Document:

CONVENTION FOR

                  EXPLORATION, EXPLOITATION AND TRANSPORTATION
                             OF HYDROCARBONS IN CHAD

                                     BETWEEN

                   THE GOVERNMENT OF THE THE REPUBLIC OF CHAD

                                       AND

  THE CONSORTIUM ORIENTAL ENERGY RESOURCES LIMITED - CARLTON ENERGY GROUP LLC. -
                          TRINITY GAS CORPORATION, INC.

                  PERMIT OF BASIN : ERDIS, LAKE CHAD AND CHARI

<PAGE>
                                TABLE OF CONTENTS

CHAPTER  I  -  GENERAL  DISPOSITIONS

ARTICLE  1  -  DEFINITIONS

ARTICLE  2  -  OBJECT  AND  TERM  OF  THE  CONVENTION

ARTICLE  3  -  RIGHTS OF THE CONSORTIUM IN TNE CONDUCT OF PETROLEUM  OPERATIONS

ARTICLE  4  -  GENERAL  OBLIGATIONS  OF  THE  CONSORTIUM

CHAPTER II  -  EXPLORATION

ARTICLE  5  -  GRANT  TERM  AND  RENEWALS  OF  THE  EXPLORATION  PERMIT

ARTICLE  6  -  RELINQUISHMENTS  AND  ABANDONMENT

ARTICLE  7  -  EXPLORATION  WORK  OBLIGATIONS

ARTICLE  8  -  SURFACE  AREA  FEES

ARTICLE  9  -  EVALUATION  OF  A  DISCOERY

CHAPTER III -  EXPLOITATION

ARTICLE  10 -  APPLICATION,  GRANT  AND  TERM  OF  A  CONCESSION

ARTICLE  11 -  PRODUCTION  PROGRAMS

ARTICLE  12 -  NATURAL  GAS

ARTICLE  13 -  MEASUREMENT  OF  HYDROCARBONS

ARTICLE  14 -  TRANSPORTATION  OF  HYDROCARBONS

ARTICLE  15 -  OBLIATION  TO  SUPPLY  THE  INTERNAL  MARKET

<PAGE>
CHAPTER  IV -  PROVISIONS  APPLYING  BOTH  TO  EXPLORATION  AND TO EXPLOITATION

ARTICLE  16 -  ANNUAL  WORK  PROGRAM

ARTICLE  17 -  ADMIISTRATIVE  SUPERVISION  OF  THE  PETROLEUM  OPERATIONS

ARTICLE  18 -  INFORMATION  AND  REPORTS.  CONFIDENTIALITY

ARTICLE  19 -  PERSONNEL  AND  TRAINING

ARTICLE  20 -  OWNERSHIP  OF  ASSETS

CHAPTER  V  -  ECONOMIC  AND  FISCAL  PROVISIONS

ARTICLE  21 -  PRICE  OF  CRUDE  OIL

ARTICLE  22 -  ROYALTY  ON  PRODUCTION

ARTICLE  23 -  FISCAL  REGIME

ARTICLE  24 -  FISCAL  EXEMPTIONS

ARTICLE  25 -  ACCOUNTS

ARTICLE  26 -  AUDITS

ARTICLE  27 -  IMPORTS  AND  EXPORTS

ARTICLE  28 -  CONTROL  OF  FOREIGN  EXCHANGE

ARTICLE  29 -  PAYMENTS

CHAPTER  VI -  MISCELLANEOUS  PROVISIONS

ARTICLE  30 -  TRANSFER  RIGHT  AND  CONTROL  OF  THE  CONSORTIUM

<PAGE>
ARTICLE  31 -  CANCELLATION  OF  THE  PERMIT,  WITHDRAWAL OF  THE CONCESSION AND
               TERMINATION  OF  THE  CONVENTION

ARTICLE  32 -  FORCE  MAJEURE

ARTICLE  33 -  ARBITRATION

ARTICLE  34 -  APPLICABLE  LAW  AND  STABILITY  OF  CONDITIONS
                                ------------------------------

ARTICLE  35 -  NOTICES

ARTICLE  36 -  OTHER  PROVISIONS

ANNEXES

I.     Map  and  limitation  of  the  contractual  zone  of  the  Permit.

II.    Exploration  work  program  and  provisional  expenditures.

III.   Accounting  procedure.

IV.    Agreed  List  of  taxe  exempted  items.

<PAGE>
                                     CONVENTION
                                     ----------

                                      BETWEEN
                                      -------

THE  REPUBLIC  OF  CHAD,  hereinafter  called  [the  state] , represented by the
Minister  of  Mines,  Energy  and  Petroleum,

of  the  first  part,
                                     AND

The  Consortium,  comprised  of  the  following  companies  :

-  Oriental  Energy  Resources  Limited,

-  Carlton  Energy  Group  LLC.

-  Trinity  Gaz  Corporation,  Inc.

of  the  second  part,

WHEREAS

-     all  fields  and  natural  accumulations  of  Hydrocarbons existing in the
      ground or  subsoil  of  the  territory  of  the  Republic  of Chad are the
      property of the  State  ;

-     the  discovery  and  exploitation  of Hydrocarbons in the Territory of the
      Republic  of  Chad are important  for  the  economic  development  of  the
      country and its  inhabitants  ;

-     the  Consortium  declares  that  it  has  the  technical  and  financial
      capabilities  to  carry  out successfully  within  the  Contract  Area the
      Petroleum  operations  authotrized  hereunder,  and  wishes  to  undertake
      the said Petroleum Operations under a  Convention  setting  out its rights
      and  obligations  ;

<PAGE>
-     ordinance  No.  7/PC/TP/MH  of  3rd  February  1962,  relating  to  the
      exploration,  exploitation,  transportation by pipeline  of  hydrocarbons,
      and the fiscal  regime of these  activities within the  territory  of  the
      Republic  of  Chad,  authorizes  the  grant  of  exploration  permits  and
      Exploitation  concessions  subject  to  the  conclusion  of  a  Convention
      with  the  State  ;

THEREFORE,  IT  IS  MUTUALLY  AGREED  AS  FOLLOWS  :

                                    CHAPTER I

                               GENERAL PROVISIONS

ARTICLE  1-  DEFINITIONS

The  terms  listed  in this Article shall have the following meanings throughout
the  Convention  :

1.1.  [Calendar  Year]  means a period of 12 consecutive months starting January
1  and  ending  the  following  December  31.

1.2.  [Budget]  means  the  detailed  estimate  of  the  cost  of  the petroleum
Operations  as  set  out  in  Annual  Work  Program.

1.3.  [Petroleum Code]  is Ordinance No 7/PC/TP/MH of 3rd February 1962, as well
as  Decree  of  10  May  1967  specifying  the conditions of application of this
Ordinance.

1.4.  [Concession]  means  the exploitation concession  for Hydrocarbons granted
by  the  State  to  the  Consortium  in respect of a Commercial Field discovered
within  the  Contract Area and covering the area of the said Field. The Minister
and  the Consortium shall set the boundary of the Concession by mutual agreement
before  the  grant.

1.5. [Consortium]  means,  whether  individually or collectively, the Consortium
comprised  of  the  companies  Oriental Energy Resources Limited, Carlton Energy
Group  LLC.  And Trinity Gaz Corporation, Inc. as well as any company to whom an
interest  may  be transferred in accordance with present convention, and to whom
an  interest  in the Permit or the Concessions may also be transferred. The term
[Consortium] is  used  for  the purposes of convenience throught this Convention

<PAGE>
and  is  not  intended  to  indicate  an  intent  on  the  part of the companies
comprising  the  Consortium  to form a partnership, a company or any other legal
entity  under  the  laws  of  any  country  or  subdivision  thereof.

1.6.  Convention  :  means  the  present  act  and  the  annexes attached hereto

1.7.  Effective  Date means the date on which the present Convention enters into
effect.

1.8.  Discovery  means  a  discovery  of Hydrocarbons whose existence until that
moment  was  unknown,  provided an amount of Hydrocarbons measured in accordance
with  production  test  methods  of  international  petroleum  industry has been
brought  to  surface.

1.9.  Dollar  means  United  States  Dollar.

1.10.  State  means  the  Republic  of  Chad.

1.11.  CFA  Franc  means  the  legal  currency  in  circulation  in  Chad.

1.12.Exploration  Well  means  any well drilled during the course of exploration
work  other  than  an  Evaluation  Well.

1.13.  Evaluation  Well means any well drilled after a Discovery for the purpose
of  evaluating  the  quantities  of  Hydrocarbons  in  the  discovery reservoir.

1.14  Natural Gas means dry gas and wet gas produced by itself or in association
with Crude oil as well as all other gaseous components extracted from the wells.

Associated  Natural  Gas  means  the Natural Gas in a reservoir dissolved in the
Crude  Oil, or in the form of a gas cap in contact with the Crude Oil, and which
is  produced  or  could  be  produced  in  association  with  the  crude  oil.

Non-associated  Natural Gas means Natural Gas other than Associated Natural Gas.

1.15.  Commercial  Field means a geological entity impregnated with Hydrocarbons
which  has  been  evaluated,  and  which  IN  VIEW  OF  THE  CONSORTIUM  can  be
                                          -----------------------------
economically developed  and  produced  in  accordance with  the  standards  used
in  the international  petroleum  industry.

<PAGE>
1.16.  Hydrocarbons  means  Crude  Oil  and  Natural  Gas.

1.17.  Minister  is  the Minister who at the given moment is responsible for the
Petroleum  Operations  sector  or the authorized representative ; on the date of
signature  the  Minister  responsible  is  the  Minister  of  Mines,  Energy and
Petroleum.

1.18.  Petroleum  Operations  means  all  the  Operations  of  exploration  and
exploitation,  including  WITHOUT  LIMITATION exploring, evaluating, developing,
                          -------------------
producing,  separating,  any  primary  treating  and/or  liquifying,  storing,
transporting,  selling and transferring the Hydrocarbons, as far as the Delivery
point,  as  well  as administrative activities necessary for the carrying out of
such  operations,  refinery  operations  and  distribution of petroleum products
excluded.

1.19.  Party(s)  means  the  state  and/or  the  Consortium.

1.20.  Permit  means  exclusive  exploration permit for the Hydrocarbons, called
Permit  H,  reference to which is made in the preamble to the Convention, issued
to  the  Consortium to authorize it to conduct  exploration Petroleum Operations
in the Contract Area, including evaluation work on a discovery. The perimeter of
the  Permit  is  defined  in  Annex  I  of  this  Convention.

1.21. Crude Oil means crude mineral oil, asphalt, ozokerite and all other liquid
hydrocarbons  in  their natural state or obtained by condensation or extraction,
including  Condensates  and  Natural  Gas  liquids.

1.22.  Delivery  Point means the point of transfer of title of Hydrocarbons from
the  Consortium  to  its purchasers, whether at the FOB loading point at port of
embarkation  at  the  coast  or  any other point, within or outside Chad, set by
agreement  of  the  parties.

1.23.  Total  Production  means the Consortium's total production of Hydrocabons
obtained  from  all  the  Conncessions  less  :

     -     quantities  lost  or  not  used,  and

     -     quantities  which  are  reinjected,  flared  or  used  for  the
           requirments of  exploitation  operations,  to  the  extent authorized
           in  accordance with the provisions of the Convention, measured at the
           measurement point(s) refered to in Article  13  below.

1.24. Annual Work Program means the document describing the Petroleum Operations
to  be  peformed prepared in accordance with the provisions of Article 16 below.

<PAGE>
1.25.  Royalties  means other royalties collected for services rendered to users
for  maintenance  of  items  necessary  to  the  supply  of  such  services.

1.26.  Affiliated  Company  means  :
a)     any  company which controls or is controlled directly or in directly by a
       company  which  a  party  hereto  ;

b)     OR  ANY  COMPANY WHICH CONTROLS OR IS CONTROLLED BY A COMPANY DIRECTLY OR
--     -------------------------------------------------------------------------
       IN  DIRECTLY  CONTROLLING  A  COMPANY  WHICH  IS  A  PARTY  HERETO.
       -------------------------------------------------------------------

In  this  definition  ''control''  means  the  direct or indirect ownership by a
company,  or other entity, of a percentage of the shares or participation rights
which is sufficient to give the majority of the voting rights in general meeting
of  another company or to give the power of decision making in the management of
this  other  company.

1.27.  Taxes  means  all the taxes in the form of tariffs allocated to cover the
charges  deriving  from  state,  quasi-state  or  even  private  organizational
structures.

1.28.  [Third  Party]  means  a person not within the definition in Article 1.26
above.

1.29.  [Quarter]  means  a  period  of  three (3) conscutive months starting the
first  day  of  January,  April,  July  and  october  of  each  Calendar  year.

1.30.  [Contract] Area   means  the  surface  which  means at any given time the
perimeter  of the Permit, after subtracting the surface area relinquished by the
Consortium. The perimeter or perimeters of concessions shall be an integral part
of  the  Contract  Area  during  their  periods  of  validity.

Other  words used in this convention shall have the meaning generally attributed
to  them  in  the  international  petroleum  industry.

ARTICLE  2  -  OBJECT  AND  TERM  OF  THE  CONVENTION

2.1. This Convention establishes the conditions under which the Consortium shall
conduct exploration and evaluation work on the whole of the Permit area (as well
as  all  areas for which the permit is renewed and  within the perimeters of the
Concessions  which may be granted to the Consortium), with the aim of confirming

<PAGE>
the  existence  of  Hydrocarbons  capable  of  being  commercially exploited and
ensuring  their  development as soon as possible, as well as the conditions that
will  apply  to  the  Concessions.

2.2.  This Convention will remain in effect for twenty five (25) years beginning
the  signarure date SO LONG AS the Consortium holds the Permit or a Concession ;
                    ----------
however, the term of this Convention shall be extended automatically on the same
terms,  if  such  extension is necessary in order to ensure that all Concessions
are  covered  by  this  Convention  during  their  entire  validity  period.

2.3.  At the end of the term of the permit including its renewal periods, if the
Consortium has not applied for a concession relating to a Commercial Field, this
Convention  shall terminate. This termination shall not put an end to the rights
and  obligations arising previously, including the right to resolve all disputes
related  there to UNDER  ARTICLE  33  BELOW.
                  -------------------------

This provision shall also apply in case of cancellation or relinquishment of the
permit.

2.4.  In  so  far  as  required, the rights and obligations provided for by this
Convention shall also apply to contractors and suppliers of goods or services or
other  related  activities,  employed in the pursuit of the Petroleum Operations
for  the  account  of  the  Consortium.

The  application  of  this  Article  2.4  shall  be  strictly  limited  to those
contractors who work for the account of the Consortium within the context of the
Petroleum  Operations.  In no case shall it apply to other activities undertaken
in  Chad  by  such  contractors  or  suppliers  of  services.

ARTICLE  3-  RIGHTS  OF  THE  CONSORTIUM  IN THE CONDUCT OF PETROLEUM OPERATIONS

3.1.  Subject  to  the laws and regulations in force, and in accordance with the
provisions  of  this  Convention  and  of  the  Petroleum  Code.

The  Consortium  shall  have  the  right  :

a)   to explore for Hydrocarbons within the area of the Permit ;

b)   to exploit (including in particular developing,  producing, separating, any
     primary  treating  and/or  liquefying,   storing,  transporting,   selling,
     transferring  and  exporting)  the  Hydrocarbons,  as  well  as  ASSOCIATED
                                                                      ----------
     SUBSTANCES   AND/OR  the  products  derived   therefrom  by  separation  or
     -------------------
     treatment, which originate from fields within the perimeters of Concessions
     to which this Permit gives right ; refining in the strict sense of the word
     is  excluded,  other  than as  strictly  necessary  for the  conduct of the
     petroleum  operations  and subject to the prior  approval of the  Minister,
     which approval shall not be unreasonably withheld.

     Title  to  Hydrocarbons  produced  to  which  the  Consortium  is  entitled
     hereunder  shall pass to the  Consortium  at the point of production at the
     wellhead.  Each  member  company  of  the  Consortium  shall  own  and  may
     separately take and dispose of its part of the Hydrocarbons.

     c) of access to the area of the  Permit and the  Concessions  to which this
     permit gives right for the purpose of carrying out the Petroleum Operations
     provided for in this  Convention ; d) to construct  all  installations  and
     carry out all work and,  generally  all acts and  operations  necessary for
     conducting the Petroleum Operations ;

     e) to carry out the administrative  activities necessary for the conduct of
     the operations set out in subparagraphs a) through d) above ;

     f) to decide the way to carry out the Petroleum  Operations,  in accordance
     with the standards of the international petroleum industry.

2.2. In  accordance  with the laws and  regulations  in force in the Republic of
     Chad, the Consortium may, in particular :

     a)   use public  installations needed for Petroleum  Operations,  including
          airports, roads, waterwells,  work camps and other such installations,
          subject to paying the fees normally imposed for such use ;

     b)   use the water  required for the  Petroleum  Operations,  provided this
          does not prejudice the water supply of the  inhabitants  and the water
          holes for livestock ;

     c)   use the  stones,  sand,  clay,  gypsum,  limestone  and other  similar
          substances required for conducting the Petroleum Operations.

<PAGE>
2.3. Subject to the  authorizations  provided for in the Petroleum  Code,  WHICH
                                                                           -----
     SHALL NOT BE UNREASONABLY  WITHHELD,  the Consortium will have the right to
     -----------------------------------
     construct  all   installations   which  are  necessary  for  the  Petroleum
     Operations  such  as,  without  limitation  ,  roads,  pipelines,   storage
     installations  whether  inside or outside  the area of the Permit or of the
     Concessions.  Such approval may be  conditional on use by Third Parties who
     hold other permits H or Hydrocarbons exploitation concessions of the excess
     capacity  of the  said  installations,  provided  that  such  use  does not
     interfere with the Petroleum Operations and that such use by the said Third
     parties  shall be on the basis of conditions  acceptable to the  Consortium
     including the payment of a fair and equitable compensation.

2.4. To this end and in accordance with the provisions and procedures set out in
     the Petroleum Code, the Consortium  shall have the right to occupy the land
     necessary  for the  performance  of the Petroleum  Operations,  and for the
     housing of personnel employed on the job site.

3.5.  The  occupation  referred  to above shall be authorized in accordance with
the  following  procedure  : after receipt of the request for occupancy assuming
such  request  is  justified  ,  a  decree  issued  on the recommendation of the
Minister  shall  authorize  the occupancy of the necessary lands and specify the
conditions  of occupancy in accordance with the provisions of the Petroleum Code
and  the  State  domain  law.

In  the  absence  of  mutual  agreement,  occupancy  shall  be  granted  only  :

     a) after the landowners or those who hold real estate property rights under
     customary  law have been  authorized  to  present  their case  through  the
     administrative channels within a period determined by local regulations.

     b) for this purpose, the following shall be consulted :

          - for land held by individual owners under the conditions provided for
          by the Civil Code or the registration laws : the landowners.

          - for land under real estate property rights under customary law : THE
                                                                             ---
          OLDERS OF SUCH RIGHTS OR their authorized representatives.
          ------------------------

          - for land in the public  domain : the  authorized  administration  or
          community, and the present tenant, if any.

<PAGE>
In  the event that for any reason whatever the above procedures of registration,
systematic  investigation,  verification of rights or consultation of landowners
or  holders of real estate property rights under customary law are not completed
within  a  period  of  six  (6) months from the date of publication of the above
decree,  the Consortium may dispense with such procedures on the recommendations
of the Minister after payment to a designated public accountant of the following
provisionnal  estimated  indemnities  determined  by the government authorities.

     -    if occupancy is only temporary and if the land may be cultivated after
          one year as before,  the compensation shall be set at least at the net
          yield of the land.

     -    in others  cases,  the  compensation  shall be estimated at a value at
          least equal to the value of the land prior to the occupation.

3.6. The costs, the compensation  and, in general,  all expenses relating to the
     application of Article 3.5 hereof shall be borne by the Consortium.

If  the  occupancy  of  the  land  deprives the landowner, or the holder of real
estate  property rights under customary law of the use thereof for more than one
year,  or  if  after  completion  of  the  works  the land occupied is no longer
suitable  for cultivation, the landowners or the holders of real estate property
rights  under  customary  law  may require the holder of the occupancy permit to
purchase  the  land.  That  part  of  the  land  which  is  too  damaged  or has
deteriorated  over too great a part of its surface area must be purchased in its
entirety if the landowner or the holder of the real estate property rights under
customary  law  so  demands.  The land to be thus acquired shall in all cases be
assessed  at  a  value  at  least  equal  to  that it had before the occupation.

3.7.  No  surface works may be undertaken without the prior authorization of the
State,  if  they  are  located  within  fifthy  meters  of  :

     a) any property  surrounded  by walls or  enclosures,  villages,  groups of
     habitations,  wells,  religious  edifices,  places  of  burial ; or  places
     considered sacred ;

     b)  lines  of  communication,  water  conduits  and  generally  all  public
     utilities and public works.

3.7. The State shall take all  necessary and  reasonable  measures to facilitate
     the carrying  out by the  Consortium  of the  Petroleum  Operations  and to
     protect  the  assets  and  rights  of the  Consortium,  its  employees  and
     contractors  or  suppliers  of services in the  national  territory  of the

<PAGE>
     Republic of Chad. On the justified request of the Consortium, the State may
     prohibit  the  construction  of  houses  or other  buildings,  whether  for
     dwelling  or  professional  use,  close  to the  Consortium's  exploitation
     installations.

ARTICLE  4  -  GENERAL OBLIGATIONS OF THE CONSORTIUM IN THE CONDUCT OF PETROLEUM
OPERATIONS

4.1. The Consortium shall comply strictly with the provisions of this Convention
     and shall respect the laws and  regulations  of the Republic of Chad to the
     extent that this Convention does not provide otherwise.

4.2. The  Consortium  shall  carry  out all  work  which  is  necessary  for the
     performance of the Petroleum  Operations  with diligence in accordance with
     the standards applied in international petroleum industry.

In  particular,  the Consortium shall take all reasonable measures in order to :

     a)   ensure  that  all of  the  installations  and  equipment  used  in the
          Petroleum Operations are in good condition and properly maintained ;
     b)   safeguard  the  environment  and avoid any wastage of, or pollution of
          environnement  by, the  Hydocarbons and the mud or other products used
          in the PETROLEUM Operations ;
                 ---------
     c)   place the Hydrocarbons in the storage facilities  constructed for this
          purpose.

4.3.     The  Consortium shall compensate the State for any loss or damage which
the State may suffer resulting from the failure by the Consortium, its employees
or agents, its contractors or suppliers of services to carry out the obligations
under  this  Convention,  or resulting from the non-respect by the Consortium of
the  standards  generally  accepted  in  the  international  petroleum industry.

The  Consortium shall compensate any person against any loss or damage which may
be  caused  to  such  person  by  the  Petroleum Operations or which such person
suffers  as  a result of the actions of the Consortium's employees or agents its
contractors  or  suppliers  of services during the course of or arising from the
said  operations.

<PAGE>
For  the application of this paragraph, the State shall be deemed to be a person
in  the  case  of  loss  or  damage to public installations, buildings and other
constructions  which  it  owns.

If  the  responsibility  of the State is alleged, the Consortium shall indemnify
the  State  against  all  claims  resulting  from  such  loss  or  damage.

4.4.     The  Consortium  shall  obtain,  and  ensure  that  its  contractors or
suppliers  of  services  shall obtain, any insurance in use by the international
petroleum  indusry,  for an amount and in accordance with the usual practices of
the  companies  comprising  the  Consortium  in  their  international  petroleum
operations,  which levels and practices shall be those generally accepted in the
international  petroleum  industry,  including  third  party liability, PROPERTY
                                                                        --------
DAMAGE,  and the insurance required by the regulations in effect in the Republic
------
of  Chad.

The  Consortium  shall  supply  the  Minister  with  certification  of  the said
insurance arrangements. All things being equal, the Consortium shall insure with
a  Chadian  insurance  company.

4.5.     If the Consortium is comprised of several entities, the obligations and
responsabilities  of  such  entities  under  this  Convention shall be joint and
several.

4.6.  After  the  signature of the present Convention, the Consortium undertakes
to  spend  500000  Dollars US in a infrastructure project in Chad. The nature of
the  said  infrastructure  project  will  be  convened  with  the  Minister.

<PAGE>
                                   CHAPTER II

                                   EXPLORATION

ARTICLE  5-  GRANT  TERM  AND  RENEWALS  OF  THE  EXPLORATION  PERMIT

5.1.The State will grant the Consortium a five (5) year  exploration Permit from
the  approval  date  of  the  present  Convention.

5.2.  The  State  will grant the Consortium  a renewal of the Permit for a three
(3) year period (described in this convention as the  first renewal period ) and
the  right  of  renewal  for  a second three year period at the end of the first
renewal  period  ;  the Consortium will be able to exercise this right by giving
advance  written notice to the Minister, accompanied by the report, provided for
in  Article  18.4  c)  below,  no less than  three (3) months before the date of
expiry  of  the first renewal period, provided that the Consortium has fulfilled
its  obligations  for  the  first  period.

5.3.  The  renewal  of  permit  are  conditioned  by  the  respect  of  the work
obligations.

ARTICLES  6-  RELINQUISHMENTS  AND  ABONDONMENT

6.1.  The geographical coordinates of the initial surface area of the Permit, as
well  as  a map, are set out in Annex I of the present Convention. On the expiry
of  the  initial period of the Permit, the Consortium will relinquish 50% of the

<PAGE>
initial  surface area of the Permit and 25% of the initial surface at the end of
the  first  three  year  renewal  period.

6.2.  For  the  application  of  Article  6.1  above,  it  is  understood that :

a)   the  areas  to be  relinquished  shall  be  reduced  by the  surface  areas
     abandoned  and the surface  areas already  covered by  Concessions  or over
     which applications have been made in the proper manner before the expiry of
     the Permit ;
b)   the Consortium shall have the right to set the boundary,  form and location
     of the  exploration  perimeters  which it intends to retain.  However,  the
     parts relinquished shall be in a simple geometric form bound by north-south
     and east-west lines.
c)   A plan showing the exploration  perimeter retained shall be attached to the
     renewal notice referred to in Article 5 above.

6.3.  On  the  expiry of the validity period of the Permit, the Consortium shall
relinquish the remaining surface area of the Permit other than the surface areas
already  covered by Concessions or over which applications have been made in the
proper  manner  before  the  expiry  of  the  Permit.

The  Consortium  may at any time abandon its rights to all or part of the Permit
during  the first and second sub-periods, at the end of the third sub-period and
at  the  end of the fourth sub-period of exploration, and at any time during the
first  and  second  renewal periods,once exploration work obligations under said
periods  and  sub-periods  have  been  carried  out.

In  any event, no voluntary relinquishment during the course of a renewal period
shall  reduce  the  work  obligations  of  the  said  renewal  period.

ARTICLE  7-  OBLIGATIONS  DES  TRAVAUX  DES  RECHERCHES

Article  7-Exploration  Work  Obligations

7.1. The duration of the Permit is five years, renewable twice with a three year
validity  period  for  each  renewal.

7.2.  During  the  initial five year period, the work commitments for period are
the  following  :

<PAGE>
     a)   during the first 18 month  sub-period,  the Consortium  should realize
          1000  gravity   stations  or   equivalent   interpreted   air-magnetic
          survey,geological  and  geophysical  studies  as well as  general  and
          administrative activities defined by the Operator ;

     b)   during the second 18 month  sub-period,  the Consortium should acquire
          and treat 1250 kilometers of 2D seismic ;

     c)   during the third 12 month  sub-period,  the Consortium should drill an
          exploration  well to a sufficient depth in order to test the prospect,
          either to reach a depth of 3000 meters or the basement ;

     d)   during the fourth 12 month sub-period, the Consortium should drill two
          exploration  wells  to  a  sufficient  depth  in  order  to  test  two
          prospects, either to reach a depth of 3000 meters or the basement ;

During the third and fourth sub-periods, 1250 kilometers of 2D seismic should be
acquired  in  order  to  determine  prospects  to  be  drilled.

7.3.  During  the first three year renewal period, the Consortium agrees to do a
seismic  survey and drill three exploration wells to a sufficient depth in order
to  test three distinct prospects, either to reach a depth of 3000 meters or the
basement

7.4.  During  the  second  renewal period, the Consortium agrees to do a seismic
survey  and drill three exploration wells to a sufficient depth in order to test
three distinct prospects, either to reach a depth of 3000 meters or the basement

7.5. The tentative plans corresponding to the work commitments and amounts to be
spent  for  the  initial  five  year  period  are  set  out  in Annex II of this
Convention.

The  Consortium  shall notify the State of any change which may become necessary
to  this  plan.

The obligation to drill a given well shall be considered satisfied when the well
has  reached  its  geological  objective  or  if  Hydrocarbons  in  potentially
commercial  quantities  are  encountered  before  having reached such geological
objective.

In  case  of  exceptional  circumstances encountered in the course of a drilling
which  prevent,  in  accordance  with  international  petroleum  practice,  the
countinuation  of  the said drilling, the parties shall meet to decide by mutual
agreement  if  the  drilling  obligation  has  been  met  by  the  drilled well.

<PAGE>
7.6.  If  the  Consortium  during  the course of the first renewal period of the
permit  drills  a  number of wells greater than the minimum drilling obligations
provided  for  in Articles 7.2, 7.3 and 7.4 above, the excees wells shall not be
carried  forward  into  the  following  renewal  period and shall not reduce the
contractual  obligations  provided  for  in  respect  of  such  period.

7.7.  If at the end of any renewal period, or in case of total relinquishment or
withdrawal  of  the  permit  during  the course of such period, the work has not
reached  the  minimum obligations relating to such period under Article 7 above,
the  Consortium  shall  within  30 days pay the State the amount of five million
Dollar  (US$  5,000,000)  for each well not drilled and 9000 Dollars US for each
seismic  kilometer  not  acquired.

7.8.  Representatives of the Minister will, at the expense of the Consortium, be
associated  with  the  programed  work  which  is  carried  out  within Chad, in
accordance  with  Article  17  below.

In  this  effect,the Consortium will handle the housing, the transportation, the
food,  the  medical  cover  and  the  perdiem  corresponding  to  such  stay.

ARTICLE  8-  SURFACE  AREA  FEES

     8.1. During the initial five year period of the Permit, the Consortium will
     pay an annual fee of US$ 1 for each square kilometer of surface area held.

     During the first 3 year  renewal  period of the Permit the annual fee shall
     be US$2 per  square  kilometer.Then  it will be  exended  to US$10 for each
     kilometer during the second renewal 3 year period of the Permit.

8.2.  As  soon  as  Concession  is granted, the annual fee for the first renewal
period  which  the  validity  is twenty-five (25) year will be US$100 per square
kilometer  of  surface  area;  this  will  be  extended to US$200 for the second
renewal   twenty five year period of production  in accordance with Article 10.1
above.

8.3.The  surface  fee  due  in  respect  of  any Calendar Year subsequent to the
Calendar  year  in which the decree confirming the grant of the Permit is signed
shall  be  paid  in  advance  on  the  first working day of the Calendar Year in
question.

The payment relating to the period of grant of the Permit to the end of Calendar
Year  in which the decree confirming the initial period of the Permit is signed,
shall  be  calculated  prorata  for  the said Calendar Year, payment being  made
within  ten  (10)  days  of  the date of signature of the decree. This procedure
shall  apply  mutatis mutandis to the first payment the grant of Concessions, as
well as to the last payment relating to each renewal period of the Permit and to
each  Concession.

<PAGE>
ARTICLE  9-  EVALUATION  OF  A  DISCOVERY

9.1. If the Consortium makes a new discovery within the perimeter of the Permit,
it  shall  immediately  notify  the  Minister.

9.2.  The  corsortium  is  required  to  persue  with  the maximum diligence the
evaluation  (including  delineation) of any Discovery which allows the existence
of  a  Commercial  Field  to  be  presumed.

The  Annual  Work  Program,  submitted under Article 16 below, shall include the
Consortium's  detailed  evaluation  plans  relating  to  each  Discovery.

The  term  [evaluation] shall  mean,  thoughout  this  Convention, all drilling,
studies  or  other  work necessary in the opinion of the Consortium to determine
the  reserves  and  the  commerciality  of  a  Discovery  in  the  context  of a
Hydrocarbons  export  project.  The  elements  taken  into  consideration by the
Consortium  in  deciding  which  work  is necessary and the appropriate time for
carrying  out  such  work  will  include  in  particular  :

     -   the  size  of  the  Discovery  ;

         the  geological  and  petrophysical  characteristics  of  the  field  ;

     -   the location of the Discovery  relative to any other  Discovery and to
         an existing or planned export pipeline,

     -   information  already  at  the  Consortium's  disposal,

     -   The prevailing economic conditions.

9.3.THE  COMMERCIAL  CHARACTER OF A FIELD SHALL BE DETERMINED BY THE CONSORTIUM.
    ----------------------------------------------------------------------------
If  the  Consortium  considers  that  a  field  is commercial, it shall submit a
development  and  exploitation  plan  relating  to  the  Commercial Field to the
Minister  for  approval.  Such  plan  shall  include  in  particular  :

     a)   the precise boundary and the surface area of the Concession  requested
          for the Commercial  Field in question within the area of the Permit in
          force ;

     b)   an estimate of recoverable reserves and of the production profile ;

<PAGE>
     c)   the  description  of the work  necessary for the  exploitation  of the
          Commercial  Field such as the number of wells,  and the  installations
          required for production, treatment, storage, and transportation of the
          Hydrocarbons ;

     d)   the program  carrying out the work  referred to above and the forecast
          date for start of production;

     e)   an estimate of the  corresponding  capital  expenditures and operating
          costs.

Within  the  period  of  60  days  following  receipt  of  the  development  and
exploitation  plan,  the  Minister may propose revisions or modifications to the
said  plan,  provided  that  approval  of  this  plan  shall not be unreasonably
refused.  The plan will be deemed to be approved if formal approval is not given
within  this  time  limit.

9.4. If a Commercial field extends beyond the limits of the Permit, the Minister
may,  as  the  case  may  be,  require  the Consortium to exploit the said field
jointly  with  the  title  holder  of the adjacent permit in accordance with the
provisions  of  a  unitization  agreement.

The  Consortium  shall,  within  a  period  of twelve (12) months following such
requirement by the Minister, submit to the Minister for approval the development
and  exploitation  plan  for the Commercial Field which has been agreed with the
title  holder  of  the  adjacent  permit.  Such  period may be extended with the
approval  of  the  Minister,  SUCH  APPROVAL NOT TO BE UNREASONABLY WITHHELD, in
                              ----------------------------------------------
exceptionnal  cases  such  as  the  size  and  complexity  of the development in
question.

9.5. If a Commercial Field extends outside the permit area into an area which is
not  yet  covered by exclusive exploration or exploitation rights, the State may
include  the  said  area  within the perimeter of the Concession relating to the
said  Field.

9.6.  if  the  Consortium  notifies  the  Minister  that  a  field  which it has
discovered  is  not  a Commercial Field, the State shall have the option to have
such  field  developed  by  the  Consortium  on  the  basis  of  the  State  :

     a)   SUPPLYING the  Consortium  with all amounts  required to cover the new
          ----------
          capital  expenditures  and the  operating  costs  relating to the said
          exploitation ;

     b)   guaranteeing the Consortium depreciation, at the rates provided for in
          Annex III of this Convention,  of the  installations  belonging to the
          Consortium which are used for the exploitation ;

<PAGE>
     c)   paying the Consortium a net profit margin,  exempt from all royalties,
          taxes or fees  provided for in this  Convention  and in the  Petroleum
          Code,  equal to 3 % of the Ex-Field Market Price as defined in Article
          21.

The  Consortium's  refusal  so  to carry out such development will result in the
transfer  to  the State of the right to develop the field. In such event, pipes,
wellhead  equipment  and all non-recoverable equipment directly associated with,
and  within  the  geographical limits of, the field shall be transferred without
charge  to the State in the condition required for continuing operations, taking
into  consideration  normal  wear  and  tear.

The  other  site  of installations not directly associated with the field or not
within  its  GEOGRAPHICAL  limits  may be transferred to the State at a mutually
             ------------
agreed  price  or at a price determined by an expert, subject to the application
of  Article  20  below.

9.7.  Unless  they are exceptional circumstances, as agreed between the Minister
and  the  Consortium,  the  Minister  may  require the Consortium to abandon the
surface  area  which  corresponds  to  a  Discovery  if  the  Consortium  :

     a)   has not started  evaluation  work on the Discovery  within a period of
          two years after  notification  to the  Minister of the said  Discovery
          under Article 9.2 above,  provided that, until a pipeline is installed
          in the  vicinity of such  Discovery,  such  two-year  period shall not
          begin to run as long as the  Consortium  is doing  evaluation  work on
          other Discoveries  which in its view is necessary,  within the context
          of the prevailing  economic  conditions,  for the Consortium to make a
          decision relating to such pipeline;

     b)   does not consider that the Discovery is commercial  within a period of
          12 months after the completion of the evaluation  work,  provided that
          such 12-month  period shall not begin to run so log as the  Consortium
          has not started  installing an export pipeline in the vicinity of such
          Discovery.

     The areas to be relinquished  under Article 6 above shall be reduced by the
     area so  relinquished,  and the  Consortium  shall  lose  all  right to the
     Hydrocarbons which may be produced from the said Discovery.

<PAGE>
                                   CHAPTER III
                                   EXPLORATION

ARTICLE  10  -  APPLICATION,  GRANT  AND  TERMS  OF  CONCESSION

10.1.  If  the  Consortium  considers  a  field is commercial in accordance with
Article  9.3, the Consortium shall, on the date of submission of the development
and  exploitation plan for the commercial field in question, apply for and shall
have  the  right  to  obtain  in  respect  of  each  commercial field, under the
procedure  provided  for  Petroleum  Code, a Concession covering the area of the
Commercial  field  in  question inside the Permit area. This Concession shall be
granted  for  a  period of 25 years, renewal only one time for the same validity
period  under  new  terms  defined  with  the  State.

10.2.  The  Consortium shall start implementing the development and exploitation
plan  relating  to  a  Commercial  Field in accordance with the program approved
under Article 9.3 above at the latest 3 months after the grant of the Concession
              ---
and  shall  continue  such  implementation  with  diligence.  Changes  to  the
development and exploitation   plan and the said program may be justified by the
results  acquired  during  the  course  of  carrying  out  the  work or in other
circumstances.  In  this case, the Consortium may, after notifying the Minister,
make  such  changes  provided  that  the  basic  objective  of  the plan are not
modified.

<PAGE>
10.3.  The  Consortium  shall,  in  accordance  with  the  standards  of  the
International  Petroleum  industry,  in  particular  ;

     a)   Apply the most appropriate methods to the exploitation of a Commercial
          field in order to avoid losses of energy and industrial products ;

     b)   Ensure  the  conservation  of the  field  and  maximize  the  economic
          production of Hydrocarbons ;

     c)   Initiate,  as soon as practicable,  studies for enhanced  recovery and
          use such  procedures  if they  will  result in an  improvement  in the
          Hydrocarbons recovery rate on an economic basis.

10.4.  The  Consortium  may  at  any time relinquish a Concession in whole or in
part.  The relinquisment take effect from the date specified in the Consortium's
notification,  provided  that  a  minimum  of  3  months'notice  shall be given.

In  case  of relinquishment of a Concession, no penality will be applied against
the  Consortium.  However,  any  relinquishment,  withdrawal or expiry shall not
relieve  the Consorium of its obligations to make payments of sums due and owing
to  the  State  under  this  Convention,  which  relate to the period before the
relinquishment,  withdrawal  or  expiry, and its obligations to supply the State
with  any  information  and  reports  under  Article  18  below.

Upon relinquishment, withdrawal or expiry of a Concession, by agreement with the
Minister the Consortium shall perform at its expense all necessary activities to
terminate  the exploitation or transfer it to the State , as the case may be, in
accordance  with  generally  accepted  practices  in the international petroleum
industry.  The  Consortium  shall  take all necessary precautions to prevent all
danger  to  human  life  and  to  Third  party  property. If the State wishes to
continue  exploitation of the field in question  following the effective date of
the  relinquishments,  withdrawal  or  expiry,  it may request the Consortium to
continue  such  exploitation  for  a  maximum  period  of  six  months from such
effective  date.

10.5. THE PRESENT CONVENTION CORRESPONDS TO THE  [CONVENTION-TYPE]  MENTIONED IN
      --------------------------------------------------------------------------
THE  PETROLEUM  CODE  ,  MADE  REFERENCE TO IN ARTICLES 22, 25, 26, 27 AND 31 OF
--------------------------------------------------------------------------------
ORDONNANCE  N*/PC/TP/MH  OF  FEBRUARY  3, 1962 CONCERNING CONCESSIONS GRANTED TO
--------------------------------------------------------------------------------
THE  CONSORTIUM  IN  ACCORDANCE  WITH  THE  PRESENT  CONVENTION.
----------------------------------------------------------------

<PAGE>
ARTICLE  11-  PRODUCTION  PROGRAMS

11.1.  The  Consortium  agrees  to produce reasonable quantities of Hydrocarbons
from  each  Commercial  Field  in  accordance  with  the  normal practice of the
international  petroleum  industry, taking into account in particular the metods
of  good conservation of the fields and the optimum recovery of the Hydrocarbons
reserves  on  an  economic  basis.

11.2.  During  production,  the  Consortium  shall  before 1st November of every
Calendar  year  submit  for  approval to the Minister the production program for
each  Commercial  Field  and  the  corresponding  Budget  set  for the following
Calendar Year. Such approval shall be granted automatically if the program is in
accordance  with  the  provisions  of  Article  11.1.  above.

11.3.  The  Consortium  shall  use  its  best  endeavors  to produce during each
calendar  Year  the  quantities  estimated in the production program referred to
above.

ARTICLE  12-  NATURAL  GAS

12.1.  The  Consortium will have the right to use the Associated Natural Gas for
the  requirements of the Petroleum Operations including for reinjection into the
Commercial  Fields.

Any quantity of Associated Natural Gas which is not used for the requirements of
the  Petroleum  Operations,  and  whose  treatment and use in the opinion of the
Consortium  are  not  economic, shall (subject to the right of the State to take
and dispose of such Gas under the conditions set forth below) be reinjected into
subsoil  or,  when  such  reinjection  is  not  required by the practice  of the
international  petroleum  industry,  may  be  flaired  with  the approval of the
Minister,  SUCH APPROVAL NOT TO BE REFUSED IF THE FLARING OF THE GAS CONFORMS TO
           ---------------------------------------------------------------------
THE  PRACTICES  OF  THE  INTERNATIONAL  PETROLEUM  INDUSTRY.
------------------------------------------------------------

The  Consortium  shall,  except in case of emergency, request this approval from
the  Minister  at  least  three  (3)  months  in advance providing the necessary
justifications  showing  in  particular  that  all or part of this Gas cannot be
usefully  and  economically  used to improve the maximum economical re-injection
rate  in  accordance  with  the  provisions  of  Article  10.3  above.

If  the  Consortium  decides  to  treat and sell the Associated Natural Gas, the
Consortium  shall notify the Minister of this fact ; the parties shall then meet
to  discuss,  as soon as possible, in order to arrive at an agreement concerning
the  treatment  and  sale  of  the  said  Gas.

<PAGE>
If the Consortium decides not to treat and sell the Associated Natural Gas which
is not required for the needs of the Petroleum Operations, the State may decide,
at  any  time,  to  offtake all or part of the said Gas at the exit point of the
installation  for  separating  the  Crude Oil and the Natural Gas. The above Gas
shall  be  placed  at the disposal of the State without charge provided that the
State  shall  bear  any  additional  costs  which are necessary for treating and
offtaking  the  Gas  beyond  the  point  where  it  would  have  been  flared.

12.2. If the Consortium makes a discovery of Non-Associated Natural Gas which it
considers  potentially  commercial,  it  shall  notify  the  Minister as soon as
possible.  The Parties shall then meet to decide on the basis of all information
available  if  the  production  and  the  sale of this Gas by the Consortium are
possible  and  if  so  which  conditions  shall  apply.

If  the Consortium considers that an Non-Associated Natural Gas Discovery is not
immediately  commercial  but at the same time foresees its commerciallity in the
future  in view of the size of the discovery and in view of reasonable forecasts
of  market development, the State shall grant the Consortium an extension to the
Permit  within  the  surface  area  which  corresponds  to  the  said Discovery.
Notwithstanding  Article  8.1  above, the surface fee relating to this extension
shall  be  US$  100 per square kilometer per annum. The State and the Consortium
shall  agree  on  the  term of this extension which shall be set in light of the
inevitable waiting period before exploitation of the discovery can start. During
this  extension,  the  State and the Consortium shall maintain close cooperation
with a view to studying the development of the market and accelerating the start
of  exploitation  of  the  Discovery  as  much  as  possible as soon as economic
conditions  allow.

12.3.The price paid for the Natural Gas ([the Market Price]) shall be :

     a)   in the case of sales to  independent  purchasers,  equal to net  price
          realized and obtained for the sale of this Natural Gas ;

     b)   in the case of sales  other  than to  independent  purchasers,  set by
          agreement  between the State and the Consortium taking into account in
          particular :

          -    the quantity and quality of the Natural Gas ;

          -    the prices of sales of Natural gas produced from other sources in
               Chad and sold under comparable market conditions, if any ;

          -    the forecasat use for the Natural Gas ;

          -    the national and  international  market price for subtitute forms
               of energy.

<PAGE>
In  order  to  determine  the Ex-Field Market price for Natural Gas, this market
Price  shall be adjusted back to the measurement point referred to under Article
13.1  by  deducting  transportation  costs in the same way as provided for under
Article  21.3  in  the  case  of  Crude  Oil.

ARTICLE  13-  MEASUREMENT  OF  HYDROCARBONS

13.1.  The Consortium shall measure, at the outlet flange of the collection tank
of  each  Concession,  or  in  the case of Natural Gas, at the outlet of the gas
treatment plant or the separation or treatment facilities as the case may be, or
at  any other point set by mutual agreement of the Parties, all the Hydrocarbons
produced  from  each  Concession  after  extracting  the  water  and  associated
substances,  using,  after  approval  by  the  Minister, measuring apparatus and
procedures  which conform to those used in the international petroleum industry.
The  Minister  will  have  the  right  to  review  such  measuring apparatus and
procedures  and  to  inspect  the  apparatus  and  procedures  used.

13.2.  Si  au  cours  de  l'exploitation,  le Consortium desire modifier lesdits
appareils  ou  les  procedures,  il devra obtenir l'approbation  du Ministre. Le
Ministre  peut  exiger  qu'aucune modification ne soit faite sans la pr sence de
son  repr  sentant  dument  mandate.

13.2.  If during the course of exploitation, the Consortium wishes to modify the
said apparatus or procedures, it shall obtain the  approval of the Minister. The
Minister  may  require that any modification be made only in the presence of his
duly  authorized  representative.

13.3. The Minister may, at any time, require the measurement apparatus be tested
or  calibrated  at dates or intervals or in ways as specified in his request, in
accordance  with  the  standards  of  the  international  petroleum  industry.

13.4.  If the apparatus or procedures used result in an over or under estimation
of  the quantities measured, the error shall be deemed to have existed since the
date of the previous calibration of the equipment, unless a more recent date can
be  proved,  and  an  appropriate adjustment shall be made for the corresponding
period.

13.5.  If  exceptional  losses  of Hydrocarbons have taken place, the Consortium
shall  submit  a  report  to  the  Minister, specifying the circumstances of the
losses  and  the  quantity,  if  this  can  be  estimated.

In  the  case  of  losses  of  Hydrocarbons  resulting  from  the failure of the
Consortium  to  comply  with  the  standards  generally  recognized  by  the
international  petroleum  industry, the Consortium shall take reponsibility, and
the  Parties  shall  meet  with  a  view to reducing or eliminating such losses.

<PAGE>
ARTICLE  14-  TRANSPORTATION  OF  HYDROCARBONS

14.1.  In accordance with the Petroleum Code, the Consortium will have the right
to  transport  or  HAVE  TRANSPORTED,while  retaining  ownership  therin,  any
                   ------------------
production  to the storage, treatment, loading or wholesale  consumption points,
or  the  Delivery  Point.

14.2.  The  State  will  have  an  option  to  participate in an export pipeline
project, provided that the State always pay its share of the cost of the project
proportional  to  its  eventual  participation.

If  agreements  are reached between the State and neighboring states to allow or
facilitate  the  development  of  the  principal export pipeline proposed by the
Consortium  as  well  as the transportation by that pipeline of its Hydrocarbons
across  the  territory  of  such  neighboring  states,  the  State shall without
discrimination  grant  to  Consortium all benefits arising from such agreements,
excluding  the  particular  benefits  granted  specifically  to the State in its
capacity  as  a  user  of  the  pipeline.

The  Consortium  and the State will negotiate the conditions which will apply to
the  setting up and operation of the export pipeline with the governments of the
revelant  neighboring  State.

14.3.  The  transportation authorization is granted by right, on request, either
to  Consortium  or  on  an invidual basis to each of the entities comprising the
Consortium.  The approval of a pipeline project as provided for in the Petroleum
Code  may  not  be  withheld if the project conforms to the regulations in force
and  ensures the transportation of production extracted under the best technical
and  economic  conditions.

14.4. The rights specified in this Article 14 may be transferred individually or
jointly  under  the  conditions  set  out  in  this  Convention.

The transferees shall be subject to the conditions of this Convention concerning
the  construction  and operation of the installations and pipelines in question.
They  shall also comply with the conditions imposed on the Consortium under this
Convention  and  the  Petroleum  Code  whether  from a legal point of view or in
relation  to  control  of  the  company.

<PAGE>
14.5.  The  Consortium  or  its  transferees or other legal persons may CONCLUDE
                                                                        --------
CONTRACTS  OF  ASSOCIATION  or  other  similar  contract  with  a  view to joint
--------------------------
transportation  of  their  production  subject to the provisions of Article 14.6
below.

They  may  also  conclude  contracts  with  Third  parties  for construction and
operation  of  pipeline.

All  agreements or contracts relating in particular to pipeline construction and
operation,  sharing  of  costs,  financial  returns  and,  in  the  case  of
discontinuance of the business, assets, shall be submitted for approval together
with  any  request  for  a  transportation  authorization.

If  the  consortium is bound by contracts to place part of its production at the
disposal  of  any  other  legal  persons, it shall, on the request of such legal
persons,  provide  transportation of such production as if it was its own, under
the  conditions  specified  in  Article  14.8  below.

14.6. The route and specifications of pipelines shall be set so as to ensure the
transportation  and  disposal  of  the  production  from  the fields in the best
technical  and  economic  conditions possible, and in particular so as to ensure
that,  on  an overall basis, the value of such production at the field departure
points  will  be  maximized.

In order to ensure compliance with the provisions of the preceding paragraph, in
the case of discoveries by Third Parties of other exploitable fields in the same
geographic  area,  the  Minister  may  in  particular,  in the absence of mutual
agreement, oblige the holders of mining titles or the transferees referred to in
Article  14.4  above  to  combine  with  other  producers  with  a view to joint
construction or use of the installations and pipelines in respect of all or part
of  the  production  of  such  fields.  In  the case of disagreement between the
parties  in  question  in  relation  to  such joint activity, the Minister shall
submit the dispute to arbitration in accordance with a procedure such as the one
set  out  in  this  Convention.

14.7.  The  approval of a pipeline project by decree of the Council of Ministers
shall  confer  on  such  project  the  status  of  [public  utility].

In  addition,  approval  of  a pipeline project shall give the Consortium or the
pipeline  company  the  right  to  construct installations and pipelines on land
burdened  by  right  of  ways.The  owners  OF THE ABOVE MENTIONED LAND shall not
                                           ---------------------------
commit  any  act that might hinder the proper operation of the installations and
pipelines.

<PAGE>
If the installations or pipelines interfere with the normal use of the land, the
owner(s)  can  have THE CONSORTIUM  purchase the land by mere request. The value
                    --------------
of  the  land  shall,  in  the  absence  of  mutual  agreement, be stablished in
accordance  with  the  same  procedure  as  for  expropriation.

Except  in  cases  of force majeure or other cases validly justifying delay, the
Consortium  or  its  partners  or  transferees referred to in Article 14.4 above
shall  be  required to start, or have started on their behalf, the proposed work
within  two  years  following  the  approval  of the project, failing which such
approval  may  be  withdrawn.

14.8.  The company operating the pipeline constructed in accordance with Article
14.1,  14.2  and 14.4 above may be obliged by decision of the Mimnister, failing
mutual  agreement,  to  accept,  in addition to its own production and up to the
limits  of  capacity  of  the  pipeline, production from exploitation operations
other  than  those  in  relation  to  which  the  project  was  approved.

Production  of the same quality transported at the same rate shall be subject to
the  same  tariff.

ANY  DISPUTE  ARISING  OUT  OF THE APPLICATION OF THE PROVISIONS OF THIS ARTICLE
--------------------------------------------------------------------------------
4.18  SHALL BE SUBJECT TO ARBITRATION IN ACCORDANCE WITH A PROCEDURE SUCH AS THE
--------------------------------------------------------------------------------
ONE  SET  OUT  IN  ARTICLE  33  BELOW  OF  THIS  CONVENTION.
------------------------------------------------------------

14.9.  The  transportation  tariff shall be set by the companies responsible for
the transportation. The tariff shall be subject to the approval of the Minister.
To  this  end,  this tariff shall be submitted to the Minister two months before
the  start  of operations. Notice of any subsequent change shall be given to the
Minister  with any appropriate explanations one month before the effective date.
During  such  notice  period,  the  Minister  may  raise objection to the tariff
proposed.

This  tariff  shall  in  particular  :

     -    include a usage factor for the installations.

     -    take into account the depreciation of the installations and pipeline.

     -    Take into account distances involved.

     -    Allow a profit margin  comparable to that customarily  accepted in the
          international   petroleum   industry  for   comparable   installations
          operating under similar conditions.

<PAGE>
In  case  of  significant  changes to any of the components of the tariff, a new
tariff  will be set and approved in accordance with above procedures, on request
of  the  Minister,  taking  such  changes  into  account.

14.10.  Any legal person transporting Hydrocarbons in Chad shall, in relation to
the  installations  and  operation of the facilities and pipeline, be subject to
the  obligations  set  out  in  the  present  Convention.

14.11.  The  provisions  of this Article 14 shall not apply to installations and
pipeline  constructed  within a concession. Occupancy of land necessary for such
installations  and  pipeline  shall be arranged in accordance with the procedure
set  forth  in  this  Convention.

ARTICLE  15  -  OBLIGATION  TO  SUPPLY  THE  INTERNAL  MARKET

15.1.  If  the  State  is  unable  to  satisfy  the Chadian internal consumption
requirments  for  Crude Oil from all internally produced Crude Oils available to
it,  the  Consortium agrees to sell to the State on a prioity basis, the portion
necessary  to satisfy the internal consumption needs of the country, equal up to
the  percentage  represented  by the total production in comparison to the total
quantity  of  Crude  Oil  produced  in  the  Republic  of  Chad.

15.2.  The  Minister  shall  give  written notice, at the latest on the first of
October,  of  the  quantity  of  Crude  Oil  to  be purchased over the following
Calender  Year  in  accordance  with  this  Article.

15.3.  The  Crude  Oil  sold  under  this Article to the State, or to the person
designated  by  the State for this purpose, shall be paid for in CFA FRANCS, and
                                                                 ----------
the  per  barrel  price paid shall be the ex-field cost price of the Crude, plus
the  cost  of transportation to the place of delivery, plus thirty United States
cents  (US$  0.30)  per  barrel,  except  if  the parties otherwise agree. These
deliveries  shall  not  be subject to any royalty or profits tax. This Crude Oil
shall be delivered to the State, unless otherwise agreed by parties, at the exit
point  of  the  principle  collection centers of the producing fields (where the
Consortium  shall  provide storage for this Crude Oil for a period of at least 2
months,  for  the  account  of  the Consortium for the first thirty days of such
period,  thereafter  for the account of the State). The deliveries shall be made
in  accordance  with  procedures  set  by  agreement  of  the  parties.

15.4.  All sums due to the Consortium under this Article shall be payable to the
Consortium  in  currency  legally used in Chad(CFA FRANCS). At the start of each
                                               ------------
month  the  Consortium  shall  invoice  the  State  for  deliveries  made in the
preceding  month.  The  State  shall pay within 60 days . The conversion between

<PAGE>
Dollars  and  the  currency legally used in Chad(CFA FRANCS)shall be made on the
                                                 -----------
basis  of the average of the daily rate quoted by the foreign exchange market in
Paris  at  the  closing  of  each  working  day  during  the  month of delivery.

        CHAPTER IV PROVISIONS APPLYING TO EXPLORATION AND TO EXPLOITATION

ARTICLE  16-  ANNUAL  WORK  PROGRAM

16.1.  The  Consortium  will submit to the Minister within thirty days following
the  effective  Date  of  the  Convention  the  Annual  Work  Program  and  the
corresponding  Budget  for  the  current  Calendar  Year.

<PAGE>
Two  month before the end of each subsequent Calendar Year, The Consortium shall
submit  the  Annual  Work  Program  and  corresponding  Budget for the following
Calendar  Year  to  the  Minister.

The Annual Work Program and the Budget shall specify the different activities of
exploration,  evaluation,  development,  production  and  transportation.

16.2.  The  Minister  may  not  unreasonably  refuse the Annual Work Program and
corresponding  Budget.  However,  the  Minister  may  propose  revisions  or
modifications  to  the Annual Work Program, by notice to the Consortium within a
period  of  thirty  days  following  the  receipt  of  this  Program.

In this event, the Minister and the Consortium shall meet as soon as possible to
study  the  requested  revisions  or  modifications  and to establish, by mutual
agreement,  the  final form of the Annual Work Program,  in accordance with good
oil-field  practices  as  generally  recognized  in  the international petroleum
industry.

IF  THE MINISTER DOES NOT NOTIFY THE CONSORTIUM OF HIS WISH TO MAKE REVISIONS OR
--------------------------------------------------------------------------------
MODIFICATIONS  WITHIN  THE  ABOVE  MMENTIONED THIRTY-DAY PERIOD, THE SAID ANNUAL
--------------------------------------------------------------------------------
WORK  PROGRAM AND THE CORRESPONDING BUDGET SHALL BE DEEMED TO BE APPROVED BY THE
--------------------------------------------------------------------------------
MINISTER  AT  THE  END  OF  SUCH  PERIOD
----------------------------------------

16.3.  Changes  to  the  Annual  Work  Program  may  be justified by the results
acquired  during  the course of carrying out the work or in other circumstances.
In  this  case,  the  Consortium  may,  after  notifying the Minister, make such
changes  provided  that the basic objectives of the said Annual Work Program are
not  modified.

16.4. Any Annual Work Program and corresponding Budget submitted to the Minister
during  the  Permit  renewal  periods  in  relation to exploration work shall be
approved  automatically  on  the  condition  that  they  conform  to  the  work
obligations  provided  for  in  Article  7  above.

ARTICLE  17-ADMINISTRATIVE  SUPERVISION  OF  PETROPEUM           OPERATIONS

17.1.  The  Petroleum  Operations  are  subject  to  technical and adminitrative
supervision  by  representatives  from  the  Minitry.  The  duly  authorized
representatives shall have the right to oversee the Petroleum Operations, and to
inspect, at reasonable intervals, the facilities, equipment, machinery, recorded
data,  and  records  relating  to  the  Petroleum  Operations.

<PAGE>
17.2.  The Consortium shall give advance notice to the Minister of all Petroleum
Operations,  such  as  geological  or geophysical campaigns, drillings, and well
tests,  in  order  to  enable  the representatives of the Minister to be present
without  causing  delay  to  the  normal  carrying  out  of  the  operations.

If  the Consortium decides to abandon a well it shall notify the Minister if the
case arises two (2) days before the abandonment, or twenty (20) days in the case
of  the  abandonment  of  production  wells.

17.3.  The  Minister  or  his  duly  designed  representative,  may  request the
Consortium  to carry out, at the Consortium's expense, any work judged necessary
to  ensure  normal  safety  and  hygiene  during  the  Petroleum  Operations, in
accordance  with  the  practices  of  the  international  petroleum  industry.

17.4. In carrying out the Petroleum Operations, the Consortium shall observe all
written  notices given by the Minister in accordance with the Petroleum Code, as
well  as  any  written notices, requirements or order given by a duly authorized
agent.  However,  no  notice, requirement or orders shall be given if it is does
not  comply  with the provisions of this Convention or with the standards of the
international  petroleum  industry.  If  the  Consortium  refuses  such notices,
requirements  or  orders  if  they  are  not  reasonable  nor  comply  with this
Convention  or  with  the standards of the international petroleum industry, the
dispute  may  be  submitted  to  arbritation  under  Article  33  below.

17.5.  The State will ensure that all its representatives shall strictly observe
any  instuctions  given by the representatives of the Consortium relating to the
safety of persons and of the site, and that any inspection shall be made in such
a  way  as  to  interfere  as  litle  as  possible  with  the  operations of the
Consortium.

ARTICLE  18-  INFORMATION  AND  REPORT

18.1.  In  accordance  with the Petroleum Code, the Consortium shall maintain at
all  times  reports  and  records  on  all  its  Petroleum  Operations  in Chad.

18.2.  The well-logs, maps, magnetic tapes, drilling cutting, cores, samples and
all  other  geological  and  geophysical  information  and  data obtained by the
Consortium  during  the course of Petroleum Operations (hereafter referred to as
[Petroleum  Data])  are  the  property of the State and shall be provided to the
Minister  as  soon  as  possible  after  they  are  obtained or prepared, unless
otherwise provided for hereunder, and may not be published, reproduced or be the
subject  of  any  transaction  without  the  authorization  of  the  Minister.

18.3.  The  Consortium  may:

     a)   retain  for  the  needs  of the  Petroleum  Operations  copies  of the
          documents which comprise the petroleum Data ;

     b)   with  the   authorization   of  the  Ministry,   which  shall  not  be
          unreasonably refused or delayed, retain for the needs of the Petroleum
          Operations the original  documents  which comprise the Petroleum Data,
          subject to providing the Minister with copies if such documents can be
          reproduced ;

     c)   export freely for treatment,  analysis or laboratory examination,  the
          Petroleum  Data,  subject to providing the Minister,  if  practicable,
          with  sample  of  equivalent  size  and  quality  or,  in the  case of
          reproductible documents, copies of equivalent quality.

In particular, the Consortium shall as soon as possible supply the Minister with
a  copy  of  the  final  versions  of  measurement  reports,  geophysical
interpretations,  geological  reports,  well-logs  and  drilling  reports.

All  maps, sections, profiles and all other geophysical and geological documents
shall  be  supplied  to  the Minister on transparent paper which is adequate for
further  reproduction.

The  Consortium  shall  supply  the  Minister  or  his  representative  with  a
representative  part  of  cores,  cuttings  and samples of fluid produced during
production  tests.

At  the  expiry  or on the relinquishment or termination of this Convention, the
original  documents including magnetic tapes, if requested, shall be transferred
to  the  Minister.

18.4.The  Consortium  shall supply the Minister with periodic  reports in French
     and in English as follows :

     a)   a daily report on drilling progress and production,  as well as weekly
          report on geophysical works being carryied out ;

     b)   within thirty (30) days  following  the end of each Quarter,  a report
          relating to the Petroleum Operations carried out during that Quarter ;

     c)   within  sixty (60) days  following  the end of each  Calendar  Year, a
          summary report relating to the Petroleum Operations carried out during
          that Calendar Year, indicating among other things :

<PAGE>
          -    discoveries made by bassin,  with reserve estimates by individual
               field,
          -    the evaluation  activities  carried out during the course of that
               Calendar  Year  and the  evaluation  activities  planned  for the
               current   Calendar   Year,   with  the  reasons   supporting  the
               Consortium's  determination  concerning  the  work  necessary  in
               accordance with Article 9.2 above.
          -    The  geological  and   petrophysical   characteristics   and  the
               estimated  delineation  of each  field,  and the  results  of any
               production tests carried out,
          -    The detailed  technical-economic analysis of the commerciality of
               the total  reserves,  with an indication of  investments,  costs,
               production, hypothetical sequence of development of the fields,
          -    The  conditions  relating to the economic  viability of an export
               project and  recommendations on future exploration and evaluation
               work,
          -    A  detailed  estimate  of amounts  spent and a list of  personnel
               employed by the Consortium.

The  Consortium  agrees  to  present  this  report  annually  to  official
representaticves  of  the  State,  at  a location mutually agreed, and agrees to
reimburse  actual  expenditures,  up  to  a maximum of US$ seventy-five thousand
(75,000)  for  travel  and  reasonable  living  costs  incurred  by  such
representatives.

18.5.This Convention, as well as all information  marked [confidential] which is
     supplied by one Party to the other by reason of this  Convention,  shall be
     considered  confidential  until the  relinquishment  of the surface area to
     which the information relates, except :

-    for the petroleum Data (it being  understood  that for the purposes of this
     paragraph,   this  term  does  not  include   either   interpretations   or
     interpretative  reports) which shall remain  confidential only for a period
     of five years from the time the Data is obtained ; and

-    for the convention, which will reamin confidential for its term.

However,  each  Party may disclose this information to any person employed by it
or  working  on  its  behalf  provided  such  person  agrees  to  treat  it  as
confidential.

The Consortium may also communicate such information  (including the Convention)
to Affiliated  Companies,  any professional  consultants and legal counsel,  any
third parties who have a bona fide interest in becoming a member  company of the
Consortium,   any   accountants,   underwriters   and   lenders,   and  to  such
representatives  of governments  which need to be made aware thereof or have the
right to require  disclosure.  The  Consortium  will also have the right to make
data trades  with third  parties in  accordance  with  normal  practices  of the

<PAGE>
international  petroleum  industry,  subject  to  Consortium  keeping  the State
informed of such data trades. The Consortium will obtain from any relevant Third
party a written  undertaking to maintain the  confidentiality  of information so
exchanged.

In addition, The Minister may use the information supplied by the Consortium for
the  purpose  of preparing and publishing any report required by law, as well as
any  report  and  study  of  general  interest.

18.6.  Notwithstanding  the  provisions  of Article 18.5 above, the Minister may
introduce  into the public domain any information relating to an area over which
the Consortium no longer has rights following expiry, relinquishment, withdrawal
or  termination  of  the  Convention  over  the  said  area.

18.7.  The  intention  of  the  Parties  is  not to apply the provisions of this
Article  18  in  a  way  that  abnormally  overburdens the administration of the
Consortium.  If,  in  the  opinion  of  the  Consotium,  the  application of any
provision  whatsoever  of  Article 18 has this effect, the Parties shall meet to
agree  an  appropriate  change  to  the  relevant  obligation.

18.8.  Notwithstanding  any  provision  to  the contrary in this Convention, the
Consortium  will not be required to disclose to the State any of its proprietary
technology  or  that  of  its  Affiliated  Companies.

ARTICLE  19-  PERSONNEL  TRAINING  AND  MACHINERY

19.1.  The Consortium shall, from the start of Petroleum Operations, ensure that
it employs Chadian citizens preferentially, PROVIDED THEIR QUALIFICATION ARE THE
                                            ------------------------------------
SAME,  and  to play a part in the training of such employees so as to allow them
-----
to  accede to all work force, supervisory, professional and managerial position.

At the end of each Calendar Year, the consortium will prepare, in agreement with
the  Minister, a recruitment and training plan with a view to an ever increasing
participation  by  Chadian  personnel  in  the  Petroleum  Operations.

19.2.  In order in particular to facilitate the employment of Chadian personnel,
the  Consortium,  in  satisfying  its  needs,  will provide for the training and
perfecting  the  qualifications  of  personnel  employed  for  the  Petroleum
Operations.  The  Consortium  shall  also  use  its  best endeavors to train and
perfect  the  qualifications  of  the  representatives of the Ministry of Mines,
Energy  and  Petroleum.

The  Consortium  shall  organize  such  training  under  a  plan  established by
agreement  with the Minister, either within its own organization or within other
organizations,  by  means  of  training  assignments  or  exchange of personnel,
whether  in  Chad  or  abroad.

<PAGE>
To  this  end,  the consortium shall dedicate the following to the training plan
for  Chadian  personnel  :

a)   from the approval date of the present Convention,  the Consortium agrees to
     spend up to US$ 75000 per annum for the  reinforcement of national capacity
     and the  purchasing  of  equipment  for the  Ministry of Mines,  Energy and
     Petroleum.

b)   Upon the grant to the  Consortium  of its  first  Concession,  this  yearly
     amount  allocated  for the  training  and  machinery  will be  increased to
     US$200000.

19.3.  The  foreign  personnel  employed  by  the  Consortium, as well as by its
-----
contractors, for the requirements of the Petroleum Operations will be authorized
to  enter  the  Republic  of  Chad.  The  Minister will facilitate the issue and
renewal of the administrative documents necessary for the entry and stay in Chad
of  the  said  personnel  and  their  families.

In  no  way  shall  the  previous  paragraph  be  interpreted as a waiver of the
legislation  IN  FORCE  concerning  entry  to  or exit from the territory of the
             ---------
Republic  of  Chad,  provided  that  such  legislation  is  applied  without
discrimination  to  all  persons  entering  or  leaving  the  Republic  of Chad.

ARTICLE  20-OWNERSHIP  OF  ASSETS

20.1.  All  assets,  whether  movable  and  immovable, acquired and owned by the
Consortium  will  become  the  property of the State without compensation on the
date  of expiry or termination of the Convention or a Concession or, in the case
of  relinquishment, on the date of relinquishment, for those assets not required
for  Petroleum Operations within other areas, other than those relinquished. If,
at the date of such expiry, termination or relinquishment, the Consortium is not
a  title-holder  of any Concession, this obligation will apply only to immovable
assets.

If  the  Minister  decides  not  to  use  the  said  assets,  he may request the
Consortium  to  remove  them  at its expense, such request to be made before the
date  of  the  expiry,  termination  or  relinquishment.

The Consortium may not remove or sell, out of the Contract Area, any asset which
may  be transferable to the State under this Article except with the approval of
the  Minister,  other than in the case of replacement of asset which is required
in  the  normal  course  of  the  Petroleum  Operations.

<PAGE>
20.2.  Within  sixty  days  following  expiry, relinquishment or withdrawal of a
Concession,  the  Consortium shall transfer to the State , without compensation,
all  wells  then  producing which have been drilled by the Consortium within the
perimeter  of  the  said Concession, in good working order (normal wear and tear
excepted)  for  the  continuance  of  the  exploitation,  except if the Minister
requires  their  abandonment  or  if  these  wells  have already been abandoned.

20.3. During the term of the Permit and the Concessions, the wells which cannot,
by  agreement,  be  used  for the pursuit of exploration or exploitation, may be
taken  by  the  State  without cost and converted to water wells. The Consortium
shall  be  required to leave the tubing in place at the requested level, as well
as any wellhead, and to carry out at its expense at the time of the operation of
abandoning  such  well  and to the extent possible from a technical and economic
point of view, the completion of the well in the water zone as may be requested.

<PAGE>
                                    CHAPTER V

                         ECONOMIC AND FISCAL PROVISIONS

Article  21  Price  of  Crude  Oil

21.1.  The  unit sale price of Crude Oil, taken into account for the calculation
of  the  direct  tax  on  profits  and royalty, shall be the Market Price at the
Delivery  Point  [The  Market  Price]  expressed  in  Dollars  per  barrel  as
determined  below  :

     a)   At the end of each Quarter, from the start of commercial production of
          Crude  Oil,  a Market  Price of each  type or blend of Crude  Oil sold
          shall be determined.

     b)   If sales to independent  purchasers represent fifty percent or more of
          the Crude Oil from the Contract  Area,  sold by the  Consortium at the
          Delivery  point  during the course of the quarter,  the Market  Prices
          applicable  for that Quarter will be equal to the weighted  average of
          the prices obtained during the said Quarter by the consortium, for the
          Crude  Oil  from  the  Contract  Area,   under  sales  contracts  with
          independent purchasers.

     c)   If sales to independent  purchasers  represent less than fifty percent
          of the Crude Oil from the Contract Area, sold by the Consortium at the
          Delivery  Point  during the course of the  Quarter,  the Market  Price
          applicable for the Quarter shall be the weighted average of :

          1.   the  weighted  average of the prices  obtained  from  independent
               purchasers during the Quarter in question if there have been such
               sales of Crude Oil from the Contract Area by the Consortium ;and

          2.   the average of the prices for which Crude Oils of similar density
               and  quality  to the Crude Oil from the  Contract  Area were sold
               during the course of the  Quarter in  question  under  comparable
               commercial  conditions  by  independent  sellers  to  independent
               buyers.  The prices of reference  Crude Oils shall be adjusted to
               take account of differences in quality, quantity,  transportation
               and commercial conditions.

          The above-mentioned  weighted average shall be determined on the basis
          of the percentage by volume represented by the total of sales from the
          Contract Area under subparagraph 1 above to independent purchasers and
          those made under subparagraph 2, respectively.

<PAGE>
          d)   Within  the  meaning  of  this  article,   sales  to  independent
               purchasers shall exclude the following transactions :

               -    sales under which the purchaser is an Affiliated  Company of
                    the seller, as well as sales between entities which comprise
                    the Consortium ;

               -    sales to the internal Chadian market ;

               -    sales  involving  any  consideration  other than  payment in
                    currency   (such  as  exchange   contracts,   sales  between
                    governments) and sales the reasons for which, in whole or in
                    part,  are  considerations  other than the  normal  economic
                    practices in sales of Crude Oil on the international market.

          e)   All the above  prices  shall be adjusted to the actual  points of
               loading of the Consortium.

          f)   For the purposes of this Article,  sales to the internal  Chadian
               market under Article 15 shall be excluded from the calculation of
               Market Price.

21.2.     Within  thirty  days following the end of each Quarter, the Consortium
will  determine,  in accordance with Article 21.1 above, the Market Price of the
Crude  Oil  produced  applicable  to the preceding Quarter, and will submit this
determination  to  the  Minister.

If  within  thirty  days following this submission, the Minister does not accept
the  Consortium's determination of the market price, the Consortium and Minister
will  meet  to  reach agreement on the determination of the market price. If the
parties have not reach agreement on the determination of the market price within
ninety days following the end of the quarter, the Consortium or the Minister may
immediatelly  submit the determination of the market price to an expert. In this
case  the market price shall be determined finally by an expert of international
repute,  appointed  by  agreement  between  the  parties,  or failing agreement,
appointed  by  the  International  Center  of  Technical  Expertise  of  the
International  Chamber  of  Commerce  in accordance with the technical expertise
Regulation.

The expert shall determine the Market Price in accordance with the provisions of
Article  21.1  within  a  period  of  twenty one days after his appointment. The
expenses  of  the  expert  will be for the account of the Consortium and will be
included  in  its  costs.

<PAGE>
21.3.  For  the  purposes of determining the value of royalty under Article 22.4
below,  an  Ex-Field  Market  price  will be calculated for each quarter. Within
thirty of the final determination of the Market price relating to the quarter in
question,  the Consortium will make this calculation in the following manner and
will  notify  the  result  to  the  Minister  :

It  will determine in the first place the value of the total quantities of Crude
Oil  from the Contract Area, sold by the Consortium at the Delivery point during
such  quarter,  using  this  Market  price,  the  quantities  sold  for internal
consumption  needs  under  Article  15.3  above  being  excluded  ;

If  will  subtract  therefrom  the  costs  of  transportation  incurred  by  the
Consortium  during  such  quarter  between  the  measurement  point specified in
Article  13  above  and  the  Delivery  points  ;

It  will  divide  the  result by the Total production of Crude Oil, after having
deducted  the  quatities  sold  during  that  quarter  to  satisfy  the internal
consumption  needs under Article 15.3 above as well as the quantities of royalty
payable in kind in respect of the quarter in question and the lost quantities or
used  for  the  Field  exploitation  needs.

The  costs  of transportation referred to above will include all transportation,
handling, storage, loading, and, where applicable, treatment and all other costs
which  are  incurred  in  respect of the Crude Oil between the measurement point
specified  in Article 13.1 above up to the Delivery Points, including all costs,
tariffs,  duties,  and  other  charges  of  whatever  nature  resulting  from
transportation  through  the  Republic  of  Chad  and any neighboring countries.

ARTICLE  22  -  ROYALTY  ON  PRODUCTION

22.1. The Consortium shall pay to the State a Royalty on the Total Production of
Hydrocarbons  (after  deducting  the  quantities referred to in this Article) at
rate  of  12.5%  in  the  case  of  Crude  Oil  and  5%  in case of Natural Gas.

22.2. The Royalty on the Crude will be payable, in whole or part, either in cash
or  kind.  The  Royalty  on  Natural  Gas  is  always  payable  in  cash.

The  choice of the method of payment of Royalty on Crude Oil will be notified by
the  Minister  to  the  Consortium  at  least  three  months before the start of
commercial  production.

<PAGE>
This  choice  will remain valid until the Consortium receives a new notification
from the Minister which must be given with at least three months advance notice.

If  no  notification  has  been made within the period provided, all the Royalty
will  be  paid  in  cash.

22.3.  Before  tenth  of each month, the Consortium will submit to the Minister,
with all necessary supporting documentation, a statement of the Total Production
of  the  preceding  month,  divided  into  the  following  three  categories  :

     a)   the  quantities  sold  during  the  course of the  preceding  month in
          satisfaction of the needs of internal  consumption  under Article 15.3
          above,

     b)   the  quantities  of  royalty  to be paid in  kind  in  respect  of the
          previous months, and,

     c)   the balance, being the quantities intended for export.

The  statement  shall specify separately the quantities of Crude Oil and Natural
Gas.

22.4.  When  the  royalty  is  payable  in  cash,  it  will be paid monthly on a
provisional  basis  and  quarterly  on  a  final  basis.

The  Consortium  will pay the provisional amount within seven (7) days following
the  submission  of the statement, on the basis of the quantities referred to in
Article  22.3  c)  above  multiplied  by the Ex-Field Market Price calculated in
accordance  with  Articles  12.3  and  21.3  above.
In  the  case  of  Crude  Oil  :

     -    until the  calculation of the Ex-Field Market Price for given Quarter,
          the provisional  Ex-Field Market Price  applicable to the Quarter will
          be the most recent Ex-Field Market Price ;

     -    following the notification to the Minister, in accordance with Article
          21.3 above,  of the  calculation of the ex-Field  Market Price for the
          Quarter in question,  the Minister  will notify the  Consortium of the
          final amount of royalty payable, after deduction of amounts payable on
          a  provisional  basis,  and the  Consortium  will pay the royalty on a
          final basis.  If the balance is negative,  the amount will be deducted
          from the  amount  of  royalty  for  which  the  Consortium  is  liable
          subsequently  until  the  amount  is  exhausted.  If  the  balance  is
          positive,  the Consortium will pay the amount within thirty (30) days.

<PAGE>
          In case,  where the  calculation  of the  Ex-Field  Market Price for a
          given  Quarter  corresponds  to a negative  value,  then the  Ex-Field
          Market Price deemed to be zero. If the losses extend on a long period,
          the Parties will to find an issue.

22.5.  When  the  royalty  is  payable  in  kind,  it  will  be  paid  monthly.

Unless  otherwise  agreed  between  the  parties  ,  the Consortium will, at the
earliest  the fifteenth of each month, make available to the State quantities of
Crude  oil  payable  as  royalty  in  respect  of  the  preceding  month  at the
measurement  points  specified  in  Article  13  above at a rate agreed with the
Minister.  If  the  Minister  requests  and  if the Consortium has the necessary
installations,  and the necessary capacity in such installations, the Consortium
will  transport  and deliver the said quantities for the State at the expense of
the  State.

The  State  will  have  a period of sixty (60) days from the time the Consortium
makes the product available during which to carry out its offstake ; during this
time  the Consortium is obliged to store this Crude Oil at no charge. If all the
monthly  royalty  has not been taken at the end of this period, the Consortium ,
may  freely  dispose of this amount  of Crude Oil subject to paying to the State
the  royalty in cash for the corresponding quantities in accordance with Article
22.4  above.

ARTICLE  23  -  FISCAL  REGIME

23.1.  The  Consortium  is,  by  virtue  of its Petroleum Operations, subject to
direct  tax  on  profits  provided  for  in  this Convention, in accordance with
Article 1.6.1 of Annex III, and in the General Tax Code as well as the Petroleum
Code,  subject  to  any  contrary  provisions  in  this  Convention.

23.2.  The net profits that the Consortium makes from the whole of its petroleum
Operations  in the territory of the Republic of Chad are subject to a direct tax
of  50 %, CALCULATED ON THE SAID NET PROFITS, AS PROVIDED IN THE PETROLEUM CODE.
          ----------------------------------------------------------------------

THE  OTHER  PROVISIONS OF ARTICLE 65 OF THE PETROLEUM CODE ARE NOT APPLICABLE by
-----------------------------------------------------------------------------
reason  of  the methods of determining the direct tax set out below, the royalty
on  production  being  considered as a deductible exploitation cost and not as a
credit  against  tax.

The  Consortium  shall keep by Calendar Year, in conformity with the regulations
in  force  in  Chad and the provisions of this Convention, separate accounts for
the  Petroleum  Operations  which allow a general exploitation account, a profit
and  loss account and a balance sheet to be kept setting out both the results of

<PAGE>
the  said  operations  and the assets and liabilities relating thereto or linked
directly  thereto.

23.3.     In order to determine the net profits of the Consortium, the following
shall  be  credited  to the general exploitation account and the profit and loss
account  :

     a)   the value of the total  quantities of  Hydrocarbons  from the Contract
          Area, sold by the Consortium at the Delivery Point,  determined on the
          basis of the market Price dtermined in accordance with Articles 12 and
          21 above,  the quantities  sold for internal  consumption  needs under
          Article 15.3 above being excluded.

     b)   If  applicable,  the value of the share of  production  paid by way of
          royalty in kind  determined in accordance  with the procedures set out
          in Article 22 above.

     c)   THE SHARE OF THE CAPITAL GAINS TAXES  DERIVING FROM THE  ASSIGNMENT OR
          ----------------------------------------------------------------------
          THE TRANSFER OF ANY ASSET ITEM  WHATSOEVER IN ACCORDANCE  WITH THE TAX
          ----------------------------------------------------------------------
          REGIME CONCERNING THE CAPITAL GAIN ON ASSIGNMENT.
          ------------------------------------------------

     d)   Any  other  income  or  revenue   directly  linked  to  the  Petroleum
          Operations, in particular, from the sale of associated substances, and
          from treatment,  storage and  transportation of Hydrocarbons for Third
          Parties.

     e)   Foreign exchange profits resulting from the Petroleum Operations.

23.4.The following may be debited to the general exploitation account and to the
profit  and  loss  account.

     a)   cost of materials,  supplies and energy used or consumed,  salaries of
          personnel  and  related  charges,  cost of  services  provided  to the
          Consortium  by Third Party or Affiliated  Companies,  provided that in
          this case the cost of supplies,  personnel,  and services  provided by
          Affiliated  Companies shall not exceed those normally charged by Third
          Parties for similar services in the international petroleum industry.

     b)   The depreciation actually charged by the consortium up to the limit of
          the rates set out in Annex III of this Convention.  This  depreciation
          will  commence on the date of use of the  equipment  and will continue
          until the equipment is wholly depreciated.

<PAGE>
     c)   Genenral costs related to the Petroleum  Operations including costs of
          starting up business,  cost of renting  movable and immovable  assets,
          insurance  premiums,  and an amount  relating to  overhead  costs from
          abroad as defined in Article 2.6 of Annex III of this Convention.

     d)   The actual amount of interest and other charges on debts contracted by
          the  Consotium  within the  limits set in Article  2.7 of Annex III of
          this Convention.  It is understood that no interest will be deductible
          in  respect  to  loans  made  by   Affiliated   Companies   concerning
          exploration expenses.

     e)   After  following  for  depreciation  already  charged,  the  value  of
          materials  or assets  destroyed  or  damaged,  and the value of assets
          which the  enterprise  has  written  off or which  will be  abandonned
          during  the  course of the year,  as well as  unrecoverable  debts and
          compensation to third parties for damage.

     f)   The total amount of royalty on the  production  paid in cash,  and the
          value of the share of the amount of production  paid by way of royalty
          in kind  determined  in  accordance  with  the  procedures  set out in
          Article 22 above.

     g)   Reasonable  reserves  created for clearly  specifies  future losses or
          charges  and which  current  events  render  probable,  excluding  all
          contributions to the fund for reconstituting the fields.

     h)   Any  other  losses  or  charges  directly  relating  to the  Petroleum
          Operations  including foreign exchange losses arising therefrom,  with
          the  exception  of the  amount of direct  profits  tax  determined  in
          accordance with the provisions of the present article.

     i)   All  other   losses  which  the   Consortium   has  to  bear  for  the
          transportation   of  Hydrocarbons   between  the  measurement   points
          specified  in Article  13.1 and the  Delivery  Points,  including  all
          costs,  tariffs,  duties and other charges of whatever  nature arising
          from the  transportation  of the Hydrocarbons  through the republic of
          Chad and through neighboring countries,  to the extent that such costs
          are not already included by virtue of paragraphs a) to h) above.

23.5.     Subject  to  other  provisions  to  the  contrary  agreed  between the
parties,  direct  profits  tax will be paid under a system of quartely  payments
with  annual  settlement  after  declaration  of  the  financial results for the
Calendar  year  in question. These advances shall be paid before the end of each
Quarter  and  shall  be  equal to one-quarter of the direct profits tax actually
paid  during  the  course  of  the  preceding  Calendar year. The payment of the
balance  of  the  direct  of the direct profits tax for a Calendar Year shall be

<PAGE>
made  at  the  latest on the 1st of April of the following Calendar Year. If the
Consortium  has paid advances which are greater than the amount of tax for which
it is liable in respect of a given Calendar Year, the excess shall constitute an
amount  to  be  debited  from  the amount of advance payments due in the future.

ARTICLE  24  -  FISCAL  EXEMPTIONS

24.1.  The  Consortium,  ITS SHAREHOLDERS, AND AFFILIATED COMPANIESshall benefit
                         ------------------------------------------
from  the  fiscal  advantages  provided for IN ARTICLE 65 of the petroleum Code.
                                            -------------

Except  for  royalty  on  production  and  direct profits tax, the Consortium is
exepmpt  :

     a)   from all other  direct tax on revenue  relating  to the results of the
     --   Petroleum  Operations,  the profits,  and distribution of the profits,
          MOVABLE ASSETS REVENUE TAX
          --------------------------

     b)   From all taxes,  duties or contributions  of any nature  whatsoever on
          the production or sale of the  Hydrocarbons  and any related  revenue,
          and  payable on the  Petroleum  Operations,  or on the  setting up and
          operation of the Consortium, INCLUDING [LICENCE FEES] (LA PATENTE)
                                       -----------------------------------

The  above  exemption  also  applies  to  all  transfers of funds, purchases and
transportation  of  Hydrocarbons intented for export, SERVICES RENDERED and more
                                                      -----------------
generally to all revenue and activities of the Consortium, provided that in each
of  these  cases  this  is  required  for  the  Petroleum  Operations.

As  an  exception  to the previous provisions,  [real estate taxes]  (les impots
fonciers) and  [additional fees]  (les taxes additionnelles) are payable, on the
basis  provided  under  the  general  law, on buildings intended for habitation.

In  addition,  the  exemptions  set  out in this Article do not apply to.  [fees
levied  by  way  of  remuneration  of  services  rendered]  (taxes ou redevances
percues en remuneration des services particuliers rendus), and generally, to all
[advance  payments  of  non-fiscal  nature] (les  prelevements autres que ceux a
caractere  fiscal).

24.2.  In  addition, the Consortium shall be exempt for any 'turnover tax' (taxe
sur  le chiffre d'affaires) in respect of all acquisitions of assets or services
strictly and directly necessary to the carrying out of the Petroleum Operations.

<PAGE>
ARTICLE  25  -  ACCOUNTS

25.1. The Consortium shall keep accounts in conformity with regulations in force
and  in  accordance  with  the provisions of the Accounting procedure set out in
Annex  III  which  is  an  integral  part  of  this  Convention.

25.2.  The records and books of accounts shall be kept in Dollars. These records
will  be used to determine the gross revenue, the exploitation expenses, the net
profits  and for the preparation of the declaration of accounting results of the
Consortium.

For  information  purposes,  the  general  exploitation  and the profit and loss
accounts  and  the  balance  sheets  shall  also  be  kept  IN  CFA  FRANCS.
                                                            ---------------

25.3.  The  records and books of accounts will be supported by detailed vouchers
proving  the  expenses  and  revenues  of  the Consortium in accordance with the
rights  and  obligations  of  the  Convention.

ARTICLE  26  -  AUDITS

26.1.  The  State  will  have  the  right  to  examine  and  verify,  by  its
representatives  or  the auditors, the records and books of accounts relating to
the  Petroleum Operations and will have a period of five (5) years following the
end  of  the  accounting  period  in  question  to carry out this examination or
verification  and  to present to the Consortium its objections in respect of all
inconsistencies  or  mistakes  noted  at  the  time  of  the  examination  or
verification.

For  purposes  of such verification the Consortium will place at the disposal of
the  representatives  of  the  State  and  the Auditors during working hours all
records,  books.  Other documents and information that these representatives and
auditors  may  request.

26.2.Failure  by the  State to make  any  claim  within  the  five  year  period
     referrred to above shall terminate the right of the State to object or make
     any claim in respect of the accounting period in question.

ARTICLE  27  -  IMPORTS  AND  EXPORTS

27.1. The Consortium will have the right to import into the Republic of Chad for
its  own account or for the account of its contractors, under conditions set out
below,  all  plant,  equipment, machines, appliances, vehicles, cars, airplanes,
spare  parts  and  consumable  materials necessary for the petroleum Operations.

<PAGE>
The foreign employees and their families working in the Republic of Chad for the
Consortium  or  its  contractors  will  have  the right to import their personal
effects into the republic of Chad free from all taxes and customs duties, except
for personal vehicles currently in use, in accordance with the provisions of the
Customs  Code  in  force.  Local purchases will be made on a tax-included basis.

The merchandise referred to above will be imported by the Consortium exempt from
all  taxes  and  customs  duties, except for 'fees levied for services rendered'
(des  taxes  percues  pour  services  rendus)  under  the following conditions :
     a)   the  materials  intended  exclusively  for petroleum  exploration  and
          exploitation will be exempt from all taxes and customs duties ;

     b)   equipment-merchandise   and   appliances-intended  for  the  petroleum
          exploration and  exploitation  work sites will be placed under 'NORMAL
                                                                          ------
          temporary  admission  regime'  (le  regime de  l'admission  temporaire
          normal) ;

     c)   Work site  vehicles,  specialized  or not,  will be  placed  under the
          temporary  admission  regime ; the Company  vehicles  and vehicles for
          personal use will be subject to the general  legal regime  '(regime du
          droit  commun)  wihout  exemption ;  airplanes  and their spare parts,
          consumable   materials   required  for   petroleum   exploration   and
          exploitation  ,as listed in Annex , will be exempt  from all taxes and
          customs duties.

27.2.  The  Consortium  and  its contractors agree to effect the imports defined
above  only  to  the  extent  that  the said merchandise is not available in the
Republic  of  Chad  in  equivalent  quantities,  quality, price, time period and
payment  conditions,except  in  the case of particular technical requirements or
emergencies  presented  by  the  Consortium  or  its  contractors.

<PAGE>
The  Consortium  and  its  contractors  agree  to  give  preference  to  Chadian
entreprises  for  all contracts of construction, supply or services on the basis
of  equivalent  terms  relating  to  quantities,quality,price,  time  period and
payment  conditions.

27.3. The Consortium and its contractors, sa well as their foreign employees and
their  families,  will have the right to reexport out the Republic of Chad, free
of  all  exit  tariffs and duties, the merchandise which has been imported under
Article  27.1  above,  and  which  is  no  longer  necessary  for  the Petroleum
Operations,  subject  to  Article  20  above.

<PAGE>
27.4.  The  Consortium  and  its  contractors will have the right to sell in the
Republic  of Chad the merchandise which they have imported when no longer needed
for  the  Petroleum  Operations,  subject to Article 20 above, provided that the
Minister is informed in advance. It is understood that, in this case, the seller
will comply with all the formalities provided for by the regulation in force and
will pay all taxes and duties which apply on the date of the transaction, except
if  the above mentioned merchandise is transferred to entities which are arrying
out  Petroleum  Operations  in  the  Republic  of  Chad.

27.5.  During  the  term  of  this  Convention  and subject to the conditions of
Article  15  above,  the  Consortium will have the right to export freely to any
destination,  free  of  all  exit taxes and duties, the share of Hydrocarbons to
which  the Consortium is entitled under the term of the Convention. However, the
Consortium  agrees,  on  the  demand  of  the State, not to sell Hydrocarbons to
countries  which  are  declared  hostile  to  the  Republic  of  Chad.

27.6.  All  imports  and  exports  under  this Convention will be subject to the
formalities  required  by  the  regulation  in  force.

At  the  request  of the Consortium and after agreement of the competent Chadian
authorities, materials and supplies may be extended as Petroleum Operatipons are
carried  out.

Article  28  Foreign  Exchange

28.1.  The Consortium will be subject to the regulations of the Republic of Chad
concerning  foreign  exchange and transfers. In any event, it is understood that
the  State  agrees,  for  the  term  of  this  Convention,  to  maintain for the
Consortium  and  its contractors the benefit of the following guarantees for the
operations  carried  out  within  the  framework  of  this  Convention  :

a)   the right to acquire abroad loans or other means of financing necessary for
     the conduct of the Petroleum Operations, receive and to maintain abroad all
     funds  acquired  or borrowed  abroad  including  income from sales,  and to
     dispose  therof freely in so far as such funds exceed the  requirements  of
     their operations in Chad and of their fiscal and contractual obligations ;

b)   free  movement  of funds  belonging  to them free of all taxes and  duties,
     between Chad and any other country ;

<PAGE>
c)   the right to  repatriate  capital  invested  within the  framework  of this
     Convention and to transfer income from such capital, in particular interest
     and  dividends,  although  the State  shall have no  obligation  to provide
     foreign currency ;

d)   free transfer of amounts payable,  as well as free right to receive amounts
     of  whatever  nature  which are  payable  to them,  subject  to making  the
     declarations required by the regulation in force ;

e)   the right of direct  payment  abroad to foreign  suppliers for supplies and
     services required for the Petroleum Operations.

28.2.  For  the  performance of the Petroleum Operations, the Consortium will be
authorized  to exchange national currency against convertible foreign currencies
at  rates  of  exchange  which are no less favorable for the Consortium than the
daily  rate,  or  the  rates  generally applied in the Republic of Chad to other
firms,  on  the  day  of  the  exchange  transaction.

28.3. Within thirty days following the end of each Quarter, the Consortium shall
supply  the  Minister of Finance with a report on the movement of funds relating
to  the  Petroleum  Operations  during  that  Quarter.

28.4.  The  expatriate  emplyees  of  the  Consortium  will  have  the right, in
accordance  with  the  regulations  in  force  in  the Republic of Chad, of free
exchange and free transfer to their countries of origin of savings from salaries
and contributions to pension funds and savings accounts made by thrmselves or on
their  behalf,  provided  they  have  paid  their taxes in the Republic of Chad.

ARTICLE  29  -  PAYMENTS

29.1.  Unless  otherwise  provided  for  in this Convention, all sums due to the
State  or  to  the  Consortium  will be payable in Dollars or in any convertible
currency  chosen  by  agreement  between  the  Parties.

29.2.  In case of late payment, sums due from the Consortium shall bear interest
at  rate  of  LIBOR  plus four and half percent per annum from the day when they
should  have  been  paid.

<PAGE>
                       CHAPTER VI MISCELLANEOUS PROVISION

            ARTICLE 30- TRANSFER RIGHTS AND CONTROL OF THE CONSORTIUM

30.1.  In  accordance  with  the provisions of the Petroleum Code, the joint and
several  rights  and  obligations  arising  under  this  Convention  may  not be
transferred  in  whole  or  in  a  part  by  any  of the entities comprising the
Consortium  without  the  prior  approval of the Minister, other than in case of
transfers  to  Affiliated  Companies.
A  transfer  will be deemed to be approved by the Minister if, within sixty days
of sending the notice and a copy of the draft transfer deed to the Minister, the
Minister  has  not refused his approval. Such approval shall not be unreasonably
withheld.

Each of the companies comprising the Consortium shall have the right to transfer
all  or  part  of  any  of its rights granted under this Convention or under the
Permit  or  under  any Concession to any Affiliated Company. Such transfers will
not  be  subject  to  the prior approval of the Minister. However the Consortium
will  inform the Minister of any transfer made under this terms of the paragraph
within  one  month following the signature of the transfer document. No transfer
shall  be  such  as  to  affect  adversely  the  interests  of the State and the
Petroleum  Operations,  nor  to  reduce  technical and financial capacity of the
Consortium.

Except  in  the  case  of  transfers  provided  for  in  Article  14.4  above,
transferee(s)  will  become  part  of  the  Consortium  and  shall  satisfy  the
obligations  imposed  on  the  Consortium  by  the  Petroleum  Code  and by this
Convention,  to  which  they  shall  become  a  party.

<PAGE>
TRANSFERS  MADE  IN ACCORDANCE WITH THE ABOVE PROVISIONS WILL BE EXEMPT FROM ALL
--------------------------------------------------------------------------------
REGISTRATION  AND  STAMP  DUTIES  OTHERWISE  LEVIABLE  THERON.
--------------------------------------------------------------

30.2.  If  the  Consortium is comprised of several entities, it shall supply the
Minister  as soon as possible with a copy of its Joint Venture Agreement binding
the  entities  constituting  the  Consortium.

30.3.  The  Consortium  shall  submit, for the Minster's approval, any change of
person  or  any  proposal  which  could  lead,  in  particular  by  way  of  a
re-distribution  of  shares, to a change in the control of the Consortium, other
than  in  the  case  of  transfers  between  Affiliated  Companies.

The proposals referred to in this Article 30.3 will be notified to the Minister.
If  within  a period of 60 days following the said notification the Minister has
not  notified  the Consortium of his refusal to approve the said proposals (such
approval not to be unreasonbly withheld), the proposals will be deemed approved.

ARTICLE  31  -  CANCELLATION  OF  THE  PERMIT,  WITHDRAWAL OF THE CONCESSION AND
TERMINATION  OF  THE  CONVENTION

31.1.  The  Permit  or,  the  case  arising  any  Concession may be cancelled or
wihdrawn,  in  whole  or  in part, without any compensation, in the cases and in
accordance  with  the  procedures  provided  for  in  the  Petroleum  Code.

31.2.  For  the  purposes  of  applying  such procedures, the Minister will give
notice  to the Consortium, by registered letter with proof of receipt, to comply
within  the  periods provided for in the Petroleum Code or within four months if
no  such  periods  are  provided.

If  the  Consortium  fails  to  comply  within  the  time  limit  provided,  the
cancellation of the Permit or withdrawal of the Concession shall be declared and
this  Convention will automatically terminate to the extent that this Convention
applies  to  the  Permit  or  the  said  Concession.

31.3. Any dispute  relating to the cancellation of the Permit or withdrawal of a
Concession  and the termination of the Convention may be referred to arbitration
under  Article  33  below.

ARTICLE  32  -  FORCE  MAJEURE

32.1.  In  the  case  of  non-performance  by  any  Party  of  its  contractual
obligations,  other than in the case of payments for which such Party is liable,
the  non-performance or delay will not be considered a breach of this Convention
if  resulting  from  Force Majeure, provided however there is a cause and effect
link  between  the  impediment  and the Force Majeure reason which is relied on.

<PAGE>
The Parties may submit to arbitration any dispute concerning the type of failure
involved  and  its effect on the contractual obligations of the Party concerned.

32.2.  Under this Convention the following shall be understood as being cases of
Force Majeure, all events which are unforeseeable and independent of the will of
a Party, such as natural causes, epidemics, earthquakes, fires, floods, strikes,
riots,  insurrections,  civil  disturbances,  sabotage,  the  effects  of war or
situations  attributable  to  war. The intention of the Parties is that the term
Force  Majeure  shall  be  interpreted  in  accordance  with  the principles and
practices  of  international  law.

32.3.  When a Party considers it is prevented from complying with its obligation
because  of  Force  Majeure, it shall immediately notify the other Party of such
impediment  giving  reasons.

It  shall  also  take all useful steps to ensure normal resumption of compliance
with  the  obligations  affected  as  soon  as possible after the event of Force
Majeure  has  ceased.
The  obligations,  other than those affected by Force Majeure, shall continue to
be  complied  with  in  accordance  with  the  provisions  of  this  Convention.

When  a  case  of  Force Majeure lasts for longer than one (1) year, the Parties
may,  by  mutual  agreement,  agree  to  terminate  this  Convention.

32.4. If, following a case of Force Majeure, execution of obligations under this
Convention  is  delayed,  the period provided under this Convention for carrying
out  such  obligation  shall be increased by the period of the delay and also by
the period necessary for the repair of any damage resulting from such delay. The
term  of this Convention shall also be extended, but only in respect of the area
affected  by  the  event  of  Force  Majeure.

33.1. In case of dispute arising between the State and the Consortium concerning
the  interpretation or execution of this Convention or of any of its provisions,
the  Parties  shall  use  their  best endeavors to resolve the dispute amicably.
If  the Parties do not resolve the dispute amicably within a period of three (3)
months, the dispute shall be decided by arbitration before three (3) arbitrators
in  accordance  with  the  arbitration  rules  of  the  International Chamber of
Commerce.  Awards  shall  be final and binding on the parties from the date they
are  made,  and  judgment  upon  the  award  may  be entered in any court having
jurisdiction.

<PAGE>
33.2. The arbitration shall take place in Paris (France). The procedure shall be
conducted  in  French  language.

33.3.  The  arbitrors  shall  decide  all  questions  on  the  basis  of  :

     a)   the provisions of this Convention,

     b)   subject to Article 34 below, the provisions of the Petroleum Code,

     c)   subject to Article 34 below,  the other laws and  regulations  of Chad
          supplemented  where necessary by the general principles of law applied
          internationally.

33.4. Recourse to arbitration shall suspend the obligation to perform the matter
in  dispute.  On other hand, execution by the parties of their other obligations
under  this  Convention shall not be suspended during the period of arbitration.

ARTICLE  34  -  APPLICABLE  LAW  AND  STABILIZATION  OF  CONDITIONS
                                 ----------------------------------

34.1.  The  Petroleum  Operations  undertaken  within  the  framework  of  this
Convention  are  governed  by  this Convention and the Petroleum Code  and other
laws  and  regulations  in  force  in  Chad;HOWEVER, IN CASE OF CONTRADICTION OR
                                            ------------------------------------
INCONSISTENCY  BETWEEN THE PROVISIONS OF THIS CONVENTION AND THE PETROLEUM CODE,
--------------------------------------------------------------------------------
THE  PROVISIONS  OF  THIS  CONVENTION  WILL  PREVAIL.
-----------------------------------------------------

34.2.  The  Consortium shall respect the laws and regulations of the Republic of
Chad.Any  reference  to  these laws and regulations, throughout this Convention,
shall  not in any way be interpreted to increase, either directly or indirectly,
the  obligations  imposed on or the amounts payable by the Consortium under this
Convention  nor  to  adversely  affect  the  rights and economic benefits of the
Consortium  as  provided  for  in  this  Convention.

34.3.  In case of contradiction or inconsistency between this Convention and the
laws  and regulations of the Republic of Chad, the provisions of this Convention
shall  prevail,  except  if  the  Parties  decide  otherwise.

34.4     DURING  THE  TERM  OF  THIS  CONVENTION  THE  STATE  GARANTEES  THAT NO
----     -----------------------------------------------------------------------
GOVERNMENTAL  ACT  WILL  BE TAKING IN THE FUTURE, WTHOUT PRIOR AGREEMENT BETWEEN
--------------------------------------------------------------------------------
THE  PARIES,  AGAINST  THE  CONSORTIUM  WHICH  HAS THE EFFECT EITHER DIRECTLY OR
--------------------------------------------------------------------------------
INDIRECTLY  OF  INCREASING  THE OBLIGATIONS OR AMOUNTS PAYABLE BY THE CONSORTIUM
--------------------------------------------------------------------------------
UNDER THIS CONVENTION OR WHICH ADVERSELY AFFECTS THE RIGHT AND ECONOMIC BENEFITS
--------------------------------------------------------------------------------
OF THE CONSORTIUM PROVIDED BY THIS CONVENTION. THIS WILL APPLY IN PARTICULAR, TO
--------------------------------------------------------------------------------
THE  FOLLOWING  :
-----------------

<PAGE>
A)     EXEMPTION  FROM  TAXES,  FEES  AND  DUTIES  ;
----------------------------------------------------

B)     OBLIGATIONS  RELATING  TO  ROYALTY  AND  PROFITS  TAX  ;
--------------------------------------------------------------

C)     RIGHT  TO  RETAIN ABROAD AND TO REPATRIATE TO FOREIGN COUNTRIES ANY FUNDS
-------------------------------------------------------------------------------
AND  FOREIGN  CURRENCIES  ;
---------------------------

D)     NON-DISCRIMINATION  INRESPECT  OF  CHARGES MADE BY THE STATE FOR SERVICES
--------------------------------------------------------------------------------
RENDERED,  COMPARED WITH CHARGES MADE BY THE STATE FOR SIMILAR SERVICES SUPPLIED
--------------------------------------------------------------------------------
IN  THE  PUBLIC  DOMAIN.
------------------------

IF  SUCH  CHANGE  ARE MADE BY THE GOVERNMENT OF THE REPUBLIC OF CHAD WITHOUT THE
--------------------------------------------------------------------------------
PRIOR  AGREEMENT  OF  THE  CONSORTIUM,  THE  PARTIES  SHALL  AGREE THE NECESSARY
--------------------------------------------------------------------------------
MODIFICATIONS  TO  INSURE  THAT  THE CONSORTIUM IS SUBJECT TO THE SAME FINANCIAL
--------------------------------------------------------------------------------
CONDITIONS,  OBLIGATIONS  AND  AMOUNTS,  AS  WELL  AS THE SAME RELATIVE ECONOMIC
--------------------------------------------------------------------------------
RIGHTS  AND  BENEFITS,  AS  EXISTED  BEFORE  THE  SAID  TOOK  PLACE.
--------------------------------------------------------------------

ARTICLE  35  -  NOTICES

35.1.  All notices and other communications relating to this Convention shall be
addressed in writing and shall be considered as having been delivered as soon as
they  are carried or delivered by registered mail, with confirmation of receipt,
or  addressed  by  telex,  telefax,  to  the  address  shown  below  :

     a)   for the State or the Minister :

     Minister  of  Mines,  Energy  and  Petroleum
     PO  BOX  94  N'Djamena
     Republic  of  Chad
     Telefax  :  (235) 52.25.65
                 (235) 52.42.48

<PAGE>
     b)   for the Consortium

     Trinity  Energy  Resources  Chad  LTD
     Po  Box  5499  N'DjamenA
     Republic  of  Chad
     Telephone    (235) 52.44.98
     Telefax      (235) 52.44.96

35.2.  The  State  and  the Consortium may at any time after notice to the other
Party change their authorized representative or amend the chosen address set out
above.

ARTICLE  36  -  OTHERS  PROVISIONS

36.1. The headings of this Convention are inserted for convenience and reference
only  and  in  no way define, limit or describe the effect or the purpose of the
Convention  nor  of  any  of  its  clauses.

36.2.  The  Annexes  I  ,II.III  and  IV  attached  are in integral part of this
Convention.

36.3. This Convention may be modified only in writing by mutual agreement of the
Parties.

36.4.  Any  waiver  by  the  State  of  the  execution  of any obligation by the
Consortium  shall  be  in  writing  signed  by  the  Minister.  No waiver may be
considered  as  a  precedent  if  the Minister waives his reliance on any of his
rights  under  this  Convention.

36.5.  If  no time limit is specified in a particular case under this Convention
where  the  Minister's  approval  is  required,  the  Parties shall agree upon a
reasonable  time limit, it being understood that the intent of the Parties is to
cooperate  in  all possible ways to achieve the purposes of this Convention. The
approval  will  be  deemed  to  have been given if express approval is not given
within  the  time  limit  stipulated  or  agreed.

36.6.  The  Effective  Date  from  which this Convention shall be binding on the
Parties  will  be  the  date  of  its  approval  by Decree. The validity of this
Convention  will not be affected by any delay whatsoever in the signature of any
decrees  confirming  the  grant or the renewal of the permit or any Concessions.

<PAGE>
36.7.  This  Convention abrogates the Memorandum of Understanding, signed by the
Republic  of  Chad  and  the  Consortium  on  July  31,1998.

IN  WITNESS  WHEREOF,  the  Parties  have  signed  this  Convention  in  four
(4  )copies

                      In  N'Djamena  on .....................

FOR  THE  REPUBLIC  OF  CHAD               FOR  ORIENTAL  ENERGY  RESOURCES

THE  MINISTER  OF  MINES,  ENERGY          FOR  CARLTON  ENERGY  GROUP
AND  PETROLEUM

                                           FOR  TRINITY  GAS  CORPORATION,  INC

<PAGE>
<TABLE>
<CAPTION>
                                     ANNEX I
                                     -------

BOUNDARIES  OF  THE  CONTRACT  AREA  OF  THE  PERMIT

POINTS                                      LONGITUDE                LATITUDE
-------                                     ----------               ----------

1               fronti  re  avec le Cameroun                        10 30'00"N
2               fronti  re  avec  la  R.C.A.                               10
30'00"N

Le long de la fronti re avec la R.C.A. jusqu'
<S>                                        <C>              <C>
3                                          20 01'15"E       fronti re avec la R.C.A.
4                                          20 01'15"E               09 40'00"N
                                           ----------               ----------
5                                          20 17'30"E               09 40'00"N
                                          ----------               -----------
6                                          20 17'30"E               09 47'30"N
7                                          20 00'00"E               09 47'30"N
8                                          20 00'00"E               09 45'00"N
9                                          19 55'45"E               09 26'15"N

<PAGE>
10                                         19 55'45"E               09 26'15"N
11                                         19 44'45"E               09 26'15"N
12                                         19 44'45"E               09 21'30"N
13                                         19 40'30"E               09 21'30"N
14                                         19 40'30"E               09 18'00"N
15                                         19 27'30"E               09 18'00"N
16                                         19 27'30"E               09 21'30"N
17                                         19 20'30"E               09 21'30"N
18                                         19 20'30"E               09 33'00"N
19                                         19 14'15"E               09 33'00"N
20                                         19 14'15"E               09 29'00"N
21                                         19 08'00"E               09 29'00"N
22                                         19 08'00"E               09 25'15"N
23                                         18 57'15"E               09 25'15"N
24                                         18 57'30"E               09 21'15"N
                                          ----------               -----------
25                                         18 51'15"E               09 21'15"N
26                                         18 51'15"E               09 18'00"N
27                                         18 43'30"E               09 18'00"N
28                                         18 43'30"E               09 16'00"N
29                                         18 32'45"E               09 16'00"N
30                                         18 32'45"E               09 13'00"N
31                                         18 28'00"E               09 13'00"N
32                                         19 28'00"E               09 08'15"N
33                                         18 19'30"E               09 08'15"N
34                                         18 19'30"E               09 05'45"N
35                                         18 10'45"E               09 05'45"N
36                                         18 10'45"E               09 03'15"N
37                                         18 07'00"E               09 03'15"N
38                                         18 07'00"E               09 01'30"N
39                                         18 05'15"E               09 01'30"N
40                                         18 05'15"E               09 03'30"N
41                                         17 57'00"E               09 03'30"N
42                                         17 57'00"E               08 59'15"N
43                                         17 50'00"E               08 59'15"N
44                                         17 50'00"E               08 57'00"N
45                                         17 31'15"E               08 57'00"N
46                                         17 31'15"E               08 50'30"N
47                                         17 22'15"E               08 50'30"N
48                                         17 22'15"E               08 52'15"N
49                                         17 08'45"E               08 52'15"N
50                                         17 08'45"E               08 57'00"N
51                                         16 12'15"E               08 57'00"N
52                                         16 12'15"E               09 10'45"N

<PAGE>
53                                         16 09'15"E               09 10'45"N
54                                         16 09'15"E               09 13'30"N
55                                         16 00'15"E               09 13'30"N
56                                         16 00'15"E               09 11'00"N
57                                         15 49'45"E               09 11'00"N
58                                         15 49'45"E               09 07'45"N
59                                         15 48'15"E               09 07'45"N
60                                         15 48'15"E               09 06'30"N
61                                         15 42'45"E               09 06'30"N
62                                         15 42'45"E               09 07'15"N
63                                         15 28'15"E               09 07'15"N
64                                         15 28'15"E               08 59'45"N
65                                         15 35'00"E               08 59'45"N
66                                         15 35'00"E               08 49'15"N
67                                         15 37'00"E               08 49'15"N
68                                         15 37'00"E               08 34'15"N
69                                         15 39'45"E               08 34'15"N
70                                         15 39'45"E               08 32'30"N
71                                         16 02'45"E               08 32'30"N
72                                         16 02'45"E               08 23'30"N
73                                         16 07'30"E               08 23'30"N
74                                         16 07'30"E               08 18'00"N
75                                         16 12'30"E               08 18'00"N
76                                         16 12'30"E               08 11'45"N
77                                         16 16'45"E               08 11'45"N
78                                         16 16'45"E               08 08'15"N
79                                         16 34'45"E               09 08'15"N
80                                         16 34'45"E               08 09'15"N
81                                         16 45'30"E               08 09'15"N
82                                         16 45'30"E               08 07'30"N
83                                         17 30'00"E               08 07'30"N
84                                         17 30'00"E               08 15'00"N
85                                         17 37'30"E               08 15'00"N
86                                         17 37'30"E               08 22'30"N
87                                         18 07'30"E               08 22'30"N
88                                         18 07'30"E               08 30'00"N
89                                         18 30'00"E               08 30'00"N
90                                         18 30'00"E               08 37'30"N
91                                         18 37'30"E               08 37'30"N
92                                         18 37'30"E               08 42'30"N
93                                         19 00'00"E               08 42'30"N
94                                         19 00'00"E       fronti re avec la R.C.A
</TABLE>

Le  long  de  la  fronti  re avec la R.C.A jusqu'ala frontiere avec le Cameroun
,ensuite,  le  long  de  la  fronti  re  avec  le  Cameroun  jusqu'au  point

95                     fronti  re avec le Cameroun          10 30'00"N(identique
                                                            au  point  N  1)

Voir  la  Carte  se  rapportant  aux  coordonnees g ographiques  des points qui
figurent  al'Annexe  N(o) I.

                                    ANNEX II

                    EXPLORATION WORK PLANS AND ESTIMATED COST
                                     IN(US$)

Initial  Period  of  five  (5)years

     First  sub  period  :  (18)  months

     Aero-magnettic  Survey,  Geological and Geopgysical study as defined by the
Operator  ;  evaluation  of Seismic data and aero-magnetic existing.  500 000

Administration  and  general  activities                              200 000

SUB  TOTAL                                                            700 000

Second  sub  Period  (18)  months

<PAGE>
     1250  Km  of  Seismic  acquisition                             5 000 000

     Administration  and  general  activities                         300 000

     SUB  TOTAL                                                     5 300 000

     Third  sub  Period  (12)  months

     1250Km  of  Seismic  acquisition                               5 000 000
     Drilling  of  (1)  Exploration  well                           5 000 000
     Administration  and  general  activies                           300 000

     SUB  TOTAL                                                    10 300 000

     Fourth  sub  Period  (12)  months

     Drilling  of  (2)  Exploration Well                           10 000 000
     Administration  and  general  activities                         300 000

     SUB  TOTAL                                                    10 300 000

TOTAL                                                              26 000 000

Summary  of  provisional  expenditures  of  Exploration  in  categories

Aero-magnetic  Survey                                                 500 000
2500  Seismic  acquisition  of  2D or 3D                           10 000 000
Three  (3)  Exploration  Well                                      15 000 000
Costs  of  administration  and  general  activities                 1 100 000

TOTAL                                                              26 000 000

<PAGE>
                                    ANNEX III

     ACCOUNTING  PROCEDURE

ARTICLE  1.  GENERAL  PROVISIONS

1.1.     Purpose

     This  Accounting procedure will apply to the performance of the ovligations
under  the  Convention.

The  purpose  of  this  Accounting  Procedure  is  to  establish  the accounting
standards  and  methods  for determining the costs which, in accordance with the
practices  of  the  international  petroleum  industry,  are  necessary  for the
Consortium  to  incur  in  the  conduct  of  the Petroleum Operations (hereafter
referred  to  as  [Petroleum  Costs]).

1.2.     Interpretation
The  definitions  set  out  in  Article  1 of the Convention shall apply to this
Annex.

IN  THE CASE OF CONFLICT BETWEEN THE PROVISIONS OF THIS ACCOUNTING PROCEDURE AND
--------------------------------------------------------------------------------
THE  CONVENTION,  THE  PROVISIONS  OF  THE  CONVENTION  SHALL  APPLY.
---------------------------------------------------------------------

1.3.     Amendements

This  Accounting  Procedure  may  be  amended  by agreement between the Parties.

The  Parties  agree  that, if any of the provisions of this Accounting Procedure
becomes  inequitable  for  one of the Parties, they will in good faith amend the
provision  in  question.

1.4.     Accounts  and  statements

     a)   the  Consortium  will set up and maintain,  in its office in Chad, the
          complete  accounts,  book and  statements  of all  income,  costs  and
          expenses  relating to the Petroleum  Operations,  in  conformity  with
          regulations  in force and the  practices  and  procedures  used in the
          international petroleum industry.

     These accounts,  books,  statements and reports shall be made available, to
     the State and its  representatives to allow them to exercise their right of
     inspection,  verification  and supervision  provided for in Article 26.1 fo
     the Convention.

     b)   Within twelve (12) months following the Effective Date, the Consortium
          will submit to the Minister a draft  accounting  plan  relating to the
          accounts, books, statements and reports of the organization. This plan
          will conform with generally recognized and accepted accounting methods
          and  compatible  with  the  practices  and  procedures  of the  modern
          PETROLEUM industry.
          ---------

          Within  six (6) months  following  receipt  of this  draft  plan,  the
          Consortium and the Minister will agree the final accounting plan which
          will  describe  in detail the bases of the  accounting  system and the
          procedures to be used under the  Convention and a list of the accounts
          to be kept in the  French  language.  Following  this  agreement,  the
          Consortium  shall  diligently  set up, and supply  the  Minister  with
          formal copies of the detailed accounting plans and manuals relating to
          the accounts,  books and the form of presentation of the accounts, and
          the procedures to be observed in the performance of the Convention.

<PAGE>
     c)   All reports and  statements  will be prepared in  accordance  with the
          provisions of the  Convention,  and the regulations of the Republic of
          Chad,  and,  failing such  provisions , in accordance with the methods
          generally accepted in the international petroleum industry.

1.5. Currency

     All accounts,  books,  statements  and reports will be expressed in Dollars
     unless otherwise provided for or agreed by the Parties.

1.6. Accounting principles

     The principles relating to the tax accounts will include the following :

     1.6.1 Taxable parties

     If the Consortium is comprised of more than one company, the direct profits
     tax relating to each Calendar Year will be assessed on the basis of the net
     taxable  profits of each  company,  and for this purpose a separate  Market
     Price  will  be  calculated  for  each  company  under  Article  21 of  the
     Convention.

     However,  payments  of  the  royalty  provided  for  in  Article  22 of the
     convention  will in all cases be calculated  and valued on the basis of the
     total production of all the companies comprising the Consortium.

     1.6.2 Carry forward of losses

     Starting  from  the  Calendar  Year  during  which  the  first   commercial
     production  takes place all deductibles  charges  relating to the Petroleum
     Operations  which are used in  determining  the  direct  profits  tax which
     cannot be recovered will be considered as an exploitation  loss and will be
     carried  forward as a deduction for the  following  Calendar year until the
     end of the fifth (5th) Calendar year. In case of exceptional circumstances,
     the Minister and the Consortium  may agree on an  appropriate  extension of
     this period.

1.7. Accounting on an accrual basis

     All books, accounts and statements will be prepared on an accrual basis (as
     opposed to a cash basis).  Revenues will be  attributed  to the  accounting
     period in which they are earned,  and costs and expenses to the  accounting
     period in which they are  incurred,  without  the need to specify  when the
     amount  is  received  or   disbursed  in   connection   with  a  particular
     transaction. Costs and expenses will be deemed to have been incurred :

<PAGE>
     -    In the case of physical  items,  in the  accounting  period when title
          thereto passes ;

     -    In the case of services,  in the accounting  period when such services
          are performed.

     The accounting basis may be changed by agreement between the Parties if the
     Consortium  demonstrates  both that such change is equitable and is also in
     accordance with the practices of the international petroleum industry.

1.8. Definitions of Capital Expenditures and Operating Costs

     The  Petroleum  Costs shall consist of Capital  Expenditures  and Operating
     Costs.

     1.8.1 Capital Expenditures

          Capital Expenditures represent the Petroleum Costs of assets that have
     a useful life  extending  behing the year in which the asset wasa required,
     including  all  exploration  costs  and  expenditures  and all  development
     expenditures defined in subparagraphs 1.8.1 a) through h) below.

          Capital Expenditures  include, but are not limited to, the acquisition
     costs of the following assets and services :

     a)   Buildings,   installations   and   associated   equipment,   such   as
          installations  for producing  water and  electricity,  warehouses  and
          access  roads,  installations  for Crude  Oil  treatment  and  related
          equipment,  secondary  recovery systems,  Natural Gas treatment plants
          and systems for producing steam.

     b)   Construction of houses, facilities and leisure for employees and other
          property relating to such construction.

     c)   Production  installations such as production rigs (including the costs
          of labor,  fuel,  transportation  and  supplies  for the  fabrication,
          installation  and  erecting  in  place  of the  rigs  and the  cost of
          installing   pipelines),   wellhead  equipment,   sub-surface  lifting
          equipment,  tubing, sucker rods, surface pumps, flow-lines,  gathering
          equipment, delivery lines and storage facilities.

<PAGE>
     d)   Movable  property  such  as  surface  or  sub-surface  production  and
          drilling tools, equipment abd instruments,  barges and floating craft,
          automotive equipment,  aircraft,  construction  equipment,  furniture,
          office equipment, miscellaneous equipment.

     e)   Development and production wells,  including labor, materials services
          used, as well as redrilling,  deepening,  and restoring  production of
          such wells, and access roads, if any, leading directly to these wells.

     f)   Exploration Wells and Evaluation Wells, including labor, materials and
          services used, as well as access roads,  if any,  leading  directly to
          these wells.

     g)   Surveys,  including  labor,  materials  and services  used for aerial,
          geological,  topographic,  geophysical and seismic surveys, as well as
          core drilling.

     h)   Other   exploration   expenses,   such  as   auxiliary   or  temporary
          installations  with a useful  life  not  exceeding  one  year  used in
          exploration,  and  exploration  to acquire  geophysical  or geological
          information.

     1.8.2 Operating Costs

     Operating  Costs are all  petroleum  Costs other than Capital  Expenditures
     defined above.

1.9  Depreciation

     Capital  Expenditures  as  defined  in  Article  1.8  of this Annex will be
depreciated  for  the  purposes  of  calculating  direct  profi tax. In order to
determine  the  amount  of  depreciation  which  is  allowed as a deduction from
taxable  net profit in each Calendar Year, the following principles will apply :

     1.9.1  Capital  Expenditures  will be amortized on a straight lise basis at
the  following  annual  rates  :

     -    all exploration work, all wells,  both productive and  non-productive,
          and all access ways at the rate of 100 %.
     -    Surface pipelines at the rate of 10 %.
     -    Buried pipelines at the rate of 20 %.
     -    Permanent buildings at the rate of 5 %.
     -    All other Capital Expenditures at the rate of 20 %.

<PAGE>
     1.9.2 The  depreciation  in  respect of the first  Calendar  Year for which
     depreciation is allowable will be made on  aproportional  basis and not for
     the whole year.

     1.9.3 Depreciation of Capital Expenditures will be allowed with effect from
     :

     -    the  Calendar  Year during which the asset is placed in service or, if
          the Capital Expenditure does not relate to an asset having a period of
          use  exceeding  the year in which it is  placed in  service,  from the
          calendar Year during which the Capital Expenditure is incurred ;

     -    or the  Calendar  Year during  which the first  commercial  production
          takes place if this year is later.

1.10.  Valuation  of  transactions

Unless  otherwise  agreed  in  writing  by  the  Minster and the Consortium, all
transactions resulting in income, costs or expenses to be credited or debited to
the  books,  accounts,  statements and reports prepared, maintained or submitted
under  this  Convention will be made on an arm's length basis or on a basis such
that  such income, costs or expenses will neither be less than nor more than, as
the  case  may be, the amounts which would have resulted if the transactions had
been  made  on  an  arm's  length  basis  as  mentioned  above.

1.11.  Non-deductible  expenses

     The  following  expenses  will  not  be  included  in the Petroleum Costs :

     a)   Costs relating to the marketing and transportation of the Hydrocarbons
          beyond the Delivery Point ;
     b)   Contributions and donations except those approved by the State ;
     c)   Gifts  or  rebates  to   suppliers   and  gifts  or   commissions   to
          intermediaries used for service or supply contracts ;
     d)   Any interests,  fines,  monetary  adjustments or increases in expenses
          due to the failure of the  Consortium  to comply with the  obligations
          under the  Convention or to respect  applicable  law or contracts with
          Third Parties ; and
     e)   All other expenses  which are not directly  necessary for the carrying
          out of the Petroleum  Operations,  and expenses  which are excluded by
          provisions of the Convention and of this  Accounting  Procedure and by
          regulations in force in the Republic of Chad.

<PAGE>
1.12.  Exchange  rates

For  the  purposes of conversion between the legal currency of Chad or any other
currency, the average of the purchase and sale exchange rates will be used. This
average  will  be  based  on  the rates quoted on the foreign exchange market in
Paris  on  the  closing  of  the first day of the month during which the income,
costs  or  expenses  are  booked,  except  for  depreciation  for  purposes  of
calculating  direct  profits tax which will be converted at the rate in force on
the  date  of  acquiring  asset  by  the  Consortium or the date the service was
performed,  as  the  case  may  be.

Any  exchange profit or loss will be debited or credited to the Petroleum Costs.

A statement of the exchange rates used for converting the legal currency of Chad
or  any  other  currency  into  Dollars  will  be  kept  by  the  Consortium.

ARTICLE  2   ACCOUNTING  METHODS  AND  PRINCIPLES  FOR  IMPUTING PETROLEUM COSTS

2.1.  Personnel  expenses

     The  amount  of  wages  and salaries of the Consortium's employees directly
assigned  to  working  in  the  Republic  of  Chad  on  the Petroleum Operations
performed  under  this  Convention,  including the costs of holidays, vacations,
sick  leave,  living  and  housing  allowances,  travel  time, bonuses and other
benefits  customarily  granted  to  the  employees  of  the Consortium and their
families  in  similar  ventures.

2.2.  Materials  and  equipment

     The cost of equipment, materials, machines, tools and any other articles of
a  similar  nature  used  or  consumed  for  the  requirements  of the Petroleum
Operations  subject  to  the  following  :

     a)   Acquisition

          The  consortium  will only  supply  or  purchase  materials  which are
          required for the foreseeable  needs of the Petroleum  Operations.  The
          Consortium will avoid the accumulation of surplus stocks.

<PAGE>
          However,  stocks  must be  sufficient  to take into  account  the time
          needed for replacements, emergency needs and similar considerations.

     b)   Components of costs

          The costs of materials and equipment  acquired by the  Consortium  for
          the needs of the petroleum  Operations may include, in addition to the
          invoice  price(after  deduction  of any  discount  given)  freight and
          transportation  costs between the supply point and the delivery  point
          (provided  that such costs are not already  included  in the  invoiced
          price),  insurance  costs,  and other  related  expenses  which may be
          charged to the materials and the equipment  imported into or bought in
          the Republic of Chad .

     c)   Accounting

          The costs of such  materials  and  equipment  will be  debited  in the
          accounts on an costs basis.

     d)   Supply of materials and equipment by Affiliated Companies

          The materials and equipment  supplied by the  Affiliated  Companies of
          the  consartium  will  be  debited  in the  accounts  at a  level  not
          exceeding that which would be charged by  independent  suppliers on an
          arm's length basis.  This  criterion  will apply both the new and used
          materials.

     e)   Inventories

          The  consortium  will maintain  permanent  inventories  by quantity Nd
          value  of all  materials  in stock in  accordance  with the  generally
          accepted  practices  of  the  international  petroleum  industry.  The
          Consortium  will make a physical  inventory of all  materials at least
          once in any Contract Year. The State may carry out complete or partial
          inventory verifications when it considers them necessary.  The cost of
          non-capital  merchandise  in stock  will be  debited to the profit and
          loss  account at the time such  merchandise  is taken out of stock for
          use.

2.3.     Cost  of  technical  services

          The cost of technical  services required for the Petroleum  Operations
          will be assessed as follow :

<PAGE>
     a)   in the case of technical  services  performed by Third Parties who are
          direct  contractors  including  consultants,  contractors  and  public
          utilities,  the price paid by the Consortium  provided that this price
          is no higher than prices normally  charged by other firms for the same
          or comparable work or services ; and

     b)   in the case of technical  services  performed by the Consortium or its
          Affiliated  Companies,  the price  invoiced by the  Consortium  or its
          Affiliated  Companies,  provided that this price is no higher than the
          most  favorable  price proposed to other  Affiliated  Companies of the
          Consortium or to Third parties for the same or comparable services, in
          accordance with a methods of distribution of costs to be agreed in the
          accounting plan referred to in Article 1.4 b) of this Annex

2.4.      Insurance and claims

The  premiums  paid  for  insurance  which,  in  the normal course of events, is
required  for  the Petroleum Oerations, provided such premiums relate to prudent
coverage  of  risks  and  that  they  are  no  greater  than  those charged on a
competitive  basis  by insurance companies which are not Affiliated Companies of
the  Consortium.  The indemnities received from any insurance or any claims will
be  credited  against  Petroleum  Costs.

If  no  insurance,  or  sufficient insurance, is taken out to cover a particular
risk,  all  the  costs  incurred  by the consortium relating to any loss, claim,
damage  or  judgment,  including  legal  services, related to such risks will be
considered  as  petroleum  Costs  provided  such  costs  do  not result from the
Contractors'gross  negligence.

2.5.      Legal  and  litigation  costs

          Costs  of  litigation  and  legal or  related  services  necessary  or
          expedient  for the  protection  of the Contract  Area.  Any damages or
          compensations received will be credited against the Petroleum Costs.

          Costs incurred by the Consortium in the course of an arbitration under
          Article 33 of the  Convention  will not be included  in the  Petroleum
          Costs  except to the  extent  that  awards may be made in favor of the
          Consortium.

2.6.     Overhead  Costs

<PAGE>
General  costs  and  the  costs of centrally provided services (hereafter called
[Overhead  Costs] )  other  than  direct  costs  will  include  in  particular :

     a)   costs  incurred for services and  Consortium's  personnel  outside the
          Republic  of  Chad  relating  to  administration,  legal,  accounting,
          finance,  audit, tax, planning,  personnel management,  purchasinh and
          other  functions   required  for  Petroleum   Operations   under  this
          Convention ; and
     b)   reasonable  travel expenses for the Consortium's  personnel in general
          and adminitrative  categories set out in paragraph a) incurred for the
          purpose of inspecting and supervising the Petroleum  Operations in the
          Republic of Chad.
     c)   These  Overhead  Costs  will be  imputed  to the  Petroleum  Costs  in
          accordance  with  methods  applied  by  the  international   petroleum
          industry and in accordance with the accounting plan.

The  overhead  costs incurred outside the Republic of Chad in each Calendar Year
will  not exceed the percentage rate of the Petroleum Costs which is the same as
that  charged  by  the  operating  company of the Consortium to the other member
companies of the Consortium for the recovery of the said costs. Any change shall
be  notified  to  the  Minister.

2.7. Interest and fees

     Interset,  fees and other  financing  charges may be imputed to  deductible
     Petroleum Costs for the  determination of the direct profits tax,  provided
     they do not exceed the commercial rates used in similar situations and they
     relate  to  loans  and  credits  obtained  by  the  Consortium  under  this
     Convention  which are required  for the  purposes of financing  development
     operations of a Commercial  Field,  excluding  exploration  (which includes
     evaluation) operations.

     The  details  of the  financing  plans and the level of  financing  will be
     included in each Annual Work Plan and Budget for information purposes only.

2.8. Office cost in Republic of Chad

Personnel  costs and maintenance costs for the main offices of the Consortium in
the  Republic  of  Chad  including  rent, expenses for telephone, telex, fax and
radio and expenses for installations such as bases, warehouses, water, power and
communications  system,  roads  and  bridges.

<PAGE>
2.9.     Miscellaneous  expenditures

All other expenditures, other than those which are covered and dealt with by the
foregoing provisions of this Annex, incurred by the Consortium and necessary for
the  conduct  of  Petroleum Operations, including expenses of training personnel
provided  for  under  Article 19 of the Convention, expenses under Article 18.4,
and  surface  fees  referred  to  in  Article  8.

<PAGE>CLIVEDEN PETROLEUM CO. LTD.
                                17 XXXI DECEMBRE
                                   GENEVA 1207
                                   SWITZERLAND

May  5,  1999

Trinity  Energy  Resources,  Inc.
952  Echo  Lane,  Suite  210
Houston,  Texas  77024

RE:  Oriental Energy Resources Limited-Carlton Energy Group LLC - Trinity Energy
Resources,  Inc.  Consortium  Concession  signed  on  February  23,  1999 by the
Republic  of  Chad  (the  "Concession").

Gentlemen:

When accepted by you in the manner provided below, this letter will evidence the
agreement ("Agreement") between Cliveden Petroleum Co., a British Virgin Islands
business  corporation
("Cliveden"),  and  Trinity  Energy  Resources,  Inc.,  a  Nevada  corporation
("Trinity")  with  respect  to bridge financing of certain activities related to
acquisition  of the Concession and the farming out of an undivided fifty percent
(50%)  interest  in  the  Concession  to  Cliveden.

                                       I.
                                    OWNERSHIP

Trinity  represents  and  warrants to Cliveden that it owns, or has the right to
commit  to this Agreement by contract, one hundred percent (100%) of the working
interest  in  the  Concession  awarded  to  the  Oriental  Energy  Resources
Limited-Carlton  Energy Group LLC-Trinity Energy Resources, Inc. Consortium (the
"Consortium")  pursuant  to  the  Concession.

                                       II.
                                BRIDGE FINANCING

Cliveden  agrees  to  provide  to  Trinity  the following financing (the "bridge
financing")  for the purpose of meeting Trinity's commitments in connection with
the  Concession:

          The sum of Three Hundred Fifty Thousand  Dollars  ($350,000.00)  to be
          funded  concurrently  with the execution of this Agreement,  and which
          shall  bear an  interest  rate of  twelve  percent  (12%)  per  annum,
          interest  payable  semi-annually,  with all  principal and accrued but
          unpaid  interest  due on or before  May 5,  2000,  with no  prepayment
          penalty.  The loan shall be  represented  by a promissory  note in the
          form attached hereto as Exhibit "A" executed by Trinity and payable to
          the order of Cliveden  and secured by certain  collateral  hereinafter
          described. At Cliveden's option, all funded amounts may be

<PAGE>
          converted  at any time prior to  principal  repayment  into  shares of
          Trinity  Energy  Resources,  Inc.  common stock at a conversion  price
          equal to Twenty-Five Cents ($0.25) per share.

          The collateral securing any loan made hereunder is as follows:

               1.   A  first  lien  covering  certain   producing  oil  and  gas
                    properties  situated in Texas,  Colorado  and  Wyoming  more
                    particularly described on Exhibit "B" attached hereto.

               2.   A  subordinated   security   interest  in  certain  monetary
                    accounts more particularly described on Exhibit "C" attached
                    hereto.

Should Cliveden elect to exercise its rights under the farmout provisions below,
the loan provided to Trinity under this Agreement shall be immediately cancelled
and  Trinity  shall  have  no  obligation  to repay said monies to Cliveden.  If
Trinity  has prepaid any sums towards the loan balance, including interest, upon
cancellation  of  the  note,  all  such  sums paid by Trinity shall be refunded.

Until  such  time, if ever, as Cliveden elects to accept the Assignment provided
below,  Cliveden  shall have the first right, but not the obligation, to provide
such  additional financing as Trinity requires to meet its obligations under the
Concession  and  to undertake such work to develop the Concession as it may deem
necessary.  Such  financing shall be subject to the same terms and conditions as
herein provided for the bridge financing including the right to convert the debt
into  shares  of  Trinity's  common  stock.

                                      III.
                                     FARMOUT

In consideration of Cliveden's agreement to assume the costs associated with the
Concession,  as  hereinafter  provided,  Trinity,  on  behalf  of itself and the
Consortium,  does  hereby  agree  to sell and transfer to Cliveden fifty percent
(50%)  of  the entire working interest in the Concession owned by Trinity.  This
assignment  is  subject  to  the  following  terms  and  conditions:

A.  Cliveden  must  notify Trinity no later than November 30, 1999 that Cliveden
has  elected  to receive the Assignment and to assume its obligations hereunder.

B.  Following  such  election,  Trinity  will  promptly  deliver  to Cliveden an
assignment (the "Assignment"), in a form and substance satisfactory to Cliveden,
of  fifty  percent  (50%)  of 100% of the working interest in the Concession and
will  seek  all  necessary  authorizations from the Government of Chad to assure
that  the  rights  of Cliveden to such undivided interest are recognized by said
government.

<PAGE>
C.  Following  receipt  of  the  Assignment,  and  the  approval  of same by the
Government  of  Chad,  Cliveden  agrees  to assume one hundred percent (100%) of
Trinity's  actually  and  reasonably  incurred  and/or  expended  costs,  from
inception,  in  acquiring,  administering,  exploring and developing the acreage
covered  by  the  Concession  until  Payout  (as  hereinafter  defined)  occurs.

D.  Cliveden shall receive ninety percent (90%) of all net revenue (with Trinity
receiving  the  remaining ten percent (10%) of such revenue) attributable to the
wells  drilled  on  the  acreage  covered by the Concession until such time that
Cliveden  has  recovered  from  all  sales  of production, net of all royalties,
severance  taxes,  production  taxes or similar burdens, one hundred ten percent
(110%)  of  all  sums paid in connection with the Concession obligations assumed
hereunder  including  but  not  limited  to (i) all costs heretofore incurred by
Trinity  for  acquisition  of  the  Concession and rental payments in connection
therewith  and  (ii)  all  costs  for  third  party  geological  and geophysical
evaluations,  site  preparations,  drilling, reworking, deepening, sidetracking,
plugging  back,  surveying, staking, surface damage, road construction, logging,
fracturing  and  other stimulation, pipelines and pipeline concessions, testing,
completing,  equipping  (including  equipment  costs),  operating,  plugging and
abandoning, and producing (including overhead charges) with respect to all wells
drilled on the acreage covered by the Concession.  Following Cliveden's recovery
of  one  hundred  ten  percent  (110%)  of  such  costs  (herein  referred to as
"Payout"),  Cliveden shall be entitled to fifty percent (50%) of all net revenue
attributable  to  said  wells  and  shall bear fifty percent (50%) of all costs,
risks,  obligations  and  liabilities  associated  with  the  Concession.  After
Payout,  Trinity  shall  be  entitled  to fifty percent (50%) of all net revenue
attributable  to  said  wells  and  shall bear fifty percent (50%) of all costs,
risks,  obligations  and  liabilities  associated  with  the  Concession.

                                       IV.
                                   OPERATIONS

Prior  to  commencement  of operations on the acreage covered by the Concession,
Cliveden,  Trinity,  Oriental Energy Resources Limited, and Carlton Energy Group
shall  join in the formation of an operating company.  All participants shall be
represented  on  the  board  of directors; provided however, that, until Payout,
Cliveden shall have exclusive control over all operating and financial decisions
in  the  event  that the operating company's board of directors fails to reach a
unanimous decision.  After Payout, each party shall have a proportionate vote on
the  board  of  directors  in  the  operating  company  in accordance with their
proportionate  interest  in  the Concession at that time.  Cliveden reserves the
right  to  assign  to  a third party any or all of its undivided interest in the
Concession  and  to  designate  a  replacement  operator.  Such  assignment  and
replacement  operator  shall be subject to any the approval of Trinity with such
approval not to be unreasonably withheld as well as any required approval by the
government  of  the  Republic  of  Chad.

<PAGE>
                                       V.
                      ADDITIONAL REPRESENTATIONS BY TRINITY

Trinity  represents  and  warrants  the  following:

A.   Trinity,  on behalf of the  Consortium,  has  obtained  the  Concession  in
     accordance with the laws of the Republic of Chad and the applicable laws of
     the United States.

B.   Trinity has taken all  necessary  corporate  action for the  authorization,
     execution,  delivery, and performance of this Agreement and its obligations
     hereunder,  including,  but not  limited to the  granting  of the option to
     convert the bridge financing loan into the common stock of Trinity,  should
     the financing be deemed a loan.

C.   The  proceeds  of the Bridge  Financing  will be applied to costs  directly
     associated with the the Concession.

D.   There  is no  fact  which  Trinity  has not  disclosed  to  Cliveden  which
     materially  adversely affects, or insofar as Trinity can reasonably foresee
     could materially  adversely  affect,  the ability of Trinity to perform its
     obligations under this Agreement.

                                       VI.
                             RIGHT OF FIRST REFUSAL

During  the term of this Agreement, Cliveden shall have a right of first refusal
with  respect  to  all prospects, concessions and other exploratory arrangements
involving  acreage  in  Africa  marketed  by  Trinity  to third party investors.

                                      VII.
                                 APPLICABLE LAW

This  Agreement  is  made  subject  to  and shall be governed by and enforced in
accordance  with  the laws of the State of Texas and the applicable federal laws
of  the  United  States.  This  agreement is fully performable in Harris County,
Texas.

                                      VIII.
                             SUCCESSORS AND ASSIGNS

The terms and provisions of this Agreement shall inure to the benefit of, and be
binding  upon  the  parties  hereto,  their  successors,  assigns,  and  legal
representatives.  The  parties  hereto  agree  to execute such other instruments
which  may  be necessary to carry out or make effective the terms and provisions
of  this  Agreement.

<PAGE>
                                       IX.
                               PREVIOUS AGREEMENTS

It  is  agreed  that  the  terms  of  this Agreement are final and supercede any
previous  agreement, either oral or in writing, between the parties with respect
to  the  subject  matter  of this Agreement.  This Agreement contains the entire
understanding of the parties and all of the covenants and agreements between the
parties  with  respect  to  the  subject  matter  of  this  Agreement.  No other
representations,  oral or written, shall survive the execution of this Agreement
and  all  representations made by and between the parties respecting the subject
matter  hereof  are  contained  in  this  Agreement.

                                       X.
                                TERM OF AGREEMENT

This  Agreement  shall remain in full force and effect so long as the Concession
is  in  effect  or  until  a  fully detailed and definitive farmout agreement is
executed  by  the  parties,  unless  this Agreement is terminated or extended in
writing  by  mutual  agreement.

                                       XI.
                                     NOTICES

Notices  required  by this Agreement shall be written and delivered by certified
U.  S.  Mail,  Federal  Express  or telegram to the parties at the addresses set
forth  on  page  1  of  this  Agreement,  or  at such address as the parties may
subsequently designate in writing.  Such notice shall be effective when received
by  the  addressee.

                                      XII.
                                   ARBITRATION

All  claims,  disputes  or  controversies  arising out of, or in relation to the
interpretation, application or enforcement of this Agreement shall be decided by
resort  of  either  party  to  arbitration  in  accordance with the Rules of the
American Arbitration Association.  The arbitration shall be held in the State of
Texas.  The  proceedings  will be held by a panel of three (3) arbitrators, with
each  party  having  the  right  to select one (1) arbitrator and with the third
arbitrator  being  selected by the two (2) arbitrators appointed by the parties.
The  decision  of the panel shall be final, binding and enforceable in any court
of  competent  jurisdiction.

                                      XIII.
                           AMENDMENTS TO BE IN WRITING

No  amendments or changes to this Agreement shall be valid unless in writing and
signed  by  both  parties.

<PAGE>
If  the  terms  and  conditions of this Agreement are satisfactory and set forth
your  understanding  of  our  agreement,  please  so  indicate  by executing and
returning  the  enclosed  copy  of  this  Agreement.

Very  truly  yours,

CLIVEDEN  PETROLEUM  CO.  LTD.

 /S/ Paul  E.  Vickrey,
----------------------------------------
by:  Paul  E.  Vickrey,  President

ACCEPTED  AND  AGREED  BY:

TRINITY  ENERGY  RESOURCES,  INC.

 /S/ T.  C.  O'Dell
----------------------------------------
by:  T.  C.  O'Dell,  Chairman  and  CEO

<PAGE>

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