall  prohibit  the  Employee  from being a
shareholder  in  any  corporation  whose  common shares are traded publicly on a
stock  exchange.

1.05     The  Employee  acknowledges and agrees that the Employment Services are
of  such  a  nature that regular business hours may be impossible.  The Employee
understands that he may be required to provide the employment services in excess
of  eight  (8) hours per day or five days (5) per week and on evenings, weekends
and holidays.  The Employee agrees that the consideration to be paid or which is
granted  to  the  Employee  as  set  forth  herein shall be in full and complete
satisfaction  for  his work and Employment Services to be provided hereunder, no
matter when and how performed and the Employee releases the Corporation from any
obligation  for  pay  or  other  compensation, whatsoever which it might have by
reason  of  any  existing  or  future  legislation  or  otherwise.

1.06     The Employment Services to be carried out and performed by the Employee
shall  be  carried  out and performed in Houston, Texas, or such other places as
may  be  mutually  agreed  between  the  Employee  and  the  Corporation.

                                   ARTICLE 2.
                                TERM OF CONTRACT
                                ----------------

2.01     Subject to prior termination pursuant to the terms contained in Article
9, the term of this Agreement for the provision of the Employment Services shall
be  for  a  period  of three (3) years from and including February 10, 1998 (the
"Effective  Date")  up  to  and  including February 9, 2001 (the "Expiry Date").

2.02     This  Agreement  may  be  renewed  from time to time by the Corporation
prior  to the Expiry Date for a further one (1) year term or terms or such other
term  as  the parties may agree upon the written consent of both parties hereto.


                                      -2-
<PAGE>
2.03     Should  this  Agreement  not be renewed by the Corporation on or before
the  Expiry  Date, the Corporation shall, on the Expiry Date, pay the Employee a
one-time  departure  fee  (the "Departure Fee") equal to one (1) year Employment
Fees.  The  Departure Fee shall be the only compensation payable to the Employee
in  the  event  of  non-renewal  of  this  Agreement by the Corporation, and the
Employee  expressly  confirms  that upon payment of the Departure Fee, he is not
entitled  to  any  other  compensation,  severance  payment,  Employment Fees or
termination  fees  whatsoever  arising out of the non-renewal of this Agreement.
Nothing  herein  shall  however  prevent the Employee from exercising any or all
stock  options  that may have vested to him during the term hereof in accordance
with  the  provisions  of  the  applicable  stock  option agreement, which shall
provide that Employee will have 90 days from date of termination within which to
exercise  such  vested  options.

                                   ARTICLE 3.
                 COMPENSATION AND EXPENSES INCURRED BY EMPLOYEE
                 ----------------------------------------------

3.01     The  Corporation  agrees  that  commencing  the  Effective  Date,  the
Corporation shall pay the following fees (the "Employment Fees") to the Employee
in  respect  of  the  provision  of  the  Employment  Services:

(a)     the  sum  of  United States dollars Two Hundred and Twenty-Five Thousand
($225,000.00)  dollars  per  annum, payable in bi-monthly instalments of $ 9,375
(the  "bi-monthly  instalment") from the Commencement Date until the Expiry Date
of  this  Agreement or until the date this Agreement is terminated in accordance
with  Article 9.01 herein, provided however that for the month of February 1998,
the  monthly  payment  shall  be  18/28  of  the  monthly  instalment;

3.02     In  addition  to the payment of the Employment Fees, the Employee shall
be  entitled to receive 1,000,000  incentive stock options (the "Stock Options")
to  purchase  common shares of the Corporation. The stock options will be issued
pursuant  to and in accordance with the terms of the incentive stock option plan
of  the  Corporation,  shall  be  at an exercise price per common share of $3.25
(Canadian  dollars)  which  is  the  closing trading price for the Corporation's
shares  on  The  Toronto Stock Exchange on February 10, 1998.  The options shall
vest  as  follows:

(i)     one-third  (a)  immediately;

(ii)     one-third  (a)  on  February  10,  1999;  and

(iii)     one-third  (a)  on  February  10,  2000.

The  issuance  and  exercise  price  of  the stock options shall at all times be
subject  to  applicable  regulatory  and  stock  exchange  approval.

3.03     The Employee shall be responsible for and shall pay any and all foreign
income  or  related  taxes  that  may  become  payable  by  virtue  of receiving
compensation  for  the  provision  of  services  contemplated  herein.

3.04     The Employee is authorized to incur reasonable expenses in or about the
provision of his services hereunder, including living expenses while absent from
his  city of employment and  travel and meeting expenses.  The Corporation shall
reimburse  the  Employee  for  all  such  business  expenses  upon  provision of
satisfactory  proof  of  such  expenses  to  the  Corporation.

3.05     The Employee shall be expected to travel on the Corporation's behalf as
required  from  time  to time.  Such travel shall be made in accordance with the
Corporation's  domestic  and  international  travel  policies.  The  Corporation
acknowledges that all international travel will be first class or equivalent and
when  not  available,  business  class  or  its  equivalent.


                                      -3-
<PAGE>
3.06     The  Employee  may  receive  a corporate credit card of the Corporation
(the  "credit card").  The Employee confirms that the credit card is supplied to
be  used  exclusively to cover costs of business travel, accommodation and meals
incurred  by  the  Employee while on business for the Corporation outside of the
city  or  location  of his current assignment.  All expenditures incurred on the
credit  card  shall  be  submitted  to  the Corporation along with proof of such
expenditures  in  a  form acceptable to the Corporation.  The Employee agrees to
surrender  the corporate credit card to the Corporation immediately upon request
and  in  any  event,  at  the Expiry Date or Termination Date of this Agreement.

                                   ARTICLE 4.
                             REVIEW OF COMPENSATION
                             ----------------------

4.01     Subject  to  renewal  as  herein  provided,  the  remuneration  payable
pursuant  to  Article  3.01  hereof may be reviewed annually by the Board of the
Corporation  on  or  before the anniversary date hereof, at which time the Board
shall  consider such matters as it may consider relevant and shall determine, in
its absolute discretion, whether to maintain or increase the annual remuneration
payable by the Corporation to the Employee hereunder.  The Corporation shall not
be  entitled  to  reduce the annual cash compensation payable hereunder.  In the
event  the  Board elects to amend the Employee's remuneration, such an amendment
shall  be in writing and shall not effect the other provisions set forth in this
Agreement.

                                   ARTICLE 5.
                                   INCAPACITY
                                   ----------

5.01     The  Employee  shall  be  entitled  to  reasonable  time  from service:

(a)     without  loss  of  compensation,  due  to  sickness  or  injury or other
incapacity  directly associated with the provision of the Employment Services to
the  Corporation;

(b)     without  compensation  due to sickness or pre-existing injury or medical
condition  on  the  effective  date  of  this  Agreement;

(c)     without  compensation  for  a voluntary medical procedure, provided that
the  prior  consent  of  the  Corporation  is  obtained.

5.02     Nothing  herein shall prohibit the Corporation, during  the term of any
such incapacity referred to herein from terminating the services of the Employee
in  accordance  with  Article  9.01  herein.

5.03     Health  Benefits
         ----------------

     The  Corporation will pay the premiums for a newly created medical plan for
Employee,  which
shall  provide  coverage  for medical expenses for Employee and his family, such
plan  to include major medical coverage underwritten by a recognized provider in
the  United  States.  Policy  documents  govern  benefit  entitlement.  Further,
whether  self-insured  or included as part of the medical coverage, expenses for
Employee  and  Employee's  family  dental  bills  will  also  be  included.  If
self-insured,  Employee  will  submit  such  expenses as part of monthly expense
reports.


                                      -4-
<PAGE>
                                   ARTICLE 6.
                            CONFIDENTIAL INFORMATION
                            ------------------------

6.01     The Employee covenants and agrees that during the term hereof and for a
period  of  one  (1)  year  thereafter,  he  will  keep in strict confidence all
knowledge,  information  (whether  oral  or  written)  and materials obtained or
acquired  during  the  course  of  his  providing  Employment Services hereunder
relating to the Corporation or its business and affairs.  Other than information
disclosed or divulged to the Board and duly authorized officers and employees of
the  Corporation,  the Employee will not disclose, divulge, publish or transfer,
or  authorize or permit anyone else to disclose, divulge, publish or transfer or
use  to  his own advantage any such knowledge, materials, business data or other
information  obtained  in  the  course  of  providing  the  Employment Services,
pursuant  to  this  Agreement  or which relate in any manner to the business and
affairs  of  the  Corporation,  without  the  prior  written  consent  of  the
Corporation,  which  consent  shall  not  be  unreasonably  withheld.

6.02     The  obligation  of  the  Employee as identified in Article 6.01 hereof
shall  not  apply  to  such  knowledge,  information,  material or business data
obtained  pursuant  to  this Agreement or relating in any manner to the business
affairs  of  the  Corporation  which:

(a)     was demonstrably known to the Employee prior to receipt thereof pursuant
to  this  Agreement;

(b)     is  available  to  the  public  in the form of written publication;

(c)     shall  have  become available to the Employee in good faith from a third
party  who  has  a  bona  fide  right  to  disclose  same;  and

(d)     that  information  which  is  required  to  be disclosed to any federal,
provincial,  state  or local government or governmental branch, board, agency or
instrumentality  necessary  to  comply  with  relevant timely disclosure laws or
regulatory authorities, including stock exchanges having jurisdiction in respect
of  securities  of  the  Corporation.

6.03    The  Employee  covenants  and  agrees  that  during  the  term  and  any
extensions  or  renewals  hereof,  the Employee shall maintain the terms of this
Agreement  strictly  confidential  and  shall  not  disclose  the  terms of this
Agreement  to  any  other  party  or entity, except Employee's attorney or legal
counsel.

                                   ARTICLE 7.
                                    VACATION
                                    --------

7.01     The  Employee  shall  be  entitled to four (4) weeks paid vacation (the
"Vacation")  for each year throughout the term of this Agreement and any and all
renewals  thereof.  The  Vacation  shall  be  taken  from  time  to  time at the
discretion  of  the  Employee  upon  the  provision  of reasonable notice to the
Corporation.


                                   ARTICLE 8.
                                NON-ASSIGNABILITY
                                -----------------

8.01     This  Agreement for Employment Services and all other rights, benefits,
and privileges herein conferred are personal to the Employee and accordingly may
not  be  assigned  by  the  Employee.


                                      -5-
<PAGE>
                                   ARTICLE 9.
                                   TERMINATION
                                   -----------

9.01     Notwithstanding the term of this Agreement as set forth in Article 2.01
hereof,  this  Agreement  and  the  Employment  Services being provided shall be
terminable  by  the  Corporation upon the occurrence of any one of the following
events,  the  date  of  such termination to be hereafter called the "Termination
Date":

(a)     except  in the case of termination for Cause under Article 9.01(b) or as
a  result  of  the death of the Employee under Article 9.01(c) hereunder, at any
time  prior  to  the  Expiry Date, upon payment to the Employee of the Departure
Fee;

(b)     at  any  time  by  the  Corporation,  without  notice,  or  additional
compensation  for  Cause.  For  the  purposes  herein,  "Cause"  shall,  without
limiting  its  meaning in common law, include the conviction of the Employee for
an  indictable  criminal  offence  or  the  breach by the Employee of any of the
covenants  or  terms  of  this  Agreement;

(c)     immediately upon the death of the Employee provided that the Corporation
agrees to pay the Employee's estate the equivalent of one years' Employment Fees
on  the  Termination  Date;

(d)     immediately  upon the Employee becoming bankrupt or making an assignment
for  the  benefit  of  creditors  in  general  without  additional compensation;

(e)     immediately  upon  confirmation of permanent incapacity due to permanent
illness,  injury  or  disability  on the part of the Employee.  For the purposes
hereof,  "permanent  incapacity" means illness, injury or disability on the part
of  the  Employee  incurred  while  performing  the  Employment Services for the
Corporation  that  in the opinion of an independent medical expert acceptable to
the  Employee  (or  his  legal personal representative) and the Corporation will
prevent  the  Employee  from  performing  his duties or providing the Employment
Services  on behalf of the Employee for a period longer than six (6) consecutive
months.  Should the Employee become permanently incapacitated and this agreement
is  terminated  for  this  reason,  the  Corporation  shall pay the Employee the
equivalent  of  one  years'  Employment  Fees  on  the  Termination  Date.

9.02     Subject  to Article 10.04, in the event this Agreement is terminated in
accordance with the provisions of Article 9.01 hereof, the Employee shall not be
entitled  to other payments from the Corporation other than all stock options as
provided  for  in  Section  3.02,  from and after the Termination Date except as
specifically  provided  in  Article  9.01  herein.

9.03     Notwithstanding  any  other  provision  of this Agreement, Employee may
terminate this Agreement at any time upon giving thirty (30) days written notice
to  the  Corporation.

                                   ARTICLE 10.
             CHANGE OF CONTROL, MERGER, AMALGAMATION, SALE OF ASSETS
             -------------------------------------------------------

10.01     In  the  event  of:

(a)     a change of control of the Corporation (as such term is customarily used
in the Securities Act, Alberta) through ownership of its common shares including
a  "takeover  bid",  an "exempt takeover bid", "issuer bid" or an "exempt issuer
bid";  or


                                      -6-
<PAGE>
(b)     a change in a majority of the members of the Board of the Corporation or
the  removal  of  the  Employee as an officer or director of the Corporation; or

(c)     the  Corporation  merging,  amalgamating  or  re-organizing with another
corporation  that  is  not  an  affiliate  with  the  Corporation;  or

(d)     the  sale  of  all or substantially all of the assets or undertakings of
the  Corporation;

the  Corporation  shall  provide  the  Employee  with notice of such events (the
"Change  of  Control  Event").

10.02     Not  later  than  30  days  following  the completion of the Change of
Control  Event  contemplated in Article 10.01(a), (b) or (c), the Corporation or
its successor shall confirm with the Employee whether the Employment Services of
the  Employee  continue  to  be  required  by  the Corporation or its successor.

10.03     Should  confirmation be provided that the Employment Services continue
to be required after the Change of Control Event, the Employee and the successor
Corporation  shall  continue to be bound by the terms of this agreement provided
that  any  change  to the title, duties or responsibilities of the Employee with
the  Corporation  after  the Change of Control Event shall, at the option of the
Employee,  be  deemed to be Termination and subject to Article 10.04 below, with
the  Change of Control Event being the Termination Date for the purposes hereof.
All  unvested  Stock Options shall immediately vest to the Employee effective as
of  the  date  of  Change  of  Control  Event.

10.04     Should  at  the time of the Change of Control Event notice be provided
in  accordance  with Article 10.02 herein that the Employment Services no longer
be required after the Change of Control Event, this Agreement shall be deemed to
be  terminated by the Corporation on the date of the Change of Control Event and
the  Employee  shall be entitled to compensation equal to the accelerated amount
of  all  remaining  payments  under  this Agreement.  All unvested Stock Options
shall  immediately  vest  to  the Employee effective as of the date of Change of
Control  Event.

                                   ARTICLE 11.
                                 INDEMNIFICATION
                                 ---------------

11.01     The  Corporation hereby agrees to indemnify and hold harmless Employee
from and against any and all losses, claims, damages, liabilities (or actions or
other proceedings commenced or threatened in respect thereof), any expenses that
arise  out of, result from or in any way relate to this Agreement and Employee's
service as an officer and director of the Corporation, and to reimburse Employee
upon his demand, for any legal or other expenses incurred in connection with any
investigation,  defending  or  participating  in  any  such loss, claim, damage,
liability,  action  or other proceeding, other than any of the foregoing claimed
to  the  extent incurred by reason of the gross negligence of willful misconduct
of  the  Employee.

                                   ARTICLE 12
                                     NOTICES
                                     -------

12.01     All notices required or allowed to be given under this Agreement shall
be  made  either  personally  or  by  mailing  same  by prepaid registered post,
addressed as hereinafter set forth or to such other address as may be designated
from  time  to time by such party in writing, and any notice mailed as aforesaid
shall  be  deemed  to  have been received by the addressees thereof on the fifth
business  day  following  the  day  of  mailing:


                                      -7-
<PAGE>
     Corporation:               Abacan  Resource  Corporation
                                #140,  14811  St.  Mary's  Lane
                                Houston,  Texas
                                77079
     Fax:                       (281)  721-0560

     Employee:                  Timothy  T.  Stephens
                                3263  Reba  Drive
                                Houston,  Texas
                                U.S.A.

     Fax:                       (713)  522-0807

     Any party may from time to time change its address for service hereunder on
written  notice to the other parties.  Any notice may be served by hand delivery
or  by  mailing  same  by  prepaid,  registered  post,  in  a properly addressed
envelope,  addressed  to  the  party  to  whom  the notice is to be given at its
address  for  service  hereunder.

                                   ARTICLE 13.
                                  SEVERABILITY
                                  ------------

13.01     Each  provision of this Agreement is declared to constitute a separate
and  distinct  covenant  and  to  be  severable from all other such separate and
distinct  covenants.  If  any  covenant  or provision herein is determined to be
void  or  unenforceable  in whole or in part, it will not be deemed to affect or
impair the enforceability or validity of any other covenant or provision of this
Agreement  or  any  part  thereof.

                                   ARTICLE 14.
                                     RELIEF
                                     ------

14.01     The  parties to this Agreement recognize that a breach by the Employee
of  any  of  the  covenants  herein  contained  would  result  in damages to the
Corporation  and  that  the  Corporation could not adequately be compensated for
such  damages  by  monetary award.  Accordingly, the Employee agrees that in the
event  of  any  such  breach, in addition to all other remedies available to the
Corporation at law or in equity, the Corporation will be entitled as a matter of
right  to apply to a court of competent equitable jurisdiction of such relief by
way of restraining order, injunction, decree or otherwise, as may be appropriate
to  ensure  compliance  with  the  provisions  of  this  Agreement.

                                   ARTICLE 15.
                                     WAIVER
                                     ------

15.01     The  parties  agree  that  all  restrictions  in  this  Agreement  are
necessary  and  fundamental  to  the  protection  of  the  Corporation  and  are
reasonable  and  valid,  and all defences to the strict enforcement of Article 6
and  Article  11  hereof  by  the Corporation are hereby waived by the Employee.


                                      -8-
<PAGE>
                                   ARTICLE 16.
                                     GENERAL
                                     -------

16.01     The  parties hereto agree that they have expressed herein their entire
understanding  and agreement concerning the subject matter of this Agreement and
it  is expressly agreed that no implied covenant, condition, term or reservation
or  prior  representation or warranty shall be read into this Agreement relating
to  or  concerning the subject matter hereof or any matter or operation provided
for  herein.

16.02     The  provisions  of this Agreement will enure to the benefit of and be
binding  upon  the  heirs,  executors,  administrators  and  legal  personal
representatives  of  the  Employee  and  the  successors  and  assigns  of  the
Corporation  respectively.

16.03     Wherever  the  singular  or  masculine  or  neuter  is  used  in  this
Agreement,  the  same  shall be construed as meaning the plural or feminine or a
body politic or corporate and vice versa where the context of the parties hereto
so  require.

16.04     Time  is  of  the  essence  hereof.

16.05     This  Agreement  shall  be  construed  and  interpreted exclusively in
accordance  with  the  laws  of  England  and  each of the parties hereto hereby
irrevocably  attorns  to  the  jurisdiction  of the courts of such jurisdiction.

     IN  WITNESS  WHEREOF  the  parties  hereto  have  executed  this  Agreement
effective  as  of  the  date  and  year  first  above  written.

                                ABACAN RESOURCE CORPORATION


                                Per:  /s/ James Harvie
                                ---------------------------
                                James Harvie
                                Chief Operating Officer

Witness as to the signature of
Timothy T. Stephens

/s/                             /s/ Timothy T. Stephens
------------------------------  ---------------------------
                                TIMOTHY T. STEPHENS


                                      -9-
<PAGE>