EXHIBIT 10.3

                               FARMOUT AGREEMENT




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                                FARMOUT AGREEMENT


                                     BETWEEN


                 DUBLIN INTERNATIONAL PETROLEUM (EGYPT) LIMITED
                          a wholly-owned subsidiary of
                           TANGANYIKA OIL COMPANY LTD.

                                       and


                             DRUCKER PETROLEUM INC.
                          a wholly-owned subsidiary of
                             DRUCKER INDUSTRIES LTD.




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                                    I N D E X


Article Number        Heading                                              Page
  1.1_                Definitions                                            2
  2.0                 Obligations of the Parties                             3
  3.0                 Representations and Warranties                         4
  4.0                 Relationship of the Parties                            6
  5.0                 Information                                            6
  6.0                 Applicable Law & Resolution of Disputes                7
  7.0                 Miscellaneous                                          7


Annexure "A"               Concession Agreement
Annexure "B"               Deed of Assignment





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                                FARMOUT AGREEMENT

THIS AGREEMENT is made and entered into as of the 28th day of April 1998, by and
between:

         DUBLIN INTERNATIONAL PETROLEUM (EGYPT) LIMITED, a company organised and
         existing  under the laws of the  Republic  of  Ireland  ("Dublin")  and
         wholly-owned  subsidiary  of  TANGANYIKA  OIL COMPANY  LTD.,  a company
         organised and existing under the laws of Canada ("Tanganyika") and;

         DRUCKER PETROLEUM INC., a company organised and existing under the laws
         of the British Virgin Islands  ("Drucker") and wholly-owned  subsidiary
         of DRUCKER  INDUSTRIES LTD., a company organised and existing under the
         laws of the United States.


WITNESSETH WHEREAS:

1.       On November 17,  1997,  Dublin was  notified of the  acceptance  by the
         Exploration   Offers  Committee  of  the  Egyptian  General   Petroleum
         Corporation (EGPC) of Dublin=s  application in a concession covering an
         area of  approximately  2,320 square  kilometres known as Block H, West
         Gharib, Gulf of Suez, Egypt.

2.       On December 1, 1997,  Dublin and EGPC initiated a concession  agreement
         (the "CA")  pursuant  to which  Dublin was granted the right to explore
         for  and  exploit  petroleum  on  the  Contract  Area  (as  hereinafter
         defined).  The CA is subject to  ratification  by the Government of the
         Arab Republic of Egypt (the "Government").

3.       On  December  28,  1997,  Dublin and EGPC signed a  Pre-Effective  Date
         Expenditure   Agreement   pursuant   to   which   Dublin's   Concession
         expenditures  would be recoverable  under the CA prior to the effective
         date of the CA.

4.       On March 24, 1998 Dublin was notified by  EGPC that Law No. 15 for 1998
         concerning the CA was issued.



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5.       Subject to the approvals of the Government and EGPC,  Dublin is willing
         to transfer and assign to Drucker an  undivided  twenty  percent  (20%)
         Participating  Interest  in  the  CA,  together  with  all  rights  and
         obligations pertaining thereto; and

6.       Drucker  is  desirous  of  acquiring  the  said  twenty  percent  (20%)
         Participating  Interest  on the basis of the terms and  conditions  set
         forth herein.

NOW THEREFORE in consideration of the mutual promises,  agreements and covenants
hereinafter set forth, the parties hereto agree as follows:

1.1_     DEFINITIONS

1.01 The terms defined in the recitals hereof or at other instances herein shall
have the meanings attributed to them thereby.  In addition,  the following words
and  expressions  shall,  for the purpose of this  Agreement,  bear the meanings
respectively set opposite them:

"Acquired Interest"      means a  twenty  (20%) undivided Participating Interest
                         free and clear of  all  encumbrances  to be transferred
                         and  assigned  as  contemplated  herein  by  Dublin  to
                         Drucker;

"Affiliate"              means in relation to each Party, any company,
                         corporation or other entity
                         1.       which is directly or indirectly controlled by
                                  such Party; or

                         2.       which directly or indirectly controls such
                                  Party; or

                         3.       which is directly or indirectly  controlled by
                                  a company,  corporation  or other entity  that
                                  also directly or indirectly controls such
                                  Party.

                         To this effect, control is conclusive by fact of owning
                         directly or indirectly shares in the company
                         representing more than fifty percent (50%) of the  vote
                         in general meeting.

"Agreement"              means this Farmout Agreement;

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"Contract Area"          means the area described in the Concession Agreement
                         (CA);

"Contract Depth"         means at depth of 200 feet into the Nubia  Formation or
                         9,000 feet whichever is shallower.

"Deed of  Assignment"    means  the  instrument  of transfer to be submitted  to
                         the  Government and EGPC for the  purpose of  obtaining
                         all the  necessary official  consents to the assignment
                         of  the Acquired Interest by Dublin to  Drucker,  which
                         instrument will substantially  be in the form set forth
                         in Annex "B" attached hereto;

"Effective Date"         means the date of execution of this Agreement;

"Joint Operating         means the Joint Operating Agreement to be entered into
Argeement" or "JOA"      between the Parties;

"Participating Interest" means an undivided percentage interest in the CA and
                         the JOA and all rights and obligations pertaining
                         thereto;

"Party"                  means a party to this Agreement.

All other terms specifically defined in the CA and not defined herein shall have
the  meanings  assigned  to them in the CA unless the context  clearly  requires
otherwise. A copy of the CA is attached hereto as Annexure AA@.

1.02 Unless the context  otherwise  requires,  reference to any Article is to an
Article of this Agreement. In addition, where the context requires, the singular
shall include the plural and the plural shall include the singular.

2.0      OBLIGATIONS OF THE PARTIES

2.01     Drucker shall, within seven (7) days of the Effective Date, pay to
         Dublin the following:


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         a.       thirty-four thousand United States Dollars (US$34,000),  being
                  twenty percent (20%) of all costs incurred prior to the
                  Effective Date;


         b.       three hundred  thousand  United States  Dollars  (US$300,000),
                  being forty percent  (40%) of the  Signature  Bonus payable to
                  EGPC;

         c.       eight thousand United States Dollars (US$8,000),  being twenty
                  percent (20%) of the CA administration costs payable to EGPC;

         1.       ten thousand United States Dollars  (US$10,000),  being twenty
                  percent (20%) of the annual training bonus payable to EGPC.

Payments shall be effected to  Tanganyika=s  bank account  numbered  1489057.202
with Cantrade  Ormond Burrus  Banque  Privee S.A., 12 rue  Ami-Lullin,  P.O. Box
3142, CH-1211, Geneva 3, Switzerland.

2.02  From and after the  Effective  date,  Drucker  shall  bear and pay  twenty
percent  (20%) of all  costs  and  expenses  including  but not  limited  to the
Financial Obligations related to the CA.

2.03 Drucker  shall bear and pay forty  percent  (40%) of the costs and expenses
associated with the drilling of an exploratory  well to Contract Depth including
casing to total depth and subsequent  testing or abandonment of said well in the
Initial Exploration Period. Notwithstanding the above, upon the earlier to occur
of (a)  the  drilling  and  testing  of  this  exploratory  well,  or (b)  total
cumulative costs incurred in drilling and completing or abandoning the said well
equal to one million five hundred thousand United States Dollars (US$1,500,000),
or a maximum  cost to Drucker of six  hundred  thousand  United  States  Dollars
(US$600,000);  thereafter,  Drucker shall pay twenty  percent (20%) of all costs
and expenses with any further activity related to this well.

2.04 Drucker shall,  within seven (7) days of the Effective Date, provide either
Dublin or  Tanganyika  (at Dublin=s  option) with a bank  guarantee  from a bank
acceptable  to  Dublin   equivalent  to  two  million   United  States   Dollars
(US$2,000,000),  being  forty  percent  (40%) of the Letter of  Guarantee.  Both


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Dublin and Tanganyika shall  immediately  provide Drucker with a Trust Agreement
covering  the 20% working  interest  of Drucker  until a Deed of  Assignment  is
approved by EGPC and the Government.

2.05 Dublin shall, upon receipt of the sums set out in Article 2.01 and the bank
guarantee  set out in  Article  2.04,  prepare,  execute  and submit the Deed of
Assignment to Drucker for execution by Drucker.

2.06 Dublin shall, as soon as possible following the date of receiving the fully
executed  Deed of  Assignment,  submit  the  same for  approval  by EGPC and the
Government and will use its best efforts to obtain said approvals.

2.07  Following  the  approval  of the  Deed  of  Assignment  by  EGPC  and  the
Government,  the respective  Participating  Interests of the Parties shall be as
follows:

                                            Dublin             50%
                                            GHP                30%
                                            Drucker            20%
                                                              ----
                                                              100%

2.08 Drucker agrees to assume its respective share of the rights and obligations
of Dublin  arising from and under the CA with  respect to the Acquired  Interest
from and after the date of execution of the Deed of Assignment.

2.09 The Parties shall use  reasonable  efforts to execute the JOA,  which shall
take effect as of the Effective Date, within thirty (30) days after execution of
this Agreement.

2.10 The Parties  agree that the Operator  shall be Dublin.  The Operator  shall
conduct all operations in accordance with the provisions of the CA and the JOA.

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3.0      REPRESENTATIONS AND WARRANTIES

3.01     Dublin hereby represents and warrants to Drucker that:

         a.       it is duly  established  and existing under the laws of the
                  Republic of Ireland and has the power and authority to own its
                  own assets and to conduct the business which it carries on;

         b.       it has the corporate power to enter into this  Agreement,  the
                  JOA  and  the  Deed  of  Assignment   and  to  carry  out  the
                  transactions  provided for therein and has taken all necessary
                  corporate  action to authorise  the  execution and delivery of
                  this  Agreement,  the Deed of  Assignment  and the JOA,  which
                  agreements constitute legally binding obligations on it;

         c.       the  CA is  valid,  approved  by  Majlis  Al  Shaab  (Egyptian
                  Parliament) and in good standing and there has been no default
                  by Dublin under, or breach by Dublin of the CA; and

         d.       Law No. 15 for 1998 has been issued by the  Government  giving
                  the beneficial  title to the Acquired  Interest and such title
                  is free and clear of all charges and claims of all persons and
                  entities  (and will be so assigned  free and clear at the date
                  of  assignment)  other than those of the  Government and EGPC,
                  whose charges and claims are fully set forth in the CA;

         e.       there is no  pending  of  threatened  litigation  which  would
                  materially  affect the consumption of, and benefits under this
                  Agreement, the Deed of Assignment and/or the JOA; and

         f.       it shall,  pursuant  to  Article  2, use its best  efforts  to
                  obtain all official consents to the Deed of Assignment.

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3.02     Drucker hereby represents and warrants to Dublin that:

         a.       it is duly established and existing under the laws of the
                  British Virgin Islands;

         b.       it has the corporate power to enter into this  Agreement,  the
                  Deed  of  Assignment  and  the  JOA,  and  to  carry  out  the
                  transactions  provided for therein and has taken all necessary
                  corporate  action to authorise  the  execution and delivery of
                  this  Agreement,  the  Deed of  Assignment  and the JOA  which
                  agreements constitute legally binding obligations on it.

4.0      RELATIONSHIP OF THE PARTIES

4.01 The rights, duties, obligations and liabilities of the Parties herein shall
be several and not joint or collective;  and nothing herein contained shall ever
be construed as creating a partnership of any kind, an association,  or a trust,
or as  imposing  upon any or all of the  Parties  hereto any  partnership  duty,
obligation or liability.  Each Party shall be individually  responsible only for
its obligations as set out in this Agreement.

5.0      INFORMATION

5.01 On the Effective  Date,  Dublin will make  available and furnish to Drucker
all data and information related to the Contract Area and the CA.

5.02  Subject  to the CA,  the  Parties  hereto  agree  that  the  terms of this
Agreement  shall be  considered  confidential  and shall not be disclosed to any
third party,  except to the extent  provided by (d) below.  Neither Party shall,
without  the prior  written  consent  of the other  Party,  disclose  during the
currency of this Agreement to any third party any data or  information  acquired
or obtained by any of them under the CA,  provided  that any Party may  disclose
any such information or data:

         a.       to the Government and EGPC;

         b.       to an Affiliate;

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         c.       to any technical,  financial or other professional  consultant
                  retained  by  it  or  its   Affiliate,   which   requires  the
                  information or data to provide professional services to Dublin
                  or Drucker;

         d.       to the extent required:
                  i.       by law, or
                  ii.      by the rules and  regulations  of any stock  exchange
                           upon  which  the  shares or other  securities  of any
                           Party or an  Affiliate  are  listed or in  connection
                           with an application to any stock exchange for listing
                           of any such shares or other securities;

         e.       to any  third  party with  which bona  fide negotiations for a
                  Participating  Interest  are conducted; or

         f.       to the extent that the information is in the public domain;

provided  always that with the exception of disclosure  under (a), (b), (d), and
(f) hereinabove,  the recipient of any information agrees in writing to keep the
same strictly confidential.

6.0      APPLICABLE LAW AND RESOLUTION OF DISPUTES

6.01 This  Agreement  shall be governed by and construed in accordance  with the
laws of Canada, excluding, however, any of its conflict of law rules which would
direct  or  refer  to the  laws of  another  jurisdiction.  The  Parties  hereto
specifically  attorn and submit  themselves to the jurisdiction of the courts of
Canada. In addition,  each Party  irrevocably  waives any objection which it may
now or  hereafter  have to  laying of venue of any  suit,  action or  proceeding
arising  out of or  relating  to this  Agreement  in the courts of  Canada,  and
irrevocably waives any claim that any such suit, action or proceeding brought in
the  courts of Canada  has been  brought in an  inconvenient  forum and  further
irrevocably waives the right to object,  with respect to such claim, suit action
or  proceeding  brought in the  courts of Canada,  that such court does not have
jurisdiction over such Party.

7.0      MISCELLANEOUS

7.01     This Agreement is subject to regulatory body approval.


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7.02 Any obligation of the Parties  hereunder  shall be suspended  while they or
any of them is prevented or hindered  from  complying  therewith by any cause of
force  majeure as that term is defined in the Force  Majeure  Article of the CA.
Any time limitations set forth in the Agreement shall be automatically  extended
for the same period of time that the obligations are so suspended.

7.03 The terms,  conditions,  warranties and  representations  in this Agreement
shall survive the execution of the Deed of Assignment and the JOA.

7.04 This  Agreement  may be  amended  in any  manner  and at any time only by a
written instrument executed by the Parties hereto.

7.05 Whether or not the transactions  contemplated  herein shall be consummated,
each of the Parties shall (except as otherwise specifically provided herein) pay
his own expenses  incidental to the  preparation,  execution and  performance of
this Agreement.

7.06 Either of the Parties  shall  execute and deliver such other  certificates,
agreements and other  documents and take such other actions as may reasonably be
requested  by  the  other  Party  in  order  to   consummate  or  implement  the
transactions contemplated by this Agreement.

7.07 All notices,  requests,  demands or other communications hereunder shall be
in writing,  and shall be delivered by hand or sent by courier.  Notices sent by

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fax are deemed to be  received on the  working  day of the  recipient  following
dispatch provided that the recipient acknowledge receipt by return fax.

         a.       If to DUBLIN INTERNATIONAL PETROLEUM (EGYPT) LIMITED:
                  Suite 1320-885 West Georgia Street
                  Vancouver, BC
                  Canada  V6V 3E8
                  Attention:        Mr. Lukas Lundin
                  Telephone:        (604) 689 7842
                  Facsimile:        (604) 689 4250

         2.       If to DRUCKER PETROLEUM INC.:
                  Suite 900, 789 West Pender Street
                  Vancouver, B.C.
                  Canada  V6C 1H2
                  Attention:        Mr. Ernest Cheung
                  Telephone:        (604) 685-3193
                  Facsimile:        (604) 681-7536

The address of each Party  hereto may be changed for any or all  purposes of the
Agreement by five (5) days advance written  notification from the Party changing
its address to the other Party.

7.08 This  Agreement  and all the  provisions  hereof  shall be binding upon and
enure to the benefit of the Parties hereto and their  respective  successors and
permitted assigns, but neither this Agreement nor any of the rights, interest or
obligations  hereunder  shall be  assigned,  by  operation  of law or  otherwise
consent of the other Parties,  which consent shall not be unreasonably withheld.
Notwithstanding the foregoing,  each Party shall be entitled, upon notification,
to assign to an Affiliate without the consent of the other Party.

7.09 This  Agreement may be executed in one or more  counterparts,  all of which
will constitute one and the same instrument.


<PAGE>


7.10 The section  headings in this Agreement are for  convenience  and reference
only and shall not be deemed to alter or affect the meaning or interpretation of
any provision thereof.

7.11 This  Agreement  hereby  supersedes any and all other  agreements,  oral or
written,  and  constitutes  the entire  agreement  among the  Parties  hereto in
respect of the subject matter of this Agreement.


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IN WITNESS  WHEREOF,  the Parties  hereto have executed this Agreement as of the
day and year first above written.

DUBLIN INTERNATIONAL PETROLEUM (EGYPT) LIMITED

"Edward L. Molnar"
-----------------------------
Name:    Edward L. Molnar
Title:   President


DRUCKER PETROLEUM INC.

"Ernest Cheung"
-----------------------------
Name:
Title:


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                                  ANNEXURE "A"

                              CONCESSION AGREEMENT



<PAGE>



                                  ANNEXURE "B"

                               DEED OF ASSIGNMENT



<PAGE>



                               DEED OF ASSIGNMENT

THIS DEED OF ASSIGNMENT is made as of this day of April, 1998 between:

         DUBLIN INTERNATIONAL  PETROLEUM (EGYPT) LIMITED, a company incorporated
         under the laws of the Republic of Ireland ("Dublin"); and

         DRUCKER  PETROLEUM INC., a company  incorporated  under the laws of the
         British Virgin Islands ("Drucker").


WHEREAS:

A. On April $____, 1998 Dublin signed a Concession Agreement (the "CA") with the
Government  of the Arab  Republic of Egypt (the  "Government")  and the Egyptian
General Petroleum  Corporation ("EGPC") pursuant to which Dublin was granted the
right to explore for and exploit petroleum from areas described in the CA;

B.  Subject to the  approval of the  Government  and EGPC,  Dublin is willing to
transfer and assign to Drucker an undivided  twenty percent (20%)  participating
interest in the CA, together with all rights and obligations pertaining thereto;
and

C. Drucker is desirous of acquiring the said thirty percent (20%)  participating
interest on the basis of the terms and conditions set forth herein.

NOW THEREFORE, the Parties hereto agree as follows:

1.  Dublin  hereby  assigns  to  Drucker  an  undivided   twenty  percent  (20%)
participating  interest in and to the CA and the  Drucker  hereby  accepts  such
assignment.

2.  Dublin  hereby  expressly  states  that the  rights  and  privileges  of the
Government  and EGPC under the CA shall not be prejudiced  by the  provisions of
this Agreement.


<PAGE>


3. Drucker hereby expressly  agrees to be bound by all the obligations  provided
for under the CA.

4. For the purposes of the CA, Drucker=s address is as follows:

         Suite 900, 789 West Pender Street
         Vancouver, B.C.
         Canada  V6C 1H2
         Attention:        Mr. Ernest Cheung
         Telephone:        (604) 685-3193
         Facsimile:        (604) 681-7536

5.  This  Assignment  shall be  effective  upon  obtaining  the  consent  of the
Government and EGPC hereto in accordance with Article 21 of the CA.


IN WITNESS  WHEREOF,  the Parties  hereto have executed this Agreement as of the
day and year first above written.

DUBLIN INTERNATIONAL PETROLEUM (EGYPT) LIMITED


---------------------------------
Name:
Title:


DRUCKER PETROLEUM INC.


---------------------------------
Name:
Title: