Document:

Exhibit 10.3

                                                                                                                            Exhibit
      10.3

     

    
 

    PARTICIPATION
      AGREEMENT

    

    THIS
      AGREEMENT made this 13th day of August 2005

    

    BETWEEN:

    VEGA
      RESOURCES LTD.,
      a body
      corporate, having an office in the City of Calgary in the Province of Alberta
      

    (herein
      called the "Grantor")

    

    OF
      THE
      FIRST PART

    AND

    

    QUEST
      CANADA CORP.,
      a body
      corporate, having an office in the City of Vancouver in the Province of British
      Columbia,

    (hereinafter
      called the "Participant")

    

    OF
      THE
      SECOND PART

    

    WHEREAS
      pursuant to an Agreement (hereinafter referred to as "the Farmout Agreement")
      dated the 21st
      day of
      January, 2005, and made between Hanna Oil and Gas Company -Canada, Inc, Firefly
      Resources Ltd. and Moraine Resources Ltd. (hereinafter collectively referred
      to
      as the “Farmor”) and the Grantor (hereinafter sometimes referred to as the
“Farmee”), it is provided that the Farmee, by performing certain obligations
      contained in the Farmout Agreement, will become entitled to earn an interest
      in
      certain title documents and the lands associated therewith, all as more
      particularly described in the Farmout Agreement (a true and correct copy of
      which is attached hereto as Schedule "A");

    

    AND
      WHEREAS the Participant desires to participate with the Grantor as if the
      Participant had been the Farmee in the Farmout Agreement, by assuming a share
      of
      the obligations therein contained and an interest in the lands
      thereunder.

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the premises and
      of
      the covenants and agreements of the parties hereinafter set forth, the parties
      do hereby covenant and agree as follows:

    

    1.
       INTERPRETATION

    

    
      	 	
              (a)

            	
              The
                headings of the clauses of this Agreement are inserted for convenience
                of
                reference only and shall not affect the meaning or construction
                thereof.

            

    

    

    
      	 	
              (b)

            	
              The
                terms and expressions used herein shall have the same meanings as
                are
                ascribed to such terms and expressions under the Farmout
                Agreement.

            

    

    

    
      	 	
              (c)

            	
              Wherever
                the plural or masculine or neuter is used the same shall be construed
                as
                meaning singular or feminine or body politic or corporate, or vice
                versa
                as the context so requires.

            

    

    

    2.
       APPOINTMENT
      OF OPERATOR

    The
      Participant is appointed Operator, as between the Grantor and the Participant,
      with respect to all operations conducted hereunder; however, the Grantor shall
      have the joint authority with the Participant to deal with the Farmor on behalf
      of the parties in respect of matters arising out of the Farmout
      Agreement.

    

    3. 
      FARMOUT
      AGREEMENT

    

    Except
      as
      modified by the terms of this Agreement, the Terms and conditions of the Farmout
      Agreement together with its operating provisions shall control the operation
      of
      the parties and shall be deemed to be incorporated herein.

    
      
        
        

      

      
        1

        
          
                                                                                                                   Exhibit
          10.3

      

      
        
        

      

    

    

    4.
       TRUST
      CONDITIONS AND TERM

    

    The
      Grantor agrees that, to the extent that the present assignment of the Grantor’s
      rights and obligations under the Farmout Agreement is not formally recognized
      and recorded by the Farmor, the Grantor shall hold the Participant’s interests
      in the Farmout Agreement, Farmout Lands and Option Lands, as the case may be,
      in
      trust for the Participant and shall ensure that all performance by the
      Participant under the terms of this Agreement and the Farmout Agreement are
      noted and recorded as the due performance of the Farmee under the Farmout
      Agreement. If requested by the Participant, the Grantor agrees to record this
      trust in writing pursuant to a trust agreement (in the form attached to the
      Farmout Agreement as Schedule “E”, amended as applicable to reflect the
      interests of the Participant in the Farmout Lands and Option Lands, as they
      exist from time to time) until such time as the interests of the Participant
      in
      the Farmout Agreement, Farmout Lands and Option Lands, as applicable, may be
      formally recorded.

    

    5. 
      PARTICIPATING
      INTEREST

    

    The
      Participant shall assume all of the obligations of the Grantor under the Farmout
      Agreement, excluding the test well, which well has already been drilled, and
      the
      Participant shall thereby be entitled to 100% of the benefits and interests
      earned by the Farmee under the Farmout Agreement other than the lands earned
      by
      the test well as follows: Sections 9, 15,16 and 21-24-2w4m,

    subject
      to the payment to the Grantor of a $10 fee for geological consulting and
      prospect engineering services (to be paid upon the execution of this Agreement)
      and the reservation of a 3% Gross Over-Riding Royalty by the Grantor, as more
      particularly set out in Schedule “B” attached hereto..

    

    6. 
      OPTION
      WELL(S)

    

    
      	 	
              (a)

            	
              The
                Participant shall drill the 12-15-24-2w4m well, which is an Option
                Well
                under the Farmout Agreement, as if it were an earning well and the
                provisions of clause 5 hereto will apply to this well. If the Participant,
                in its absolute discretion, wishes to proceed with the drilling of
                further
                Option Well (s), the provisions of clause 5 hereto will apply to
                the
                Option Well (s) drilled on the Farmout Lands and/or Option Lands,
                as the
                case may be. The 12-15-24-2w4m well shall earn the following lands:
                Sections 10, 15, 22 and 23-24-2w4m.

            

    

    

    
      	 	
              (b)

            	
              If
                the Participant does not wish to proceed with the drilling of further
                Option Well (s), then the Grantor shall be free to do so independently,
                provided there is no resulting liability to the Participant. The
                Grantor
                shall be solely responsible for all costs, expenses and liabilities
                thereby incurred and shall be entitled to all benefits and interests
                pursuant to the Farmout Agreement that are earned as a
                result.

            

    

    

    

    7. 
      SELETION
      OF WELL LOCATIONS

    

    The
      parties agree to meet from time to time to discuss ongoing operations under
      the
      Farmout Agreement including selection of further well locations. Notwithstanding
      such discussions, should the parties fail to agree on the location of an earning
      well then the Participant’s choice shall be binding upon the
      parties.

    

    8. 
      GRANT
      AND CREDITS

    

    Any
      credits or grants allowable under any acts, rules, regulations or other laws
      of
      the Province of Alberta and/or Canada shall be shared by the parties in
      accordance with the manner in which the parties bear the cost of operations
      which give rise to the generation of such credits or grants.

    
      
        
        

      

      
        2

        
          
                                                                       Exhibit
          10.3

      

      
        
        

      

    

    

    9. 
      ASSIGNMENT
      BY PARTICIPANT

    

    The
      Participant shall not assign its rights under this Agreement in whole or in
      part
      without first obtaining the written consent of Grantor which consent may not
      be
      unreasonably withheld. Notwithstanding any assignment by the Participant, the
      Grantor will always look to the Participant for performance of any duties and
      obligations required to be carried out by the Participant under this Agreement
      during the Test Well phase of the Farmout Agreement, unless otherwise agreed
      to
      in writing by Grantor.

    

    10. 
      OTHER
      ENCUMBERANCES

    

    If
      the
      interest of either party in the Farmout Lands hereafter shall become encumbered
      by any royalty, production payment or other charge of a similar nature, other
      than the royalties as set forth under the Farmout Agreement, such royalty,
      production payment or other charge shall be charged to and paid entirely by
      the
      party whose interest is or becomes thus encumbered.

    

    11. 
      WARRANTY
      OF TITLE

    

    The
      Grantor makes no representation or warranties as to its or Farmor's title to
      the
      Farmout Lands and Option Lands but covenants that they are encumbered only
      to
      the extent noted in the Farmout Agreement.

    

    During
      the term of this Agreement, no party shall do or cause to be done any act nor
      make or cause to be made any omission whereby the Farmout Lands or Option Lands
      become encumbered in such a way as to adversely affect the interests of the
      other parties, or become subject to termination or forfeiture.

    

    12. 
      NO
      PARTNERSHIP

    

    The
      rights, duties, obligations and liabilities of the parties shall be several
      and
      not joint or collective, it being the parties' express purpose and intention
      that nothing herein shall be construed as creating a partnership of any kind
      or
      imposing upon any party hereto any partnership duty, obligation or liability
      to
      the other party.

    

    13. 
      NOTICE
      PERIODS

    

    The
      parties will endeavor on a bonafide basis to meet at least five (5) days prior
      to the date when either any election must be made or any notice must be sent
      to
      the Farmor, for the purposes of discussing such election or notice in order
      to
      enable Grantor, on behalf of the parties, to comply with the provisions of
      the
      Farmout Agreement.

    

    14. 
      FURTHER
      ASSURANCE

    

    Each
      of
      the parties shall at all times do all such further acts and deliver all such
      further deeds and documents as shall be reasonably required in order to fully
      perform and carry out the terms of this Agreement.

    

    15. 
      NOTICE

    

    Notwithstanding
      anything to the contrary contained herein, all notices required or permitted
      hereunder shall be in writing. Any notice to be given hereunder shall be deemed
      to be served properly if served in any of the following modes:

    

    
      	 	
              a)

            	
              personally,
                by delivering the notice to the Party on which it is to be served
                at that
                Party's address for service; or

            

    

    

    
      	 	
              b)

            	
              by
                telecopy or telex (or by any other like method by which a written
                message
                may be sent) directed to the party on which it is to be served at
                that
                Party's address for service. A notice so served shall be deemed to
                be
                received by the addressee when actually received by it, if received
                within
                normal business hours on any day other than a Saturday, Sunday or
                statutory holiday in Alberta or at the commencement of the next ensuing
                business day following transmission if such notice is not received
                during
                such normal business hours; or

            

    

    

    
      	 	
              c)

            	
              by
                mailing it first class (air mail if to or from a location outside
                of
                Canada) registered post, postage prepaid, directed to the Party on
                which
                it is to be served at that Party's address for service. Notices so
                served
                shall be deemed to be received by the addressee at noon, local time,
                on
                the earlier of the actual date of receipt or the fourth (4th)
                day (excluding Saturdays, Sundays and statutory holidays in Alberta)
                following the mailing thereof. However, if postal service is (or
                is
                reasonably anticipated to be) interrupted or operating with unusual
                delay,
                notice shall not be served by such means during such interruption
                or
                period of delay.

            

    

    

    16. 
      ADDRESS
      FOR SERVICE

    

    The
      address for service of notices hereunder of each of the Parties shall be as
      follows:

    

    Grantor:       
      Vega
      Resources Ltd.

    5008
      Varsity Drive N.W.

    Calgary,
      Alberta T3A 1A5

    Facsimile:
      (403) 286-2139

    

    Participant:  
Quest
      Canada Corp.

     1600
      - 1188 W. Georgia

     Vancouver,
      B.C.

     Facsimile:
      (604) 608-3526

    

    A
      Party
      may change its address for service by notice to the other Party, and such
      changed address for service thereafter shall be effective for all purposes
      of
      this Agreement.

    

    17. 
      INSURANCE

    

    The
      parties shall individually carry insurance with a reputable insurance company
      in
      the manner and in the amounts set out in the Operating Procedure. To the extent
      of its cost sharing interest, the Participant agrees to be covered by Grantor's
      "Control of Well" insurance and Grantor agrees to make suitable arrangements
      in
      that regard. Participant will bear and pay its proportionate share of such
      coverage at cost.

    

    18. 
      SUCCESSORS
      AND ASSIGNS

    

    This
      Agreement shall enure to the benefit of and be binding upon the parties hereto
      and their respective successors and permitted assigns.

    

    19. 
      PROPER
      LAW

    

    This
      Agreement and the relationship between the parties shall be construed and
      determined according to the laws of the Province of Alberta, and the courts
      having original jurisdiction with respect to any matter or thing arising
      directly or indirectly relating to this Agreement shall be the courts of the
      Province of Alberta.

    

    20. 
      SUPERCESSION

    

    This
      Agreement supercedes and replaces all other agreements, documents, writings
      and
      verbal understandings between the parties with respect to the subject matter
      of
      this Agreement.

    
      
        
        

      

      
        3

        
          
                                                                                                                       Exhibit
          10.3

      

      
        
        

      

    

    

    21. 
      COUNTERPARTS

    

    This
      Agreement may be executed in counterparts and by facsimile.

    

    IN
      WITNESS WHEREOF the parties hereto have caused this Agreement to be executed
      as
      of the day and year first written above.

    

    

    VEGA
      RESOURCES LTD.   QUEST
      CANADA CORP.

    

    per:__________________________  per:_____________________________

    

    

    per:__________________________  per:_____________________________

    

    

    

    Signature
      page to Participation Agreement dated August 13, 2005 between Vega Resources
      Ltd. and Quest Canada Corporation. SCHEDULE
      A

    
      
        
        

      

      
        4

        
          
                                                                           Exhibit
          10.3

      

      
        
        

      

    

                                                                    SCHEDULE
      A

    to
      the
      Participation Agreement between Vega Resources Ltd. and

    Quest
      Canada Corp., dated August 13, 2005

    

    Copy
      of Farmout Agreement 

    

    
      	  	
              -attached
                hereto -

            

    

     

    
       

      
        
          
          

        

        
          5

          
            
                                                                                                                          Exhibit
            10.3

        

        
          
          

        

      

      
                                                                               

      

      
 

    

    SCHEDULE
      B

    

    to
      the
      Participation Agreement between Vega Resources Ltd. and

    Quest
      Canada Corp., dated August 13, 2005

    

    Gross
      Over-Riding Royalty

     

    1997
      CAPL FARMOUT AND ROYALTY PROCEDURE

     

     

    ELECTIONS
      AND AMENDMENTS

     

    
      
        

      

    1. 
      EFFECTIVE
      DATE [Subclause
      1.01(f)]:
      January 21, 2005

    

    
      	2. 	
               
                PAYOUT
                [Subclause ]
                Alternate ______-
                Will
                not apply

            

    

    

    3. 
      INCORPORATION
      OF CLAUSES FROM 1990 CAPL OPERATING PROCEDURE [Clause
      1.02]

    

    Clause
      311 (Insurance) - Alternate A.

    

    Add
      Subclause 311h:

    

    “In
      addition to the policies of insurance required under Clause 311A of the
      Operating Procedure, Farmee shall obtain and maintain control of well insurance
      to the extent of a minimum of three million dollars ($3,000,000) with respect
      to
      each well drilled hereunder and each such policy shall also include the waivers
      of subrogation required by Clause 311A of the Operating Procedure. All costs
      of
      insurance maintained by Farmee pursuant to this Clause shall be borne solely
      by
      Farmee and, upon request of Farmor, Farmee shall promptly provide Farmor with
      evidence that such insurance is maintained by Farmee, including a copy of any
      particular policy of insurance if so requested by Farmor.”

    

    4. 
      OPTION
      WELLS [Article
      4.00]

    

    This
      optional Article 4.00 will X
      / will
      not __ apply herein.

    

    5. 
      OVERRIDING
      ROYALTY [Article
      5.00]

    

    This
      optional Article 5.00 will X
      / will
      not __ apply herein. 

    

    6. 
      QUANTIFICATION
      OF OVERRIDING ROYALTY [Clause
      5.01]

    

    for
      crude
      oil, Alternate 1
      will
      apply 

    

    Alternate
      1: 3%
      of gross
      monthly production; or

    Alternate
      2: ___
      (divisor); not less than __%
      and not
      more than __%

    

    for
      all
      other Petroleum Substances, Alternate 1
      will
      apply

    

    Alternate
      1: 3%
      of gross
      monthly production; or

    Alternate
      2: if not taken in kind: ____% of gross monthly production; or

        if
      taken in
      kind ____% of gross monthly production

    
      
        
        

      

      
        6

        
          
                                                                                                                   Exhibit
          10.3

      

      
        
        

      

    

    

    7. 
      ROYALTY
      PAYOR’S ALLOWED DEDUCTIONS OF OVERRIDING ROYALTY NOT TAKEN IN KIND
[Subclause
      5.04B] 

    
 

    
      	 DEDUCTIONS
              (5.04 B) Alternates:	 
	
               1
                only

            	 
	 2
              only	 
	 1
              and
              2                                	X 
	 neither
              1 nor 2	 

    

     

    Alternate
      2 - 20%

    Marketing
      Fees are not an allowed deduction.

    

    

    8. 
      ROYALTY
      OWNER’S RIGHTS UPON SURRENDER [Subclause
      5.08] 

    

    Add
      new
      paragraph:

    

    “Surrender
      in this Clause shall include the Royalty Payor’s intention not to make
      application to continue a Title Document beyond its primary term. The Royalty
      Owner shall have the right for fifteen (15) days from the date of such surrender
      notice to request an assignment from the Royalty Payor of the interest that
      it
      desires to surrender. From and after the date of such surrender or assignment
      the Royalty Payor shall be discharged of, from and against any and all
      obligations with respect to the interests so surrendered or assigned to the
      extent that such obligations are attributable to the period commencing with
      the
      date of the surrender or assignment, and the lands and the leases as
      hereinbefore defined, shall thereafter be deemed to exclude the interests so
      surrendered or assigned. The provisions of this Clause shall be subject to
      the
      Title Documents covering the lands and in the event of conflict, the provisions
      of the Title Documents shall prevail.”

    

    9. 
      CONVERSION
      OF OVERRIDING ROYALTY [Article
      6.00] 

    

    This
      optional Article 6.00 will  
      / will
      not X
      apply
      herein

    

    

    10. 
      OPERATIONS
      AT CONVERSION

    

    N/A

    

    

    11. 
      AREA
      OF MUTUAL INTEREST [Article
      8.00]

    

    This
      optional Article 8.00 will X/
      will
      not ___ apply herein.

    

    12. 
      LIABILITY
      AND INDEMNITY [Article
      10.00]

    

    Add:

    

    “10.03
      Survives Termination

    This
      Article shall survive the termination of the Agreement until Farmee has fully
      and properly abandoned all well sites, surface and subsurface facilities on
      the
      Farmout Lands or used in connection with production from the Farmout Lands
      in
      accordance with the regulations and has fully restored the surface for such
      well
      sites, surface and subsurface facilities in accordance with the
      regulations.”

    
      
        
        

      

      
        7

        
          
                                                                           Exhibit
          10.3

      

      
        
        

      

    

    

    13. 
      LAND
      MAINTENANCE COSTS [Clause
      11.02]

    

    This
      optional Clause 11.02 will X
      / will
      not __ apply herein.

    

    The
      Farmee will pay the Farmor $__________ with 30 days of Effective
      Date.

    

    Add:

    

    “Farmee
      shall be responsible for all rentals on a per diem basis payable on the Title
      Documents from the Effective Date until Farmee has earned an interest in the
      Farmout Lands and or the Option Lands or until Farmee’s right to earn any
      further interest is terminated or surrendered. Thereafter Farmee and Farmor
      shall pay all rentals and taxes on those Farmout Lands and Option Lands that
      Farmee has earned an interest in proportionate to the working interests they
      hold in such Farmout Lands and Option Lands.”Exhibit 10.1

    THIS
      AGREEMENT MADE THIS 12 DAY OF August, 2005

    

    BETWEEN

    

    Quest
      Canada Corp.

    

    (the
      "Company")

    

    AND

    

    TransAction
      Oil & Gas Ventures Inc.

    

    (the
      "Operator")

    

    

    WHEREAS
      THE Company hereby engages the services of the Operator and the Operator agrees
      to provide services to the Company as described on Schedule A attached hereto.
      (collectively the "Services") 

    

    AND
      IN
      CONSIDERATION of the performance by the Operator of the Services under this
      Agreement the Company agrees to compensate the Operator for its time, material
      and Services in accordance with the terms outlined in Schedule B. 

    

    This
      Agreement covers Services rendered by the Operator covering the drilling of
      a
      test well on the prospects as outlined in Schedule C, including all follow
      up
      wells. This Agreement may be terminated at any time by either party for breach
      or neglect of duty by the other, which is not remedied within 30 days after
      written notice by either party. No termination shall prejudice the Operator's
      rights to payments for Services completed prior to the effective date of
      termination. 

    

    All
      services shall be performed under this Agreement by the Operator in its capacity
      as an independent contractor and not as an employee of the Company. The Operator
      shall supervise the performance of its Services and shall be entitled to control
      the manner and means by which it's Services are to be performed subject to
      compliance with the Agreement. 

    

    The
      Operator acknowledges that in the course of this Agreement it shall have access
      to confidential and proprietary information of the Company which the Company
      will make available to the Operator or which will come into possession of the
      Operator in carrying out its Services ("Confidential Information") and Operator
      agrees not to disclose or disseminate the Confidential Information without
      the
      express prior written consent of the Company. The "Confidential Information"
      shall not include such information as is or becomes part of the public domain
      through no action of omission of the Operator, which becomes available to the
      Operator from third parties without knowledge by the Operator, of any breach
      of
      fiduciary duty, or which the Operator had in its possession prior to the date
      of
      this Agreement. 

    

    All
      notices under this Agreement shall be sent by first class mail, overnight
      courier or confirmed email to the addresses specified below: 

    

    
      	To Company: 	To Operator:
	Quest Canada
              Corp. 	TransAction Oil & Gas Ventures
              Inc.
	Suite 1650, 1188 W. Georgia St. 	445,
              708 - 11 Avenue SW
	Vancouver, B.C.	Calgary,
              AB 
	V6E 4A2 	T2R 0E4
	Attention: Cameron King	Attention:
              Herb Miller
	Phone:  1-866-264-7668	
              Phone:
                 403-263-9270
                

            
	Fax: 1-800-868-0402 	Fax: 403-266-4259
              
	Email:  cking@questoil.com	Email:
              miller@taog.ca 

    

     

    

    This
      is
      the complete Agreement and supersedes all prior and contemporaneous
      understandings relating to the subject matter thereof, may not be amended or
      modified except in writing and shall be governed by the laws of Alberta, Canada.
      

    

    

    

    

    Quest
      Canada Corp.

    By:
       

    Cameron
      King

    President
      and CEO

    

    

    TransAction
      Oil & Gas Ventures Inc.

    

    By:
      _____________________

    Herb
      Miller, P. Geol 

    President

    

    

    

    

    

    

    

    TA-155

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      A

    

    

    (made
      part of an Agreement between Quest Canada Corp., and TransAction Oil & Gas
      Ventures Inc. dated August 12, 2005.)

    

    The
      Operator will provide all the services normally expected of an operator under
      CAPL, in the preparation for, design, coordination, drilling and abandonment
      or
      completion of specified wells to be drilled on behalf of the Company, including
      but not limited to the following:

    	a)  	
            Land

          

    

    
      	 	
              i)

            	
              Secure
                surface lease and survey 

            

    

    
      	 	
              ii)

            	
              Road
                and Lease construction

            

    

    	b)  	
            Engineering
              & Geological

          

    

    
      	 	
              i)

            	
              provide
                geological prognosis 

            

    

    
      	 	
              ii)

            	
              design
                drilling program

            

    

    	iii)  	
            design
              completion program 

          

    

    	c)  	
            Program
              Management

          

    

    
      	 	
              i)

            	
              Oversee
                land services

            

    

    
      	 	
              ii)

            	
              Secure
                AEUB drilling licence

            

    

    	iii)  	
            Acquire
              well insurance 

          

    	iv)  	
            Contract
              all drilling and completion services 

          

    	v)  	
            Engage
              and oversee wellsite supervision and
              operation

          

    	vi)  	
            Provide
              formation evaluation (logs, cores, dst) and provide recommendation
              as to
              further action (testing, run casing, abandon,
              etc)

          

    	vii)  	
            Prepare
              and submit all required AEUB reporting 

          

    	viii)  	
            Regular
              reporting to partners

          

    

    	d)  	
            Production

          

    

    	i)  	
            as
              the well operator, we are prepared to tie-in and produce the well and
              market production under a separate agreement, to be mutually agreed
              upon
              by both parties.

          

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      B

    

    

    (made
      part of an Agreement between Quest Canada Corp., and TransAction Oil & Gas
      Ventures Inc. dated August 12, 2005.)

    

    In
      consideration of the services provided, the Operator will be compensated as
      follows: 

    

    	a)  	
            The
              Operator will be paid for his services as a project manager and
              responsible operator through a fee amounting to a 121⁄2% surcharge on the
              AFE, including overhead charges in accordance with CAPL guidelines.
              

          

    

    	b)  	
            The
              Operator will be assigned and granted a 5 percent carried working interest
              (CWI) in the initial well (and any follow up wells) under the following
              terms.

          

    	i)  	
            The
              CWI will be exempt from all capital
              requirements.

          

    	ii)  	
            Revenues
              to the CWI will commence on first production and be net of all royalties
              and operating expenses.

          

    	iii)  	
            The
              CWI will apply over the entire life of the well, from spudding of well,
              during production and through abandonment and restoration of the
              lease.

          

    	iv)  	
            Any
              expenses in a given month which exceeds the revenue for that month
              may be
              carried forward until accounted for.

          

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      C

    (Prospects
      to Be Drilled)

    

    

    (made
      part of an Agreement between Quest Canada Corp., and TransAction Oil & Gas
      Ventures Inc. dated August 12, 2005.)

    

    Prospect: Empress

    Well: TransAction
      et al Empress 12-15-24-2 W4M

    

    

    

    
      	
              Note
                :

            	
              Schedule
                C to include all additional lands related to the above prospects,
                acquired
                or farmed-in with in 6 mile radius of initial well.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]