EXHIBIT 10.3


                              OPTION AGREEMENT


THIS AGREEMENT entered into this 22nd day of July, 1998, by and between
International Publishing Holding s.a. ("IPH"), a Luxembourg corporation whose
offices are located at 1 Place Dargent, 1413 Luxembourg, Grand-Duchy of
Luxembourg, and Horizontal Ventures, Inc. ("HVI"), a Colorado corporation,
whose offices are at 630 Fifth Avenue, Suite 1501, New York, NY 10111, USA;

WITNESSETH:

WHEREAS, HVI has given consideration to acquiring a substantial interest in
Saba Petroleum Company ("Saba"); having its headquarters in Santa Barbara,
California, and quoted on the American Exchange ("AMEX") under the symbol SAB;
and

WHEREAS, IPH is the largest shareholder of HVI and is desirous of assisting
HVI in its efforts in purchasing shares of Saba in the open market or directly
from holders of Saba securities, and to make securities so purchased available
to HVI under the conditions of this Agreement;

NOW THEREFORE, in consideration of the mutual covenants contained herein, the
parties hereto agree as follows:

1)     Issues regarding Section 13 of the Securities Exchange Act of 1934: The
       parties acknowledge that as a result of this Agreement they are acting
       in concert with respect to the acquisition of the securities of Saba
       and that as such they are mutually liable for any violation of Section
       13 and therefore must work in close and constant communication with
       regard thereto.

2)     Call Option: HVI shall have the right to call for purchase from IPH all
       of the Saba securities in possession of IPH at the moment of such upon
       the following terms and conditions:
       (2.1) Exercise: This call may be exercised at any time but no later
             than June 30, 1999.
       (2.2) Purchase price: HVI will pay to IPH its purchase price including
             all costs of the Saba securities plus 20% (twenty percent), upon
             exercise of this call at no later than December 31, 1998; or plus
             30% (thirty percent) if the call is exercised after that date.
       (2.3) Payment: HVI will pay IPH the purchase price in cash or at the
             option of HVI, partly or in whole in newly to be issued common
             shares of HVI calculated at a price per share equivalent to the
             average of the closing price of HVI shares on the Nasdaq Small 
             Cap Market during the thirty trading days preceding the date of
             exercise by HVI of this Call Option, but in any case at no more
             than USD 15 (fifteen United States dollars) per share of HVI.
       (2.4) Additional condition: HVI may only exercise this call if in so
             acquiring the Saba securities purchased by IPH, it will realize
             the purpose of this Agreement, i.e. to obtain a substantial
             interest in Saba.

3)     Put Option: As of April 1, 1999, and no later than June 30, 1999, IPH
       has the right to sell the Saba securities purchased by it under this
       Agreement to HVI for the same purchase price and for the same form of
       payment to be elected by HVI, as agreed to in Article 2 above.

4)     Procedures for Executing Options: Exercise of the Call Option can only
       be done for the total number of Saba securities that IPH will have in
       its possession at the time of exercise.  If HVI wishes to exercise its
       rights under this Call Option, it shall give IPH both a verbal and a
       faxed written notice at the place for notices set forth hereinafter. 
       Subsequent to the receipt of the faxed notice, IPH will instruct its
       custodian(s) holding the Saba securities bought by IPH under this
       Agreement to deliver these securities to HVI, at an account so directed
       by HVI against simultaneous payment by HVI, in cash or in common shares
       of HVI, to that custodian or at any other account directed by IPH. IPH
       shall give HVI both a verbal and a faxed written notice of its wish to
       sell the Saba securities held by it to HVI at the place for notices set
       forth hereinafter.  Subsequent to the receipt of the faxed notice, HVI
       shall arrange that it can receive such shares in an account directed by
       it in such a way that against delivery by IPH of the Saba securities
       simultaneously payment in the way elected by HVI under this Agreement
       will be executed.  Upon exercise of the Call Option by HVI or the Put
       Option by IPH, HVI should give immediately notice to IPH which form of
       payment it has elected, i.e. shares or cash or a combination and, if in
       shares, the number thereof and the computation of the value thereof.

5)     Registration Rights: Subject to the provisions of this article 5, IPH
       agrees to take and hold any shares of HVI received from HVI under
       Articles 2 and 3 for investment and not with a view to distribution
       within the meaning of the Securities Act of 1933, as amended.  HVI
       hereby commits to amend its S-3 Registration Statement on file with the
       Securities and Exchange Commission within thirty days of executing one
       of the above referenced options, if payment in shares of HVI is
       elected, to provide for the registration of the shares issued to IPH in
       exchange for the Saba shares and to have said amendment declared
       effective at the earliest practicable date subsequent to the amendment.
       If such registration through amendment appears impossible, HVI is
       obliged to obtain the same effect in favor of IPH by any other manner
       of registration permitted by applicable law.

6)     Relief from Delivery Requirements under Certain Circumstances: HVI
       shall be relieved from delivery of its shares to IPH under this Option
       Agreement only if such delivery would violate the Nasdaq rules without
       shareholder approval.  Under such circumstances HVI shall deliver that
       number of shares that it is able to deliver immediately and register
       all shares including those that it may not deliver without shareholder
       approval in accordance with the above mentioned registration rights
       clause. If shareholder approval is required for any of the certificates
       to be issued to IPH, HVI shall conscientiously prepare a proxy
       statement therefor, file same with the Securities and Exchange
       Commission and obtain necessary clearance for holding the shareholders'
       meeting at the earliest practicable date.  Additionally, HVI shall
       authorize the transfer agent to issue the shares in IPH's name for
       deliver immediately upon receipt of shareholder approval and HVI shall
       use diligence in obtaining the required shareholder approval therefor. 
       To the extent that HVI elects to pay any portion of the purchase price
       for the Saba securities in shares of HVI (the "Non-Cash Portion"), at
       the closing, HVI will deliver a full recourse promissory note to IPH,
       dated the closing date and payable within 180 days thereafter, in an
       amount equal to the Non-Cash Portion.  The amount outstanding under the
       promissory note will bear interest (payable in monthly installments on
       the first date of each month) at an annual interest rate equal to 2%
       over Libor, in effect on the date of closing.  Such note will be
       surrendered to HVI against the delivery to IPH of the HVI shares in
       payment of the Non-Cash Portion, which at that moment must be
       registered and such registration been declared effective, as agreed in
       Section 5 above.

7)     Notices: All notices under this Option Agreement will be issued to (a)
       IPH: Attn: Reink H. Kamer, P.O. Box 84019, 2508 AA The Hague, The
       Netherlands, telephone (31) 70 3588322, facsimile (31) 70 3586664, and
       (b) HVI: Attn: Randeep S. Grewal, Chairman and CEO, 630 Fifth Avenue,
       Suite 1501, New York, NY 10111, telephone (1) 212-2184680, facsimile
       (1) 212-2184679.

8)     This Agreement: (i) constitutes the entire agreement of the parties
       relating to the subject matter hereto and supersedes all prior
       agreements, understandings and arrangements; (ii) shall be governed by
       New York law; (iii) may not be amended or discharged except in writing;
       and (iv) may be executed in counterparts.


Dated this 22nd day of July, 1998.

International Publishing Holding s.a.


/s/ Reink H. Kamer
_____________________________________
By: Reink H. Kamer, Head of Investments


Horizontal Ventures Inc.


/s/ Randeep Grewal
_____________________________________
By: Randeep S. Grewal, Chairman & CEO