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                                                                    EXHIBIT 10.5

                                ESCROW AGREEMENT

         THIS AGREEMENT is executed this 8th day of November, 2000, by
BANCFIRST, an Oklahoma banking corporation ("the Escrow Bank"), ENERGAS
RESOURCES INC., a British Columbia, Canada corporation ("Energas"), and LARRY
G. JORDAN, JIM and BILLIE BAKER, KEITH D. MENEES, WILLARD L. and JEANNE
O'DANIEL, JAMES W. and LAVADA GREER LIVING TRUST, JACK and MARIE SELLERS, and
MARK R. HOY, herein referred to, individually, as "Seller" and, collectively,
as "Sellers", and FIRST NATURAL GAS, INC. ("the Company"), an Oklahoma
corporation.

                                    RECITALS

         (a) Attached hereto and made a part hereof as Exhibits A, B and C,
respectively, are Stock Purchase Agreement, dated August 26, 2000, as amended
by Amendment to Stock Purchase Agreement, dated September 23, 2000, as
amended by Second Amendment to Stock Purchase Agreement, dated October 30,
2000, as amended by Third Amendment to Stock Purchase Agreement, dated
November 8, 2000, by and between Sellers and Energas, and herein referred to,
collectively, as "the Agreement".

         (b) The Agreement provides, in Paragraphs 2(a), 7(c), (d) and (f),
and 9, for an escrow agent to be appointed by, and to perform certain duties
for, Energas and Sellers under the terms of the Agreement.

                                    AGREEMENT

         1. APPOINTMENT OF ESCROW AGENT. Energas and Sellers hereby appoint
the Escrow Bank as the escrow agent under and pursuant to the terms of the
Agreement. The Escrow Bank hereby accepts said appointment and agrees to
perform the duties imposed upon the escrow agent in the Agreement.

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         2. OPENING OF SPECIAL ACCOUNT. As required in Paragraph 2(a) of the
Agreement, the Company has opened a special bank account with the Escrow Bank
and the Company agrees to comply with its obligation to make monthly payments
of net income, first on the interest payments to Sellers and the balance into
the special bank account, all as required in said Paragraph 2(a). The account
number for the special account in the Escrow Bank is No. _____________. The
style of the account is "First Natural Gas - Energas Special".

         3.       LIMITATIONS ON OBLIGATIONS OF ESCROW BANK.

                  (a) The Escrow Bank shall act as a stakeholder and shall
not be responsible for the genuineness, validity, sufficiency or
collectibility of funds or documents deposited with it under the terms of the
Agreement. The Escrow Bank shall not be required to determine the existence
of any fact or decide any questions of law. It shall not be liable in any
respect on account of identity, authority or rights of the persons executing
or delivering or purporting to execute or deliver any such document, paper or
funds, its duties hereunder being limited to the safekeeping of such funds,
instruments or documents received by it as escrow agent, and for the delivery
of the same in accordance with the Agreement.

                  (b) The Escrow Bank, as part of the consideration for the
acceptance of this escrow, will not be liable for any acts or omissions done
in good faith, nor for any claims, demands or losses, nor for any demands
made or suffered by any party to this escrow, except such as may arise
through or be caused by its bad faith or gross negligence.

         4. FEES OF ESCROW BANK. The Escrow Bank's fee in the amount of
$1,000.00 and expenses shall be paid by Energas. In addition, the Escrow Bank
shall be entitled to reasonable compensation, including attorney's fees and
expenses for unusual circumstances or in the event it

                                      -2-
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is necessary to seek an order by a court, in which case it may employ
attorneys for the reasonable protection of the escrow property and of itself
and shall have the right to reimburse itself out of any funds in its
possession for costs, expenses, attorney's fees and its compensation and
shall have a lien on all money, documents or property held in escrow to cover
the same.

         5. SPOKESPERSONS FOR THE PARTIES. For all purposes of the Agreement
as well as this Escrow Agreement, and for the purposes of any instructions to
the Escrow Bank and for any communications, the parties hereto appoint the
following as their individual spokesman for all purposes:

            For Energas:               George G. Shaw, President
                                       2601 N.W. Expressway, Suite 1100-W
                                       Oklahoma City, OK 73112
                                       Telephone Number: (405) 879-1752
                                       Fax Number: (405) 879-0175

                                       whose signature is as follows:

                                       /s/ George G. Shaw                      .
                                       ----------------------------------------

            For Sellers and
            the Company:               Larry G. Jordan, Individually and as
                                       President of the Company
                                       Route 1, Box 53
                                       Eufaula, OK 74432
                                       Telephone Number:  918-473-3705
                                                          ----------------------
                                       Fax Number:  918-473-0382
                                                    ----------------------------

                                       whose signature is as follows:

                                       Larry G. Jordan                         .
                                       ----------------------------------------

            For Escrow Bank:           BancFirst - Martha E. Ober
                                       -----------------------------------------
                                       Title Vice President
                                             -----------------------------------
                                       Address 101 N. Broadway - Suite 300
                                              ----------------------------------
                                       Telephone Number (405) 270-4772
                                                       -------------------------
                                       Fax Number (405) 270-4779
                                                  ------------------------------

                                      -3-
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         6. EXECUTION IN COUNTERPART. This agreement may be executed by the
parties in individual counterpart copies and if each party executes a
counterpart copy, it shall have the same effect as if all parties had executed
the same copy. Provided, however, until all parties have signed a counterpart
copy, there shall be no agreement.

         7. SUCCESSORS AND ASSIGNS. This agreement shall be binding upon and
shall enure to the benefit of the respective successors and assigns of the
Escrow Bank, Energas, Sellers, and the Company.

         Dated and executed as of the day, month and year first shown above.

                                       BANCFIRST

                                By:    /s/ Martha E. Ober
                                       ------------------------------------
                                       Vice-President
                                       -----------------------------(title)

                                       ENERGAS RESOURCES INC.

                                By:    /s/ George Shaw
                                       ------------------------------------
                                       President

                                       FIRST NATURAL GAS, INC.

                                By:    /s/ ILLEGIBLE
                                       ------------------------------------
                                       President

                                       /s/ Larry G. Jordan
                                       ------------------------------------
                                       Larry G. Jordan

                                       /s/ Jim Baker
                                       ------------------------------------
                                       Jim Baker

                                       /s/ Billie Baker
                                       ------------------------------------
                                       Billie Baker

                                      -4-
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                                          /s/ Keith D. Menees
                                          ------------------------------------
                                          Keith D. Menees

                                          /s/ Willard L. O'Daniel
                                          ------------------------------------
                                          Willard L. O'Daniel

                                          /s/ Jeanne O'Daniel
                                          ------------------------------------
                                          Jeanne O'Daniel

                                          James W. and LaVada Greer Living Trust

                                   By:    /s/ James W. Greer
                                          ------------------------------------
                                          James W. Greer, Trustee
                                                     and

                                   By:    /s/ LaVada Greer
                                          ------------------------------------
                                          LaVada Greer, Trustee

                                          /s/ Jack Sellers
                                          ------------------------------------
                                          Jack Sellers

                                          /s/ Marie Sellers
                                          ------------------------------------
                                          Marie Sellers

                                          /s/ Mark R. Hoy
                                          ------------------------------------
                                          Mark R. Hoy

                                      -5-<Page>

                                                                    EXHIBIT 10.6

                                   CONVERTIBLE
                                 PROMISSORY NOTE
$[PRINCIPAL AMOUNT]                                            November 15, 2000

                  FOR VALUE RECEIVED, the undersigned ENERGAS RESOURCES INC.
("Energas") promises to pay to [NAME OF PAYEE] ("Payee") at [ADDRESS], or at
such other place as Payee may direct in writing, the aggregate principal sum of
[PRINCIPAL AMOUNT]Dollars ($[PRINCIPAL AMOUNT), subject to being reduced as set
forth in Paragraph 6 of that certain Stock Purchase Agreement, dated August 26,
2000 between Energas and Payee and others, as amended by Amendment to Stock
Purchase Agreement, dated September 23, 2000 between the same parties, as
amended by Second Amendment to Stock Purchase Agreement, dated October 30, 2000
between the same parties, and as amended by Third Amendment to Stock Purchase
Agreement, dated November 8, 2000 between the same parties, herein collectively
referred to as "the Agreement", together with interest from the date hereof on
the unpaid principal amount all as set forth below.

         1. DUE DATE. The principal of this note and all unpaid interest shall
be paid by Energas to Payee on or before November 15, 2001, but the consequences
of Energas' failure to pay this note when due are set forth in Paragraph 9(b) of
the Agreement.

         2. INTEREST. Payee shall be paid interest on the unpaid principal at
the rate of 10% per annum, payable monthly, with the first monthly payment in
the amount of $3,237.95 being due December 15, 2000, and equal monthly interest
payments shall be made on or before the 15th day of each calendar month
thereafter with the final installment of interest being due and payable with the
payment of all principal on or before November 15, 2001.

         3. SOURCE OF INTEREST PAYMENTS. The monthly payments of interest as
required in Paragraph 2 above shall be paid out of the net income of First
Natural Gas, Inc. ("the Company") as such net income of the Company is
calculated at the end of each calendar month. That is, prior to the interest
payment due date on the 15th day of a calendar month, the Company shall
determine the Company's net income for the previous calendar month and out of
said net income make the monthly interest payment to Payee. The Company signs
this Convertible Promissory Note to evidence its promise to make the monthly
interest payments out of its net income, as required herein. The Company's net
income shall be calculated according to reasonable and ordinary accounting
principles as applied by natural gas utility companies. The Company, on behalf
of Payee, shall furnish Energas a written accounting each month showing the
manner in which the month's net income was calculated and the manner in which
said net income was applied to the interest due on the note.

         4. CONVERSION OF NOTE TO ENERGAS STOCK. At any time after the
expiration of 45 days from the issuance of this note up to its due date,
Payee shall have the option to convert this note as follows: (a) All
principal then due on this note may be converted into shares of Energas at an
agreed value of U.S. $2.00 per share and (b) all interest then due on the
note may be converted into shares of Energas at the greater of either U.S.
$2.00 per share or the then per share value of Energas in the open market
(calculated in accordance with the policies of the Canadian Venture Exchange)
all as more fully explained in Paragraph 2(a) of the Agreement. The amount of
the principal and interest payable under this note and, thus, the number of
shares of Energas stock to which the note may be

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converted is subject to being reduced as set forth in Paragraph 6 of the
Agreement. Provided, however, neither the principal nor interest due on this
note may be converted into shares of Energas until such time as the Oklahoma
Corporation Commission has issued written approval to the Agreement.

         5. TYPE OF FUNDS. All payments of principal and interest are to be
made in lawful money of the United States of America.

         6. GOVERNING LAW. This note has been delivered to and accepted by
Payee in the State of Oklahoma, is to be performed in the State of Oklahoma,
and shall be deemed a contract made under and governed by the laws of the
State of Oklahoma, without regard to conflicts of law principles.

            THE SECURITIES REPRESENTED BY THIS NOTE AND ANY SECURITIES
ACQUIRED UPON THE CONVERSION OF THIS NOTE ARE SUBJECT TO A HOLD PERIOD AND
MAY NOT BE TRADED IN BRITISH COLUMBIA UNTIL AUGUST 27, 2001, EXCEPT AS
PERMITTED BY THE SECURITIES ACT (BRITISH COLUMBIA) AND THE REGULATIONS
THEREUNDER.

            THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS CERTIFICATE. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.

            THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY
AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE
THAT THEY MAY BE REQUIRED TO BEAR FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME.

            IN WITNESS WHEREOF, Energas has made, executed and delivered this
note effective as of the day first above written.

                                               ENERGAS RESOURCES INC.

                                      By:
                                         --------------------------------------
                                               George G. Shaw, President
                                               The Oil Center
                                               2601 N.W. Expressway
                                               Suite 1100-W
                                               Oklahoma City, OK 73112

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