**Exhibit          10.3**

**Burke        Ranch Unit Purchase and **

**Participation      Agreement**

**Between:**

**HOT      SPRINGS RESOURCES LTD.**

**(”Seller”      or “HSR")**

**and**

**PIN      PARTNERS PETROLEUM LTD.**

**(”Buyer"      or "PIN")**

**Made        as of the **
**6th**
**        day of F**
**ebruary**
**,        2006**

----

**BURKE      RANCH UNIT PURCHASE AND PARTICIPATION AGREEMENT**

**6th**
**February**
**HOT        SPRINGS RESOURCES LTD. ("Seller” or HSR")**
**PIN        PARTNERS PETROLEUM LTD. ("Buyer” or “PIN")**

**RECITALS:**

**,**

**ARTICLE      1**

**INTERPRETATION**

| **1.1** | **DEFINITIONS** |
|---------|-----------------|

|   | (a) | "Affiliate"                means, with respect to a Party to this Agreement, a company or other                entity which controls that Party, is controlled by that Party or                is under                common control with that Party. "Control" means (i) the direct or                indirect                ownership of sufficient shares or other interests having the right                to vote                to elect the senior management or a majority of the board of directors                or                other governing board or committee, or otherwise control, the company                or                entity, or (ii) actual control of the company or entity by any                means. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | "Area                of Mutual Interest" or "AMI" means the area of mutual interest established                in respect of the AMI Lands; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | "AMI                Lands" means the lands within the area described in Schedule                "B"; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (d) | "AMI                Term" means the period following the Effective Date and continuing                for a                period of three (3) years thereafter;  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | "Business                Day" means a day other than a Saturday, a Sunday or a statutory holiday                in                Wyoming; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | "Engineering                Report" has the meaning ascribed to that term in Clause                3.2(a). |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (f) | "Effective                  Date" means **February                  6, 2006.** |
|--------|-----|--------------------------------------------------------------------------------|

----

|   | (g) | "Engineering                Report" has the meaning ascribed to that term in Clause                3.2(a). |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (h) | "Subject                Assets" means the Subject Property, the Tangibles, and the Miscellaneous                Interests; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (i) | "Subject                Property" means the lands and leasehold interests set out in Schedule                "A",                and any lands pooled, unitized or otherwise combined therewith under                the                terms of and pursuant to the Unit Agreement and Unit Operating Agreements                or otherwise**,**                together with the Petroleum Substances within, upon or under those                lands; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | "Miscellaneous                Interests" means, subject to any and all limitations and exclusions                provided for in this definition, all property, assets, interests                and                rights pertaining to the Subject Property and the Tangibles, or either                of                them, but only to the extent that such property, assets, interests                and                rights pertain to the Subject Property and the Tangibles, or either                of                them, including without limitation any and all of the                following: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | contracts                and agreements relating to the Subject Property and the Tangibles,                or                either of them, including without limitation the Unit Agreement and                Unit                Operating Agreements**,**                any communitization agreements still in effect and having application                to                the Subject Property, the Title Documents, processing agreements,                transportation agreements and agreements for the construction, ownership                and operation of facilities; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | rights                to enter upon, use or occupy, the surface of any lands which are                or may be                used to gain access to or otherwise use the Subject Property and                the                Tangibles, or either of them; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | all                records, books, documents, licences, reports and data which relate                to the                Subject Property and the Tangibles, or either of them, including                any of                the foregoing that pertain to seismic, geological or geophysical                matters                not required to be held confidential and which HSR has the legal                right to                disclose to PIN; and |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the                Wells (and no other wells), including the wellbores and any and all                casing;  |
|--------|------|---------------------------------------------------------------------------------------------------------------------|

|   | (k) | "Operating                Procedure" means the 1982 AAPL Model Form Joint Operating Agreement                attached hereto as Schedule "C   |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | "Party"                means a party to this Agreement; |
|--------|-----|---------------------------------------------------------|

|   | (m)(i) | "Payout"                means that date when PIN recovers out of the gross proceeds of sale                from                it's share of production of Petroleum Substances from the Subject                Property                an amount equal to the aggregate costs incurred by or paid by PIN                pursuant                to Sections 4.1, 4.2, 4.3 and 5.1**.** |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m)(ii**)** | **"**Payout                  Accounting”**"**                  shall mean monthly statements furnished by Buyer to Seller before                  the                  fifth day of each and every calendar month prior to the time. Payout                  occurs setting forth the amounts of all expenditures made by Buyer                  and                  claimed by Buyer as costs incurred under Sections 4.1, 4.2, 4.3                  and 5.1,                  together with supporting invoices together with copies of reports                  made by                  or on behalf of Buyer to the Wyoming Oil and Gas Conservation Commission                  and/or the Minerals Management Service, statements from Third Party                  purchasers, processors and transporters of production and all other                  documents evidencing the volumes and values of Buyer’s share of                  production, if any, of Petroleum Substances from the Subject Property                  for                  the month prior to the immediately preceding calendar month. Such                  monthly                  statements shall further include the current accumulative balance                  of the                  recoupment of the costs incurred by Buyer under Sections 4.1, 4.2,                  4.2**,** ,4.3                  and 5.1. |
|--------|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (n) | "Petroleum                Substances" means any of crude oil, crude bitumen and products derived                therefrom, synthetic crude oil, petroleum, natural gas, natural gas                liquids, and any and all other substances related to any of the foregoing,                whether liquid, solid or gaseous, and whether hydrocarbons or not,                including without limitation                sulphur; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | "Studies                and Report" has the meaning ascribed to that term in Clause                3.2(a). |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (q) | "Tangibles"                  means, any and all tangible depreciable property and assets which                  are                  located within, upon or in the vicinity of the Subject Property                  and which                  are used or are intended to be used to produce, process, gather,                  treat,                  measure, make marketable or inject Petroleum Substances or any                  of them or                  in connection with water injection or removal operations that pertain                  to                  the Subject Property, including without limitation any and all                  gas plants,                  oil batteries, buildings, production equipment, pipelines, pipeline                  connections, meters, generators, motors, compressors, treaters,                  dehydrators, scrubbers, separators, pumps, tanks, boilers and                  communication equipment; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | "Third                  Party" means any individual or entity other than Parties hereto,                  including                  without limitation any partnership, corporation, trust, unincorporated                  organization, union, government and any department and agency thereof                  and                  any heir, executor, administrator or other legal representative                  of an                  individual; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | "this                  Agreement", "herein", "hereto", "hereof" and similar expressions                  mean and                  refer to this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | "Title                  Defect" means a material defect or significant deficiency in the                  title of                  Seller to any portion or part of the Subject Property, which on                  its own                  deprives the Seller of the substantial use, benefit or financial                  revenue                  from the Subject Property, having regard to laws respecting limitations                  of                  actions, and is sufficiently adverse such that it would, on a commercially                  reasonable assessment thereof, cause a party experienced in acquisitions                  of producing oil and gas properties located in the Rocky Mountain                  region                  of the United States to not purchase the entirety of the Subject                  Property,                  having regard to the loss of value in and                  thereto; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (u) | “Term                  Assignment” shall mean a current assignment of 50% of Seller’s interest in                  the Subject Assets, substantially in the form set forth in Schedule                  "F"                  hereto ** ** |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) |   |
|--------|-----|--------|

|   | (u**v**) | **"**Final                  Assignment”**"**                  shall mean an assignment of 50% of Seller's interest in the Subject                  Assets, substantially in the form set forth in Schedule "G |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v**w**) | "Title                  Documents" means, collectively, any and all certificates of title,                  leases,                  reservations, permits, licences, assignments, trust declarations,                  operating agreements, royalty agreements, gross overriding royalty                  agreements, participation agreements, farm-in agreements, sale                  and                  purchase agreements, pooling agreements and any other documents                  and                  agreements granting, reserving or otherwise conferring rights to                  (i)                  explore for, drill for, produce, take, use or market Petroleum                  Substances,                  (ii) share in the production of Petroleum Substances, (iii) share                  in the                  proceeds from, or measured or calculated by reference to the value                  or                  quantity of, Petroleum Substances which are produced, and (iv)                  rights to                  acquire any of the rights described in items (i) to (iii) of this                  definition; but only if the foregoing pertain in whole or in part                  to                  Petroleum Substances within, upon or under the Subject                  Property; |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (w**x**) | "Trust                  Agreement" means an agreement substantially in the form set forth                  in                  Schedule "H"; |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x**y**) | "Trustee"                  means the party acting as trustee under the Trust                  Agreement; |
|--------|----------|----------------------------------------------------------------------------------------------------------|

|   | (y**z**) | "Unit                  Agreement" means the unit agreement attached hereto as Schedule                  "E", as                  amended and supplemented; |
|--------|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z**aa**) | "Unit                  Operating Agreements" means the unit operating agreements attached                  hereto                  as Schedule "D", as amended and                  supplemented; |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa**bb**) | "Wells"                  means all wells which are or may be used in connection with the                  Subject                  Property, including without limitation Well 9 and Well 9-17 and                  all other                  producing, shut-in, abandoned, water source, water disposal and                  water                  injection wells. |
|--------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb**cc**) | "Well                  9" means the Well located at** ****NW,                  NW 17, 37 N, 78 W, (API Well No. 49** **025                  06180)** |
|--------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (cc**dd**) | "Well                    9-17" means the Well located at**]NE,                    SE 17, 37N, 78W (API Well No. 49** **025                    22264); ** |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **1.2** | **Headings** |
|---------|--------------|

| **1.3** | **Interpretation                  Not Affected by                  Headings** |
|---------|-------------------------------------------------------------------------------|

| **1.4** | **Interpretation                    Not Affected by Headings** |
|---------|----------------------------------------------------------------|

| **1.5** | **Interpretation                      Not Affected by Headings** |
|---------|------------------------------------------------------------------|

| Schedule                "A"             | Subject                Property                      |
|-----------------------------------------|------------------------------------------------------|
| Schedule                "B"             | Area                of Mutual Interest               |
| Schedule                "C"             | Operating                Procedure                   |
| Schedule                “D” | Burke                Ranch Unit Operating Agreements |
| Schedule                “E” | Burke                Ranch Unit Agreement            |
| Schedule                "F"             | Term                Assignment                       |
| Schedule                "G”       | Final                Assignment                      |
| Schedule                "H"             | Trust                Agreement                  |

| **1.6** | **Damages** |
|---------|-------------|

**ARTICLE      2**

**TITLE      TO SUBJECT PROPERTY**

| **2.1**  | **Title** |
|---------------|-----------|

----

|   | (a) | except                  for the royalties payable to the lessors under the oil and gas                  leases set                  forth in Schedule "A" and overriding royalty interests burdening                  Seller’s                  interest in such oil and gas leases that were created by third                  parties                  prior to the acquisition by Seller of its interest in the Subject                  Property                  and of which Seller has no knowledge, it has not granted or otherwise                  aware of any interest (or the right to acquire any interest) in                  the                  Subject Property whereby a Third Party may                  owns                  or has the right to                  acquire                  any royalty interest in the Subject Property or                  any portion of Seller’s interest in the Subject                  Property; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it                is not aware of any Title Defects pertaining to the Subject Property,                nor                is it aware of any act or omission whereby Seller is or would be                in                default under applicable law or the Title Documents and it has not                received any notice of default or otherwise become aware of any notice                of                default respecting the Subject Property that has not been remedied;                and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Seller                is not aware of any environmental defects or deficiencies or environmental                damage affecting or caused by the Subject Assets, nor is Seller aware                of                any proceedings which have been commenced or threatened, or which                could                reasonably be expected to be commenced, in connection with any such                defects, deficiencies or damages, or any operations relating                thereto. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **2.2**  | **Maintaining                            Title** |
|---------------|--------------------------------------------------|

**ARTICLE      3**

**BUYER      PAYMENT AND RIGHTS/INTERESTS EARNED**

| **3.1**  | **Buyer                              Payment** |
|---------------|------------------------------------------------|

| **3.2**  |  **Rights                                Earned**  |
|---------------|--------------------------------------------------------------|

|   | (a) | Upon                making the Buyer Payment set forth in Section 3.1, the interests                in the                Subject Assets shall, subject to the terms of the Term Assignment                be: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HSR    | 49.9% |
|--------|-------|
| PIN    | 49.9% |
| Others | 0.2%  |

|   | (b) | All                of the several obligations set forth in Sections 4.1, 4.2 and 4.3                below                and the time limit prescribed for the performance of each and all                such                obligations are and shall be deemed material and shall consititute                a                single condition precedent to Seller’s obligation to make the Final                Assignment. If the Buyer Payment described in Section 3.1 above is                timely                made to Seller or, if Section 3.3 is applicable, to the Trustee and                if,                thereafter, Buyer thereafter timely performs in all material respects                each                and all of its obligations described in Sections 4.1, 4.2 and 4.3                below,                then, prior to Payout, Buyer shall thereupon have:  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | earned                an additional 39.92% beneficial interest in the Subject Assets, such                that                the beneficial interests shall be:   |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| HSR    | 49.9% |
|--------|-------|
| PIN    | 49.9% |
| Others | 0.2%  |

|   | (ii) | Buyer                  shall have the right to receive the Final Assignment and Seller                  shall                  forthwith thereafter duly execute and deliver to Buyer the Final                  Assignment. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In                    the event the Final Assignment is earned by Buyer and made by                    Seller and                    thereafter Payout occurs, Buyer shall be deemed to have thereupon                    relinquished to Seller the additional 39.92% beneficial interest                    in the                    Subject Assets referred to in Section 3.2(b)(i) above, such that                    the legal                    and beneficial interests in the Subject Assets shall thereupon                    be: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| HSR    | 49.9% |
|--------|-------|
| PIN    | 49.9% |
| Others | 0.2%  |

|   | (d) | Upon                Buyer timely making the Buyer Payment described in Section 3.1 above,                thereby earning the rights described therein, the Operating Procedure                shall govern the Subject  Assets and all operations on or in                respect of the Subject Assets, such that, as between Buyer and Seller,                the                Operating Procedure shall supercede the Unit Operating Agreements.                Thereafter, each party shall use commercially reasonable efforts                to enter                into agreements with, and obtain approvals from, all relevant third                parties (including those "others" owning working interests in the                Subject                Property and all applicable governmental and regulatory authorities)                such                that the Operating Procedure supercedes the Unit Operating Agreements                for                all purposes. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | Provided                that Buyer timely makes the Buyer Payment described in Section 3.1                to                Seller or the Trustee, within fifteen (15) days thereafter, Seller                shall                deliver copies of the Title Documents and any other agreements and                documents to which the Subject Assets are subject, and copies of                contracts, agreements, records, books, documents, licences, reports                and                data comprising Miscellaneous Interests.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | In                addition to the Term Assignment and Final Assignment provided for                above,                Seller agrees to deliver to Buyer any other conveyances, assignments,                transfers, novations and other instruments reasonably required to                to                assign to Buyer the corresponding interest it acquires in the Subject                Assets. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.3**  | **Trust                                Arrangements**  |
|---------------|-------------------------------------------------------------|

|   | (a) | If                Seller does not deliver to Buyer on the date hereof a title opinion                prepared by Seller's oil and gas legal counsel respecting the Subject                Property which opinion is in form and substance satisfactory to Buyer,                acting reasonably, (the "**Title                Opinion**"),                then:  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Buyer                shall be entitled to deliver to the Trustee the Payment Balance,                to be                held by the Trustee in accordance with the Trust Agreement. Such                payment                shall be deemed to satisfy all of Seller's obligations under this                Agreement to make such payment; and  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     | (ii) | Concurrently                with Buyer making the payment pursuant to Section 3.3(a)(i), Seller                shall                deliver a duly executed copy of the Term Assignment to the Trustee,                to be                held by the Trustee in accordance with the Trust                Agreement. |
|--------------------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | the                Trustee shall forthwith return the Payment Balance to Buyer and,                provided                that Seller has paid all amounts to Buyer as required pursuant to                Section                3.3(b)(iv), destroy all copies of the Term Assignment in its possession,                with the result that thereupon Buyer shall have no interest in the                Subject                Assets; and  |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the                Seller shall pay to Buyer $35,000, being the prior payment of a portion                of                the Buyer Payment, and reimburse Buyer for all amounts expended by                Buyer                pursuant to Sections 4.1, 4.2 and 4.3; such payment and reimbursement                shall, during the period of 1 year from the date hereof, be made                as soon                as reasonably possible out of the gross proceeds of the sale of production                from the Subject Property. If such amounts are not paid to Buyer                within                such 1 year period, Seller shall immediately thereafter pay all such                amounts to Buyer.  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | As                security for the payment obligations in Section 3.3(b)(iv), Buyer                shall                have, and Seller hereby grants, a lien, charge and security interest                in                the Subject Assets.   |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | In                    addition, if Seller fails to make the payments to Buyer as required                    pursuant to Section 3.3(b)(iv), then notwithstanding any other                    provision                    herein, and without limiting any other rights Buyer may have                    at aw or                    otherwise, Buyer shall: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | be                entitled to request the Trustee to deliver the Term Assignment to                Buyer,                in which event Buyer shall be entitled to retain the 49.9% interest                governed thereby for its own account; and  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | be                entitled to the additional 39.92% beneficial interest provided for                in                Section 3.2(b).  |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If                there is any title defect, deficiency or other failure in title which                was                in existence at or prior to the date of this Agreement that adversely                affects the Subject Property at any time hereafter, such defects,                deficiencies and title problems shall be deemed to first affect the                interests of Seller, such that Seller's interests shall be reduced                first                before there is any effect on Buyer's interests. Conversely, if Seller                owned more than a 99.8% working interest in the Subject Property                immediately prior to the date of this Agreement, Seller shall be                entitled                to the benefit of any such incremental increased interest. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ARTICLE      4**

**RIGHTS      EARNED BY BUYER PAYMENT AND BUYER OPERATIONS**

| **4.1**  | **Seismic** |
|---------------|-------------|

|   | (a) | the                Subject Property ; and  |
|--------|-----|-------------------------------------------------|

|   | (b) | any                other lands within the AMI which the Parties jointly agree                upon**,**and shall further conduct (or cause to be conducted) and                pay for                all processing, analysis, and interpretation of the 3D seismic data                acquired as a result of such seismic survey which is reasonably necessary                to render such data capable of being used by and useful to the Parties                to                determine the viability of future drilling operations on the Subject                Property or AMI lands. Buyer shall provide Seller with access to                the                results of the seismic program, including all analysis and interpretation                thereof, provided that Seller shall maintain in confidence the seismic                information in accordance with the Operating Procedure, and provide                proof                of the same to Seller and share the information as set forth                above.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.2**  | **Engineering                  Study and Development                  Plans** |
|---------------|-------------------------------------------------------------------------------|

|   | (a) | Buyer                shall, after consultation with Seller, select an engineering firm                (the                "**Engineering                Firm**")                to perform certain engineering studies on the Subject Property and                to                prepare a development plan (collectively, the "Studies and Plan")                in                respect of the Subject Property. The scope and substance of the Studies                and Plan shall be at the direction of Buyer, provided that Buyer                will                confer with Seller prior to providing or revising any instructions                to the                Engineering Firm.** **Buyer                shall be solely responsible for the costs incurred in the preparation                of                the Studies and Plan. Upon mutual agreement, the Parties may agree                to an                alternate engineering firm.  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The                Parties shall co-own the Studies and Plan and all related data and                information, and shall share access to all data and information.                Each                Party shall maintain in confidence the Studies and Plan and all related                data and information in accordance with the Operating                Procedure.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Each                Party shall appoint a contact person who shall assist in providing                documentation and information to the Engineering Firm.  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **4.3** | **Field                    Operations** |
|---------|-----------------------------------------|

----

| **4.4** | **Buyer                      as                      Operator** |
|---------|-----------------------------------------------------------------|

| **4.5** | **Tensleep                        Test** |
|---------|------------------------------------------|

----

| HSR | Amount                of completion costs paid by HSR                Total of all drilling, logging and competion costs paid by HSR and                PIN                         |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PIN | Amount                of drilling, logging and completion costs paid by PIN                Total of all drilling, logging and completion costs paid by HSR and                PIN. |

**Article        VI**

**ARTICLE      5**

**PRODUCTION      PAYMENT**

| **5.1** | **Production                          Payment** |
|---------|-------------------------------------------------|

----

**ARTICLE      6**

**REPRESENTATIONS      AND WARRANTIES**

| **6.1** | **Representations                  and Warranties** |
|---------|-----------------------------------------------------|

|   | (a) | It                is a corporation, limited partnership, or limited liability company                duly                organized and validly existing under the laws of the jurisdiction                of its                incorporation or formation, is authorized to carry on business in                the                state in which the Subject Property are located, and now has good                right,                full power and absolute authority to perform the obligations provided                for                in the Agreement according to the true intent and meaning of this                Agreement;  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the                execution, delivery and performance of this Agreement has been duly                and                validly authorized by any and all requisite company, member and directors'                actions and will not result in any violation of, be in conflict with                or                constitute a default under any articles, charter, operating agreement                or                other governing document to which it is bound;  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the                execution, delivery and performance of this Agreement will not result                in                any violation of, be in conflict with or constitute a default under                any                term or provision of any agreement or document to which it is party                or by                which it is bound, nor under any judgment, decree, order, statute,                regulation, rule or license applicable to it;  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | this                Agreement and any other agreements delivered in connection herewith                constitute valid and binding obligations of it enforceable against                it in                accordance with their terms;  |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | it                has not incurred any obligation or liability, contingent or otherwise,                for                brokers' or finders' fees in respect of this Agreement or the transaction                to be effected by it for which the other Party shall have any obligation                or liability; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ARTICLE      7**

**AREA      OF MUTUAL INTEREST**

| **7.1** | **AMI                    Lands** |
|---------|----------------------------------|

| **7.2** | **AMI                  Procedure for                  Acquisition** |
|---------|---------------------------------------------------------------------|

----

**Acquiring      Party**
**Receiving      Party**
**Acquisition      Notice**

|   | (a) | the                date that the interest was                acquired, |
|--------|-----|------------------------------------------------------------------------|

|   | (b) | the                interest which was acquired, |
|--------|-----|-------------------------------------------------|

|   | (c) | from                whom the interest was acquired, |
|--------|-----|-----------------------------------------------------|

|   | (d) | the                amount of out of pocket costs incurred by the Acquiring Party and/or                its                Affiliates in acquiring the AMI Lands,                and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the                amount of maintenance costs, if any, incurred by the Acquiring Party                and/or its Affiliates with respect to the AMI                Lands. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Acceptance      Period**

**ARTICLE      8**

**FORCE      MAJEURE**

| **8.1** | **Meaning                    of Force Majeure** |
|---------|-------------------------------------------------|

----

| **8.2** | **Suspension                of Obligations Due to Force                Majeure** |
|---------|----------------------------------------------------------------------------------|

| **8.3** | **Obligation                  to Remedy** |
|---------|-------------------------------------------|

| **8.4** | **Exception                    for Lack of                    Finances** |
|---------|--------------------------------------------------------------------------|

**ARTICLE      9**

**GENERAL**

| **9.1** | **Confidentiality** |
|---------|---------------------|

**Article      XV**

----

| **9.2** | **Further                  Assurances** |
|---------|-----------------------------------------|

| **9.3** | **Further                      Assurances** |
|---------|---------------------------------------------|

| **9.4** | **Entire                        Agreement** |
|---------|---------------------------------------------|

| **9.5** | **Governing                    Law** |
|---------|--------------------------------------|

| **9.6** | **Enurement** |
|---------|---------------|

| **9.7** | **Time                        of                        Essence** |
|---------|-------------------------------------------------------------------|

| **9.8** | **Notices** |
|---------|-------------|

| **HSR** | With                  a copy to:                                                                                                                                                                                                                                                 |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | Hot                  Springs Resources Ltd.142                  N. LincolnCasper,                  WY82601Facsimile                  (307) 234-2245Attention:                  President                                                                                         |
| **PIN** |                                                                                                                                                                                                                                                                             |
|    | PIN                  Partners Petroleum Ltd.Suite                  2410, P.O. Box 11524650                  West Georgia StreetVancouver,                  B.C.V6B                  4N7Facsimile                  (604)·682-5564 Attention:                  President |

|   | (a) | by                personal service on a Party at the address of such Party set out                above, in                which case the item so served shall be deemed to have been received                by                that Party when personally served; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | by                facsimile transmission to a Party to the fax number of such Party                set out                above, in which case the item so transmitted shall be deemed to have                been                received by that Party when transmitted;                or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | except                in the event of an actual or threatened postal strike or other labour                disruption that may affect mail service, by mailing first class registered                post, postage prepaid, to a Party at the address of such Party set                out                above, in which case the item so mailed shall be deemed to have been                received by that Party on the third Business Day following the date                of                mailing. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.9** | **Invalidity                            of                            Provisions** |
|---------|------------------------------------------------------------------------------------|

| **9.10** | **Waiver** |
|----------|------------|

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| **9.11** | **Amendment** |
|----------|---------------|

| **9.12** | **Counterpart                    Execution** |
|----------|----------------------------------------------|

|   HOT                SPRINGS RESOURCES LTD.  Per:                _________________________________  |   PIN                PARTNERS PETROLEUM LTD.  Per:                _________________________________  |
|------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

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