|HORIZON OIL INTERNATIONAL LIMITED
      INDO-PACIFIC ENERGY (NZ) LIMITED
      NGATORO ENERGY LIMITED
      
      
      PEP 38728 ASSET SALE AND PURCHASE
      AGREEMENT
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

INDEX

|1 | DEFINITIONS              | 3                                                 
|- | ------------------------ | --------------------------------------------------
|  |                          |                                                   
|2 | INTERPRETATIONS          | 6                                                 
|  |                          |                                                   
|3 | SALE AND PURCHASE        | 7                                                 
|  | 3.1                      | SALE AND PURCHASE                                 
|  | 3.2                      | PURCHASE PRICE                                    
|  |                          |                                                   
|4 | PAYMENT                  | 7                                                 
|  | 4.1                      | PURCHASE PRICE                                    
|  | 4.2                      | INTEREST                                          
|  | 4.3                      | SECURITY FOR PURCHASE PRICE                       
|  | 4.4                      | DEFAULT IN PURCHASE PRICE                         
|  |                          |                                                   
|5 | CONDITIONS               | 9                                                 
|  | 5.1                      | CONDITIONS PRECEDENT TO COMPLETION                
|  | 5.2                      | RESPONSIBILITY                                    
|  | 5.3                      | TERMINATION                                       
|  | 5.4                      | APPROVAL BY MINISTER                              
|  |                          |                                                   
|6 | PERIOD BEFORE COMPLETION | 10                                                
|  | 6.1                      | CARRYING ON OF BUSINESS                           
|  | 6.2                      | ACCESS TO INFORMATION                             
|  | 6.3                      | PRE-COMPLETION DATE                               
|  | 6.4                      | JOINT VENTURE OPERATOR                            
|  | 6.5                      | DAMAGE OF ASSETS PRIOR TO COMPLETION              
|  |                          |                                                   
|7 | COMPLETION               | 12                                                
|  | 7.1                      | PLACE AND DATE OF COMPLETION                      
|  | 7.2                      | DELIVERY OF DOCUMENTS BY SELLER                   
|  | 7.3                      | BUYER'S OBLIGATIONS                               
|  | 7.4                      | NOTICE TO COMPLETE AND REMEDIES ON DEFAULT        
|  | 7.5                      | BUYER FAILS TO COMPLY                             
|  | 7.6                      | SELLER FAILS TO COMPLY                            
|  | 7.7                      | EXTENSION OF COMPLETION NOTICE                    
|  | 7.8                      | POST COMPLETION                                   
|  |                          |                                                   
|8 | INDEMNITIES              | 14                                                
|  | 8.1                      | LIABILITIES OF THE BUYER                          
|  | 8.2                      | SELLER S INDEMNITY                                
|  | 8.3                      | BUYER'S INDEMNITY                                 
|  | 8.4                      | LIMITATION ON CLAIMS                              
|  | 8.5                      | NOTICE OF CIRCUMSTANCES                           
|  | 8.6                      | CONDUCT OF CLAIMS                                 
|  | 8.7                      | CONTINUING INDEMNITIES AND SURVIVAL OF INDEMNITIES
|  | 8.8                      | INPUT TAX CREDITS                                 
|  |                          |                                                   
|9 | WARRANTIES               | 17                                                
|  | 9.1                      | SELLER                                            
|  | 9.2                      | EFFECT OF SELLER NOTICE                           
|  | 9.3                      | BUYER                                             
|  | 9.4                      | EFFECT OF BUYER NOTICE                            
|  | 9.5                      | NO WARRANTY UNLESS EXPRESSLY INCLUDED             

i

---

|           | 9.6                                | KNOWLEDGE                            | 19
|---------- | ---------------------------------- | ------------------------------------ | --
|           | 9.7                                | DURATION                             | 19
|           |                                   
|10         | PROPERTY                           | 19                                  
|           | 10.1                               | PROPERTY                             | 19
|           |                                   
|11         | COSTS AND EXPENSES                 | 19                                  
|           | 11.1                               | COSTS AND EXPENSES                   | 19
|           |                                   
|12         | TAX                                | 19                                  
|           | 12.1                               | NATURE OF PAYMENTS                   | 19
|           | 12.2                               | NO WITHHOLDING                       | 19
|           |                                   
|13         | CONFIDENTIALITY AND ANNOUNCEMENTS  | 20                                  
|           | 13.1                               | AGREED ANNOUNCEMENTS                 | 20
|           | 13.2                               | LEGAL REQUIREMENTS                   | 20
|           | 13.3                               | CONFIDENTIALITY                      | 20
|           | 13.4                               | PERMITTED DISCLOSURE                 | 21
|           | 13.5                               | ADVISERS                             | 21
|           | 13.6                               | RESPONSIBILITY OF THIRD PARTIES      | 22
|           | 13.7                               | RESPONSIBILITY FOR RELATED COMPANIES | 22
|           | 13.8                               | SELLER TO KEEP CONFIDENTIAL          | 22
|           | 13.9                               | SURVIVAL OF CLAUSE 13                | 22
|           |                                    |                                      |   
|14         | GENERAL                            | 22                                  
|           | 14.1                               | NOTICES                              | 22
|           | 14.2                               | GOVERNING LAW AND JURISDICTION       | 23
|           | 14.3                               | ARBITRATION                          | 24
|           | 14.4                               | WAIVERS                              | 24
|           | 14.5                               | VARIATION                            | 24
|           | 14.6                               | ASSIGNMENT                           | 24
|           | 14.7                               | ENTIRE AGREEMENT                     | 24
|           | 14.8                               | FURTHER ACTIONS                      | 24
|           | 14.9                               | RELATIONSHIP BETWEEN THE PARTIES     | 24
|           | 14.10                              | INVALIDITY                           | 25
|           | 14.11                              | EXECUTION                            | 25
|           | 14.12                              | TIME                                 | 25
|           |                                    |                                     
|15         | NEW ZEALAND GOODS AND SERVICES TAX | 25                                  
|           |                                    |                                     
|16         | GUARANTEE                          | 25                                  
|           |                                   
|SCHEDULE 1 | 29                                
|           | WARRANTIES OF BUYER                | 29                                  
|           |                                   
|SCHEDULE 2 | 30                                
|           | WARRANTIES OF SELLER               | 30                                  
|           |                                   
|SCHEDULE 3 | 33                                
|           | DEED OF ASSIGNMENT AND ASSUMPTION  | 33                                  

ii

---

|AGREEMENTdated                                        
        2003
      PARTIES
      HORIZON OIL INTERNATIONAL LIMITED( Seller )
          INDO-PACIFIC ENERGY (NZ) LIMITED( Buyer )
      INTRODUCTION
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                          
|A.                                                                                                                                                                                                        
|                                                                                                                                                                                                          
|B.                                                                                                                                                                                                        
|                                                                                                                                                                                                          
|AGREEMENT                                                                                                                                                                                                 
|                                                                                                                                                                                                          
|1                                                                                                                                                                                                         
|                                                                                                                                                                                                          
|1.1                                                                                                                                                                                                       
|                                                                                                                                                                                                          
|1.2                                                                                                                                                                                                       
|                                                                                                                                                                                                          
|                                                                                                                                                                                                          
|                                                                                                                                                                                                          
|                                                                                                                                                                                                          
|                                                                                                                                                                                                          
|                                                                                                                                                                                                          
|                                                                                                                                                                                                          

3

---

| | “Area” means the area of the Permit;
      “Bank Account” means:
| | ----------------------------------------------------------------

| | Bank:           | Westpac Banking Corporation
| | --------------- | ---------------------------
| | Reference:      | 034002                     
| | Account Number: | 175 301;                   

| | “Business Day” means
        a day other than a Saturday or Sunday on which trading banks are open
        for general banking business in Wellington, New Zealand;
      “Claiming Party” has the meaning given
        to that term in clause 8.4;
      “Completion” means completion of the
        sale and purchase of the Sale Assets under Clause 7;
      “Completion Date” means the later
        of:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (b)                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | “Deed of Assignment and Assumption”
        means the deed of assignment and assumption described in Clause 5.4 and
        in the form set out in Schedule 3, in accordance with Article 13 of the
        Joint Venture Operating Agreement or a deed substantially in that form;
      “Defaulting Party” has the meaning given to that term
        in clause 8.4.
      “Disclosure Materials” means:      
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (b)                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | “Dispute Procedure” means a procedure:                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (b)                                                                                                                                                                                                                                                                                                                                                                                                             

4

---

| | “Documents” means the Deed of Assignment and Assumption,
          and any other agreement reasonably required to effect the assignment
          and transfer of any part of the Sale Assets to the Buyer (in a form
          satisfactory to the Buyer acting reasonably);
        “Effective Date” means 30 June 2003;
        “Encumbrance” means any overriding royalty interest,
          carried interest, net profit interest, mortgage, charge, pledge, bill
          of sale, lien (other than arising in the ordinary course of business),
          production payment or agreement for the sale of production or forward
          sale of production, or other material adverse contractual liability
          or obligation attached to the Sale Assets, including but not limited
          to any agreement to grant or create any of the above;
        “Governmental” “Agency” means
          any government or governmental, semi-governmental, administrative, fiscal
          or judicial body, department, commission, authority, tribunal, agency
          or entity;
        “GST” means goods and services tax imposed pursuant
          to the Goods and Services Tax Act 1985 (the "“GST Act”");
        “Information” means geological, geophysical, or
          technical information in the possession of Seller that relates to the
          presence, absence, extent or production of hydrocarbon deposits in the
          Area and which has been obtained from the exploration and prospecting
          for Petroleum within the Area, including, without limitation, the books,
          records, seismic and interpretive data, notes, drawings, maps and other
          information (in various media) related to the Permit;
        “Interim Period” means the period on and from the
          date of this Agreement to, but excluding, the Completion Date;
        “Joint Venture Operating Agreement” means the joint
          venture operating agreement in respect of the Permit between (now) Horizon,
          Origin Energy Resources NZ Limited, Preussag Energie GmbH, Swift Energy
          New Zealand Limited, Springfield Oil and Gas Limited, Petroleum Resources
          Limited and Shell Exploration NZ Limited dated 18 December 2000;
        “Joint Venturers” means the current parties to the
          Joint Venture Operating Agreement;
        “Minister” means the Minister of Energy or any other
          Minister for the time being exercising the powers conferred on the Minister
          of Energy by the Petroleum Act 1937 or the Crown Minerals Act 1991;
        “Mortgage” means the charge over the interest of
          the Guarantor in future revenue from Petroleum produced from the Goldie
          field forming part of Petroleum Mining Permit 38148 referred to in clause
          4.3;
        “Operator” means the operator, from time to time,
          under the Joint Venture Operating Agreement;
        “Participating Interest” means the interest expressed
          as a percentage held from time to time in the Permit, the Joint Venture
          Operating Agreement, the Stock, the Information and the Financial Information;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

---

|  | “Party” means a party
        to this Agreement;
      “PEP 38728 Joint Venture” means the joint venture
        applicable to the Permit and established pursuant to the Joint Venture
        Operating Agreement;
      “Permit” means Petroleum Exploration Permit 38728
        granted under the Act and any permits or leases granted pursuant thereto
        together with any extensions, renewals, conversions, including any petroleum
        mining permit issued under the Act and any substitutions, modifications
        or variations thereof insofar as each may respectively relate to the Area;
      “Petroleum” has the meaning given in the Crown Minerals
        Act 1991;
      “Petroleum Legislation” means the Petroleum Act 1937
        and the Crown Minerals Act 1991 as well as all regulations, administrative
        directions, programmes and determinations made under either or both of
        those Acts;
      “Purchase Price” means the cash consideration of $80,000.00
        plus GST if applicable;
      “Related Company” has the meaning given in section
        2 of the Companies Act 1993;
      “Relevant Authorities” means any Government Agencies
        with jurisdiction over the Permit and the Operators;
      “Sale Assets” means the 48.00% Participating Interest
        of Seller;
      “Tax Act” means the Income Tax Act 1994;
      “Tax” means any present or future tax, levy impost,
        duty, rate, charge, fee, deduction or withholding of any nature and whatever
        called, imposed or levied by any Governmental Agency (other than GST ),
        together with any interest, penalty, charge, fee or other amount imposed
        or made on or in respect of any of the foregoing, and taxation will be
        construed accordingly;
      “Work obligation” means in respect of the Permit,
        an obligation, if any, pursuant to the terms of the Permit or the Act
        to expend sums and/or carry out work in relation to the Permit;
      “Year” means a calendar year.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|2 | INTERPRETATIONS
      In this Agreement, unless the context otherwise requires:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

6

---

|    | (e)                                                                                                                                                                                                                                   | a reference to a Clause or Schedule is
        a reference to a clause of or schedule to this Agreement;                                                                                                                                                                                                                                                                            
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                     
|    | (f)                                                                                                                                                                                                                                   | a reference to this Agreement includes
        the Recitals and Schedules;                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                     
|    | (g)                                                                                                                                                                                                                                   | a reference to any law, statute, regulation,
        proclamation, ordinance or by-law includes all statutes, regulations,
        proclamations, ordinances or by-laws amending, consolidating or replacing
        them, and a reference to a law or statute includes all regulations, proclamations,
        programmes, ordinances and by-laws issued under that law or statute;
|    |                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                     
|    | (h)                                                                                                                                                                                                                                   | a reference to a document or Permit
        includes any agreement in writing, or any certificate, notice, instrument
        or other document of any kind and any amendment or supplement to or replacement
        or novation of them;                                                                                                                                          
|    |                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                     
|    | (i)                                                                                                                                                                                                                                   | a reference to a party to a document
        includes that party's successors and permitted assigns;                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                     
|    | (j)                                                                                                                                                                                                                                   | where the day on or by which any thing
        is to be done is not a Business Day, that thing must be done on the next
        succeeding Business Day;                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                      
|    | (k)                                                                                                                                                                                                                                   | no rule of construction applies to the
        disadvantage of a Party because that Party was responsible for the preparation
        of this Agreement or any part of it; and                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                      
|    | (l)                                                                                                                                                                                                                                   | all references to $ or Dollars are
        references to New Zealand dollars unless otherwise specified.                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                      
|3   | SALE AND PURCHASE                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                      
|3.1 | Sale and Purchase
      Seller agrees to sell the Sale Assets and the Buyer agrees to buy the
        Sale Assets in accordance with the terms of this Agreement.                                                                    
|    |                                                                                                                                                                                                                                      
|3.2 | Purchase Price
      The Buyer shall pay to Seller the Purchase Price in the manner and at
        the time as provided for in this Agreement.                                                                                       
|    |                                                                                                                                                                                                                                      
|4   | PAYMENT                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                     
|4.1 | Purchase Price
      The Buyer shall pay to Seller the Purchase Price by
        means of electronic transfer or transfers of immediately available funds
        to the Bank Account in the name of Seller, in the following manner:
|    |                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                     
|    | (a)                                                                                                                                                                                                                                   | by a payment of $16,000.00 plus GST if applicable
        on the Completion Date; and                                                                                                                                                                                                                                                                                               

7

---

|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | by a payment of $64,000.00 plus GST
        if applicable on or before the date which is 90 days after the Completion
        Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|4.2 | Interest
      Should the Purchase Price or any part thereof not be
        paid on the relevant due dates then the Buyer shall pay to the Seller
        interest on the outstanding part of the Purchase Price at the rate of
        1.5% per month compounding at monthly rests , such interest being calculated
        at monthly intervals on the outstanding balance of the Purchase Price
        and all interest which has accrued thereon pursuant to this clause over
        the preceding months.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|4.3 | Security for Purchase
        Price
      On the Completion Date the Guarantor shall execute and
        deliver to the Seller a charge on the terms set out in Annexure A to the
        PEP38716 Asset Sale and Purchase Agreement which is one of the Acquisition
        Agreements over the interest of the Guarantor in future revenue from Petroleum
        produced from the Goldie field forming part of Petroleum Mining Permit
        38148 and otherwise in a form capable of approval by and registration
        with the relevant authorities under the Petroleum Legislation. The Mortgage
        shall secure all moneys payable by the Buyer to the Seller under this
        Agreement and shall further secure all moneys payable by the Buyer to
        the Seller and/or Bligh New Zealand Limited under any and all of the Acquisition
        Agreements. The Seller shall not be obliged to release the Mortgage unless
        and until all such moneys have been paid in full to the Seller and/or
        Bligh New Zealand Limited as applicable.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|4.4 | Default in Purchase Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Notwithstanding any other right and
        entitlement the Seller may have at law or under this Agreement or the
        Mortgage and without limiting any such rights or entitlements, where the
        Buyer fails to pay any instalment of the Purchase Price in accordance
        with clause 4.1 then at any time following such breach, the Seller may
        give the Buyer notice in writing requiring the Buyer to either pay the
        outstanding instalment with interest accrued in accordance with Clause
        4.2, within 30 days of the date of the notice or after the expiration
        of the said 30 days immediately to transfer back to the Seller free from
        all Encumbrances the Sale Assets and the Buyer shall comply with such
        notice at its cost.                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Upon being required to transfer back
        the Sale Assets the Buyer shall do all such things (including executing
        all such documents, and obtaining the consents and waiver of pre-emptive
        rights of the Joint Venturers) as may be required to transfer full and
        clear title to the Sale Assets back to the Seller provided that where
        the Buyer is unable to transfer the Sale Assets back to the Seller because
        of any or all of the Joint Venturers exercising pre-emptive rights under
        the Joint Venture Operating Agreement then upon such event the Buyer shall
        account to the Seller for so much of the moneys received by the Buyer
        from the Joint Venturers arising out of the exercise of such rights of
        pre-emption to the extent of the balance of the Purchase Price then outstanding.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | All taxes and stamp duty payable on
        the transfer back of the Sale Assets shall be borne by the Buyer and the
        Buyer shall indemnify and keep indemnified the Seller against all and
        any such liability.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | In addition to the rights of the Seller
        under this clause 4.4 and without limiting any other right or entitlement
        of the Seller at law or under this Agreement or the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

8

---

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Mortgage the Seller shall be entitled to retain so much of
      the Purchase Price which it has received from the Buyer in accordance with
      clause 4.1.                                                                                                                                                                                                                                                                                      
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|5   | CONDITIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|5.1 | Conditions Precedent to Completion
      The respective obligations of Seller to sell and the
        Buyer to purchase the Sale Assets are conditional upon all the following
        occurring prior to Completion:                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | the dealings evidenced by this Agreement,
        and recorded in the Deed of Assignment and Assumption submitted to the
        Minister in accordance with Clause 5.4, being approved as required under
        the Petroleum Legislation
        (“Approval”);                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | if required by Seller, execution of all Documents by Seller
      and the Buyer; and                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | each Joint Venturer (excluding Seller)
        waiving, or not exercising its preemptive rights under Article 13.4(B)
        of the Joint Venture Operating Agreement; and                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | consent being given by each of the other
        Joint Venturers to the sale and purchase of the Sale Assets in accordance
        with this Agreement, under Article 13.4(C) of the Joint Venture Operating
        Agreement.                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|5.2 | Responsibility
      The conditions set out in Clause 5.1 are for the benefit
        of each of Seller and the Buyer and except as specified cannot be unilaterally
        waived. To the extent the conditions are applicable, the Buyer must use
        all reasonable endeavours to fulfil the conditions in Clause 5.1(b) in
        a timely manner and Seller must provide all reasonable assistance. Seller
        must use all reasonable endeavours to fulfil the conditions in Clauses
        5.1(a), (b) (c) and (d) in a timely manner and the Buyer must provide
        all reasonable assistance.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|5.3 | Termination                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The Party obliged to seek satisfaction
        of a condition contained in Clause 5.1 must keep the other Party regularly
        informed on the progress of the satisfaction of that condition and within
        2 Business Days of satisfaction of that condition give notice to the other
        Party of that fact. If a Party is unable to satisfy a condition contained
        in Clause 5.1 it shall immediately notify the other Party.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | If the conditions in Clause 5.1 are
        not satisfied within 90 Business Days of the Date of this Agreement (or
        such later date as the Parties may agree in writing) then either party
        may, by written notice to the other, terminate this Agreement.                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | If Completion does not occur within
        120 Business Days after the date of this Agreement or such later time
        as the Parties may agree in writing, either party may terminate this Agreement
        by written notice to the other and in such event                                                                                                                                                                                  

9

---

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       | no Party will be under any
        further liability to the others, except in respect of any antecedent breaches
        of this Agreement.                                                                                                                                                                                    
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|5.4 | Approval by Minister
      As soon as practicable after the date of this Agreement,
        Seller shall apply for Approval by means of the submission of the Deed
        of Assignment and Assumption to the Minister, executed by both Seller
        and the Buyer, and the parties will use all reasonable endeavours to satisfy
        all requirements of the Petroleum Legislation necessary to obtain such
        consent.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|6   | PERIOD BEFORE COMPLETION                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|6.1 | Carrying on of Business
      Seller shall, between the date of this Agreement and
        the Completion Date, subject to obligations of confidentiality where relevant:                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                   | carry out and meet its obligations
        pursuant to the Joint Venture Operating Agreement as directed by the Buyer,
        provided that, in Seller s view, such acts or omissions do not create
        any additional or unreasonable liability for Seller either as a Joint
        Venturer, the Operator or otherwise;
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                   | inform and consult with
        the Buyer on all material matters relating to the operation of the Sale
        Assets and, in particular, Seller will inform and obtain the Buyer s approval
        (such approval not to be unreasonably or arbitrarily withheld or delayed)
        before it:                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                   | approves any new work programme and
        budget of operations whether under the Joint Venture Operating Agreement
        or otherwise;                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                  | approves any drilling operations which
        are not at the date of this Agreement approved or identified in an approved
        work programme and budget;                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                   | not dispose of any Sale
        Assets with a realisable value in excess of US$10,000 other than disposals
        of Petroleum, or receivables in the ordinary course of business, without
        first obtaining the Buyer s approval (which shall not be unreasonably
        or arbitrarily withheld or delayed);         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                   | not create any Encumbrances over any of the Sale
      Assets;                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                   | not, in respect of the Sale Assets:                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                   | give notice of or otherwise institute any sole risk operation;                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                  | farm out the Sale Assets; or                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                
|    | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                 | surrender or relinquish any part of
        the Sale Assets (subject to any requirement pursuant to the Petroleum
        Legislation);                                                                                                                                                                                        

10

---

|    | (f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | provide to the Buyer copies of all significant
        Information in respect of the Permit during that time, including any geological,
        geophysical or engineering or other interpretations, forecasts or evaluations
        of such Information;                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|    | (g)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | provide the Buyer with reasonable access
        to employees and management of Seller to assist with the transition and
        to enable the Buyer and its personnel to become familiar with the operation
        of the Sale Assets; and                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|    | (h)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | not seek any variations to the conditions
        of the Permit without the Buyer's prior written consent (subject to any
        requirement pursuant to the Petroleum Legislation).                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|6.2 | Access to information
      In addition to its obligations under Clause 6.1, between
        the date of this Agreement and Completion Date Seller will, subject to
        Clause 13 and to any confidentiality restrictions, give the Buyer reasonable
        access to the Information during normal working hours, and allow the Buyer
        to make copies thereof, at the Buyer s cost. In exercising its rights
        under this Clause 6.2 the Buyer will not interfere with the business or
        operations of Seller. If Completion does not occur for any reason Buyer
        shall deliver to Seller on demand, all copies of the Information Buyer
        has obtained and the Buyer shall keep all such material and information
        confidential.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|6.3 | Pre-Completion Date
      The Parties shall co-operate to obtain (where applicable)
        by the Completion Date, the execution of all required assignments, approvals,
        consents and releases of Seller in respect of the sale and purchase of
        the Sale Assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|6.4 | Joint Venture Operator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Upon Completion of this Agreement, Seller
        will tender its resignation as Operator. The Parties shall use their reasonable
        endeavours to procure the cessation of Seller s role as Operator as soon
        as possible.                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Nothing in the foregoing provisions
        of this Clause 6.4 shall restrict the Parties rights under the Joint Venture
        Operating Agreement in regard to the activities of the Joint Venture during
        the Interim Period, subject to Seller complying with the terms of the
        Joint Venture Operating Agreement during the Interim Period.                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|6.5 | Damage of Assets prior to Completion
      If any of the Sale Assets are lost, destroyed or damaged
        prior to Completion and the loss, destruction or damage has not been made
        good by the Completion Date, and materially affects the operation of the
        Sale Assets, the Buyer may, at its election:                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                            
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | complete the purchase of the Sale Assets
        upon the basis that the Purchase Price is reduced by an amount equal to
        either the amount needed to make good the loss, destruction or damage,
        provided that no reduction shall be made to the Purchase Price if Seller
        s insurer has agreed to reinstate the Sale Assets for the benefit of the
        Buyer; or

11

---

|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                  | complete the purchase of the Sale Assets
        on the basis that the Buyer is entitled to exclude from the purchase any
        Sale Assets which have been lost, destroyed or damaged, with a consequential
        reduction in the Purchase Price such reduction to be equivalent to the
        reduction in value of the Sale Assets; or                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                  | require Seller, which may at its election,
        make good the loss, destruction or damage, and complete the purchase of
        the Sale Assets on this basis, provided that in the event that Seller
        elects not to make good in accordance with this sub clause, then the provisions
        of sub clause (b) shall apply.                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                     
|7   | COMPLETION                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                     
|7.1 | Place and Date of Completion
      Subject to the satisfaction of the conditions set out
        in Clause 5.1, Completion shall take place at the time specified by the
        Seller on the Completion Date at the offices of Horizon Oil N.L. in Sydney,
        New South Wales or at such other place as the Parties may agree, or at
        such other time as may be agreed by the Parties.
|    |                                                                                                                                                                                                                                                                                                                                                                                                     
|7.2 | Delivery of Documents by Seller
      At Completion, Seller shall deliver to the Buyer:                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                  | the Documents, executed by Seller, where applicable;                                                                                                                                                                                                                                                                                                                                                                         
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                  | the Deed of Assignment and Assumption
        required by Article 13.5 (A)(3) of the Joint Venture Operating Agreement;
        and                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                  | copies of all technical and other data,
        books, records, accounts, contracts, maps, notes, drawings and other written
        information constituting the Information. The Buyer, at the request of
        Seller, will meet with Seller prior to Completion at such times and at
        such venues as Seller may reasonably require, to identify these documents
        to be delivered by Seller on Completion.
|    |                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                              
|7.3 | Buyer's Obligations
      On Completion, following Seller complying with requirements
        under Clause 7.2, the Buyer must:                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                  | execute and deliver to Seller an executed
        counterpart of each of the relevant Documents delivered pursuant to Clause
        7.2; and                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                  | execute and deliver the Deed of Assignment
        and Assumption, required by Article 13.5(A)(3) of the Joint Venture Operating
        Agreement, executed by the Buyer in favour of the Joint Venturers, acknowledging
        and consenting to the sale and purchase of the Sale Assets and binding
        the Buyer to the terms and conditions of the Joint Venture Operating Agreement;
        and                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                  | cause the Guarantor to execute and deliver to Seller the
      Mortgage.                                                                                                                                                                                                                                                                                                                                                     

12

---

|7.4 | Notice to Complete and Remedies on Default
      If Completion does not occur on the Completion Date
        either Seller or the Buyer may at any time thereafter (unless this Agreement
        has terminated or become void) serve on the other of them notice (a Completion
        Notice ) to complete in accordance with this clause, but the Completion
        Notice shall only be effective if:           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Upon service of a Completion
        Notice the party on whom the notice is served shall settle within 5 Business
        Days after the date of service of the Completion Notice (excluding the
        day of service) and in respect of that period time shall be of the essence
        but without prejudice to any intermediate right of cancellation by either
        party.                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|7.5 | Buyer Fails to Comply
      If the Buyer does not comply with the terms of a valid
        Completion Notice served by Seller then Seller may without prejudice to
        any other rights or remedies available to it at law or in equity:                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|7.6 | Seller fails to comply
      If Seller does not comply with the terms of a valid
        Completion Notice served by the Buyer then the Buyer may without prejudice
        to any other rights or remedies available to it at law or in equity:                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                       
|7.7 | Extension of Completion Notice
      The party serving a Completion Notice may at the request
        or with the consent of the other party extend the term of the notice for
        one or more specifically stated periods of time and thereupon the term
        of the Completion Notice shall be deemed to expire on the last day of
        the extended period or periods and it shall operate as though this

13

---

|    | Clause 7.7 stipulated the
        extended period(s) of notice in lieu of the period otherwise applicable,
        and time shall be of the essence of the contract accordingly. An extension
        may be given either before or after the expiry of the period of the notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|7.8 | Post Completion
      Subject to clause 10.1,at and from Completion, the Buyer is:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|8   | INDEMNITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|8.1 | Liabilities of the Buyer
      Subject only to the limitations in Clauses 8 and 9,
        the Buyer shall be liable for all costs, charges, expenses, liabilities
        and obligations in respect of the Sale Assets, and relating to that period,
        from and after the Effective Date and the Buyer shall accept and discharge
        all liabilities for abandonment, mudpit disposal and site restoration
        and rehabilitation which have accrued or accrue on or after the Effective
        Date as a result of any acts or omissions or operations within the Area
        prior to the Effective Date. The Buyer shall reimburse and indemnify Seller
        against any such costs, charges, expenses, liabilities and obligations
        that are paid or incurred by Seller except to the extent an adjustment
        has been paid or allowed under this Agreement.                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|8.2 | Seller s Indemnity
      Subject only to the limitations in Clauses 8 and 9,
        Seller indemnifies the Buyer against any and all claims, actions, damages,
        losses, Tax, liability, obligations or expenses accruing in respect of
        the Sale Assets (except for Permit obligations , well abandonment costs
        and the liabilities referred to in clause 8.1) and relating to the period
        prior to the Effective Date, and/or suffered or incurred in respect of
        any breach of this Agreement by Seller and to the extent that the Buyer
        is required to include the indemnity payment as gross income for income
        tax purposes or pay GST output tax in respect of that amount, the indemnity
        payment shall be increased so that the Buyer shall receive and retain
        after Tax an amount that it would have received and retained had the payment
        not been gross income and had GST output tax not been payable.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|8.3 | Buyer's Indemnity
      Subject only to the limitations in Clauses 8 and 9,
        the Buyer indemnifies Seller against any and all claims, actions, damages,
        losses, Tax, liability, obligation or expenses suffered or incurred by
        Seller in respect of any breach of this Agreement by the Buyer (including
        without limitation a failure to comply with clause 8.1) and to the extent
        that Seller is required to include the indemnity payment as gross income
        for income tax purposes or pay GST output tax in respect of that amount,
        the indemnity payment shall be increased so that Seller shall receive
        and retain after Tax an amount that it would have received and retained
        had the payment not been gross income and had GST output tax not been
        payable.                                                                                                                                             

14

---

|8.4 | Limitation on Claims
      Each Party s right to claim for and seek indemnity in
        respect of any claim, action, damage, loss, expense, Tax, liability, or
        obligation whatsoever (each a claim ) (whether relating to a breach
        of Seller s warranties in Schedule 2 or a breach of this Agreement or
        otherwise but excluding any claim pursuant to Clause 8.1) is limited as
        follows:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (e)                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (f)                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (g)                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (h)                                                                                                                                                                                                                                                                                                                                                                                                                        

15

---

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Asset to which the breach
        relates, except to the extent that Seller has a right to bring a claim
        for such event, circumstance or matter;                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | no claim may be made to
        the extent that the relevant event would not have arisen but for:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (j)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | in assessing any damages
        recoverable for any claim there is to be deducted any savings by, or net
        benefit to, the Claiming Party or any current or former Related Company
        of the Claiming Party (including a benefit arising from the deductibility
        of expenditure or otherwise in respect of Tax) arising directly from the
        relevant event, circumstances, loss, liability, cost or expense to which
        the payment relates;                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (k)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | if the Defaulting Party
        makes any payment as a result of a claim ( Defaulting Party's Payment
        ) and the Claiming Party receives any benefit otherwise than from the
        Defaulting Party which would not have been received but for the circumstances
        giving rise to the claim in relation to which the Defaulting Party's Payment
        was made the Claiming Party will, once such benefit has been received,
        immediately pay to the Defaulting Party an amount equal to the lesser
        of the Defaulting Party's Payment and the amount of such benefit;
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (l)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | no claim may be made for
        consequential or special loss or damages, loss of profits or opportunity
        or wasted overheads.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|8.5 | Notice of circumstances
      The Claiming Party shall give notice to the Defaulting
        Party as soon as reasonably practicable after it becomes aware of circumstances
        that could reasonably be expected to form the basis of a claim under this
        Agreement, regardless of value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|8.6 | Conduct of Claims
        If the Claiming Party receives a claim which may give rise to a claim
          against the Defaulting Party under this Agreement, the Claiming Party
          must within 10 Business Days of receipt notify the Defaulting Party
          of the claim giving full details so far as practicable and, if the Defaulting
          Party agrees to indemnify the Claiming Party to the Claiming Party's
          reasonable satisfaction against all and any costs, charges and expenses
          which may be incurred or for which it may become liable, the Claiming
          Party shall take such action as the Defaulting Party reasonably instructs
          to avoid, dispute, resist, appeal against, compromise or defend any
          such claim and as applicable any adjudication in respect of it.

16

---

|8.7 | Continuing Indemnities and Survival of
        Indemnities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|8.8 | Input Tax Credits
      For the avoidance of doubt any indemnities given by
        a Party under this Agreement exclude any liability to indemnify the other
        Party to the extent of any GST input tax credits which may be claimed
        by the other Party in respect of the claim.                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|9   | WARRANTIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|9.1 | Seller
      Seller makes the warranties set forth in Schedule 2
        in favour of the Buyer as at the date of this Agreement and, subject to
        the following, as at the Completion Date. Seller shall promptly disclose
        to the Buyer any notices or claims received by Seller between the date
        of this Agreement and Completion Date in respect of the warranties in
        Schedule 2. If Seller reasonably believes it shall not be able to provide
        any of the warranties set forth in Section 1 of Schedule 2 which it is
        required to provide on the Completion Date, it shall promptly notify the
        Buyer of such anticipated inability.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|9.2 | Effect of Seller Notice
      The Buyer shall, on receipt of Seller s notice that
        it is unable to provide any of the warranties on Completion Date, notify
        Seller whether: (a)the Buyer will accept such notice, in which case the
        warranty in respect thereof shall be amended to the extent of the disclosure
        and the matters contained in that notice; or                                                                                                                                                                                                                                                                                                 

17

---

|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | the Buyer will not accept such notice. In the case
        of a notice or claim that has a material adverse impact on the Sale Assets
        and the Buyer does not accept such notice, the Buyer may terminate this
        Agreement immediately, whereupon the Parties shall be released from all
        and any further obligation or liability to the other under this Agreement.                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|9.3 | Buyer
      The Buyer makes the warranties set forth in Schedule
        1 in favour of Seller as at the date of this Agreement and as at the Completion
        Date. If the Buyer reasonably believes that it will not be able to provide
        any of the warranties set forth in Schedule 1 which it is required to
        provide on the Completion Date, it shall promptly notify Seller of such
        anticipated inability.                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|9.4 | Effect of Buyer Notice
      Seller shall, on receipt of the Buyer s notice that
        it is unable to provide any of the warranties on Completion Date, notify
        the Buyer whether: (a)Seller will accept such notice, in which case the
        warranty in respect thereof shall be amended to the extent of the disclosure
        and the matters contained in that notice; or (b)Seller will not accept
        such notice. In the case of a notice or claim that has a material adverse
        impact on the Sale Assets, and Seller does not accept such notice, Seller
        may terminate this Agreement immediately.
      The Buyer agrees to indemnify Seller from all costs
        and liabilities incurred by Seller resulting from Seller exercising its
        right of termination under 9.4(b) above.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|9.5 | No Warranty Unless Expressly Included                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Save as and to only the extent set forth in Clause
        9.1, Seller makes no representations or warranties in respect of any matter
        or thing and disclaims all liability and responsibility for any representation,
        warranty, statement, opinion, information or advice made or communicated
        (orally or in writing (including, without restriction, electronically))
        to any person, and the Buyer acknowledges and affirms that it has not
        relied upon any such representation, warranty, statement, opinion, information
        or advice in entering into or carrying out the transactions contemplated
        by this Agreement.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The Buyer acknowledges that it has knowledge of the
        subject matter of the warranties and therefore any breach of warranty
        shall not be enforceable against Seller to the extent that it is shown
        that the inaccuracy, error or omission underlying the alleged breach was
        known by the Buyer at the time the Buyer entered into this Agreement.                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The warranties and any liabilities of Seller are
        subject to the matters contained or referred to in the Disclosure Materials,
        and the warranties do not apply to those matters.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

18

---

|9.6  | Knowledge
      Where any warranty is qualified by any reference to
        the knowledge or awareness or belief of Seller, this shall mean the knowledge
        or awareness of the directors of Seller, and there shall be implied in
        that warranty or representation a warranty that such individuals have
        made reasonable enquiries within relevant Seller s senior management concerning
        the subject matter of that knowledge, awareness or belief.                                                                             
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|9.7  | Duration
      The warranties given by Seller and set forth in Schedule
        2 shall survive the Completion Date for a period of 1 Year and then terminate.                                                                                                                                                                                                                                                                                                                                                                                                
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|10   | PROPERTY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|10.1 | Property
      On Completion, property in the Sale Assets passes to
        the Buyer, but with effect on and from the Effective Date.                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|11   | COSTS AND EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|11.1 | Costs and Expenses
      Each Party shall pay its own costs and expenses in respect
        of the negotiation, preparation, execution, delivery and registration
        of this Agreement, the Documents or other agreements or instruments entered
        into or signed in order to effect the transactions contemplated by this
        Agreement. For the avoidance of doubt, the Buyer shall be liable for any
        registration fee or other fees payable in respect of this Agreement or
        the Permit.                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|12   | TAX                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|12.1 | Nature of Payments
      All payments under this Agreement are to be made free
        and clear of and (except to the extent required by law) without any withholding
        for or on account of Tax.                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|12.2 | No Withholding
      If any withholding on account of Tax from any payment
        is required by law, then the amount in respect of which such withholding
        is required to be made is to be increased to the extent necessary to ensure
        that, after the making of that withholding, the recipient of the payment
        will receive (free from any liability in respect of that withholding)
        a net amount equal to the amount which it would have received and so retained
        had no such withholding been required to be made.

19

---

|13   | CONFIDENTIALITY AND ANNOUNCEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|13.1 | Agreed Announcements
      Subject to Clause 13.2, no Party shall, without the
        written consent of the other Party, issue or make any public announcement
        or statement regarding this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|13.2 | Legal Requirements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|13.3 | Confidentiality
      Subject to Clauses 13.1 and 13.2, each Party agrees
        that the Information, Financial Information, and all information and documents
        which have been disclosed or provided to it or any person acting on its
        behalf in accordance with this Agreement or in the course of communications
        or negotiations in connection with the evaluation or sale of the Sale
        Assets including, without limitation, this Agreement must be kept strictly
        confidential, must not be sold, traded, published or otherwise disclosed
        to anyone in any manner whatsoever, or photocopied or reproduced in any
        way without the other Party s prior written consent, except as provided
        in Clauses 13.4 and 13.5.

20

---

|13.4 | Permitted Disclosure
      Either Party (the First Party ) may use, disclose
        and dispose of any information subject of Clause 13.3 without the other
        Party s prior written consent only to the extent such information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|     | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|     | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|13.5 | Advisers
      Either Party (the Disclosing Party ) is entitled
        to disclose the Information without the other Party s prior written consent
        to such of the following persons who have a clear need to know in order
        to give effect to the provisions of this Agreement provided that the disclosure
        is limited to the extent strictly required by each such person: (a)employees,
        officers and directors of the Disclosing Party; (b)employees, officers
        and directors of Related Companies of the Disclosing Party; (c)any professional
        adviser or auditor of the Disclosing Party; and (d)where the Disclosing
        Party is the Buyer, any bank financing the Buyer's acquisition of the
        Sale Assets.
      Prior to making any such disclosure under sub-clause
        (c) or (d), however, the Disclosing Party shall obtain an undertaking
        of strict confidentiality from each person to whom disclosure of the Information
        is to be made expressly conferring the right to enforce such undertaking
        directly on the other Party and each of the parties to the Joint Venture
        Operating Agreement.

21

---

|13.6 | Responsibility of Third Parties
      Each Party is responsible for ensuring that all persons
        to whom information was disclosed under this Agreement will keep such
        information confidential and will not disclose or divulge the same to
        any unauthorised persons and that Party indemnifies the other and its
        Related Companies against any and all damages, losses or expenses suffered
        or incurred as a result of unauthorised disclosure by such persons.                                                                                  
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|13.7 | Responsibility for Related Companies
      When a Party discloses information provided under this
        Agreement to employees, officers and directors of a Related Company of
        that Party, the relevant Party is responsible for the adherence of such
        employees, officers and directors of the Related Company to the terms
        of this Agreement and that Party indemnifies the other Party and its Related
        Company against any and all damages, losses or expenses suffered or incurred
        as a result of unauthorised disclosure by such persons.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|13.8 | Seller to Keep Confidential
      Subject to Clauses 13.1 and 13.2, Seller agrees that
        upon Completion the Information and all other information whatsoever relating
        to the Sale Assets must be kept strictly confidential and must not be
        used, sold, traded, published or otherwise disclosed to any person in
        any manner whatsoever, or photocopied or reproduced in any way without
        Buyer s prior writter consent.                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|13.9 | Survival of Clause 13
      The provisions of this Clause 13 will survive any termination
        of this Agreement for a period of 5 years from the date of such termination.                                                                                                                                                                                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|14   | GENERAL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|14.1 | Notices
      Any notice or other communication, including, but not
        limited to, any request, demand, consent or approval, to or by a Party:                                                                                                                                                                                                                                                                                                                                                                                                                                     

| | (a) | must be legible and in English addressed as shown below:
| | --- | --------------------------------------------------------
| |     |                                                         
| |     | (i)                                                     
| |     |                                                         
| |     |                                                         
| |     |                                                         
| |     |                                                         
| |     |                                                         
| |     |                                                         
| |     |                                                         
| |     |                                                         
| |     |                                                         
| |     | (ii)                                                    

22

---

| | Address:   | Indo-Pacific Energy (NZ) Limited
| | ---------- | --------------------------------
| |            | 284 Karori Road                 
| |            | Karori                          
| |            | Wellington                      
| |            | New Zealand                     
| |            |                                 
| | Attention: | Jenni Lean                      
| |            |                                 
| | Facsimile: | +64 4 476 0120                  

|     |                                | or as specified to the sender by any Party by
      notice;                                                                                                                                                                                                                                                                                                              
|---- | ------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     | (b)                            | must be signed by a Director or duly authorised
      signatory;                                                                                                                                                                                                                                                                                                         
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     | (c)                            | is regarded as being given by the sender and
      received by the addressee:                                                                                                                                                                                                                                                                                            
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     |                                | (i)                                                                                                                                                                                                                                                                                                                                                                      
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     |                                | (ii)                                                                                                                                                                                                                                                                                                                                                                     
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     |                                | (iii)                                                                                                                                                                                                                                                                                                                                                                    
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     | (d)                            | for the purposes of this
        clause, if the date of deemed receipt is a Saturday or Sunday or a public
        or bank holiday in the place of receipt, the notice is deemed to have
        been received at the commencement of the next Business Day in that place;
        and                                                                                   
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     | (e)                            | in the case of indecipherable
        facsimiles which are identifiable as having been sent by a Party, are
        deemed not to have been received by the addressee if the addressee notifies
        the sender within 24 hours after receipt that the facsimile has been received
        in that form and despatches a copy of the facsimile received to the sender.
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|14.2 | Governing Law and Jurisdiction
|     |                                |                                                                                                                                                                                                                                                                                                                                                                          
|     | (a)                            | This Agreement is governed by the laws in force
      from time to time in New Zealand.                                                                                                                                                                                                                                                                                  

23

---

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Each Party irrevocably submits to the non-exclusive jurisdiction of
        the courts of New Zealand.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.3 | Arbitration
      If a dispute arises between the Parties out of or in
        connection with any matter set out in this Agreement (including any dispute
        as to its existence or validity) then that dispute shall be resolved in
        accordance with the Dispute Procedure.                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.4 | Waivers
      No failure to exercise and no delay in exercising any
        right, power or remedy under this Agreement will operate as a waiver nor
        will any single or partial exercise of any right, power or remedy preclude
        any other or further exercise of that or any other right, power or remedy.                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.5 | Variation
      A variation of any term of this Agreement must be in
        writing and signed by each Party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.6 | Assignment
      The Buyer may assign its rights and obligations under
        this Agreement (including by way of change in direct or indirect corporate
        control) only with the prior written consent of Seller.                                                                                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.7 | Entire Agreement
      This Agreement embodies the entire agreement between
        the Parties with respect to the subject matter of this Agreement and the
        Parties acknowledge that this Agreement supersedes and cancels any prior
        agreement, arrangement or understanding, whether formal or informal, or
        whether express or implied with respect to the subject matter or any provision
        of this Agreement.                                                                                                                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.8 | Further Actions
      Following the Completion Date, at the request of the
        Buyer, Seller will deliver any further instrument as reasonably required
        and take all other reasonable actions as may be necessary to vest in the
        Buyer good title to the Sale Assets and to give effect to the provisions
        of this Agreement. Each Party shall promptly execute all documents and
        do all things that the other Party from time to time reasonably requires
        of it to effect, perfect or complete the provisions of this Agreement
        and any transaction contemplated by it.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|14.9 | Relationship between the Parties
      Nothing in this Agreement shall be considered or interpreted as constituting
        the relationship of the Parties as a partnership, or to lead to the conclusion
        that the Parties are jointly in receipt of income or, except as otherwise
        expressly provided in this Agreement, as constituting any Party, the agent
        or legal representative of the                                                                                                                                                                                                     

24

---

|      | other, or as creating any financial relationship
      between them. No Party shall have any authority to act for, or assume any
      obligations on behalf of the other, except as expressly provided in this
      Agreement.                                                                                                                                                                                                                                                                                                                                         
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|14.10 | Invalidity
      If a term, clause or provision of this Agreement shall
        be or be deemed or judged to be invalid for any reason, such invalidity
        shall not affect the validity or operation of any other term, clause or
        provision of this Agreement, except to the extent necessary to give effect
        to such invalidity.                                                                                                                                                                                                                   
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|14.11 | Execution
      The Agreement may be executed in a number of counterparts,
        each of which shall be deemed an original and all of which shall constitute
        one and the same instrument. Signed facsimile copies of the Agreement
        received by a Party shall be interpreted as being conclusive evidence
        of the execution of the same in terms of this clause. Each Party shall
        sign an original of the same as soon as possible as the provisions of
        this clause are utilised and supply each original to the other forthwith.
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|14.12 | Time
      The Parties agree that time is of the essence of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|15    | NEW ZEALAND GOODS AND SERVICES TAX                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|      | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|      | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|      | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|16    | GUARANTEE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|      | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

25

---

| | Insolvencyincludes
        administration, bankruptcy, compromise, arrangement, amalgamation, receivership,
        reconstruction, winding up, liquidation, dissolution and assignment for
        or compromise with creditors and Insolvent will be construed accordingly.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                              
| | (b)                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| | (c)                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| | (d)                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              
| |                                                                                                                                                                                                                                                                              

26

---

| |     | (vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | the Buyer s Obligations or any part
        of them being or becoming wholly or partially illegal, void, voidable
        or unenforceable;                                                                              
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                          
| |     | (vii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | a failure by Seller to give notice to
        the Guarantor of any default by Buyer under this Agreement; or (viii)
        any legal limitation, disability, incapacity or other circumstances related
        to Buyer.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (e) | The guarantee and indemnity
        given pursuant to this clause extends to cover this Agreement as amended,
        varied or replaced, either with or without the consent of the Guarantor.                                                                                                                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (f) | If Buyer becomes Insolvent,
        the Guarantor authorises the Seller to prove for all moneys which Buyer
        or any other person will have paid under this Agreement and to retain
        and to carry into a suspense account and to appropriate at the discretion
        of Seller any dividends received in the Insolvency of Buyer and all other
        moneys received in respect of the Buyer s Obligations until Seller has
        been paid in full in respect of the Buyer s Obligations.

27

---

EXECUTION:

HORIZON OIL INTERNATIONAL LIMITED by:

|                      |                     
|--------------------- | --------------------
|Signature of Director | Signature of Witness
|                      |                     
|                      |                     
|                      |                     
|Name of Director      | Name of Witness     

INDO-PACIFIC ENERGY (NZ) LIMITED by:

|                           |                      
|-------------------------- | ---------------------
|Signature of Director      | Signature of Director
|                           |                      
|                           |                      
|                           |                      
|Name of Director           | Name of Director     
|                           |                      
|NGATORO ENERGY LIMITED by: |                      
|                           |                      
|                           |                      
|Signature of Director      | Signature of Director
|                           |                      
|                           |                      
|                           |                      
|Name of Director           | Name of Director     

28

---

SCHEDULE 1

WARRANTIES OF BUYER

|1. | The Buyer is duly incorporated with
        limited liability and validly existing under the laws of its country of
        incorporation.                                                                                                                                                                                                                                                           
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                      
|2. | The documents which contain or establish
        the Buyer's constitution incorporate provisions which authorise, and all
        necessary corporate action has been taken to authorise, the Buyer to execute
        and deliver this Agreement and to consummate or cause to be performed
        its obligations under this Agreement.                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                      
|3. | This Agreement and the further documents
        to be executed by the Buyer hereunder, constitute legal, valid and binding
        obligations of the Buyer enforceable against it in accordance with their
        respective terms by appropriate legal remedy.                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                      
|4. | The signing and delivery of this Agreement
        and the performance of the transactions contemplated by this Agreement
        will not contravene or constitute a default under the provisions contained
        in the Buyer's constitution or any agreement, instrument, law, regulation,
        judgement, order, injunction, licence, permit or consent by which the
        Buyer is bound.
|   |                                                                                                                                                                                                                                                                                                                                                                                                      
|5. | The Buyer has not incurred any obligation
        or liability, contingent or otherwise, for brokers' or finders' fees in
        respect of the transaction herein provided for which Seller will have
        any obligation.                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                      
|6. | The Buyer is not insolvent and no receiver
        has been appointed over any part of its assets and no such appointment
        has been threatened.                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                      
|7. | The Buyer is not in liquidation or official
        management and no proceedings have been brought or threatened for the
        purpose of winding up the Buyer or placing it under official management.                                                                                                                                                                                           

29

---

SCHEDULE 2

WARRANTIES OF SELLER

|1.  | INFORMATION AND MATERIAL CIRCUMSTANCES                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|1.2 | All information given by
        or on behalf of Seller (whether by any director, agent, professional adviser
        or other person) to the Buyer or any director, agent, professional adviser
        or other representative of the Buyer in respect of the Sale Assets (including
        the information contained in the Disclosure Materials) was, when given,
        and is now, true, complete and accurate in all material respects.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|1.3 | Seller is not aware of any
        material circumstance which has not been disclosed in writing to the Buyer
        and which might reasonably be expected materially and adversely to affect
        the financial position or profitability of the Sale Assets or which might
        otherwise be material to a purchaser of the Sale Assets.                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|1.4 | No receiver or statutory
        or official manager has been appointed in respect of the Sale Assets,
        no application or order has been made and there are no circumstances existing
        which will, or with the passing of time or giving of notice or making
        of any court order may, result in the appointment of a receiver or statutory
        or official manager of any of the Sale Assets.                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|1.5 | Except for the pre-emptive
        rights under the Joint Venture Operating Agreement, neither the execution
        of this agreement, nor the transfer of the Sale Assets to the Buyer or
        its nominee pursuant to this agreement, nor any other provision of this
        agreement, will:                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|2.  | RECORDS                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|2.1 | Seller holds all accounting
        and other records relating to the Sale Assets which it is bound by law
        to retain either indefinitely or for a particular period or periods and
        such records have been properly and fully maintained.                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|3.  | SALE ASSETS OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|3.1 | Seller is not in breach
        of any statutory provision, order, by-law or regulation binding on, or
        applicable to it, with regard to the Sale Assets.                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|3.2 | Seller is not a party to
        any guarantee or indemnity in respect of, nor liable or contingently liable
        in any way for the obligations of, any other person and relating in any
        way to the Sale Assets.                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|3.3 | The Seller is not aware
        of any unsatisfied requisition by or dispute with any Governmental Agency,
        affecting or relating to any of the Sale Assets.                                                                                                                                                                                                                                                                             

30

---

|3.4  | Seller has not disclosed to any person other than
        the Buyer any of Seller s secret or confidential information or property
        relating to the Sale Assets, or any other information relating to the
        Sale Assets or its affairs, the disclosure of which might cause loss or
        damage to, or adversely affect, the Sale Assets.                                                                                                                    
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4.   | AUTHORITY AND CORPORATE STANDING                                                                                                                                                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4.1  | Seller is duly incorporated with limited liability
        and validly existing under the laws of its country of incorporation.                                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4.2. | Seller has corporate authority to execute and deliver
        this Agreement and consummate or cause to be performed its obligations
        under this Agreement, and this Agreement does, and the further documents
        to be executed by Seller hereunder will, constitute legal, valid and binding
        obligations of Seller enforceable against it in accordance with their
        respective terms by appropriate legal remedy.                               
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4.3. | The signing and delivery of this Agreement and the
        performance of the transactions contemplated by this Agreement will not
        contravene or constitute a default under the provisions contained in Seller
        s constitution or any agreement, instrument, law, regulation, judgement,
        order, injunction, licence, permit or consent by which Seller is bound.                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4.4  | Seller has not incurred any obligation or liability,
        contingent or otherwise, for brokers' or finders' fees in respect of the
        transaction herein provided for which the Buyer will have any obligation.                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4.5  | Seller is not insolvent and no receiver has been
        appointed over any part of its assets and no such appointment has been
        threatened.                                                                                                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4.6  | Seller is not in liquidation or offical management
        and no proceedings have been brought or threatened for the purpose of
        winding up Seller or placing it under official management.                                                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|5.   | TITLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|5.1  | Seller has legal and beneficial ownership of the
        Sale Assets, subject to the Permit, the Joint Venture Operating Agreement
        and as set out in the Disclosure Materials. 5.2 Seller s legal and beneficial
        ownership of the Sale Assets is free and clear of all Encumbrances other
        than as set out in the Permit, the Joint Venture Operating Agreement,
        and under the Petroleum Legislation or otherwise in the Disclosure Materials.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|6.   | LITIGATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|6.1  | Other than as disclosed in information provided to
        the Buyer in relation to this Agreement the Seller is not aware of any
        actual or pending litigation, mediation or arbitration proceedings or
        unsatisfied judgment, order, arbitral award or decision of any court,
        tribunal or arbitrator against Seller relating to the Sale Assets.                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|6.2  | The Seller is not aware of any cause of action relating
        to the Sale Assets which could or might be used for the purpose of commencing
        legal proceedings, either civil or criminal, against the Buyer.                                                                                                                                                                                                                                                        

31

---

|6.3 | Seller is not a party to any legal action or proceedings
        (other than as plaintiff in normal debt collection matters), arbitration,
        or statutory or governmental inquiry of any kind in relation to the Sale
        Assets nor is Seller aware of any such legal proceedings, arbitration
        or inquiry which are pending or threatened against or involve Seller in
        relation to the Sale Assets.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                               
|6.4 | The Seller is not in default of the Joint Venture
        Operating Agreement in such a way that would have an adverse effect on
        the Sale Assets.                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                               
|7.  | ENVIRONMENTAL                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                               
|7.1 | Seller is not aware of any current, pending or threatened
        civil, criminal or administrative action, or other proceeding or suit,
        under any law relating to the environment applicable to the Sale Assets.                                                                                                                                                                                                     

32

---

SCHEDULE 3

DEED OF ASSIGNMENT AND ASSUMPTION

BETWEEN

HORIZON OIL INTERNATIONAL LIMITED

and

INDO-PACIFIC ENERGY (NZ) LIMITED

and

[OTHER PARTY]

33

---

|DEEDdated                             2003
|------------------------------------------
|                                          
|BETWEEN                                   
|                                          
|AND                                       
|                                          
|AND                                       

|RECITALS          
|------------------
|                  
|A                 
|                  
|B                 
|                  
|C                 
|                  
|D                 
|                  
|E                 
|                  
|IT IS AGREED THAT:
|                  
|1.                
|                  
|                  

34

---

|   |           | “Participating Interest” has the
        meaning given to that term in the Joint Operating Agreement.
      “PEP38728” means petroleum exploration
        permit 38728 issued under the Act as may be amended from time to time
        and “Permit” “Area” means the land
        making up PEP38728 from time to time.
      “Clauses in Schedules:” references
        to clauses and schedules are references to this Deed s clauses and schedules.
      “Headings:” section, clause and other
        headings are for ease of reference only and will not effect this Deed
        s interpretation.
      “Negative Obligations:” any obligation
        not to do anything includes an obligation not to suffer, permit or cause
        that thing to be done.
      “Parties:” references to parties
        are references to parties to this Deed.
      “Persons:” reference to persons includes
        references to individuals, companies, corporations, partnerships, firms,
        joint ventures, associations, trusts, organisations, governmental or other
        regulatory bodies or authorities or other entities in each case whether
        or not having separate legal personality. “Plural and Singular:”
        words importing the singular number include the plural and vice versa.
      “Statutes and Regulations:” references
        to any statutory provision includes any statutory provision which amends
        or replaces it, and any subordinate legislation made under it.
      “Application of Joint Operating Agreement:”
        In this Deed (including the recitals hereto) unless the context otherwise
        requires, expressions defined or given a special meaning in the Joint
        Operating Agreement shall have the same meanings in this Deed.
|-- | --------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|2. | COVENANTS
|   |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | 2.1       | Assignment:
      In consideration of the sum of $1.00 paid to the Assignor
        by the Assignee (the receipt of which is hereby acknowledged), the Assignor
        hereby assigns and transfers to the Assignee a 48.00% Participating Interest
        in PEP 38728 with effect from the Effective Date. The Assignee accepts
        such assignment, so that with effect from the Effective Date, the Participating
        Interests in PEP 38728 and the PEP 38728 Joint Venture will be held as
        follows:
      Assignor: [***]
      Assignee: [***]
      Other Party: [***]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | 2.2       | Conditional: This Deed and the
        assignment provided for by it are subject to and conditional upon the
        consent of the Minister given to this Deed and to the assignment pursuant
        to the Act. The Assignor shall promptly apply for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

35

---

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | approval of this Deed in accordance
        with the Act as soon as practicable after the date of this Deed. Upon
        the date of obtaining that consent, this Deed and the assignment will
        be binding and effective and will relate back to and take effect on and
        from the Effective Date. If the condition is not satisfied by 3 months
        from the date of this Deed (or such later date as the Assignor and Assignee
        may agree) then the Assignor s obligation hereunder to transfer and assign
        the subject Participating Interest shall be at an end.                                                                                                                                                                                                  
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 2.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Assignee Covenants:
      The Assignee, to the extent of the 48.00% Participating
        Interest assigned to it under this Deed, assumes and covenants with each
        of the Assignor and the Other Party to perform, with effect from the Effective
        Date, the liabilities, obligations, responsibilities and duties of the
        holder of a Participating Interest under the Joint Operating Agreement
        as if the Assignee were originally a party thereof and the Assignor s
        obligations under the Farmout Agreement including without limitation all
        liability to pay costs and expenses under an AFE issued prior to the Effective
        Date, where such costs and expenses relate to expenditure to be incurred
        on and from the Effective Date.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 2.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Existing Participants:
      Each of the Assignor and the Other Party covenant with
        the Assignee to be bound by, observe and perform their respective obligations
        under the Joint Operating Agreement to the extent of their respective
        Participating Interests in PEP 38728 and the PEP 38728 Joint Venture.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|3. | RELEASE
      To the extent that such obligations or liabilities relate
        to the Participating Interest of the Assignor acquired by the Assignee
        and for which liability is assumed by the Assignee in terms of this Deed
        the Other Party releases and discharges the Assignor with effect from
        and after the Effective Date from all claims, demands and liabilities
        whatsoever in respect of the Assignor s covenants and obligations under
        or in connection with or in any way arising out of the Joint Operating
        Agreement.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|4. | ASSIGNEE ADDRESS
      The address of the Assignee for the purposes of clause
        18.4 of the Joint Operating Agreement shall until a new address is substituted
        thereof, be as follows:
      [Insert]                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|5. | GENERAL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 5.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Each of the parties hereto shall promptly make, do,
        execute and deliver all such acts, instruments and things as are necessary
        or desirable to implement and give full effect to the provisions of the
        Joint Operating Agreement and this Deed (including obtaining the consent
        of the Minister).                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | 5.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | All the costs of preparation, execution and stamping
        of this Deed, all counterparts thereof and all documents ancillary thereto
        shall be borne and paid by the Assignee, but otherwise each party shall
        bear and pay its own legal costs. All stamp duty, consent fees or taxes
        payable on the Deed shall be borne and paid by the Assignee.                                                                                                                                                                                                                                                                                                                                                                                                                          

36

---

| | 5.3 | For all purposes this Deed shall be governed by and
        construed in accordance with the laws of New Zealand for the time being
        in force. The parties hereby submit to the non-exclusive jurisdiction
        of the Courts of New Zealand and all Courts competent to hear appeals
        therefrom.                                                  
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                     
| | 5.4 | This Deed may be executed in any number of counterparts,
        each of which shall be deemed an original but all of which shall constitute
        one and the same instrument.                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                     
| | 5.5 | If any of the provisions of this Deed are invalid
        or unenforceable, the invalidity or unenforceability shall not, affect
        the operation, construction or interpretation of any other provision of
        this Deed with the intent that the invalid or unenforceable provisions
        shall be treated for all purposes as severed from this Deed.
| |     |                                                                                                                                                                                                                                                                                                                                                                     
| | 5.6 | All parties confirm that the Joint Operating Agreement
        is in full force and effect save as amended by this Deed.                                                                                                                                                                                                                                            

IN WITNESS WHEREOF the parties hereto have duly executed
  this Deed the day and year first hereinbefore mentioned.

SIGNED for and on 
  Behalf of HORIZON OIL INTERNATIONAL LIMITED

__________________________
  Director

__________________________
  Witness

SIGNED for and on 
  Behalf ofINDO-PACIFIC ENERGY (NZ) LIMITED

__________________________
  Director

__________________________
  Director





37

---