**Exhibit          10.2**

**EXPLORATION        AND DEVELOPMENT AGREEMENT**

**BIG        SNOWY RESOURCES, LP**

**(“BSR”)**

**Rancher        Energy Corp. **

**(“Rancher        Energy”)**

| **1.** | **DEFINITIONS** |
|--------|-----------------|

**“AFE”**

**“Agreement”**

**Lands**

*ARBITRATION        ACT*

----

**“Leases”**

**“log”**

**“oil        and gas”**

**“Payout”**

|   | (a) | Construction                  of the Pipeline; |
|--------|-----|------------------------------------------------|

|   | (b) | wells                  drilled pursuant to this Agreement; |
|--------|-----|------------------------------------------------------------|

|   | (c) | equipping,                  completion and other costs of or in relation to all wells drilled                  pursuant                  to this Agreement, including tie-in and                  compression. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | 1⁄2                  of the cost of the 3D seismic program which seismic is owned 50/50                  by the                  parties. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

**“Schedules”**

| **2.** | **SHOOTING                  OF THE 3D SEISMIC AND TEST                  WELL** |
|--------|--------------------------------------------------------------------------------|

|   | (a) | Rancher                  Energy shall shoot a minimum of 4 square miles of 3D seismic (the“3D”) on                  the leases. Rancher Energy shall conduct the Operations as a reasonable                  and prudent operator and shall commence setting the parameters                  and                  retaining a seismic contractor as soon as practical once this agreement                  is                  executed. Rancher Energy will shoot the 3D ASAP. Further, Rancher                  Energy                  will be responsible for identifying and hiring the 3D. BSR agrees                  to                  assist when requested in the process. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | All                  expenditures relating to the 3D, whether direct or indirect but                  excluding                  supervision and management costs, shall be to the account of Rancher                  Energy and paid entirely by Rancher                  Energy. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | A                  copy of all data contained and derived from the 3D, including all                  interpretations shall be forwarded by Rancher Energy to BSR. BSR                  shall                  also be provided with the final interpretation within 10 working                  days of                  receipt of the final interpretation by Rancher Energy. (the “3D Completion                  Date"). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Rancher                  Energy shall have 30 days from the 3D Completion Date to give written                  notice to BSR of an intention to drill based on the 3D and propose                  a                  drilling location (the “Test Well”). Failure by Rancher Energy to provide                  a notice prior to expiry of the thirty (30) day period shall be                  deemed an                  election by Rancher Energy to terminate this Agreement. If this                  Agreement                  is terminated by Rancher Energy, it shall have no further obligations                  or                  liabilities hereunder. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | If                  Rancher Energy elects not to terminate this Agreement pursuant                  to                  paragraph 2(d) above Rancher Energy shall have 120 days to spud                  the Test                  Well. The Test Well shall be at the sole cost of Rancher Energy.                  The well                  will be drilled to the deepest horizon indicated as hydrocarbon                  bearing by                  the 3D seismic. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ~~(f)~~ | Upon                  receipt by BSR of the Final Seismic Interpretation and Notice of                  Drilling                  Location, BSR shall assign to Rancher Energy a 55% working interest                  in the                  spacing unit of the Test Well~~,~~Upon                  drilling and completion of the test well, BSR will assign Rancher                  Energy a                  55% WI in all lands owned by BSR within the                  AMI. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | If                  the Test Well is commercial then Rancher Energy shall be entitled                  to 100%                  of net revenue from the Test Well Interest until Payout. After                  Payout, the                  revenue from the Test Well Interest shall be distributed in proportion                  to                  the working interest share of each                  Party. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.** | **PIPELINE                  AND TRANSPORTATION** |
|--------|--------------------------------------------------|

|   | (a) | Unless                  this Agreement has been earlier terminated or has expired Rancher                  Energy                  shall: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | use                  commercially reasonable efforts to obtain required government and                  administrative regulatory approvals and other necessary consents                  for the                  construction and operation of a pipeline of approximately twelve                  (12) miles in length, with a tie-in at Sec.14 1N 21E in the NENW4,                  Stillwater County, Montana (the “Pipeline”), to transport gas from the                  Test Well, and other wells producing in commercial quantities on                  the                  Leases in which Rancher Energy and BSR have joint working interest                  (the                  "Joint Wells") to a gas transmission line;                  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if                  Rancher Energy is able to secure all required approvals and consents                  noted                  in paragraph 3(a)(i), Rancher Energy shall thereafter finance,                  construct,                  operate and maintain (the “Construction”) the Pipeline, provided                    that Rancher Energy shall be entitled to, instead of constructing                    the                    Pipeline, make mutually acceptable arrangements to transport                    all produced                    gas from the Joint Wells to                    market. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If                  the Pipeline is to be constructed pursuant to paragraph 3(a) (including                  sufficient compression to produce gas from the Test Well), such                  construction shall occur within eighteen (18) months of the Effective                  Date. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Upon                  Payout, Rancher Energy shall assign 20% of its right, title and                  interest                  in the Pipeline to BSR. Rancher Energy grants BSR an option to                  purchase an                  additional 25% of Rancher Energy’s right, title and interest in the                  Pipeline (the “Pipeline Option”). The Pipeline Option may be exercised                  incrementally by BSR where the minimum percentage of such increments                  is                  1%. If BSR exercises the Pipeline Option, it shall do so within                  eighteen                  (18) months of the Completion of Construction of the Pipeline (after                  which                  the Pipeline Option automatically terminates). BSR shall notify                  Rancher                  Energy of its exercise of the Pipeline Option and within thirty                  (30) days                  of such exercise it shall pay to Rancher Energy the equivalent                  of 25%, or                  the corresponding lesser incremental percentage, of the independently                  verifiable costs and expenses (the “Costs”) of the Construction, and                  thereupon Rancher Energy shall assign a further 25%, or applicable                  lesser                  incremental percentage, of Rancher Energy’s right, title and interest in                  the Pipeline to BSR on a proportionate incremental basis. If BSR                  fails to                  make the required payment before the expiry of the thirty (30)                  day period                  noted above, the exercise of the Pipeline Option shall be void                  for all                  purposes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If                  BSR's interest in the Pipeline is at any time insufficient to transport                  its joint share of production from any of the Lands or any other                  lands                  within the AMI, Rancher Energy shall be entitled to charge BSR                  those                  tariffs and fees respecting any required compression and transportation                  in                  connection with the Pipeline that it would have be entitled to                  charge a                  third party. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Construction                  Costs are deemed not to include supervision or management costs                  and                  expenses incurred by Rancher                  Energy. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Subject                  to section 7 of this Agreement, once the terms of (a) and (b) above                  are                  satisfied then BSR shall transfer to Rancher Energy a 55% working                  interest                  in all of the Leases and the Lands, all wells thereon, and in all                  other                  lands and wells that BSR owns an interest in within the AMI, other                  than                  the Test Well, which shall be governed by the terms of this Agreement.                  BSR                  shall not encumber or assign any interest in any of the aforementioned                  Leases, Lands, wells and other lands whatsoever to any person or                  entity                  during the period from the date of this Agreement until BSR transfers                  the                  55% working interest to Rancher Energy as noted                  above. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | The                  rights, title and interests in the Leases to be conveyed by one                  Party to                  the other Party are without warranty, either express or                  implied. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.** | **OPERATIONS                  AND DRILLING** |
|--------|----------------------------------------------|

|   | (a) | In                  the drilling of the Test Well Rancher Energy shall conduct its                  operations                  as a reasonable and prudent operator and shall test all zones or                  formations penetrated in the wells which Rancher Energy believes                  to have a                  reasonable possibility of producing in paying quantities. Rancher                  Energy                  shall restore the surface of the land of the Test Well to the condition                  required by law, and in absence of law, then as nearly as possible                  to its                  original condition. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | All                  well operations on the Leases will be governed by the terms and                  provisions                  of an operating agreement (the “Operating Agreement”) which will be                  circulated by Rancher Energy for signature by the Parties at least                  30 days                  prior to the commencement of the Test Well**.**                  The Operating Agreement will be on a A.A.P.L. Form 610 - 1982 Model                  Form                  Operating Agreement which shall be modified to delete portions                  of the                  printed language and to add certain provisions as are usual and                  customary                  among independent oil and gas exploration operators. Rancher Energy                  shall                  be designated the Operator in the Operating                  Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Except                  for those costs and expenses which are expressly identified in                  this                  Agreement as being the sole responsibility of Rancher Energy, all                  costs                  and expenses relating to all lands governed by this Agreement,                  including                  all operations thereon, shall be borne and paid for by the Parties                  in                  accordance with their respective interests in such lands.                  BSR’s share of estimated drilling costs shall be proportionate to BSR’s                  working interest and will be billed (based on the estimate in the                  associated AFE) by Rancher Energy to BSR and will be due and payable                  to                  Rancher Energy thirty (30) days after notice of the invoice has                  been                  delivered to BSR. If such drilling costs are more or less than                  the AFE,                  BSR shall bear its pro-rata share of any actual excess invoiced                  costs paid                  by Rancher Energy; in the event the AFE is greater than actual                  costs, BSR                  will be entitled to and will receive from Rancher Energy its pro-rata                  refunded share of any excess monies. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | All                  rights, titles and interest in the Leases are subject to the royalties                  provided for in the Leases and additional royalties, the aggregate                  of                  which shall not exceed 20%. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **5.** | **TAKEOVER                  OPTION** |
|--------|--------------------------------------|

| **6.** | **AREA                  OF MUTUAL INTEREST** |
|--------|----------------------------------------------|

----

| **7.** | **COST                  INFORMATION** |
|--------|---------------------------------------|

| **8.** | **WELL                  DATA** |
|--------|--------------------------------|

| **9.** | **ABANDONMENT** |
|--------|-----------------|

----

| **10.** | **MINIMUM                  ROYALTIES/SHUT-IN GAS WELL                  PAYMENTS** |
|---------|-----------------------------------------------------------------------------------|

| **11.** | **COMPLIANCE                  WITH LAW** |
|---------|------------------------------------------|

| **12.** | **RELATIONSHIP                  OF PARTIES** |
|---------|----------------------------------------------|

| **13.** | **INDEMNITY                  AND INSURANCE** |
|---------|----------------------------------------------|

|   | (a) | The                  Parties agree to indemnify, defend and hold each other harmless                  from any                  and all liens, encumbrances, suits, claims, judgements, obligations                  and                  liabilities of any kind caused or created by or arising out of                  the other                  Party’s ownership or operations pursuant to this                  Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | In                  connection with all operations conducted hereunder, Rancher Energy                  shall                  carry, and whenever practicable, include covenants in its agreements                  with                  subcontractors requiring those subcontractors to carry the insurance                  in                  amounts and with a scope of coverage that a prudent operator in                  the same                  or similar circumstance as Rancher Energy under this Agreement                  would, all                  as more particularly specified on Exhibit “B”. Further Rancher Energy                  agrees to carry all necessary governmental bonds required for operations                  on the Leases. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **14.** | **DEFAULT                  AND REMEDY** |
|---------|-----------------------------------------|

|   | (a) | If                  either Party is determined to be in default under this Agreement                  (the                  “Defaulting Party”), the Defaulting Party must remedy such default within                  thirty (30) days notice (“notice period”) from the other                  Party. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                  Defaulting Party shall take all commercially reasonable actions                  to cure                  default within notice period. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Where                  Rancher Energy is the Defaulting Party and the default relates                  to a                  material breach of its obligations in paragraphs 3(a) or (b) or                  paragraph                  4(a), then if such default is not remedied within the notice period,                  Rancher Energy shall re-assign any and all right, title and interest                  in                  the Lands initially acquired from BSR under this                  Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.** | **NOTICES** |
|---------|-------------|

----

| **16.** | **FURTHER                  ASSURANCE** |
|---------|----------------------------------------|

| **17.** | **TIME** |
|---------|----------|

| **18.** | **FORCE                  MAJEURE** |
|---------|------------------------------------|

| **19.** | **SCHEDULES** |
|---------|---------------|

----

| **20.** | **MISCELLANEOUS** |
|---------|-------------------|

|   | (a) | Whenever                  the plural, masculine or neuter is used in this Agreement, the                  same shall                  include the singular or feminine or body politic or corporate and                  vice-versa as the context so                  requires. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                  Parties agree that with respect to the subject matter of this Agreement                  together with all Schedules shall constitute the full and complete                  understanding and agreement of the Parties, and there are no other                  understandings, obligations, relationships or agreements, written                  or                  oral. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The                  terms and definitions used herein shall have the same meaning in                  the                  Schedules unless the context otherwise                  requires. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | No                  Party shall assign an interest in this Agreement without first                  obtaining                  the written consent of the other Party, which consent shall not                  be                  unreasonably withheld. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **21.** | **ENUREMENT** |
|---------|---------------|

| **22.** | **LAW                  AND JURISDICTION** |
|---------|-------------------------------------------|

| **23.** | **CONFIDENTIALITY** |
|---------|---------------------|

| **24.** | **ARBITRATION** |
|---------|-----------------|

----

| **25.** | **COUNTERPARTS** |
|---------|------------------|

|   | This                  Agreement may be executed in counterpart and will have the same                  effect as                  if all signatories to the Agreement had signed the same document.                  All                  counterparts together will constitute the same instrument. Signed                  counterparts may be transmitted by                  facsimile. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |                                                                |                                     |
|--------------|---------------------------------------------------------------------|------------------------------------------|
|         | **BIG                  SNOWY RESOURCES, LP**                        |
|    |                                                           |                                |
|         | By:                                                       | /s/ John                WG Campbell |
|         |                                                                     |
|         |                  Name:                   John WG Campbell |
|         | Title:                    Director                        |

|         |                                                          |                               |
|--------------|---------------------------------------------------------------|------------------------------------|
|         | **RANCHER                    ENERGY CORP.**                   |
|    |                                                     |                          |
|         | By:                                                 | /s/ John                Works |
|         |                                                               |
|         |                  Name:                   John Works |
|         | Title:                    President & CEO       |

----