EMPLOYMENT
        CONTRACT ("CONTRACT")

      


      DWI
        HENDRI YUNIANTO 
        
          

        

      

       

      1.The
        Position

      


      We
        are
        pleased to offer you the permanent position of Vice President -
        Operations with Indo-Pacific Resources (Java) Ltd., a wholly owned
        subsidiary of Fortune Oil Gas, Inc.

      


      The
        position of Vice President - Operations reports directly to the President
        (David A. Nunn) and Chief Executive Officer (James B. Wensveen) of Fortune
        Oil
& Gas, Inc. 

      


      Your
        headquarters will be the Jakarta office of Indo-Pacific Resources (Java)
        Ltd. To
        suit the needs of the company, you may be asked to travel to the operating
        site
        for short periods as required and undertake additional related duties time
        to
        time which may include overseas travel. 

         

      


      2. Employment
        Category, Remuneration and Benefits

      


      The
        salary group of your position is: Executive Management 

      


      Your
        remuneration is as follows: 

      


      Total
        gross salary (per month): US $5,000.00 

      


      
        	 	 	
                The
                  necessary income tax will be deducted by Indo-Pacific Resources
                  (Java)
                  Ltd. and paid to the Indonesian Taxation Authority as required
                  by
                  Indonesian law. Indo-Pacific Resources (Java) Ltd. will provide
                  you a
                  certified statement of your Indonesian taxable income (salary,
                  bonus, and
                  allowances) and related tax payments to the Indonesian Taxation
                  Authority
                  annually. 

              


      

      


      The
        income tax calculation is attached to the Contract as Exhibit 1. 

      


      
        	 	 	
                Your
                  salary will be paid on or about the 1st
                  of
                  each month for the previous month. Your salary will be directly
                  deposited
                  in up to two (2) banks of your choice in the currency of U.S. Dollars.
                  

              


      

      


      
        	 	 	
                Your
                  remuneration and benefits will be reviewed after One Year of the
                  date of
                  this Agreement.

              


      

       

      
        	 	 	
                In
                  addition a one time cash bonus of US$75,000.00 would be provided
                  to
                  you upon signing of an Employment
                  Agreement.

              


      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3. Transportation
        and Travel Expense 

      


      3.1 
Vehicular
        Transport During your employment, you will be provided with a dedicated sedan
        vehicle, driver and fuel for Indo-Pacific Resources (Java) Ltd. business
        purposes. When not required for business purposes the vehicle and driver
        may be
        used for your personal use. 

      


      3.2  Indo-Pacific
        Resources (Java) Ltd. will pay the vehicle running costs including fuel and
        maintenance, and the driver’s salary including overtime. 

      


      4. Annual
        Leave Provisions 

      You
        are
        entitled to paid annual leave at the completion of each twelve (12) month
        period
        of service for three (3) weeks. Full salary and allowances are paid while
        on
        annual leave. Indo-Pacific Resources (Java) Ltd. will provide two (2) round-trip
        coach class Airline tickets to a destination of your choice annually.


      


      5. Termination
        of Employment 

      This
        contract may be terminated by either Dwi Hendri Yunianto or Indo-Pacific
        Resources (Java) Ltd. giving at least one (1) month notice, in writing, to
        the
        other. 

       

      6.
        Other

      You
        Shall
        comply with Indo-Pacific Resources (Java) Ltd. Human Resources Policy
        Instructions (once prepared, reviewed, and or revised) all laws, rules,
        regulations and customs of the country of Indonesia and of other countries
        you
        may be required to travel to or through on business. Where there is conflict
        between the Contract and Human Resources Policy, the Contract will take
        precedence. 

      


      7. Job
        Description 

      (a) Responsible
        for all IPR Operation in Indonesia

      (b) To
        supervise IPR activities in Indonesia

      (c) 
        To
        be a member of the Joint Operating Committee - Joint Venture with CRC
        (Medco)

      (d) To
        be IPR's Representative in the Joint Operations with CRC
        (Medco)

      (e)
        To
        actively assist the Joint Operation to increase production

      (f)
        Actively involve with Joint Operation to settle the trade
        debts

      (g)
        IPR
        Signatory on the "Trade Debt Settlements" Bank
        Account 

      (h) IPR
        Signatory on the Joint Venture "Operations" Bank
        Account

      (i) To
        liaise, when necessary, with various departments within the Indonesian
        Government such as BP Migas, Migas,
        etc.

      (j)
To
        actively pursue potential new acquisitions for Indo-Pacific Resources (Java)
        Ltd.


      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      8. Changes
        to Contract 

       Except
        for circumstances provided for elsewhere, changes to this Contract and Exhibits
        shall be made in writing and agreed to and signed by both parties. 

      


      9. Effective
        Date

       This
        contract will be effective from 15 January 2005. 

      


      


      10. Confirmation 

      I
        accept
        the terms and conditions of this Contract. 

       

      


      Signed:
        /s/
        Dwi Hendri Yanianto

      Date:
        January 29, 2005

      


      


      Approved
        by:
        /s/ David
        A. Nunn

      Date: 
January
        30, 2005

      David
        A.
        Nunn

      President,

      Fortune
        Oil & Gas, Inc.

      


      


      Approved
        by: /s/
        James B. Wensveen

      Date:
         January
        30, 2005

      James
        B.
        Wensveen

      Chief
        Executive Officer

      Fortune
        Oil & Gas, Inc.