Document:

INBEN BROTHERS COMPANY                            5250 N. Leamington Ave.,
Exporter & importer                               Chicago, IL 80830, U.S.A.
                                                  Phone:  (773) 286-7241
                                                  Fax No.: (773) 286-5424
Attention: Duck S. Yim                            E-mail: inben@is.netcom.com

                             ----------------------
                            | TELEFAX TRANSMISSION |
                             ----------------------

To          : Medi-Hut Co., Inc.                          Date: July 1, 1999
Attention   : Joseph A.  Sanpietro, President             MEDIHUT63
Fax No.     : (732) 901-1177
Total Pages No. Include This:  1

Dear Joe:

    This is the memorandum that we had among Mr. Moon Kyo Lee, Chairman of Sam
Woo and Mr. Vincent J. Sanpietro representing you and me in New York on June
25, 1999 based on your Fax 6/16/99.  Followings were reported to you by Mr.
Vincent J. Sanpietro.

     1.     It is agreed that Mr. Moon Kyo Lee will hold Medi-Hit Co., Inc.
            free from any monitory or legal ramifications which may occur as
            the result of importing and selling his insulin Syringes here in
            the U.S.
            Mr. Lee will send this confirmation when you place an first order.
     2.     As for the marking "Latex Free".  present casket is Latex Free,
            therefore Sam Woo will print "Latex Free" on the Poly-Bag and
            inner box and shipping carton.
     3.     Lot number and expiry date will be marked on the poly-bag, inner
            box and carton.
     4.     QA record will be attached to each shipment.
     5.     Sam Woo will send his own form to you for your reference
     6.     As for the price, we had confirmed that US$4.97/100pcs. C.I.F. New
            York by sea on the 28G and US$5.07/100pcs F.I.F. New York by sea.
            The cost difference between 28G and 29G came out from our
            purchasing price from Japan.  On the insulin needles for U.S.
            market, Sam Woo must use needle made in Japan even Sam Woo make
            his own needles.
     7.     Regarding on the payment term, L/C 45 days or FDA release date if
            later than 45 days.  Even release date is earlier than 45 days,
            payment will be 45 days.
     8.     When you open master L/C to Inben and Inben transfer L/C to Sam
            Woo, Inben required some of bank requirements between Inben's bank
            and Medi-Hut's bank.  I will tell you details separately.
     9.     As for the uni-body of 0.3cc barbell 30G needle, this can be made
            only by the new mold of barrel, plunger and casket which are
            thinner than 0.5cc barrel.  If Medi-Hut pay all the cost of molds,
            Sam Woo can make for you 30G needle can be supplied by Saito Med.
            in Japan. The purpose of 0.3cc insulin syringe are reading more
            easily and more accurate measurement.  If use 0.5cc barrel, there
            is no meaning, however still needed a new barrel which can plant
            30G needle required.  The Molds' cost is as follow.

<PAGE>
               Barrel          US$26,000-
               Plunger         US$26,000-
               Cap             US$26,000-
               Casket          US$ 1,000-
               ---------------------------
               Total           US$79,000-

     10.  Safety Syringes
     11.  As for the Proto Type:
               Each size of mold cost is as follow:
                    US$2,000.-/each mold x 5 = US$10,000-
                    Trial expenses             US$ 5,000-
                    --------------------------------------
                    Total                      US$15,000-
               Trial expenses means all the text cost for making a complete
               Proto-type.  This is only estimated cost.

     12.  Payment should be in front, and paid by the notice of payment from
          Sam Woo because Sam Woo required complete review again.  After
          payment effected, Sam woo complete proto-type within 60 days.
     13.  If proto-type finished, Sam Woo send sample to Medi-Hit as follow.
               500 PCS 3cc 25G x 5/8"
               500 PCS 3cc 22G x 1 1/2"
     14.  First of all, We discussed on the basics.
               Mold cost of each size as follow.
                    US$26,000.-/ each mold x 5 = US$130,000.-
                    Assembling Machine           US$100,000.-
                    ------------------------------------------
                    Sub-total                    US$230,000.-
                    10% of trial expenses        US$ 23,000.-
                    ------------------------------------------
                    Total                        US$253,000.-
               Proto type was made manually.  For the making mass production,
               trial expenses  required again.  However it is estimation
               itself.
     15.  If you want make to two sizes, the cost will be double of No. 11 &
          13 (US$536,000.-)
     16.  The machine will be finished within 180.  After that day, Sam Woo
          can start production.
     17.  Regarding to the payment, Sam Woo will give you notice after
          complete review.  This will be about 30 days.
     18.  Payment will be 50% front by L/C and 50% after inspection of
          machine.
     19.  The schedule calendar is as follows:
             July 1999        If agreed on our memorandum, Sam Woo will notice
                              the payment until end of August.
             August 1999      If you paid the cost of proto-type 8/1/99,
                              proto-type will be finished within 60 days.
             September 1999   Proto type will be came out 9/31/99.
             October 1999     Sam Woo will review mass production for 60 days.
             November 1999    Sam Woo will notice payment for starting

<PAGE>

                              machine production until 11/30/99.
             December 1999    If you paid 50% in front on 12/1/99, we count
                              180 days from payment day.
             January 2000
             February 2000
             March 2000
             April 2000
             May 2000         Finish machine, inspect it and pay 50%
             June 2000        Production and start shiment.

     20.  The price of safety syringe estimated US$78-82.-/1000pcs on the 3cc
          with needle.
     21.  If you pay 50% machine cost with proto type, Medi-Hut can save 60
          days.

This is only memorandum.  If I have missed something and want to add, please
let us know.

Best regards,

Duck S. Yim

C.C. Mr. Moon Kyo Lee, Sam WooEXHIBIT 10.62

                                    AGREEMENT

                                       FOR

                           PURCHASE AND SALE OF ASSETS

                                     BETWEEN

                             QUANTUM ENERGY, L.L.C.

                                       AND

                            ROCKY MOUNTAIN GAS, INC.

                                   DATED AS OF

                                 JANUARY 3, 2000

                                       92

<PAGE>

                                TABLE OF CONTENTS

BACKGROUND..................................................................95

ARTICLE I
     PURCHASE AND SALE OF ASSETS............................................95
     1.1      Transfer of Certain Assets....................................95
              --------------------------
     1.2      Payment for Purchase..........................................95
              --------------------
     1.3      Payment of Recording and Filing Fees..........................97
              ------------------------------------
     1.4      Purchase Price Adjustment.....................................97
              -------------------------

ARTICLE II
     BUYER'S DUE DILIGENCE..................................................98
     2.1      Due Diligence Period..........................................98
              --------------------
     2.2      Title.........................................................98
              -----
     2.3      Inspection of the Acquired Assets.............................98
              ---------------------------------

ARTICLE III
     THE CLOSING............................................................98
     3.1      Closing Date..................................................98
              ------------
     3.2      Deliveries by Seller..........................................98
              --------------------
     3.3      Deliveries by Buyer...........................................99
              -------------------

ARTICLE IV
     REPRESENTATIONS AND WARRANTIES OF SELLER..............................102
     4.1      Organization and Qualification...............................102
              ------------------------------
     4.2      Authority to Transfer........................................102
              ---------------------
     4.3      Title to Acquired Assets.....................................102
              ------------------------
     4.4      Agreement Not in Breach of Other Instruments.................102
              --------------------------------------------

ARTICLE V
     REPRESENTATIONS AND WARRANTIES OF BUYER...............................102
     5.1      Organization and Qualifications..............................102
              -------------------------------
     5.2      Authority to Purchase........................................103
              ---------------------

ARTICLE VI
     TERMINATION...........................................................103
     6.1      Termination..................................................103
              -----------

                                       93

<PAGE>

ARTICLE VII
     GENERAL PROVISIONS....................................................103
     7.1      Notices......................................................103
              -------
     7.2      Survival of Representations, Warranties,
              Covenants and Agreements ....................................104
              ----------------------------------------
     7.3      Further Assurances...........................................104
              ------------------
     7.4      Entire Agreement.............................................104
              ----------------
     7.5      Binding Upon Heirs and Successors............................105
              ---------------------------------
     7.6      Signatures in a Representative Capacity......................105
              ---------------------------------------
     7.7      Governing Law................................................105
              -------------
     7.8      Severability.................................................105
              ------------
     7.9      Expenses.....................................................105
              --------
     7.10     Counterparts.................................................105
              ------------

SCHEDULE 1.1........................................................Not Filed

SCHEDULE 3.4(C).....................................................Not Filed

                                       94

<PAGE>

                                  AGREEMENT FOR
                           PURCHASE AND SALE OF ASSETS

         THIS  AGREEMENT FOR PURCHASE AND SALE OF ASSETS (this  "Agreement")  is
made and entered into  effective as of January 3, 2000,  by and between  QUANTUM
ENERGY,  L.L.C.,  an Oklahoma limited liability  company  ("Seller"),  and ROCKY
MOUNTAIN GAS, INC., a Wyoming Corporation ("Buyer").

                                   BACKGROUND

         WHEREAS,  Seller  is  engaged  in  the  acquisition,   exploration  and
production of coal bed methane gas located in the Powder River Basin in Montana;
and

         WHEREAS,  Seller  desires to  transfer to Buyer,  and Buyer  desires to
acquire from Seller, an undivided fifty percent (50%) working interest and forty
percent  (40%) net revenue  interest in those  certain coal bed methane  leases,
properties  and  rights  of  Seller  described  herein,  and  on the  terms  and
conditions outlined below.

         NOW, THEREFORE,  in consideration of the mutual covenants,  agreements,
representations and warranties contained herein, and for other good and valuable
consideration,  the receipt and  sufficiency of which is hereby  acknowledged by
the parties, the parties hereto agree as follows:

                                    ARTICLE I
                           PURCHASE AND SALE OF ASSETS

         1.1  Transfer of Certain  Assets.  Subject to the terms and  conditions
hereof, Seller hereby sells, conveys, transfers,  assigns and delivers to Buyer,
and Buyer  purchases,  acquires  and accepts from  Seller,  an  undivided  fifty
percent (50%) working  interest and forty percent (40%) net revenue  interest in
those  certain coal bed methane  leases of Seller  listed in Schedule 1.1 hereto
(the "Acquired Assets"). The Acquired Assets shall be acquired by Buyer free and
clear  of  all  mortgages,  pledges,  liens,  charges,  security  interests  and
encumbrances.

         1.2 Payment for Purchase.  As  consideration  for the Acquired  Assets,
Buyer  will pay a  purchase  price of Five  Million  and Five  Hundred  Thousand
Dollars  ($5,500,000.00) (the "Purchase Price"),  increased or decreased, as the
case may be, by the Purchase  Price  Adjustment  determined in  accordance  with
Section 1.4. The purchase price shall be paid as follows:

                                       95

<PAGE>

         (a)      Buyer shall pay $5,500,000.00, as adjusted by Section 1.4, for
                  an undivided  fifty percent  (50%) working  interest and forty
                  percent (40%) net revenue  interest in the Acquired  Assets as
                  provided  herein.  Buyer has delivered into escrow pursuant to
                  the Letter of Intent,  the sum of  $160,000.00  with the First
                  Interstate Bank of Casper, Wyoming ("Escrow Agent").

         (b)      Buyer shall pay at Closing to Seller the sum of  $3,200,000.00
                  in  certified  funds  by  wire  transfer  in  accordance  with
                  instructions from Seller representing 29% of the undivided 50%
                  of the working interest in the Acquired Assets.

         (c)      Buyer  shall  pay  to  Seller,  or  use  to  drill,  construct
                  infrastructure  or the  acquisition  of additional  acreage on
                  behalf of Seller,  in  Seller's  sole  discretion,  the sum of
                  $1,000,000.00  on or before  may 1,  2000.  In the event  that
                  Buyer  fails to pay or use for the  benefit of Seller,  in the
                  Seller's  sole  discretion,  the  sum of  $1,000,000.00  on or
                  before  May  1,  2000,  then  Buyer  shall  assign  9% of  its
                  undivided  50%  working  interest  in the  Acquired  Assets to
                  Seller.

         (d)      Buyer  shall  pay  to  Seller,  or  use  to  drill,  construct
                  infrastructure  or the  acquisition  of additional  acreage on
                  behalf of Seller,  in  Seller's  sole  discretion,  the sum of
                  $1,300,000.00  on or before  December 31,  2000.  In the event
                  that Buyer fails to pay or use for the  benefit of Seller,  in
                  Seller's  sole  discretion,  the  sum of  $1,300,000.00  on or
                  before  December 31, 2000,  then Buyer shall assign 12% of its
                  undivided  50%  working  interest  in the  Acquired  Assets to
                  Seller. At the sole option of Seller, Buyer may pay $1,300,000
                  in cash,  or provide  services  of  equivalent  value to drill
                  wells,  and in the  latter  event,  the Seller  would  receive
                  $1,300,000  in revenues  from all of the net revenues from the
                  wells so drilled,  at which point in time the Buyer would then
                  own a 50% working  interest (40% net revenue  interest in such
                  wells.

         (e)      Buyer shall spend the sum of $2,500,000.00 to be used to drill
                  and  complete  a minimum  of 25 wells on the  Acquired  Assets
                  between  January 1, 2000 and  November  30,  2000,  subject to
                  force  majeure.  Buyer and Seller shall each own and undivided
                  50%  interest in the wells  drilled  subject to  reduction  as
                  provided  herein.  In the  event  that the  costs to drill and
                  complete  a minimum  of 25 wells  exceeds  $2,500,000.00,  the
                  Buyer and Seller agree that they shall each pay fifty  percent
                  (50%) of the actual costs in excess of  $2,500,000.00 to drill
                  and complete the 25 wells.

                  In the event that  Buyer  shall fail to spend the total sum of
                  $2,500,000.00  to drill  and  complete  the wells on or before
                  November 30, 2000; and in the event that on or before November
                  30, 2000,  Quantum or its affiliate  spends part or all of the
                  sum of  $2,500,000.00  to  drill  and  complete  wells  on the
                  Acquired Assets, Buyer shall have the right to acquire its pro
                  rata share of the working interest in

                                       96

<PAGE>

                  the wells  drilled by Quantum or its  affiliate  by paying the
                  sum of  $2,500,000.00  plus  the  cost of  funds  incurred  by
                  Quantum or its  affiliate to drill and complete the wells.  In
                  additions,  Quantum or its affiliate  shall receive 60% of the
                  pro  rata  net  revenues  from  the  wells  drilled  with  the
                  $2,500,000.00  for a  period  of two (2)  years  from the date
                  Buyer pays the  $2,500,000.00  plus  Quantum's  cost of funds.
                  After the two year period has expired, Buyer shall be entitled
                  to its pro rata share of the net revenue  from the wells based
                  on this  Agreement.  This right to acquire the interest in the
                  wells shall  expire on November  30,  2002.  Prior to the time
                  that  buyer  exercises  its right and  purchases  its pro rata
                  share of the working interest,  Quantum or its affiliate shall
                  be entitled to 100% of the revenue from the wells.

                  In the event that Quantum or its  affiliate  pays in excess of
                  $2,500,000.00  prior to November  30, 2000 or pays 100% of the
                  cost of any  well(s)  after  November  30,  2000;  Buyer shall
                  back-in to its pro rata share of the  working  interest in the
                  well(s) after Seller has recovered its costs in the wells plus
                  300%. In the event,  that Rocky Mountain Gas spends funds on a
                  project  and  Quantum  does not  elect to match  those  funds,
                  Quantum shall back-in to its 50% interest in the project after
                  Rocky Mountain Gas has recovered its costs in the project plus
                  300%.

         1.3      Payment of  Recording  and Filing  Fees.  Buyer  shall pay all
Montana  recording and filing fees, if any, due as a result of the  transactions
contemplated by this Agreement.

         1.4      Purchase Price Adjustment. At Closing, the Purchase Price will
be adjusted by  increasing  or  decreasing  the amount  thereof  pursuant to the
following provisions utilizing the procedures and methodology set forth herein:

         (a)      On the net acres in excess of 185,000  listed in Schedule 1.1,
                  Buyer  shall have the option to pay to Seller  $59.46 per acre
                  for a fifty percent  (50%) working  interest and forty percent
                  (40%) net revenue  interest in the acreage.  This sum shall be
                  $427,160.64,  and shall be paid to Seller or spent on Seller's
                  behalf, in Seller's sole discretion, on or before May 1, 2000.

         (b)      On any lease acres acquired by Buyer prior to Closing,  Seller
                  shall  have a right of  first  refusal  to pay to Buyer  fifty
                  percent (50%) of the actual land acquisition  costs plus fifty
                  percent (50%) of all professional  fees to acquire the leases,
                  for an undivided  fifty percent (50%) working  interest in the
                  leases. This payment shall be made on or before May 1, 2000.

         (c)      Seller and Buyer shall agree to pay their pro rat share of any
                  rental fees on the  Acquired  Assets on or before the due date
                  of the lease rental.  In the event that one party fails to pay
                  its pro rata share of the lease rentals,  then the other party
                  may pay the  defaulting  party's  pro rata  share of the delay
                  rentals. The defaulting

                                       97

<PAGE>

                  party must pay its pro rata share of the lease  rentals plus a
                  300% penalty in order to continue to own its pro rata share of
                  the lease. This payment must be made within twelve (12) months
                  of the  payment  of the lease  rental  by the non-  defaulting
                  party.

         (d)      Buyer and Seller  mutually  agree to devise a budget  directed
                  toward  acquisition  of  leases in the AMI  whereby  costs are
                  shared equally on a 50/50 basis.

                                   ARTICLE II
                              BUYER'S DUE DILIGENCE

         2.1      Due Diligence Period. Buyer shall have a period which ended at
5:00 p.m. Mountain  Standard Time of November 12, 1999 (the "Diligence  Period")
in which to complete its review of the Acquired Assets.

         2.2      Title.  Buyer shall have reviewed all information  required in
its sole  discretion  and approved,  within the time period,  the  documentation
supporting the legal ownership of the coal bed methane leases in Quantum Energy,
L.L.C. as set out in Schedule 1.1.

         2.3      Inspection  of the Acquired  Assets.  During the Due Diligence
Period and up to the date of Closing,  buyer may independently  inspect or cause
to be inspected by other  qualified  persons,  at Buyer's sole cost and expense,
all aspects of the Acquired Assets which Buyer determines in its sole discretion
are  relevant  or material to Buyer's  decision to purchase an  undivided  fifty
percent (50%) working interest in the Acquired Assets.

                                   ARTICLE III
                                   THE CLOSING

         3.1      Closing Date. The transfer of an undivided fifty percent (50%)
of  the  Acquired  Assets  by  Seller  to  Buyer  and  all  other   transactions
contemplated  by this  Agreement (the  "Closing")  shall take place at 1:00 p.m.
Pacific Standard time effective on Monday, January 3, 2000, as the parties shall
agree,  or at such  other time or other  place as Seller and Buyer may  mutually
agree (the "Closing Date").

         3.2      Deliveries by Seller. At the Closing, Seller shall deliver the
following to Buyer, the receipt of which shall be a condition to Closing:

         (a)      The duly executed  Assignments in recordable form transferring
                  an undivided  fifty percent  (50%) working  interest and forty
                  percent (40%) net revenue  interest in the Acquired  Assets to
                  Buyer.

                                       98

<PAGE>

         (b)      Articles of  Organization  and  Operating  Agreement of Powder
                  River Gas, L.L.C.

         (c)      Such other  documents as are reasonably  requested by Buyer or
                  its counsel.

         3.3      Deliveries by Buyer.  At the Closing,  Buyer shall deliver the
following, the receipt of which shall be a condition to Closing:

         (a)      The  sum  of  $3,200,000.00  in  certified  funds  to be  wire
                  transferred  to Seller's bank account as directed by Seller on
                  or before Closing.

         (b)      The duly executed  Assignments in recordable form transferring
                  an undivided  9% and 12%  interest in the  Acquired  Assets to
                  Seller.  These  assignments  shall be held by  Seller.  In the
                  event that Buyer fails to make the payments  under Section 1.2
                  or  1.2(a)  then   Seller   shall  be  entitled  to  file  the
                  appropriate Assignments of Record.

         (c)      Such other documents as are reasonably requested by  Seller or
                  its counsel.

         3.4      Conditions to Closing.

         (a)      Seller  and  Buyer  shall  commit  to drill  and  complete  an
                  additional 100 wells between January 1, 2000, and December 31,
                  2000,  subject to force majeure.  Each party shall pay its pro
                  rata share of the actual  costs to drill and  complete the 100
                  wells during the year 2000. In the event that either Seller or
                  Buyer shall elect not to drill a well (s) under this paragraph
                  (a) during  the year  2000,  the party who elects to drill the
                  well(s)  shall  recover  its costs to drill and  complete  the
                  well(s) plus a 300% penalty prior to the  nonconsenting  party
                  backing in for its pro rata share of the  working  interest in
                  the well(s).  This penalty  provision  shall also apply to all
                  future years between the parties.

         (b)      Seller has  drilled  three (3) wells on the  Acquired  Assets.
                  Buyer  shall  have the  option,  which  must be  exercised  by
                  January  3,  2000,  or it shall  lapse,  to  participate  as a
                  working  interest  owner in the  three (3)  wells  drilled  by
                  Seller on the  Acquired  Assets prior to Closing as set out on
                  Schedule  3.4(c)  hereof.  With  respect to the wells  drilled
                  prior to the Closing of this  Agreement,  Buyer  agrees to pay
                  fifty  percent  (50%) of the cost to drill  and  complete  the
                  wells  for  its  50%  working   interest  in  the  wells.  All
                  information   with   respect  to  these   wells  will   remain
                  confidential by Buyer. Buyer shall pay its 50% of the costs to
                  drill  and  complete  the wells or agree to  provide  services
                  equal to the obligation under this paragraph,  in the Seller's
                  sole discretion at Closing.

         (c)      The parties  shall form a joint  operating  company to develop
                  the  Acquired  Assets  and shall  negotiate  in good faith the
                  terms and conditions of the joint operating

                                       99

<PAGE>

                  company.  The parties have agreed on the following issues with
                  respect to the joint operating company:

                  (i)      The  joint  operating  company  shall  be  a  limited
                           liability  company formed in the state of Wyoming and
                           qualified to do business in the state of Montana. The
                           legal name of the limited  liability company shall be
                           Powder  River Gas,  L.L.C.  Seller and Buyer or their
                           affiliates shall each own 50% of the membership units
                           in Powder River Gas, L.L.C.

                  (ii)     The Managers shall be as follows:

                           Paul Mysyk
                           Harrison Schumacher
                           Pete Schoonmaker
                           Keith Larsen

                           Additionally,  Roger TeSelle, Jim Factor, Mark Larsen
                           and  John  L.  Larsen  shall  be  on  the  management
                           committee. There shall be required to be at least two
                           (2) members from each  membership  group present at a
                           meeting to constitute a quorum.

                  (iii)    Buyer and Seller shall each contribute $100,000.00 as
                           its  original  capital  contribution  to Powder River
                           Gas, L.L.C.  The Management  Committee shall agree on
                           an annual budget to operate Powder River Gas,  L.L.C.
                           If additional  capital is required,  each party shall
                           contribute   its  50%  share  of  the  capital.   The
                           Management  Committee shall select a bank to hold the
                           funds.  Two (2) signatures,  one from each membership
                           group,  shall  be  required  on all  bank  documents,
                           including checks.

                  (iv)     The attorney  and  accountant  for the parties  shall
                           investigate and report to the Management Committee on
                           the creation of an accounting system for Powder River
                           Gas,  L.L.C.  There will be an annual audit performed
                           on Powder River Gas, L.L.C. by an outside independent
                           accounting firm.

                  (v)      The   Management   Committee  has   authorized   Pete
                           Schoonmaker and Jim Factor to obtain office space and
                           office equipment,  not to exceed $5,000, in Sheridan,
                           Wyoming.  In  addition,   the  Management   Committee
                           authorized   the   hiring  of  a   receptionist   and
                           accounting clerk.

                  (vi)     The  Management   Committee   authorized  hiring  the
                           following as independent contractors on the following
                           basis:

                           Pete Schoonmaker $400/per day

                           Jim Factor $400/per day

                                       100

<PAGE>

                           Quantum   and  Rocky   Mountain   Gas  will  pay  all
                           out-of-pocket expenses plus an automobile for Jim and
                           Pete  respectively.  Jim and Pete shall keep track of
                           their  time  spent  on  Powder   River  Gas,   L.L.C.
                           projects.

                  (vii)    The  Management  Committee  shall  develop a drilling
                           program  with  respect  to  the  Acquired  Assets  to
                           develop the acreage. U.S. Energy Corp./Crested Corp.,
                           d/b/a  USECC  shall be  entitled  to drill  the first
                           twenty-five  (25)  wells  on the  leases  based  on a
                           competitive  drilling rate in the  surrounding  area.
                           The Management Committee shall review the results and
                           the  costs  and  then  shall  negotiate   competitive
                           drilling contracts for future drilling on the leases.
                           USECC  shall  be  allowed  to  submit  bids  for  the
                           drilling  of  the  leases.  Prior  to  the  start  of
                           drilling of the  leases,  the  Scientific  Committee,
                           appointed  by the  Management  Committee,  shall make
                           recommendations  on the  areas to be  drilled  first,
                           taking  into   consideration  the  marketing  of  gas
                           through existing and proposed pipelines.

                           The   Scientific   Committee   shall  report  to  the
                           Management Committee on the following:

                           *        USA Well - Lipscomb Creek
                                    --------   --------------
                                    Review Burlington Railroad Acreage

                           *        Pawnee Well
                                    -----------
                                    Test water and gas

                           *        Custer Forest #1   36-41-1
                                    --------------------------
                                    Test Coals for water and gas

                  (viii)   The  Management  Committee  shall review all drilling
                           contracts to determine that they are competitive.

                           The Management Committee shall investigate whether to
                           build or contract out the  building of the  gathering
                           system.

                           The Management  Committee will begin negotiating with
                           pipeline  companies to transport the coal bed methane
                           gas.

                  (ix)     Roger TeSelle has defined the AMI, which does include
                           the two (2) Indian Reservations, Tongue River, Custer
                           Forest and the Northern AMI.

                                       101

<PAGE>

                                   ARTICLE IV
                    REPRESENTATIONS AND WARRANTIES OF SELLER

         The Seller represents and warrants to Buyer as follows:

         4.1      Organization and Qualification.  Seller is a limited liability
company duly organized,  validly existing and in good standing under the laws of
the State of Oklahoma,  and has all requisite power to own its properties and to
carry on its business as now owned and  operated by Seller.  Seller is qualified
to do  business,  is in good  standing,  and has all  appropriate  or  necessary
licenses in each  jurisdiction  or place in which the nature of its  business or
the character of its properties requires such registration.

         4.2      Authority  to  Transfer.  Seller has the right,  power,  legal
capacity and authority to enter into this Agreement,  to perform its obligations
hereunder  and  to  consummate  the  transactions  contemplated  hereby,  and no
approvals,  authorizations  or  consents  of any person  other  than  Seller are
necessary in connection  with Seller's  execution,  performance  and delivery of
this  Agreement.  This  Agreement  constitutes  the  legal,  valid  and  binding
obligation of Seller,  enforceable  against Seller in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency,  reorganization,
moratorium  or similar  laws or  equitable  principles  relating  to or limiting
creditor's rights generally.

         4.3      Title  to  Acquired  Assets.  Seller  has  title to all of the
Acquired  Assets  and  holds a 100%  working  interest  and an 80%  net  revenue
interest in the Acquired Assets,  except for 2223 acres in the Tongue River that
have a 79% net revenue interest.

         4.4      Agreement  Not in Breach of Other  Instruments.  The execution
and  delivery of this  Agreement  and the other  documents  to be  executed  and
delivered  in  connection  herewith  and the  consummation  of the  transactions
contemplated  hereby and  thereby  will not result in or  constitute  any of the
following:  (a) a default or event  that,  with the giving of notice or lapse of
time, or both,  would be a default,  breach or violation of the  certificate  of
limited  liability  company or operating  agreement of Seller or any  agreement,
instrument or  arrangement  to which Seller is a party or by which Seller or any
assets or property of Seller is bound;  (b) an event that would permit any party
to terminate any contract or other agreement;  or (c) the creation or imposition
of any lien, charge, or encumbrance on any of the Acquired Assets.

                                    ARTICLE V
                     REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and warrants to Seller as follows:

         5.1      Organization  and  Qualification.  Buyer is a corporation duly
organized,  validly existing and in good standing under the laws of the State of
Wyoming, and has all corporate

                                       102

<PAGE>

power to own its  properties  and to  carry on its  business  as now  owned  and
operated by Buyer. Buyer is qualified to do business,  is in good standing,  and
has all appropriate or necessary licenses in each jurisdiction or place in which
the nature of its business or the  character  of its  properties  requires  such
registration.

         5.2      Authority  to  Purchase.  Buyer has the  right,  power,  legal
capacity and authority to enter into this Agreement,  to perform its obligations
hereunder  and  to  consummate  the  transactions  contemplated  hereby,  and no
approvals,  authorizations  or  consents  of any  person  other  than  Buyer  is
necessary in connection with Buyer's execution, performance and delivery of this
Agreement. This Agreement constitutes the legal, valid and binding obligation of
Buyer,  enforceable  against  Buyer in  accordance  with its  terms,  except  as
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar  laws or  equitable  principles  relating to or  limiting  creditor's
rights generally.

                                   ARTICLE VI
                                   TERMINATION

         6.1      Termination.  This  Agreement  may only be  terminated  by the
mutual consent of both Seller and Buyer.  In the event that Buyer fails to close
on the date of  Closing,  Buyer  shall  forfeit the funds held in escrow and the
Escrow Agent shall deliver the $160,000.00 held in escrow to the Seller.  In the
event that Seller fails to close on the date of Closing, Buyer shall be entitled
to the return of its funds held in escrow and no further penalty or damages. The
$160,000.00  is  liquidated   damages  and  shall  represent  the  only  damages
recoverable by Seller in the event Buyer fails to close.

                                   ARTICLE VII
                               GENERAL PROVISIONS

         7.1      Notices.  All  notices  and  other  communications   hereunder
("Notices")  shall  be in  writing  and  shall be  deemed  given  upon  personal
delivery,  facsimile  transmission  (with written or facsimile  confirmation  of
receipt),  or delivery  by a reputable  overnight  commercial  delivery  service
(delivery,  postage or freight charges prepaid),  or on the fourth day following
deposit in the United  States mail (if sent by  registered  or  certified  mail,
return  receipt  requested,  delivery,  postage  or  freight  charges  prepaid),
addressed to the parties at the  following  addresses  (or at such other address
for a party as shall be specified by like Notice):

                                       103

<PAGE>

         If to Seller:          QUANTUM ENERGY, L.L.C.
                                4481 Topanga Canyon Boulevard
                                Suite 202
                                Woodland Hills, CA 91364
                                Fax:  (818) 704-9599
                                Attn:   Paul Mysyk
                                        Harrison Schumacher

           with a copy to:      Robert O.  O'Bannon, Esq.
                                Phillips McFall McCaffrey McVay & Murrah, P.C.
                                Twelfth Floor
                                One Leadership Square
                                211 N.  Robinson
                                Oklahoma City, OK 73102
                                Fax:  (405) 235-4133

         If to Buyer:           ROCKY MOUNTAIN GAS, INC.
                                877 N.  8th West
                                Riverton, WY 82501
                                Fax:  (307) 857-3050
                                Attn: John L. Larsen, Chairman

         with a copy to:        Mike Svilar, Esq.
                                ROCKY MOUNTAIN GAS, INC.
                                877 N.  8th West
                                Riverton, WY 82501
                                Fax:  (307) 857-3050

         7.2      Survival  of   Representations,   Warranties,   Covenants  and
Agreements.  Except as otherwise expressly provided herein, all representations,
warranties, covenants, and agreements of the parties contained in this Agreement
or in any schedule, document, certificate or other instrument delivered by or on
behalf of the parties pursuant to this Agreement,  shall survive the Closing for
a period of one (1) year.

         7.3      Further  Assurances.  The  parities  hereto  agree  to do such
further acts and to execute and deliver such additional agreements including the
Operating  Agreement  of Powder  River Gas,  L.L.C.  and  instruments  as may be
required to  consummate,  evidence or confirm the  transactions  and  agreements
contained in this Agreement.

         7.4      Entire Agreement,  Amendment,  Waivers. This Agreement and any
exhibits delivered by the parties hereto  contemporaneously  herewith constitute
the entire  agreement  between the  parties  pertaining  to the  subject  matter
contained  herein  and  supersede  all  prior  agreements,  representations  and
understandings of the parties hereto.  No supplement,  modification or amendment
of this  Agreement  shall be binding  unless  executed  in writing by all of the
parties hereto.

                                       104

<PAGE>

         7.5      Binding Upon Heirs and  Successors.  This  Agreement  shall be
binding  upon and inure to the  benefit  of the  respective  successors,  heirs,
assigns and personal representatives of the parties hereto.

         7.6      Signatures  in a  Representative  Capacity.  Each party  whose
signature is affixed hereto in a representative capacity represents and warrants
that he is  authorized  to execute  this  Agreement on behalf of and to bind the
entity on whose behalf his signature is affixed.

         7.7      Governing Law. This Agreement shall be construed in accordance
with and be governed by the laws of the State of Montana.

         7.8      Severability.  In the event any  provision  of this  Agreement
shall be held to be void,  voidable or unenforceable,  the remaining  provisions
shall remain in full force and effect.

         7.9      Expenses.  Each  party to this  Agreement  shall  bear its own
expenses in connection  with this  Agreement and the  transactions  contemplated
hereby.

         7.10     Counterparts.  This  Agreement  may be executed in one or more
counterparts,  each of which when executed and  delivered  shall be an original,
and all of which when executed shall constitute one and the same instrument.

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
day and year first above written.

         SELLER:                  QUANTUM ENERGY, L.L.C. an Oklahoma
                                  limited liability company

                                  By:         /s/   Paul Mysyk
                                         ---------------------------------------
                                         Paul Mysyk, Managing Member

                                  By:        /s/    Harrison Schumacher
                                         ---------------------------------------
                                         Harrison Schumacher, Managing Member

         BUYER:                   ROCKY MOUNTAIN GAS, INC.

                                  By:         /s/   Keith Larsen
                                         ---------------------------------------
                                         Keith Larsen, CEO

                                       105

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