Document:

<page>

EXHIBIT 10.82

                                   SPACE LEASE

                             Carr Gottstein Building

         AGREEMENT OF SPACE LEASE, made between CARR GOTTSTEIN PROPERTIES, an
Alaska general partnership, herein called "Landlord" and FORCENERGY INC, a
Delaware corporation, herein called "Tenant".

         On February 26, 1974, Asa L. Martin and Evelyn E. Martin, as the fee
owners, ground leased an undeveloped parcel of real property situated on the
southwest corner of Third Avenue and "K" Street, more particularly described as:

         Lot One "B" (1B), Block Thirty One (31), ORIGINAL TOWNSITE OF
         ANCHORAGE, according to Plat 74-171 in the Anchorage Recording
         District, Third Judicial District, State of Alaska,

to the Landlord, as evidenced by Memorandum of Lease recorded February 27, 1974,
in Misc. Book 223 at page 701 of the Anchorage Recording District.

         The Landlord has constructed a seven-story office building on the
above-described real property and Tenant desires to lease a part or portion of
such office building from Landlord under the terms and conditions herein
contained.

         NOW, THEREFORE, IT IS AGREED:

                                    ARTICLE I

                                  SPACE LEASED

Section 1.01 DESCRIPTION OF SPACE LEASED

         (a) Landlord hereby leases to Tenant and Tenant leases from Landlord
         that certain portion (herein called "Space Leased" OR "PREMISES") of
         the office building (commonly known as CARR GOTTSTEIN BUILDING) now
         existing on the southwest corner of Third Avenue and "K" Street in
         Anchorage, Alaska. The space leased herein to Tenant approximates 8,328
         square feet, more or less, in area as set forth or outlined on the
         attached floor plan for the Seventh Floor marked Exhibit "A", also
         known as Suite 700.

         (b) Use and occupancy by Tenant of the Space Leased shall include the
         free and uninterrupted right of access to the Space Leased by means of
         doorways, passages, stairways and entrances to the building which
         afford access to the Space Leased.

                                        1

<page>

         (c) Nothing herein contained shall be construed as a grant or rental by
         Landlord to Tenant of the roof and exterior walls of the building of
         which the Space Leased forms a part or any of the walks and other
         common areas beyond the Space Leased including, but not limited to, the
         vehicular parking areas adjoining such office building.

SECTION 1.02 RIGHT TO RELOCATE

THIS SECTION INTENTIONALLY DELETED.

SECTION 1.03 CONDITION OF PREMISES

         Tenant has leased the Space Leased after an examination of the same,
and except as herein expressly otherwise provided (necessarily) including the
improvements or additions, if any to be undertaken or completed by Landlord, as
contemplated in Section 10.01, without any representation on the part of
Landlord.

SECTION 1.04 SERVICES FURNISHED BY LANDLORD

         Landlord shall furnish to and for the benefit of Tenant, without
additional charge therefor, the following services: heat, electric, water,
sewer, elevator, garbage, snow removal and 5-DAY PER WEEK janitorial.
ADDITIONALLY, LANDLORD WILL FURNISH WITHOUT CHARGE TO TENANT APPROPRIATE
VENTILATION AND AIR CONDITIONING DURING THE HOURS OF 7 A.M. TO 6 P.M., MONDAY
THROUGH FRIDAY AND 10 A.M. TO 5 P.M. SATURDAY AND SUNDAY.

SECTION 1.05 TELEPHONE CHARGES

         Tenant shall initiate, contract for and obtain telephone service in its
own name, and Tenant shall pay all charges for these services as they become
due. Such telephone services shall include all of Tenant's telecommunications
equipment.

SECTION 1.06 QUIET ENJOYMENT

         Tenant, upon paying rents and performing a11 of the terms and covenants
on its part to be performed, shall peaceably and quietly enjoy the Space Leased
subject, nevertheless, to the terms of this Lease, and to any Ground Lease, Deed
of Trust OR mortgage to which this Lease is subordinated or subsequent in time
SUBJECT TO THE PROVISION OF SECTION 12.02.

SECTION 1.07 CONTROL OF COMMON AREAS

         (a) All common areas and other facilities, in or about the Space Leased
and the building in which it is situated, shall be subject to the exclusive
control and management of

                                        2

<page>

Landlord. Landlord shall, consistent with (i) the best interests of all persons
using the common areas, and (ii) all applicable laws, regulations, ordinances,
guidelines and orders, have the right to construct, maintain and operate
lighting and other improvements on all said areas to police the same; to change
the area, level, location and arrangement for parking areas and other
facilities; to lease to anyone, for the exclusive use, one or more of the
parking spaces adjoining the building; to restrict parking by Tenant, its
officers, agents and employees; to enforce parking charges (by operation of
meters or otherwise), with appropriate provisions for free parking tickets
validated by Tenant, to close temporarily all or any portion of the parking
areas or facilities to discourage non-tenant parking. Landlord shall operate and
maintain the common areas and facilities in such manner as Landlord, in its
discretion, shall determine and Landlord shall have full right and authority to
employ and discharge all personnel with respect thereto.

         (b) Tenant shall be allowed to utilize the following vehicular parking
spaces at no charge to Tenant:

         Four (4) spaces located in the Carr-Gottstein Building garage, as
         indicated on the attached Exhibit "D"; and

         Four (4) spaces located in the Susitna Parking lot, as indicated on the
         attached Exhibit "E"; and

         If Landlord, during the term hereof, is unable to provide such parking
spaces for Tenant because of loss of spaces due to acts of God or third parties
not readily or economically repairable, eminent domain, or other causes not
under Landlord's control, Landlord will make a good faith effort to provide
substitute parking spaces for Tenant within a reasonable radius of the Spaced
Leased herein.

SECTION 1.08 LICENSE TO COMMON AREAS

         All common areas and facilities, which Tenant may be permitted to use
and occupy, are to be used and occupied under a revocable license; and if any
such license be revoked or if the amount of such areas be changed or diminished,
Landlord shall not be subject to any liability nor shall Tenant be entitled to
any compensation or diminution or abatement of rent, nor shall revocation or
diminution of such areas be deemed constructive or actual eviction unless
Tenant's use and enjoyment of the Space Leased is materially and adversely
impacted.

SECTION 1.09 LANDLORD'S RIGHT OF ENTRY

         Tenant, at any time during the term of this Lease, shall permit
inspection of the Space Leased during reasonable hours by the Landlord, or
Landlord's agents or representatives, and by or on behalf of prospective
purchasers, and during the six (6) months next preceding the expiration of this
Lease, shall permit, upon twenty four (24) hours notice to Tenant, inspection
thereof by or on behalf of prospective tenants.

                                        3

<page>

                                   ARTICLE II

                                   LEASE TERM

SECTION 2.01 LENGTH OF TERM

         The term of this Lease shall be for a period of five (5) years
following the commencement of the term, unless sooner terminated or extended as
herein provided.

         (a) Provided Tenant is not in default hereunder, Tenant shall have the
         right, but not the obligation, to renew this Space Lease for five (5)
         terms of one (1) year each. Tenant shall give Landlord written notice
         of its intent to exercise this option at least one hundred twenty (120)
         days prior to the expiration of the lease term as extended. The rent
         for the option period shall be determined by Fair Market Rent at the
         time the option is exercised for space of equivalent quality, size,
         location and including similar fixtures and equipment as provided by
         Landlord. In no event shall the annual rental rate be reduced.

         As employed herein, the term "Fair Market Rent" is the rent for the
Space Leased which will be agreed to by an informed Landlord who is willing but
not obligated to lease, and an informed Tenant who is willing but not obligated
to lease, for each extended term of one (1) year. If after timely exercise of
Tenant's option to extend, Landlord and Tenant are unable, within thirty (30)
days after such option is exercised, to agree on the Fair Market Rent for the
extended term, Landlord and Tenant shall each promptly appoint a disinterested
person with at least five (5) years recent professional experience as a real
estate appraiser. The two appraisers thus appointed will then attempt to fix the
Fair Market Rent for the extended term. If the two appraisers cannot within
thirty (30) days after their appointment agree on the Fair Market Rent, they
shall appoint a third disinterested person with at least five (5) years recent
professional experience as an appraiser. The determination of the majority of
the three appraisers shall become conclusive upon the parties, and judgment upon
the same may be entered in any court having jurisdiction thereof. The fee(s) and
expense(s) of each appraiser and appraisal shall be borne equally by Landlord
and Tenant.

SECTION 2.02 COMMENCEMENT OF TERM

         The term of this Lease shall commence upon completion of Tenant
Improvements or eighty (80) days from lease execution, whichever is sooner, and
shall terminate five (5) years from the commencement of tem.

         In the event the application of the foregoing commencement provision
results in a commencement date other than the first day of a calendar month, the
rent shall be immediately

                                        4

<page>

paid for such initial fractional month pro rated on the basis of the actual days
of that month and the term of the Lease shall commence on the first day of the
calendar month next succeeding. Tenant shall, upon request by Landlord, execute
and deliver to Landlord a written declaration, in recordable form, expressing
the commencement and termination dates hereof and certifying the Lease is in
full force and effect and there are no defenses or offsets thereto, or stating
those claimed by Tenant.

SECTION 2.03 HOLDOVER

         If the Tenant shall holdover after the expiration of this Lease term,
or any extension thereof, such tenancy shall be from month-to-month and subject
to all the terms, covenants and conditions of this Lease except that the rent
for each holdover month or part thereof will, after written notice to Tenant, be
two hundred percent (200%) of the monthly rental provided herein for the last
month of the term of this Space Lease.

SECTION 2.04 SURRENDER OF POSSESSION

         On the last day of the term demised, or on the sooner termination
thereof, Tenant shall peaceably and quietly leave, surrender and yield up unto
Landlord, all and singular, the Space Leased, broom clean, in good order and
repair, ordinary wear and tear excepted, together with all alterations,
additions and improvements which may have been made upon the premises, except
movable furniture, equipment or movable trade fixtures put in at the expense of
Tenant. If the last day of the term of this Lease falls on Sunday, this Lease
shall expire on the business day immediately preceding it. Tenant, on or before
said date, shall remove all property from the Space Leased, and all property not
so removed shall be deemed abandoned by Tenant. If said Space Leased be not
surrendered at the end of the term, Tenant shall indemnify Landlord against loss
or liability resulting from the delay by Tenant in so surrendering the Space
Leased, including, without limitations, any claims made by any succeeding tenant
founded on such delay.

SECTION 2.05 POSSESSION

         If Landlord is unable to give possession of the Space Leased on the
date herein fixed for the commencement of the demised term, by reason of the
holding over of a tenant in possession thereof, or for any other cause beyond
the Landlord's control, unless the Landlord elects to terminate this Lease, as
hereinafter provided, this Lease and all its provisions, including the date
herein fixed for expiration of the leased term, shall nevertheless continue in
full force and effect, except that in said event:

         (a) Landlord shall, at its sole expense, take such steps as may be
         reasonably necessary to recover possession of the Space Leased from
         such holdover tenant, and shall give the Tenant prompt written notice
         as soon as the Space Leased is ready for Tenant's occupancy or
         possession of said Space Leased has been recovered by Landlord;

                                        5

<page>

         (b) The Tenant's obligation to pay rent herein reserved shall not
         become effective until the fifteenth (15th) day ensuing after the
         giving by the Landlord to the Tenant herein of written notice provided
         for in the preceding clause hereof.

         If Landlord is unable to give possession of the Space Leased on the
date herein fixed for the commencement of the lease term, or within sixty (60)
days thereafter, for any of the aforesaid reasons, the Landlord or Tenant may,
by written notice given to the other party, terminate this Lease. If this Lease
be terminated pursuant to these provisions, the Landlord shall refund to the
Tenant any rent prepaid or security deposited by the Tenant with the Landlord,
and thereupon this Lease and all rights and obligations hereunder shall cease
and come to an end in the same manner and with the same force and effect as if
this Lease had not been entered into.

SECTION 2.06 POSSESSION PRIOR TO TERM OF LEASE

         If permission be given, by the Landlord to the Tenant, to enter into
possession of the Space Leased, prior to the date herein fixed for the
commencement of the leased term, such occupancy by the Tenant shall be deemed to
be that of a tenant under all the terms, covenants and conditions of this Lease,
except as to the covenant to pay rent.

                                   ARTICLE III

                                      RENT

SECTION 3.01 COVENANT TO PAY RENT

         Tenant covenants to and shall pay to Landlord in care of Carr Gottstein
Properties, 6401 "A" Street, Anchorage, Alaska 99518, or at such other place as
Landlord may designate, in advance, on the first day of each calendar month
during the term hereof, monthly rent as follows:

        LEASE TERM          MONTHLY RENT                ANNUAL RENT
        ----------          ------------                -----------
        Years 1 - 5         $14,574.00                  $174,888.00

         Simultaneously with the execution of this Lease, Tenant shall pay to
Landlord the first month's rent of $14,574.00, receipt whereof, if by check, is
subject to collection.

                                        6

<page>

SECTION 3.02 ADJUSTMENT OF RENT FOR INCREASES IN CERTAIN LANDLORD EXPENSES

         (a) For the calendar month commencing May Tenant shall pay to Landlord
         an "expense adjustment rent" as herein provided:

         (b) In this Section 3.02, the following definitions are applicable:

                  (i) "real property" means the seven-story office building, and
                  the land upon which it is situated, as more particularly
                  described on Page 1 of this Space Lease;

                  (ii) "Taxes" means the total of the amount of taxes now or
                  hereafter levied, assessed or imposed against the real
                  property;

                  (iii) "operational expenses" means the total of the following
                  expenses paid or incurred by the Landlord in the operation of
                  the real property:

                           (A) insurance - including, but not limited to, fire,
                           extended coverage, other insurable hazards or
                           casualties, public liability and

                           (B) electricity;

                           (C) gas (or other fuel employed for heating or
                           cooling, or both);

                           crossed out

                  (iv) "base year" means the calendar year 1997.

                  (v) "base period" means any specific part of all of the base
                  year.

                                        7

<page>

                  (vi) "lease term" means the period described in Section 2.01
                  of this Space Lease,

                  (vii) "Space Leased" refers to that certain portion of the
                  seven-story office building leased to Tenant as provided in
                  Section 1.01 of this Space Lease.

         (c) If the Landlord's taxes or operational expenses, or both, in any
         portion of the lease term occurring subsequent to the base year shall
         be greater than the taxes or operational expenses, or both, during a
         comparable period in the base year, the Tenant shall, for such
         subsequent period, pay to Landlord Tenant's proportionate share, as
         described in subsection (d) of any such increase(s) over the base
         period being measured or compared. If, in the base year, the building
         is not fully occupied during the entire year, then the specified
         expenses shall be corrected to reflect the operational expenses for a
         fully occupied building, by projecting the actual operational expenses
         per square foot of occupied rentable area in the building to cover
         periods when there is less than full occupancy.

         (d) The Tenant's proportionate share of any increases in taxes and
         operational expenses as contemplated in subsection (c) shall be the
         fractional part of such increased taxes and operation expense as the
         "total area in the Space Leased" bears to the "total area of the
         seven-story office building", provided no part of the hallways,
         elevators, plaza, parking areas, public areas and other common areas
         located outside of the Space Leased shall be included as a part of the
         total area of the seven-story office building. For example, if a given
         tenant leases space encompassing 5,000 square feet of area, and the
         total area in the entire building exclusive of the excepted areas
         (hallways, etc.) is 60,000 square feet, the pro rata share of such
         tenant will be 1/12th or 8.5 percent.

         (e) Any expense adjustment rent due to the Landlord, under this Section
         3.02, shall be paid by Tenant within thirty (30) days after submission
         of a written statement to the Tenant showing the computation of the
         amount due to Landlord. The Landlord shall make available records in
         reasonable detail supporting the items referred to in such statement
         for at least sixty (60) days after submission thereof for examination
         at reasonable times by Tenant and its representatives. It is
         contemplated Landlord will periodically submit to the Tenant statements
         of such expense adjustment rent, but not less frequently than annually.
         To facilitate periodic billings or invoicing of tenants, resort may be
         had by Landlord to reasonable estimates for operational expenses which
         have seasonal patterns (winter and summer); provided however, if
         estimates are employed, at the end of the calendar year a final
         computation based on the total year's actual expenses will be made and
         appropriate adjustment made for each tenant, if required.

                                        8

<page>

SECTION 3.03 ADDITIONAL RENT

         In addition to the foregoing rent provided for in Sections 3.01 and
3.02 above, all other payments to be made by Tenant to Landlord shall be deemed
to be and shall become additional rent hereunder, whether or not the same be
designated as such; and shall be due and payable on demand or together with the
next succeeding installment of rent, whichever shall first occur, together with
interest thereon; and Landlord shall have the same remedies for failure to pay
the same as for a nonpayment of rent Landlord, at its election, shall have the
right to pay or do any act which requires the expenditure of any sums of money
by reason of the failure or neglect of Tenant to perform any of the provisions
of this Lease, and in the event Landlord shall, at his election, pay such sums
or do such acts requiring the expenditure of monies, Tenant agrees to pay
Landlord, upon demand, all such suns, and the sum so paid by Landlord, together
with interest thereon, shall be deemed additional rent and payable as such.

SECTION 3.04 LATE CHARGES, INTEREST ON UNPAID RENT

                                                                         $583.00

         (a) Landlord may declare due and payable a late charge, in the amount
         of Four Cents ($0.04) per One Dollar ($1.00) for any periodic rent(s)
         not received at the designated place of payment within ten (10) days of
         its due date, as liquidated damages for the additional costs and
         expenses incurred by Landlord in the handling and administration of
         delinquent payments.

         (b) In addition, rent(s) not paid when due within ten (10) days of the
         due date by Tenant shall bear interest at the higher of

         1. ten and one-half percent (10.5%) per annum, or

         2. the highest interest rate permissible under the laws of Alaska as
         presently enacted or hereafter amended from time to time,

until paid in full.

                                   ARTICLE IV

                                 USE OF PREMISES

SECTION 4.01 USE OF PREMISES

         Tenant shall use the Space Leased solely for general office purposes.
Tenant shall not use, permit or suffer the use of the Space Leased for any other
business purpose.

                                        9

<page>

Section 4.02 COMPLIANCE WITH LAWS

         Tenant shall comply with all applicable laws, ordinances and
regulations of duly constituted public authorities now elected or hereafter
amended in any manner affecting the Space Lease, whether or not any such laws,
ordinances or regulations which may be hereafter enacted involve a change of
policy on the part of the governmental body enacting the same, Tenant further
agrees it will not permit any unlawful occupations, business or trade to be
conducted on said premises or any use to be made thereof contrary to any law,
ordinance or regulation.

SECTION 4.03 RULES AND REGULATIONS OF BUILDING

         As a condition to use of the premises, Tenant shall comply with all
reasonable written rules and regulation promulgated by Landlord, from time to
time, for all Tenants in the building that are prominently posted in or about
the building, or delivered to Tenant.

SECTION 4.04 ENVIRONMENTAL FACTORS

         (a) Tenant shall not use, keep or permit to be used or kept on the
         Premises any foul or noxious gas or substance and will not permit the
         Premises to be occupied or used in a manner offensive or objectionable
         to the Landlord or other occupants of the Property by reason of noise,
         odors or vibrations. No animals or birds shall be brought in or kept in
         the Premises.

         (b) Tenant shall not engage in or permit the generation, treatment,
         storage or disposal of hazardous substances, including petroleum
         products, in a manner prohibited under any local, state or federal law
         or regulation regarding such hazardous substances including, but not
         limited to, the Resource Conservation Recovery Act and the
         Comprehensive Environmental Response Compensation and Liability Act.

         (c) Tenant shall, at is own expense, comply with any environmental
         cleanup responsibility law or regulation affecting its operation at the
         Premises. Tenant shall indemnify and hold Landlord harmless from any
         cost, claim, damage, or loss of any kind arising from or connected with
         any spill, leakage or discharge of any hazardous substance, including
         petroleum products, that results from Tenant's occupancy. Tenant's
         obligations hereunder shall survive the termination of this Lease.

                                       10

<page>

                                    ARTICLE V

                        MAINTENANCE, REPAIR, ALTERATIONS

SECTION 5.01 COVENANT TO MAINTAIN AND REPAIR

         (a) Tenant shall, during the term of this Lease and any renewal or
         extension thereof, at its sole expense, keep the interior of the Space
         Leased in as good order and repair as it is at the date of the
         commencement of this Lease, reasonable wear and tear and damages by
         accidental fire or other casualty excepted.

         (b) Landlord, during the term of this Lease and any renewal or
         extension thereof, shall keep the structural supports and exterior
         walls of the premises in good order and repair. Landlord shall maintain
         and repair all plumbing, lines and equipment installed for the general
         supply of hot and cold water, heat, ventilation and electricity, except
         that Tenant shall be responsible for any and all repairs attributable
         to obstructions or objects inadvertently introduced or placed in the
         fixtures or lines leading thereto by Tenant, its employees, servants,
         agents, licensees or invitees.

SECTION 5.02 ALTERATIONS, ADDITIONS

         (a) Tenant:

                  1) shall not cut or drill or otherwise deface or injure the
                  building;

                  (2) shall not obstruct or permit the obstruction of any light
                  or skylight in or upon the building, or the adjoining sidewalk
                  or street, or the entrance, or any other part of the building
                  to the exclusive use of which Tenant is not entitled.

                  (3) shall comply with all reasonable regulations of Landlord
                  designed to promote the safety or good order of the building,
                  as to the placing of office machines, or other heavy items, or
                  otherwise;

                  (4) shall not, without the Landlord's prior written consent
                  first obtained in each instance, make any alterations,
                  additions, decorations, or improvements in or about the Space
                  Leased;

                                       11

<page>

                  5) shall not, without the Landlord's prior written consent
                  first obtained in each instance, make any alterations or
                  additions to the (1) electric wiring, (ii) plumbing, heating
                  or ventilating equipment, appliances or systems, (iii) water
                  or gas lines, equipment, appliances or systems, (iv) tap any
                  mains or pipes to supply water for refrigeration or
                  ventilating apparatus, or (v) to any other equipment,
                  machinery, apparatus, or installations in or about the Space
                  Leased or the building.

         (b) Except for movable furniture, equipment and movable trade fixtures
         (which can be removed by Tenant without damage to the Space Leased),
         all alterations, additions or improvements made to the Space Leased by
         Tenant or Landlord, including, but not limited to, partitions,
         wallpaper, paneling and shelving unless Landlord shall otherwise elect
         in writing, shall, at the end of the term hereof, become the property
         of Landlord and be surrendered as part of the Space Leased.

         (c) Tenant shall not, without Landlord's prior written approval, place
         or permit any signs, advertisement(s), trademarks or logo(s) on
         Tenant's (i) corridor or' entrance door(s); (ii) stairwell doors; (iii)
         entrance glass or entrance panel(s), or (iv) entryway(s) or exit doors,
         panels or glass.

SECTION 5.03 PROHIBITION OF LIENS

         Tenant shall not do or suffer anything to be done causing the Space
Leased to be encumbered by liens of any nature, and shall, whenever and as often
as any lien is recorded against said property, purporting to be for labor or
materials furnished or to be furnished to Tenant, discharge the same of record
within ten (10) days after the date of filing.

SECTION 5.04 NOTICE OF NON-RESPONSIBILITY

         Notice is hereby given that Landlord shall not be liable for any labor
or materials furnished or to be furnished to the Tenant upon credit, and that no
lien of any nature or type shall attach to or affect the reservation or other
estate of the Landlord in and to the premises herein demised except for liens
arising automatically and unavoidably by operation of law and paid in accordance
with lawful and customary business practices. At least twenty (20) days before
commencing any work that is or may be the subject of a lien for work done or
materials furnished to the Space Leased, Tenant shall notify Landlord in writing
thereof, to allow Landlord, if it desires, to post and record notices of
non-responsibility to take any other steps the Landlord deems appropriate to
protect its interests. The provisions in this Section do not eliminate the
requirement for written consent(s) of the Landlord, as contemplated in Section
5.02 (a) above.

                                       12

<page>

                                   ARTICLE VI

                            ASSIGNMENT AND SUBLETTING

SECTION 6.01 ASSIGNMENT AND SUBLETTING

         (a) Tenant shall not assign, mortgage or encumber this Lease, in whole
         or in part, or sublet all or any part of the Space Leased without the
         prior written consent of Landlord, which consent will not be
         unreasonably withheld. The consent by Landlord to any assignment or
         subletting shall not constitute a waiver of the necessity for such
         consent to any subsequent assignment or subletting. This prohibition
         against any assignment or subletting shall be constructed to include a
         prohibition against any assignment or subletting by operation of law,
         If this Lease be assigned or if the Space Leased or any part thereof be
         occupied by anybody other than Tenant, Landlord may collect rent from
         the assignee or occupant, and apply the net amount collected to the
         rent herein reserved, but no such assignment, underletting, occupancy
         or collection shall be deemed a waiver of this provision or the
         acceptance of the assignee, undertenant or occupant as tenant, or as a
         release of Tenant from the further performance of the provisions on its
         part to be observed or performed herein_ Notwithstanding any assignment
         or sublease, Tenant shall remain fully liable and shall not be released
         from performing any of the terms of this Lease. Any assignment,
         hypothecation or sublease of the Space Leased, or any part thereof,
         whether by operation of law or other wise without the written consent
         of Landlord shall be voidable at the option of Landlord

         (b) If the Tenant assigns or subleases the premises or any part
         thereof, for all or part of the lease term at a rental rate per square
         foot which is greater than that stated in Article III, the benefit of
         the higher payment shall accrue to the Landlord and shall be paid by
         Tenant to the Landlord. Tenant's responsibility, under Article III
         shall not be reduced by any assignment or sublease at a lesser rental
         rate per square foot than that contained in Article III. The rental
         rate per square foot contained in Article III is calculated by dividing
         the appropriate monthly rent (see Section 3.01) as adjusted by Section
         3.02, by the number of square feet contained in the demised premises.

                                   ARTICLE VII

                     INDEMNITY, LANDLORD LIABILITY INSURANCE

SECTION 7.01 INDEMNITY; LANDLORD LIABILITY

         (a) Tenant shall indemnify, defend and save Landlord harmless from all
         suits, actions, damages, liability and expense in connection with loss
         of life, bodily or

                                       13

<page>

         personal injury or property damage arising from or out of any
         occurrence in, upon, or at, or from the Space Leased, or the occupancy
         or use by Tenant of said premises or any part thereof, or occasioned
         wholly or in part by any act or omission of Tenant, its agents,
         contractors, employees, servants, invitees, licensees or
         concessionaires, including the sidewalks and common areas and
         facilities in or about the building, except and to the extent such
         suits, actions, damages, liability and expense are attributable to the
         sole negligence of Landlord.

         (b) Tenant shall store its property in and shall occupy the Space
         Leased at its own risk, and releases Landlord, to the full extent
         permitted by law, from all claims of every- kind resulting in loss of
         life, personal or bodily injury or property damage, EXCEPT TO THE
         EXTENT SUCH CLAIMS ARE ATTRIBUTABLE TO THE SOLE NEGLIGENCE OF LANDLORD;

         (c) Landlord shall not be responsible or liable, at any time, for any
         loss or damages to Tenant's equipment, fixtures or other personal
         property of Tenant or to Tenant's business unless such loss or damage
         is the result of sole negligence of Landlord, its employees, agents or
         contractors;

         (d) Landlord shall not be responsible or liable to Tenant or to those
         claiming by, through or under Tenant for any loss or damages to either
         the person or property of Tenant that may be occasioned by or through
         the acts or omissions of persons occupying adjacent, connecting or
         adjoining premises;

         (e) Landlord shall not be responsible or liable for any defect, latent
         or otherwise, in the building in which the Space Leased is situated, or
         any of the equipment, machinery, utilities, appliances or apparatus
         therein nor shall it be responsible or liable for any injury, loss or
         damage to any person or to any property of Tenant or other person
         caused by or resulting from bursting, breakage or by or from leakage,
         steam or snow or ice, running or the overflow of water or sewage in any
         part of said premises or for any injury or damage caused by or
         resulting from acts of God or the elements, or for any injury or damage
         caused by or resulting from any defect in the occupancy, construction,
         operation or use of any of said premises, building, machinery,
         apparatus or equipment by any person or by or from the acts of
         negligence of any occupant of the premises, unless Landlord, ITS
         EMPLOYEES, AGENTS OR CONTRACTORS ARE solely negligent;

         (f) Tenant shall give prompt notice to Landlord in case of fire or
         accidents in the Space Leased or in the building of which the Space
         Leased are a part of or defects therein, or in any fixtures or
         equipment;

                                       14

<page>

         (g) In case Landlord shall, without fault on its part, be made a party
         to any litigation commenced by or against Tenant, Tenant shall
         indemnify, defend and hold Landlord harmless therefor and shall pay all
         costs, expenses and reasonable attorney's fees.

         (h) IN CASE TENANT SHALL BE MADE A PARTY TO ANY LITIGATION COMMENCED BY
         OR AGAINST LANDLORD IN WHICH TENANT'S LIABILITY IS ALLEGED TO ARISE
         WITHOUT FAULT ON ITS PART AND SOLELY AS A RESULT OF ITS RELATIONSHIP
         WITH LANDLORD, LANDLORD SHALL INDEMNIFY, DEFEND AND HOLD TENANT
         HARMLESS THEREFOR AND SHALL PAY ALL COSTS, EXPENSES AND REASONABLE
         ATTORNEY'S FEES.

SECTION 7.02 INSURANCE

         Tenant shall maintain, at its own cost and expense:

         (a) FIRE AND EXTENDED COVERAGE in an amount adequate to cover the cost
         of replacement of all decorations, improvements, fixtures and contents
         in the Space Leased in the event afire, vandalism, malicious mischief,
         or other casualty generally included in extended coverage policies.

         (b) PUBLIC LIABILITY INSURANCE on an occurrence basis with minimum
         limits of liability in an amount of One Million Dollars ($1,000,000)
         for bodily injury, personal injury or death to any one or more persons,
         and Fifty Thousand Dollars ($50,000) with respect to damage to
         property.

         LANDLORD SHALL PROVIDE INSURANCE AS SET FORTH IN SECTION
3.02(b)(iii)(A).

SECTION 7.03 INSURED WAIVER, NOTICE

         Any insurance procured by Tenant, as herein required, shall be issued
in the name of Landlord and Tenant by a company licensed to do business in
Alaska subject to these requirements:

         (a) Such insurance may not be canceled or amended with respect to
         Landlord without thirty (30) days written notice by certified or
         registered mail to Landlord by the insurance company;

         (b) Tenant shall be solely responsible for payment of premiums; and

         (c) In the event of payment of any PROPERTY loss covered by such
         policy, payment shall be made to Tenant and Landlord as their interests
         may appear; and

                                       15

<page>

         (d) Shall contain an express waiver of any right of subrogation by the
         insurance company against the Landlord AND/OR name Landlord as
         additional insured, The original policy of all such insurance shall be
         delivered to Landlord by Tenant within ten (10) days of issuance of
         such policy by the insurance company. The minimum limits of any
         insurance coverage required herein shall not limit Tenant's liability
         under Section 7.01.

                                  ARTICLE VIII

                             CASUALTIES, DESTRUCTION

SECTION 8.01 RESTORATION, ABATEMENT

         If all or any part of the Space Leased or the building in which such
Space Leased is situated is damaged or destroyed by fire or other casualty
insured under the standard fire insurance policy Landlord shall repair the same
with reasonable dispatch out of the insurance proceeds received by it from the
insurer. If the Space Leased or any part thereof are damaged by fire or other
casualties to such an extent as to be rendered untenable in whole or in part,
then the rent shall be abated to an extent corresponding with the part
untenable, and for a period corresponding with the period during which such
untenantability exists. If, however, Tenant fails to adjust his own insurance
claim within a reasonable time, and as a result thereof the repairing and
restoration is delayed, there shall be no abatement of rental during the period
of such resulting delay, or if the fire or damage to said premises be caused by
carelessness or negligence or improper conduct of Tenant, then notwithstanding
such damage or destruction, Tenant shall be liable for the rent during the
unexpired period of the demised term, without an abatement.

SECTION 8.02 TERMINATION OF LEASE UPON DAMAGE OR CASUALTY

         (a) If the Landlord, in its sole discretion, shall decide within ninety
         (90) days after the occurrence of a MATERIAL fire or other casualty,
         even though the SPACE LEASED may not have been DAMAGED OR DESTROYED by
         such fire or other casualty, to demolish, rebuild or otherwise replace
         or alter the building containing the SPACE LEASED, then upon written
         notice given by Landlord to Tenant, this Lease shall terminate on a
         date specified in such notice, but not sooner than thirty (30) days
         from the date of such notice, as if that date had been originally fixed
         as the expiration date of the term herein leased.

         (b) In the event of damage to or destruction of or to the Space Leased,
         unless the SPACE LEASED IS CAPABLE OF BEING REPAIRED WITHIN NINETY (90)
         DAYS OR Landlord shall have repaired such damage within ninety (90)
         days, Tenant may, by written notice, terminate this Lease on the date
         specified in such notice, as if that date had been originally fixed as
         the expiration date of the term herein leased, provided such early
         termination date be event of damage or destruction contemplated herein.

                                       16

<page>

                                   ARTICLE IX

                                 EMINENT DOMAIN

SECTION 9.01 GENERAL

         If the whole or a part of the Space Leased shall be taken for any
public or quasi-public us; under any statute, or by right of body vested with
the power of eminent domain, then, when possession shall be taken thereunder of
the Space Leased, or any part thereof, the following provisions, described in
Sections 9.02 through 9.05 shall be operative.

SECTION 9.02 TAKING OF ALL OF PREMISES

         If all of the space Leased is taken the term herein leased and all
rights of the Tenant hereunder shall immediately cease and terminate and the
rent shall be adjusted as of the time of such termination so that Tenant shall
have paid rent up to the time of taking only.

Section 9.03 TAKING OF SUBSTANTIAL PART OF PREMISES

         If the taking reduces the area of the Space Leased by at least fifty
percent (50%) or materially affects the use being made by the Tenant of the
Space Leased, Tenant shall have the right by written notice to Landlord effected
not later than thirty (30) days after possession shall be taken, to elect to
terminate this Lease. And if the taking reduces the area of the Space Leased by
at least fifty percent (50%), Landlord shall have the right, by written notice
to Tenant, effected not later than thirty (30) days after possession shall be
taken, to elect to terminate this Lease.

         (a) If election to terminate be made by either the Tenant or Landlord,
         the provisions for the taking of the whole shall govern, or

         (b) If the election not be made, the Lease shall continue, the Landlord
         shall be entitled to the full condemnation proceeds and the rent shall
         be reduced in the same proportion that the floor area of the Space
         Lease taken bears to the original floor area leased and Landlord shall,
         upon receipt of the award in condemnation, make all necessary repairs
         or alterations to the building in which the Space Leased are located so
         as to constitute the portion of the building not taken a complete
         architectural unit, but such work shall not exceed the scope of the
         work to be done by Landlord in originally constructing said building,
         or shall Landlord, in any event, be required to spend for such work an
         amount in excess of the amount received by Landlord as damages for the
         part of the premises so taken. "Amount received by Landlord" shall mean
         that part of the award in condemnation which is free and clear to
         Landlord of any collection by mortgagees for the value of the
         diminished security.

                                       17

<page>

SECTION 9.04 TAKING OF INSUBSTANTIAL PART

         If the taking reduces the ground area of the Space Leased by less than
fifty percent (50%), the provisions of Section 9.03(b) above (where election not
made) shall govern.

SECTION 9.05 AWARD

         Tenant shall not be entitled to and expressly waives all claim to any
condemnation award for taking, whether whole or partial, except Tenant shall
have the right to claim from the condemnor, but not from Landlord, such
compensation as may be recoverable by Tenant in its on right for damage to
Tenant's fixtures and improvements installed by Tenant at its expense.

                                    ARTICLE X

                                  CONSTRUCTION

SECTION 10.01 CONSTRUCTION OF SPACE LEASED

         Landlord shall, at its own cost and expense, in accordance with the
plans and specifications prepared by Landlord, incorporate in the Space Leased
all items of work, if any, described in Exhibit "B" which is attached hereto and
made a part hereof. If Landlord, upon request of the Tenant, installs or
constructs any items or equipment for Tenant in the Space Leased not contained
in Exhibit "B", such items or equipment shall be paid for by Tenant within
thirty (30) days after receipt of a bill therefor, OR AT THE TENANT'S OPTION,
AMORTIZED OVER THE TERM OF THE LEASE AT A RATE OF 9.875% INTEREST. EXCEPT AS
OTHERWISE STATED IN THE NOTICE HEREINAFTER REFERRED TO, the opening by Tenant of
its business pursuant to the notice received by Tenant, under Section 2.02,
shall constitute an acknowledgment by Tenant that the Space Leased is in the
condition called for by this Lease and Landlord has performed all Landlord's
work with respect thereto.

SECTION 10.02 TENANT'S INSTALLATIONS

         Any work or equipment, other than those items specifically enumerated
in Exhibit "B", shall be performed by Tenant, at its own cost and expense, and
Tenant shall fully equip the Space Leased with all trade equipment, SPECIALTY
lighting fixtures, furniture, operating equipment, furnishings, fixtures and any
other equipment necessary for the proper operation of Tenant's business. All
fixtures installed by Tenant shall be new or completely reconditioned. Tenant
shall not do any construction work or install any equipment without first
obtaining Landlord's plans and specifications for such work at the time approval
is sought. Landlord reserves the right, before approving any such work, to
require Tenant to furnish to Landlord a performance and payment bond issued by a
surety company approved by Landlord.

                                       18

<page>

                                   ARTICLE XI

                              DEFAULT AND REMEDIES

SECTION 11.01 DEFAULT OF TENANT

         Each of the following, but not limited thereto, shall be deemed a
default by Tenant and a breach of this Lease:

         (a) A default in the payment of the rent herein reserved, or any part
         thereof, for a period of ten (10) days.

         (b) A default in the performance of any other covenants or conditions
         on the part of Tenant to be performed, for a period of twenty (20) days
         after the service of notice thereof by Landlord, provided, however,
         that no default on the part of Tenant in the performance of work
         required to be performed or acts to be done or conditions to be
         modified shall be deemed to exist if before the end of such twenty (20)
         day period, Tenant has begun to rectify the same, and thereafter
         prosecutes the curing thereof to completion with diligence and
         continuity.

         (c) The filing of a petition, by or against Tenant, for adjudication as
         a bankrupt Under the Bankruptcy laws, now or hereafter amended or
         supplemented, or for reorganization within the meaning of Chapter X of
         said Bankruptcy laws or the filing of any petition by or against Tenant
         under any future bankruptcy act for the same or similar relief.

         (d) The dissolution, or the commencement of any action or proceeding
         for the dissolution or for liquidation of Tenant, whether instituted by
         or against Tenant, or for the appointment of a receiver or trustee of
         the property of the Tenant

         (e) The taking possession of the property of Tenant by any governmental
         office or agency pursuant to statutory authority for the dissolution or
         liquidation of the Tenant.

         (f) The making by Tenant of an assignment for the benefit of creditors.

         (g) The vacation or abandonment of the premises for a PERIOD OF AT
         LEAST FIFTEEN (15) DAYS BY TENANT.

SECTION 11.02 REMEDIES OF LANDLORD

         In the event of any default of Tenant, as above provided, the Landlord
shall have the following rights or remedies, in addition to any tights or
remedies that may be given to Landlord by statute, law or otherwise:

                                       19

<page>

         (a) Reenter the premises, and take possession thereof.

         (b) Relet the Space Leased in whole or in part for a period equal to,
         or greater or less than the remainder of the original term of this
         Lease, for any sum which may be deemed reasonable

         (c) Declare the leased term ended.

         (d) Distrain for rent due.

         (e) Recover from Tenant such damages attributable to its default from
         the date of such breach to the date of the expiration of the original
         term hereof.

         Reentry or reletting of part or all of the premises as herein provided
is not to be deemed a termination of this Lease unless declared to be so by
Landlord. However, if this Lease be deemed terminated, the Tenant's liability
shall survive, and Tenant shall be liable for damages for the remainder of the
term existing at the said termination date.

                                   ARTICLE XII

                               GENERAL PROVISIONS

SECTION 12.01 WAIVER OF BREACH

         No failure by either Landlord or Tenant to insist upon the strict
performance by the other of any covenant, agreement, term or condition of this
Lease, or to exercise any right or remedies consequent upon a breach thereof,
shall constitute a waiver of any such breach or of such covenant, agreement,
term or condition. No waiver of any breach shall affect or alter this Lease, but
each and every covenant, condition, agreement and term of this Lease shall
continue in full force and effect with respect to any other then existing or
subsequent breach.

SECTION 12.02 SUBORDINATION AND NONDISTURBANCE

         (a) Tenant accepts this Lease subject and subordinate to all the
underlying leases or groundleases, leasehold mortgages, deeds of trust, or other
mortgages now or hereafter a lien upon or affecting the land and building of
which the Space Leased is a part. The Tenant shall, at any time hereafter, on
demand, execute any instruments, releases or other documents that may be
required (i) by any beneficiary, mortgagee or mortgagor, for the purpose of
subjecting and subordinating this Lease to the lien of any such deed of trust,
mortgage or mortgages, or underlying lease, Lessor, groundlessor or
groundlessee; or (ii) alternatively, if any such beneficiary, mortgagee or
mortgagor elects to have this Lease made a prior lien to its mortgage or deed of
trust. The failure of Tenant to execute any such instruments, release or
documents, shall constitute a default hereunder.

                                       20

<page>

         (b) LANDLORD SHALL 1) MAKE ITS BEST EFFORTS TO HAVE EACH EXISTING
SUPERIOR LESSOR AND EACH EXISTING SUPERIOR MORTGAGEE AND 2) HAVE ALL SUBSEQUENT
SUPERIOR LESSORS AND SUPERIOR MORTGAGEES EXECUTE AND DELIVER TO TENANT A
NONDISTURBANCE AGREEMENT IN A RECORDABLE FORM SATISFACTORY TO BOTH LANDLORD AND
TENANT. TENANT AGREES TO ATTORN TO AND RECOGNIZE THE GROUNDLESSOR, MORTGAGEE OR
PURCHASER AT FORECLOSURE SALE (SUCCESSOR LANDLORD) AS TENANT'S LANDLORD FOR THE
REMAINING TERM.

SECTION 12.03 ENTIRE AGREEMENT - CHANGES, WAIVERS

         This agreement supersedes all or any other prior agreements and
understandings between the parties and may not be changed or terminated orally;
and no change termination or attempted waiver of any of the provisions hereof
shall be binding unless in writing and signed by the parties against whom the
same is sought.

SECTION 12.04 CONSTRUCTION OF LEASE

         Words of any gender used in this Lease shall be held to include any
other gender; and words of this singular number shall be held to include the
plural, when the sense requires.

SECTION 12.05 NOTICES

Any notice or demand which, under the terms of this Lease or any statute may or
must be given or made by the parties hereto, shall be in writing and given or
made by mailing the same by registered or certified mail, addressed to the other
party as follows:

         Landlord:          Carr-Gottstein Properties
                            6401 "A" Street
                             Anchorage, Alaska 99518

         Tenant:            Forcenergy Inc
                            ATTN: PRESIDENT
                            Forcenergy Center
                          2730 SW 3rd Avenue, Suite 800
                            Miami, Florida 33129-2237

         Either party may, however, designate in writing such new or other
address to which such notice or demand shall thereafter be given, made or
mailed. Any notice given hereunder by mail shall be deemed delivered when
deposited in the United States general or branch post office, enclosed in a
registered or certified prepaid wrapper addressed as hereinbefore provided.

                                       21

<page>

12.06 ESTOPPEL CERTIFICATES

         Tenant shall, at any time and from time to time, upon not less than
fifteen (15) days prior request by Landlord, execute, acknowledge and deliver to
Landlord a statement in writing certifying that this Lease is modified (or in
full force and effect as modified and stating the modifications) and the dates
to which the rent(s) and any other charges have been paid in advance, it being
intended that any such statement delivered pursuant to this Section may be
relied upon by any prospective purchaser or encumbrancer (including assignees)
of the premises.

SECTION 12.07 EXCUSE FOR NONPERFORMANCE

         Either party hereto shall be excused from performing any or all of its
obligations hereunder with respect to any repair and construction work required
under the terms of this Lease, for such times the performance of any such
obligation is prevented or delayed by an act of God, floods, explosion, war,
invasion, insurrection, riot, mob violence, sabotage, inability to procure
labor, equipment, facilities, materials or supplies in the open market, failure
of transportation, strikes, lockouts, action by labor unions, or laws or order
of governmental agencies, or any other cause whether similar or dissimilar to
the foregoing which is not within the reasonable control of such party.

SECTION 12.08 BROKER

         Tenant represents it has not had any dealings with any realtor, broker,
agent or finder, in connection with the negotiation of this Lease, excepting
only Jackson Brayton and Carr-Gottstein Properties.

SECTION 12.09 TIME OF ESSENCE

         Time is of the essence of each and every provision hereof.

SECTION 12.10 BINDING EFFECT

         This Lease, subject to the provisions of Section 6.02, shall be binding
upon and inure to the benefit of the parties hereto, their legal
representatives, successor and assigns.

SECTION 12.11 EFFECTIVE DATE

         This Space Lease shall be effective the instant the dated signatures of
both Landlord and Tenant are affixed hereto.

                                       22

<page>

SECTION 12.12 SUITE SIGNAGE

         Tenant shall not install, display or thereafter maintain any sign or
other display which is visible from outside the Leased Space unless said sign or
display (1) conforms to the sign regulations established by Landlord which are
attached as an Exhibit "C" to this Lease, and (2) said sign or display has been
expressly approved by Landlord in advance to its installation.

SECTION 12.13 EXTERIOR SIGNAGE

         Landlord shall, at its sole cost and expense, provide Tenant signage on
a Landlord designed multi-tenant lighted monument sign in the courtyard area at
the front entrance of the building. Design of Tenant's sign shall be mutually
agreed upon by both parties.

SECTION 12.14 RIGHT TO ADJACENT SPACE

         (a) Tenant shall have the right to lease adjacent space of suites 703
and 708. The lease term for the current tenant of Suite 708 expires on May 31,
1998. Tenant shall advise Landlord of its intent to exercise this option to
lease Suite 708 no later than December 1, 1997. Landlord has the right to
relocate the Tenant of Suite 703 to comparable space in the building. AT ANY
TIME DURING THE LEASE TERM, Tenant shall give Landlord no less than one hundred
eighty (180) days written notice of its intent to take the space in Suite 703.
Landlord shall not be obligated to provide this space in the event no other
comparable space exists in the building, The monthly rent for expansion space
shall be the same as the lease rate and terms applicable to the Premises. Should
Tenant occupy the full floor, the monthly rent will be at the lease rate and
terms applicable to the Premises times 12,315 square feet. In addition, Landlord
shall provide a Tenant Improvement Allowance for expansion at a prorated amount
based on Thirty-three Cents ($0.33) per square foot of expansion space per month
for each month remaining of the initial lease term. This Tenant Improvement
Allowance includes any costs incurred by Landlord for relocating the existing
tenant from suite 703, WHICH COSTS SHALL NOT EXCEED THE ESTIMATE PROVIDED TENANT
UNDER SECTION 12.14(b). The amount of actual costs incurred by Landlord shall be
supplied to Tenant within sixty (60) days after the build-out occurs. Tenant
shall pay all costs in full which exceed this Tenant Improvement Allowance
within thirty (30) days from date of invoice.

         (b) LANDLORD WILL PROVIDE THE ESTIMATED COST TO TENANT FOR RELOCATING
THE TENANT FROM SUITE 703 WITHIN THIRTY (30) DAYS FROM THE DATE TENANT HAS GIVEN
NOTICE OF ITS INTENT TO TAKE THE SPACE AS HEREINABOVE PROVIDED. TENANT SHALL
HAVE TEN (10) DAYS FROM RECEIPT OF THESE ESTIMATED COSTS TO ACCEPT OR DECLINE
SUITE 703 FOR ITS EXPANSION. IF THE ESTIMATED COSTS TO RELOCATE THE TENANT FROM
SUITE 703 DO NOT EXCEED THIRTY THOUSAND DOLLARS AND NO/100 ($30,000.00) AND
TENANT DECLINES EXPANSION INTO SUITE 703, TENANT'S RIGHT TO TERMINATE THIS LEASE
AS SET FORTH IN SECTION 12.15(a) SHALL NOT APPLY.

SECTION 12.15 TERMINATION OPTION

         Tenant has the right to terminate the Lease after the first two (2)
years of the initial term. Tenant shall give to Landlord, is writing, at least
One Hundred Twenty (120) days prior to the

                                       23

<page>

date of termination, notice of its intent to exercise this option. This right to
terminate shall be set forth as follows:

                  (a) If Landlord is unable to provide for Tenant's actual
         expansion requirements within the Building ON CONTIGUOUS FLOORS to the
         Space Leased AT THE LEASE RATE AND TERMS APPLICABLE TO THE PREMISES
         INCLUDING A TENANT IMPROVEMENT ALLOWANCE FOR EXPANSION AT A PRORATED
         AMOUNT BASED ON THIRTY-THREE CENTS ($0.33) PER SQUARE FOOT OF EXPANSION
         SPACE PER MONTH FOR EACH MONTH REMAINING OF THE LEASE TERM, Tenant may
         terminate the Lease by first paying the unamortized balance of actual
         Tenant Improvement costs, relocation expenses (EXCLUDING THE INITIAL
         SPACED LEASE EXCEPT SUITE 705), IF ANY, PAID BY LANDLORD AND NOT
         REIMBURSED BY TENANT to make SPACE LEASED available to Tenant and real
         estate commissions paid by Landlord for the initial Space Leased and
         any expansion space. The amount of the actual TENANT IMPROVEMENT costs,
         RELOCATION EXPENSES (EXCLUDING THE INITIAL SPACE LEASED EXCEPT SUITE
         705), IF ANY, PAID BY LANDLORD TO MAKE SPACE LEASED AVAILABLE TO TENANT
         AND REAL ESTATE COMMISSIONS incurred by Landlord shall be supplied to
         Tenant within sixty (60) days after the build-out occurs. Landlord may
         reinstate the Lease within the first thirty (30) days of the One
         Hundred Twenty (120) day notice period by committing to make space
         available for expansion by Tenant within Sixty (60) days after the end
         of the termination date included in Tenant's notice.

                  (b) Should Tenant terminate for any reason other than Landlord
         being unable to provide expansion space, then Tenant shall pay to
         Landlord, in addition to the costs as set forth hereinabove, as
         liquidated damages, in an amount equal to two (2) times the current
         base monthly rent at the time the notice for termination is given. This
         does not include expense adjustment rent UNDER SECTION 3.02.

         IN WITNESS WHEREOF, the parties have executed this Space Lease the day
and year set opposite their respective signatures.

         LANDLORD:                        CARR GOTTSTEIN PROPERTIES, an Alaska
                                          general partnership

Date: 3/05/97                             By: /s/ Robert A. Mintz
                                              ----------------------------------
                                              Robert A. Mintz
                                              Its Authorized Agent

         TENANT:                          FORCENERGY INC, a Delaware corporation

Date: 2-24-97                             By: /s/ Stig Wennerstrom
                                              ----------------------------------
                                              Stig Wennerstrom
                                              Its President

                                       24<page>

EXHIBIT 10.83

                         FIRST AMENDMENT TO SPACE LEASE

                            Carr-Gottstein Building

                                 Forcenergy Inc

         This First Amendment to Space Lease, dated this 1st day of May, 1998.
between CARR GOTTSTEIN PROPERTIES, a general partnership "Landlord" and
FORCENERGY INC, a Delaware corporation, "Tenant" is attached to and made part of
that certain Space Lease dated March 5, 1997, between Landlord and Tenant
concerning premises located in the Carr-Gottstein Building located at 310 "K"
Street, Suite 700, Anchorage, Alaska consisting of approximately 8,328 square
feet (Spaced Leased).

         IT IS HEREBY AGREED that the following sections of the above-referenced
Space Lease shall be amended as follows:

1. SECTION 1.01(a) DESCRIPTION OF SPACE LEASED.

         With the execution of this amendment, Tenant desires to expand its
lease space by 3,987 spare feet, as generally depicted on Exhibit "A-1",
attached hereto and by this reference made a part hereof. Upon execution of this
First Amendment Tenant's lease space shall consist of a full floor for a total
of 12,315 rentable square feet as provided for in Section 12.14(a) of the Lease.

2. SECTION 2.02 COMMENCEMENT OF TERM.

         The term for the expansion space shall commence June 1, 1998, and shall
run concurrent with the initial lease term through May 31, 2002.

3. SECTION 12.14 RIGHT TO ADJACENT SPACE.

         With the execution of this First Amendment, Tenant shall have exercised
its option for adjacent space. This section of the Lease, in its entirety, shall
no longer apply.

4. SECTION 3.01 COVENANT TO PAY RENT.

         Tenant covenants to and shall pay to Landlord in care of Carr Gottstein
Properties, 6401 "A" Street, Anchorage, Alaska 99518, or at such other place as
Landlord may designate, in advance, on the first day of each calendar month
during the term hereof, monthly rent as follows:

                                       1

<page>

         The monthly rent for the remainder of the initial lease term including
the expansion space shall be as follows:

     Lease Term          Rate           Monthly Rent        Annual Rent
     ----------          ----           ------------        -----------
06/01/98 - 05/31/02      $1.75/sf       $21,551.25          $258,615.00

5. SECTION 10.01 CONSTRUCTION OF SPACE LEASED.

         As provided for in Section 12.14(a) of the Lease, Landlord shall
provide a Tenant Improvement Allowance in the amount of $63,154.08 for Tenant's
expansion of the lease space. The amount of actual costs incurred by Landlord
shall be supplied to Tenant within sixty (60) days after the build-out occurs.
Tenant shall pay all costs in full which exceed this Tenant Improvement
Allowance within thirty (30) days from date of invoice.

         Except as specifically stated above, all the terms, covenants and
conditions of the original Space Lease dated March 5, 1997 for the
Carr-Gottstein Building shall remain in full force and effect.

         IN WITNESS WHEREOF, the parties have executed this First Amendment to
Space Lease on the day and year first above-written.

                    LANDLORD:           CARR GOTTSTEIN PROPERTIES, a general
                                        partnership

Date: 5/01/98                           By: /s/ Robert A. Mintz
                                            ------------------------------------
                                            Robert A. Mintz
                                            Its Authorized Agent

                    TENANT:            FORCENERGY INC, a Delaware corporation

Date: April 15, 1998                   By: /s/ Stig Wennerstrom
                                           -------------------------------------
                                           Stig Wennerstrom
                                           Its President

                                       2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]