Document:

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                                                                   EXHIBIT 10.16

                               INDEMNITY AGREEMENT

          THIS INDEMNITY AGREEMENT dated the 3rd day of November, 1998.

BETWEEN:

          GARRY W. LOHUIS, of the City of Calgary, in the Province of
          Alberta
          (hereinafter referred to as "Lohuis")

                                                               OF THE FIRST PART

                                     - and -

          GEOCAN ENERGY INC., a corporation incorporated under the
          Business Corporation Act (Alberta) and having its registered office
          in the City of Calgary in the Province of Alberta
          (hereinafter referred to as "Corporation")

                                                              OF THE SECOND PART

          WHEREAS Lohuis has served as a Director of the Corporation effective
as of the 25th day of March, 1998;

         NOW THEREFORE WITNESSETH that in consideration of the premises, the
Corporation hereby agrees to indemnify Lohuis to the full extent permitted by
law in respect of all costs, charges and expenses which he may suffer or incur
relating to directly or indirectly, or by reason of being or having been a
director or an officer of the Corporation or a director or an officer of a body
corporate of which the Corporation was a shareholder or creditor provided that
Lohuis is or was so acting as a director or an officer of the body corporate at
the request of the Corporation. Without limiting the generality of the
foregoing, the Corporation also agrees to provide such further specific
indemnification and other contractual rights set forth below as follows:

1. The Corporation will indemnify and save harmless Lohuis, his heirs and legal
representatives, against all costs, charges and expenses, including an amount
paid to settle an action

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or to satisfy a judgment, reasonably incurred by Lohuis in respect of any civil,
criminal or administrative action or proceeding to which Lohuis is made a party
by reason of being or having been a director or an officer of the Corporation or
a director or an officer of a body corporate of which the Corporation is a
shareholder or creditor, provided that Lohuis is or was so acting as a director
or an officer of such body corporate at the request of the Corporation, if (a)
Lohuis acted honestly and in good faith with a view to the best interests of the
Corporation, and (b) in the case of a criminal or administrative action or
proceeding that is enforced by a monetary penalty, Lohuis had reasonable grounds
for believing that his conduct was lawful.

2. For the purposes of this Indemnity Agreement and otherwise, the conclusion of
any civil, criminal or administrative action or hearing either prior to or
subsequent to a suit being filed or charges being laid or proceeding by
judgment, order, settlement, conviction or similar or other result shall not, of
itself, create a presumption either that Lohuis did not act honestly and in good
faith with a view to the best interests of the Corporation or that, in the case
of a criminal or administrative action or proceeding that is enforced by a
monetary penalty, Lohuis did not have reasonable grounds for believing that his
conduct was lawful.

3. Subject to receipt of any necessary court approval, the Corporation shall
indemnify Lohuis, his heirs and legal representatives, against all costs,
charges and expenses reasonably incurred by him in respect of an action by or on
behalf of the Corporation or a body corporate of which the Corporation is or was
a shareholder or creditor to procure judgment in its favour to which Lohuis is
made a party by reason of being or having been a director or an officer of the
Corporation or a director or an officer of the body corporate at the
Corporation's request if (a) Lohuis acted honestly and in good faith with a view
to the best interests of the Corporation, and (b) in the case of a criminal or
administrative action or proceeding that is enforced by a monetary penalty,
Lohuis had reasonable grounds for believing that his conduct was lawful.
Corporation agrees that it will, at the request of Lohuis, make application to
the Court of Queen's Bench of Alberta for approval of any indemnity under this
paragraph 3. The application to be undertaken by the Corporation pursuant to
this paragraph 3 shall be prosecuted by the Corporation, at the Corporation's
expense,

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on a best efforts basis which shall include all appeals (including where
required, applications for leave to appeal) from any judgement or order of the
Alberta Court of Queen's Bench or other court of first instance, refusing such
application.

4. Notwithstanding anything in this Indemnity Agreement, the Corporation shall
indemnify Lohuis in respect of all costs, charges and expenses reasonably
incurred by him in connection with the defence of any civil, criminal or
administrative action or proceeding to which Lohuis is made a party by reason of
being or having been a director or an officer of the Corporation or a director
or an officer of a body corporate of which the Corporation is or was a
shareholder or creditor, provided Lohuis is or was so acting as a director or an
officer of such body corporate at the request of the Corporation, if (a) Lohuis
was substantially successful on the merits in his defence of the action or
proceeding, (b) Lohuis acted honestly and in good faith with a view to the best
interests of the Corporation, and (c) in the case of a criminal or
administrative action or proceeding that is enforced by a monetary penalty,
Lohuis had reasonable grounds for believing that his conduct was lawful; and (d)
Lohuis is fairly and reasonably entitled to indemnity.

5. Notwithstanding anything in this Indemnity Agreement, where Lohuis was not
substantially successful on the merits in the defence of an action or proceeding
or where the action or proceeding never reached full trial and judgement, but it
cannot be determined that Lohuis breached the fundamental statutory condition
required by the Business Corporation Act (Alberta) that (a) Lohuis act honestly
and in good faith with a view to the best interests of the Corporation, and (b)
in the case of a criminal or administrative action or proceeding that is
enforced by a monetary penalty, Lohuis had reasonable grounds for believing that
his conduct was lawful, then the Corporation shall indemnify Lohuis in respect
of all costs, charges and expenses reasonably incurred by him in connection with
the defence of any civil, criminal or administrative action or proceeding to
which Lohuis is made a party by reason of being or having been a director or an
officer of the Corporation or a director or an officer of a body corporate of
which the Corporation is or was a shareholder or creditor, provided Lohuis is or
was so acting as a director or an officer of such body corporate at the request
of the Corporation.

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6. In the event that Lohuis is insured for any costs, charges, expenses or
liabilities previously referred to in this Indemnity Agreement or in the event
that the Corporation has insurance of its own liability under this Indemnity
Agreement, the Corporation agrees that it will forthwith pay Lohuis his valid
claims for indemnification under this Indemnity Agreement and thereafter claim
from such an insurance policy either in its own right or in subrogation to the
rights of Lohuis in the case of personal coverage, such payments by the
Corporation to Lohuis being in the full amount as required in this Indemnity
Agreement, notwithstanding any insurance deductibles, co-insurance provisions or
policy limits.

7. In the event that Revenue Canada or any other competent taxing authority
determines that the indemnity provided by the Corporation to Lohuis under any of
the other provisions of this Indemnity Agreement is a taxable benefit to Lohuis
and therefore taxable to Lohuis, the Corporation shall provide Lohuis a further
indemnity of such amount as to allow Lohuis to be fully indemnified on an after
tax basis.

8. Subject only to the limitations as hereinbefore and hereinafter provided, the
Corporation shall pay on an interim basis all costs, charges and expenses
covered by this Indemnity Agreement and incurred by Lohuis, his heirs and legal
representatives, in defending any civil, criminal or administrative action or
proceeding to which Lohuis or his heirs and legal representatives are made a
party by reason of Lohuis being or having been a director or an officer of the
Corporation or a director or an officer of a body corporate of which the
Corporation is a shareholder or creditor, if Lohuis is or was so acting as a
director or an officer of such body corporate at the request of the Corporation,
in advance of the settlement or of the final disposition of such action or
proceeding.

9. In the event that the Corporation's obligation to make any payment or to
provide any indemnification under this Indemnity Agreement is subject to a
determination (a "Determination") by the Corporation, a court or some other
person that:

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         (a)      Lohuis acted honestly and in good faith with a view to the
                  best interest of the Corporation; or

         (b)      in the case of a criminal or administrative action or
                  proceeding that is enforced by monetary penalty, Lohuis had
                  reasonable grounds for believing his conduct was lawful; or

         (c)      Lohuis was substantially successful on merits in his defence
                  of the civil, criminal or administrative action or proceeding;
                  or

         (d)      Lohuis is fairly and reasonably entitled to indemnity;

then upon any request by Lohuis for such a payment or indemnification and
receipt of a written undertaking from Lohuis to repay any amount received as a
loan under this paragraph 9, the Corporation shall promptly provide the
requested amount to Lohuis by way of an unsecured loan bearing interest
calculated at a rate equal to the prime commercial lending rate announced by the
Corporation's principal bank in effect from time to time until repayment of such
amount. All amounts advanced by the Corporation under this paragraph 9 shall
become due and payable by Lohuis to the Corporation upon a final decision by a
court of competent jurisdiction (after all appeals required or chosen to be
undertaken by the Corporation) that all required Determinations could not be
made.

         If the Corporation, a court or some other person who is required to
make a Determination prior to the Corporation becoming obligated to make a
payment or provide any indemnification hereunder, makes all necessary
Determinations, the Corporation shall promptly make payment to or provide Lohuis
with the required indemnification, including an amount equal to the interest
accrued on amounts advanced by the Corporation under this paragraph 9, and upon
receipt thereof, Lohuis shall promptly repay to the Corporation all such
advances with accrued interest.

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10. The Corporation agrees to keep in force the indemnification provisions of
its By- Laws, as amended from time to time, including substantially similar
indemnification provisions in any By-Laws approved in replacement or
substitution of the present By-Laws of the Corporation.

11. Nothing in this Indemnity Agreement shall prevent Lohuis from resigning as a
director or an officer of the Corporation and this indemnity shall continue
notwithstanding that Lohuis is no longer a director or an officer of the
Corporation.

12. All matters in dispute between the parties to this Indemnity Agreement shall
be referred to the arbitration of a single arbitrator. if the parties agree upon
one, otherwise to three arbitrators, one to be appointed by each party and third
to be chosen by the first two named before they enter upon the business of
arbitration. The award and determination of the arbitrator or arbitrators or any
two of the three arbitrators shall be binding upon the parties, their respective
heirs, executors, administrators and assigns. Such arbitration shall be subject
to the Arbitration Act (Alberta).

13. This Indemnity Agreement shall not operate to abridge or exclude any other
rights, in law or in equity, to which Lohuis may be entitled by operation of
law, under any statute or under any by-law of the Corporation, agreement, vote
of shareholders of the Corporation, vote of disinterested directors of the
Corporation or otherwise.

14. If any provision or provisions of this Indemnity Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever:

         (a)      the validity, legality or enforceability of the remaining
                  provisions of this Indemnity Agreement (including, without
                  limitation, all portions of any paragraphs, sections or
                  subsections of this Indemnity Agreement containing any such
                  provision held to be invalid, illegal or unenforceable that
                  are not of themselves in the whole invalid, illegal or
                  unenforceable) shall not in any way be affected or impaired
                  thereby; and

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         (b)      to the fullest extent possible, the provisions of this
                  Indemnity Agreement (including, without limitation, all
                  portions of any paragraphs, sections or subsections of this
                  Indemnity Agreement containing any such provision held to be
                  invalid, illegal or unenforceable that are not of themselves
                  in the whole invalid, illegal or unenforceable) shall be
                  construed so as to give effect to the intent manifested by the
                  provision which is held to be invalid, illegal or
                  unenforceable.

15. This Indemnity Agreement and the benefit and obligation of all covenants
herein contained shall enure to the benefit of and be binding upon the heirs,
executors, administrators, legal personal representatives and successors and
assigns of each of the parties hereto.

                  IN WITNESS WHEREOF this Indemnity Agreement has been executed
by the parties hereto.

                                           -------------------------------------
                                           GARRY W. LOHUIS

                                           GEOCAN ENERGY INC.

                                           Per:
                                               ---------------------------------

                                           Per:
                                               ---------------------------------<PAGE>   1
                                                                   EXHIBIT 10.17

                             PARTICIPATION AGREEMENT
                                   TRAVA FIELD
                              CROOK COUNTY, WYOMING

ESSEX ENERGY INC, of 1000-530 Eighth Avenue S.W., Calgary, AB, T2P 3S8, Canada,
(hereinafter referred to as "Essex") and GEOCAN ENERGY INC., of 800-717 Seventh
Avenue S.W. Calgary AB, T2P 0Z3, (hereinafter referred to as "Participant"),
hereby agree to enter into an agreement to drill and develop certain lands
located in Crook County, Wyoming, subject to the following terms and conditions:

                                   ARTICLE I.
                                  CONSIDERATION

For and in consideration of US$7,500 due and payable upon execution of this
Agreement, and for and in consideration of the further payment to be provided by
Participant to Essex pursuant to the following paragraph hereof, Essex agrees to
assign to Participant, without warranty of title either expressed or implied,
other than in respect of any person claiming by, through, and under Essex, an
undivided 25% working interest in the Trava Unit as described in Exhibit "A"
attached hereto (hereinafter referred to as the "Farmout Lands"). By acquiring
an undivided 25% working interest in the Farmout Lands, Participant shall hold
an undivided 25% working interest in the producing Trava #3 and Trava #4 wells,
in all field facilities and other tangibles as well as all leases and other
agreements relating thereto.

In addition to the above stipulated cash consideration Participant hereby agrees
to pay as more particularly provided for in Article II hereof, a 50% share of
the cost, risk and expense of drilling, testing, completing and equipping the
initial test well (hereinafter referred to as the "Test Well"), or in the
alternative in the event of a dry hole, Participant hereby agrees to pay an
undivided 50% share of the plugging and abandonment costs of the Test Well.
Costs shall, include without, limitation the preparation of the drill site title
opinion and the payment of surface damages and restoration costs.

Participant will be entitled to recover out of the proceeds of production from
the Test Well, 100% of its drilling, completion and equipping costs, as well as
the US $7,500 referred to in the first paragraph of this Article I, from 50% of
production from the Test Well calculated on a lease net revenue interest of 75%.
Until such time as Participant has recovered the foregoing costs, which, for
greater certainty, shall be net of all royalties ("Payout"), Essex shall retain
a 5% Gross Overriding Royalty (hereinafter referred to "GOR"). At Payout, Essex
has the election of converting its GOR to an undivided 25% working interest in
the Test Well whereupon the 50% working interest of the Participant shall reduce
to an undivided 25% working interest in the Test Well.
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                                   ARTICLE II.
                                    TEST WELL

On or before 120 days from Essex's receipt of an executed counterpart of this
Agreement, Essex hereby covenants and agrees that it shall commence, or cause to
be commenced, the actual drilling of the Test Well to be located at a mutually
agreeable location within the Farmout Lands and shall thereafter diligently and
in a good and workmanlike manner proceed to drill said Test Well to a true
vertical depth of 3800 feet beneath the surface of the earth, or to a depth
sufficient to test the Minnelusa "A" sand as shown in the log of the Rock Oil,
Trava #2 well located in the NwNw of Sec. 21, TWP 52N, RNG 67W, Crook County,
Wyoming between the depths of 3630' and 3680', whichever is the lesser depth,
(hereinafter referred to as "Total Depth"). Participant shall pay to Essex
US$107,350 being Participant's estimated dry hole cost, as more particiularly
set forth in the Authority for Expenditure ("AFE") set out in Exhibit "B"
hereto, which payment shall be made immediately upon Essex confirming to
Participant that Essex has contracted for a rig to drill the Test Well. Essex
covenants and agrees with Participant that it will use such funds solely for the
purpose of drilling and completing or abandoning the Test Well as provided for
herein.

                                  ARTICLE III.
                                 SUBSTITUTE WELL

In the event the Test Well is lost or junked due to mechanical difficulty or
other circumstances, then in lieu of drilling to Total Depth, Participant for a
period of 60 days after rig release from the Test Well shall have the right to
propose, as well as the option to participate in the drilling of a substitute
well at approximately the same location as the abandoned Test Well. In the event
Participant proposes the drilling of or elects to participate in the drilling of
a substitute well, Essex covenants and agrees with Participant that such well
shall be drilled within 60 days of said proposal or said election, receipt of
Participants' estimated dry hole cost and estimated completion costs. All funds
provided under Article II in connection with the Test Well which have not been
expended shall be applied to the costs of drilling and completing or abandoning
the substitute well. Essex shall drill such substitute well in a like manner and
under the same terms and conditions to the depth specified for the Test Well,
and the term "Test Well" as used herein shall be construed to include the
substitute well drilled under the terms of this Agreement. In the event that a
substitute well is not proposed or the Participant elects not to timely
participate in the drilling of a substitute well, Essex shall no longer be
required to deliver the assignment of interest to Participant heretofore
mentioned and Participant shall forfeit the sum paid pursuant to Article I
hereof as liquidated damages and not as a penalty, whereupon this Agreement
shall be of no further force and effect with respect to Participant and
whereupon all funds provided under Article II in connection with the Test Well
which have not been expended shall be repaid by Essex to Participant.
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                                   ARTICLE IV.
           CASING POINT, COMPLETION ELECTION AND SUBSEQUENT OPERATIONS

After the Test Well has reached Total Depth, Essex or its designee shall test
all prospective formations in accordance with prudent operating standards and in
accordance with such standards as are applicable under the Operating Agreement
(as hereinafter defined). "Casing Point" shall occur and is defined as that
point in time when all tests, logs, coring and other evaluations have been
completed and the borehole is in the condition to run production casing. In the
event the Test Well is not completed and is plugged and abandoned as a dry hole,
Participant shall bear 50% of all actual costs in connection with the drilling,
testing, plugging and abandonment of the Test Well. Alternatively, should a
completion attempt be made upon the Test Well, Participant shall bear 50% of all
subsequent risks, costs and expenses in connection with such completion attempt
including equipping. Should Participant elect pursuant to the Operating
Agreement to participate in a completion attempt on the Test Well, Participant
shall pay its share of the estimated completion costs as set forth in the AFE
within 10 days from the date Participant elects to participate in such
completion attempt. Notwithstanding the non-consent provisions contained in the
Operating Agreement, any party who elects not to participate in the completion
attempt on the Test Well shall be deemed to have forfeited to the consenting
parties all of such non-consenting party's interest in the Test Well and the
Farmout Lands. Furthermore, after Participant has earned an interest in the
Farmout Lands hereunder, in the event Participant elects to participate in a
subsequent well or wells, all such costs shall be borne by Essex and Participant
in proportion to their respective working interests therein.

                                   ARTICLE V.
                               OPERATING AGREEMENT

All operations within the Farmout Lands and the AMI Area (as hereinafter
defined) shall be conducted in accordance with the terms of this Agreement and
an Operating Agreement substantially in the form as set out in Exhibit "C"
attached hereto (the "Operating Agreement") which shall name Essex or its
designee as operator. In the event of a conflict between the terms of this
Agreement and the Operating Agreement, the terms of this Agreement shall prevail
and control.

                                   ARTICLE VI.
                                WELL INFORMATION

Participant or its representatives shall have access at its own risk and at all
times to the location and derrick floor during the drilling of any well
hereunder. Participant shall further be entitled to all information concerning
any well drilled hereunder on the Farmout Lands and Essex shall provide daily
drilling reports to Participant relating thereto, unless Participant is
delinquent in the payment of its joint interest billings to Essex for a period
greater than 30 days in which event Essex at its sole option may withhold any
information to Participant.
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                                  ARTICLE VII.
                             AREA OF MUTUAL INTEREST

Essex and Participant hereby agree to establish an Area of Mutual Interest
("AMI") comprised of Sections 15, 16, 17, 20, 21, 22, 27, 28, and 29 of Township
52 North and Range 67 West, Crook County Wyoming (the "AMI Area"). In the event
that any party hereto hereafter acquires an oil and gas leasehold interest, or
contractual right to earn an oil and gas leasehold interest, covering lands
lying in whole or in part within the AMI Area, the acquiring party shall, in
writing, offer to assign, without warranty of title, to the non-acquiring
parties within fifteen (15) days of purchase or acquisition, the entire
proportionate interest which the non-acquiring parties are entitled to acquire
in the AMI Area under this Agreement. Such notice shall include a copy of the
lease or contract, paid draft and other pertinent and available data. Each
non-acquiring party shall, within fifteen (15) days after receipt of such offer,
elect whether to purchase such interest by paying the acquiring party such
non-acquiring party's proportionate part of the actual costs and expenses, if
any, incurred by the acquiring party in acquiring such lease or contract.
Failure of any non- acquiring party to timely notify the acquiring party shall
be deemed as an election by such non- acquiring party not to acquire its ratable
interest in the leasehold interest offered. When any non- acquiring party elects
not to acquire its proportionate interest from the acquiring party, such non-
acquiring party's interest in such lease or contract, which is the subject of
such offer shall be wholly owned by the acquiring party and shall not be subject
to this Agreement. If the acquisition consists of a farmout or agreement to earn
a lease, a party electing to participate must also agree to participate actively
in all operations necessary to comply with the provisions of such agreement. If
any well drilled under this Agreement qualifies as an earning well under the
terms of a farmout, leasehold rights earned thereby shall be owned solely by
those parties who participated in the drilling and completion of such earning
well. Any party hereto which was a non-consenting party in the drilling and/or
completion of such earning well shall own no interest in such leasehold rights.
Unless otherwise mutually agreed, this AMI shall terminate 6 months after the
expiration of the last lease within the AMI Area. All interests under this
paragraph shall be offered on an after casing point basis.

                                  ARTICLE VIII.
                                  MISCELLANEOUS

A.       Article Headings

         The article headings inserted in this Agreement are utilized solely for
         reference purposes and do not constitute substantive matters to be
         considered in construing the terms of this Agreement.

B.       Time is of the Essence

         It is specifically understood and agreed that time is of the essence
         hereunder.

C.       Liability
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         It is not the purpose of this Agreement to create a partnership, mining
         partnership, partnership for a specific purpose, joint venture, or any
         other relationship, which would render the parties liable as partners,
         associates, or joint venturers. Further, each of Essex and Participant
         specifically agrees and covenants that it shall not engage in any
         conduct which would violate state or federal securities laws,
         regulations or rulings.

D.       Entire Agreement

         This Agreement, when joined by a fully executed Operating Agreement,
         shall constitute the entire Agreement between the parties hereto
         relative to the Farmout Lands and the AMI Area and supersedes any prior
         agreements, promises, negotiations or representations, whether written
         or oral, not expressly set forth in this in this Agreement. No
         variations, modifications, or changes herein or hereof shall be
         effective unless evidenced by written documents by both parties hereto.

E.       Binding Agreement

         The terms, covenants and conditions of this Agreement shall be binding
         upon, and shall enure to the benefit of, the parties hereto and to
         their respective heirs, executors, administrators, successors and
         assigns, and such terms, covenants and conditions shall be deemed as
         covenants running with the lands and leases covered hereby. It is
         stipulated, however, that no assignment or transfer by Participant,
         however accomplished, of any right, title, or interest acquired
         hereunder shall relieve such party of any liability or obligation
         herein assumed, except with written consent of the other parties.

F.       Governing Law

         The laws of the State of Wyoming shall govern this Agreement.

G.       Further Assurances

         The parties hereto shall execute, acknowledge and deliver such
         instruments and take such actions as may be reasonably necessary to
         fulfill their respective obligations under this Agreement. Essex hereby
         covenants and agrees that it shall promptly execute, acknowledge and
         deliver to Participant all transfers, assignments, novations and other
         conveyances of title to the interest in and to the Farmout Lands earned
         by Participant hereunder following the earning of an interest therein
         by Participant.

H.       Acceptance

         If the foregoing fully sets forth your understanding of our agreement,
         please so indicate by signing in the space provided below and return
         one (1) fully executed original hereof on or before January 25, 2000.

DATED AND EFFECTIVE THIS ___________DAY OF _________, 2000.
<PAGE>   6
Essex Energy Inc                           For:  GEOCAN Energy Inc.

By:_______________________                 By:  _____________________________

Doug Street, President                     Title: ___________________________

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