Document:

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                                                                    EXHIBIT 4.3

                             PETRO UNION, INC. d/b/a
                            HORIZONTAL VENTURES, INC.

                        WARRANT TO PURCHASE COMMON STOCK

CERTIFICATE NO.                                                       WARRANTS
                ------                                         ------

                                 OCTOBER 9, 1997

                 Petro Union, Inc. d/b/a Horizontal Ventures, Inc. ("Company")
certifies that, for valuable consideration, receipt of which is hereby
acknowledged, that _________________ ("Holder") is entitled to purchase from the
Company ___________ (the "Shares") at the price of $15.00 per share ("Purchase
Price").

                 1.      Exercise.

                         a. Time of Exercise. This Warrant may be exercised in
         whole or in part (but not as to fractional shares) at the office of the
         Company, at any time or from time to time on or after January 2, 1998,
         provided, however, that this Warrant shall expire and be null and void
         if not exercised in the manner herein provided, by 5:00 p.m. EST, on
         December 31, 1999, the "Expiration Date."

                         b. Manner of Exercise. This Warrant is exercisable at
         the Purchase Price, payable in cash or by check, payable to the order
         of the Company, subject to adjustment as provided in Section 3 hereof.
         Upon surrender of this Warrant with the annexed Subscription Form duly
         executed, together with payment of the Purchase Price for the Shares
         purchased (and any applicable transfer taxes) at the offices of the
         Company's Transfer Agent, American Securities Transfer and Trust, Inc.,
         938 Quail Street, Suite 101, Lakewood, Colorado 80215, the Holder shall
         be entitled to receive a certificate or certificates for the Shares so
         purchased.

                         c. Delivery of Stock Certificates. As soon as
         practicable, but not exceeding 10 days, after complete or partial
         exercise of this Warrant, the Company, at its expense, shall cause to
         be issued in the name of the Holder (or upon payment by the Holder of
         any applicable transfer taxes, the Holder's assigns) a certificate or
         certificates for the number of fully paid and non-assessable Shares to
         which the Holder shall be entitled upon such exercise, together with
         such other stock or securities or property or combination thereof to
         which the Holder shall be entitled upon such exercise, determined in
         accordance with Section 2 hereof.

                         d. Record Date of Issuance of Shares. Irrespective of
         the date of issuance and delivery of certificates for any stock or
         securities issuable upon the exercise of this Warrant, each person
         (including a corporation or partnership) in whose name any such
         certificate is to be issued shall for all purposes be deemed to have

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         become the holder of record of the stock or other securities
         represented thereby immediately prior to the close of business on the
         date on which a duly executed Subscription Form containing notice of
         exercise of this Warrant and payment of the Purchase Price is received
         by the Company's Transfer Agent.

                 2. Adjustment of Purchase Price. The Purchase Price shall be
subject to adjustment as follows:

                         a. In case the Company shall (1) pay a dividend in
         shares of its capital stock (other than an issuance of shares of
         capital stock to holders of Common Stock who have elected to receive a
         dividend in shares in lieu of cash), (ii) subdivide its outstanding
         shares of Common Stock, (iii) reduce, consolidate or combine its
         outstanding shares of Common Stock into a smaller number of shares, or
         (iv) Issue by reclassification of its shares of Common Stock any shares
         of the Company, the Purchase Price in effect immediately prior thereto
         shall be adjusted to that amount determined by multiplying the Purchase
         Price in effect immediately prior to such date by a fraction, of which
         the numerator shall be the number of shares of Common Stock outstanding
         on such date before giving effect to such divisions, subdivision,
         reduction, combination or consolidation or stock dividend and of which
         the denominator shall be the number of shares of Common Stock after
         giving affect thereto. The number of shares issuable shall also be
         adjusted upward or downward determined by multiplying the number of
         warrants owned by the Holder by a fraction of which the denominator
         shall be the number of shares of Common Stock outstanding on such date
         before giving effect to such divisions, subdivision, reduction,
         combination or consolidation or stock dividend and of which the
         numerator shall be the number of shares of Common Stock after giving
         affect thereto. Such adjustment shall be made successively whenever any
         such effective date or record date shall occur. An adjustment made
         pursuant to this subsection (a) shall become effective retroactively to
         the Effective Date immediately after the record date in the case of a
         dividend and shall become effective immediately after the effective
         date In the case of a subdivision, reduction, consolidation,
         combination or reclassification.

                         b. In case the Company shall distribute to all or
         substantially all holders of its Common Stock evidences of its
         indebtedness, shares of any class of the Company's stock other than
         Common Stock or assets (excluding cash dividends) or rights or warrants
         to subscribe, then in each such case the Purchase Price shall be
         determined by dividing the Purchase Price In effect immediately prior
         to such issuance by a fraction, of which the numerator shall be the
         Purchase Price on the date of such distribution and of which the
         denominator shall be such fair market value per share of the Common
         Stock, less the then fair market value (as determined by the board of
         directors of the Company, whose determination shall be conclusive, and
         described in a statement, which will have the applicable resolutions of
         the board of directors attached thereto, filed with the Company) of the
         portion of the assets or evidences of indebtedness or shares so
         distributed or of such subscription rights or warrants applicable to
         one share of the Common Stock, Such adjustment shall be made whenever
         any such distribution Is made and shall become effective retroactively
         immediately after the record date for the determination of stockholders
         entitled to receive such distribution.

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                         c. If the Common Stock issuable upon the conversion of
         the Warrant shall be changed into the same or a different number of
         shares of any class or classes of stock, whether by capital
         reorganization, reclassification or otherwise (other than a subdivision
         or combination of shares or stock dividend provided for above, or a
         reorganization, merger, consolidation or sale of assets provided for in
         this Section 2), then, and in each such event, the Holder of this
         Warrant shall have the right thereafter to convert such Warrant into
         the kind and amount of shares of Common Stock and other securities and
         property receivable upon such reorganization, reclassification, or
         other change by the Holders of the number of shares of Common Stock
         into which such Warrant might have been converted, as reasonably
         determined by the Company's board of directors, immediately prior to
         such reorganization, reclassification, or change, all subject to
         further adjustment as provided herein.

                         d. If at any time or from time to time there shall be a
         capital reorganization of the Common Stock (other than a subdivision,
         combination, reclassification or exchange of shares provided for
         elsewhere in this Section 2) or a merger or consolidation of the
         Company with or into another corporation, or the sale of all or
         substantially all of the Company's properties and assets to any other
         person, then, as a part of such reorganization, merger, consolidation
         or sale, provision shall be made as reasonably determined by the
         Company's board of directors so that the Holder of the Warrant shall
         thereafter be entitled to receive upon conversion of such Warrant, the
         number of shares of stock or other securities or property of the
         Company or of the successor corporation resulting from such merger or
         consolidation or sale, to which a holder of Common Stock deliverable
         upon conversion would have been entitled on such capital
         reorganization, merger, consolidation or sale.

                         e. The adjustments provided for in this Section 2 are
         cumulative and shall apply to successive divisions, subdivisions,
         reductions, combinations, consolidations, issues, distributions or
         other events contemplated herein resulting in any adjustment under the
         provisions or this section, provided that, notwithstanding any other
         provision of this section, no adjustment of the Purchase Price shall be
         required unless such adjustment would require an increase or decrease
         of at least 1% in the Purchase Price then In effect; provided, however,
         that any adjustment which by reason of this subsection (a) are not
         required to be made shall be carried forward and taken into account in
         any subsequent adjustment.

                         f. Notwithstanding Section 2(b) above, no adjustment
         shall be made in the Purchase Price if provision is made for the Holder
         of this Warrant to participate in such distribution as if they had
         converted all of the principal balance of the Warrant into shares of
         Common Stock at the Purchase Price in effect immediately prior to such
         distribution.

                         g. Upon each adjustment of the Purchase Price, the
         Company shall give prompt written notice thereof addressed to the
         Holder at the address of such Holder as

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         shown on the records of the Company, which notice shall state the
         Purchase Price resulting from such adjustment and the increase or
         decrease, if any, in the number of shares issuable upon the conversion
         of the Holder's warrants, setting forth in reasonable detail the method
         of calculation and the facts upon which such calculations is based.

                         h. In the event of any question arising with respect to
         the adjustments provided for In this Section 2, such question shall be
         conclusively determined by an opinion of independent certified public
         accountants appointed by the Company (who may be the auditors of the
         Company) and acceptable to the Holder of this Warrant. Such accountants
         shall have access to all necessary records of the Company, and such
         determination shall be binding upon the Company and the Holder.

                         i. The Company may in its sole discretion and without
         any obligation to do so reduce the Purchase Price then in effect by
         giving 15 days' written notice to the Holders. The Company may limit
         such reduction as to its temporal duration or may impose other
         conditions thereto in its sole discretion.

                 3. Call Provision. If the fair market value of the Company's
Common Stock is equal to or above $45.00 per share at any time prior to the
Expiration Date the Company may call this Warrant. Notice of the call will be
mailed at least thirty (30) days before the date fixed by the board of directors
of the Company as the date of the call (the "Call Date"). If the Holder fails to
exercise the Warrant prior to the Call Date, it will expire. For purposes of
this Section the fair market value of the Common Stock on any particular date
means (i) if the shares are listed on any national securities exchange or
reported in the Nasdaq System, the closing bid price as reported for
transactions on the exchange or Nasdaq on the date in question, or (ii) if the
Common Stock is publicly traded on the OTC bulletin board ("OTCBB") but not
listed on any exchange or reported on Nasdaq, the average of the means between
bona fide bid and asked prices on the date in question as quoted by three
independent market makers. This right of redemption shall not restrict the right
of the Holder to Exercise the Warrants prior to the Redemption Date.

                 4. Restriction on Transfer. The Holder, by its acceptance
hereof, represents, warrants, covenants and agrees that (i) the Holder is a non
U. S. person as that term is defined in Sec. 902(o) of Regulation S, (ii) the
Holder has knowledge of the business and affairs of the Company, and (iii) this
Warrant and the Shares issuable upon the exercise of this Warrant are being
acquired for investment and not with a view to the distribution hereof and that
absent an effective registration statement under the Securities Act of 1933 as
amended (the "Act") covering the disposition of this Warrant or the Shares
issued or issuable upon exercise of this Warrant, they will not be sold,
transferred, assigned, hypothecated or otherwise disposed of without first
providing the Company with an opinion of counsel (which may be counsel for the
Company) or other evidence, reasonably acceptable to the Company, to the effect
that such sale, transfer, assignment, hypothecation or other disposal will be
exempt from the registration and prospectus delivery requirements of the Act and
the registration or qualification requirements of any applicable state
securities laws. The Holder consents to the making of a notation in the
Company's records or giving to any transfer agent of the Warrant or the Shares
an order to implement such restriction on transferability.

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                 This Warrant shall beer the following legend or a legend of
similar import, provided, however, that such legend shall be removed or not
placed upon the Warrant if such legend is no longer necessary to assure
compliance with the Securities Act of 1933, as amended:

                 THESE WARRANTS AND THE SHARES ISSUABLE UPON THEIR EXERCISE HAVE
NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE BECAUSE THEY ARE BELIEVED TO BE EXEMPT
FROM REGISTRATION UNDER REGULATION S PROMULGATED PURSUANT TO THE ACT. THIS
WARRANT IS "RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED NOR MAY THE WARRANT
BE EXERCISED BY OR ON BEHALF OF ANY U. S. PERSON EXCEPT AS PERMITTED UNDER THE
ACT PURSUANT TO THE REGISTRATION OF THE SECURITIES OR EXEMPTION THEREFROM.

                 5. Payment of Taxes. All Shares issued upon the exercise of
this Warrant shall be validly issued, fully paid and non-assessable and the
Company shall pay all taxes and other governmental charges (other than income
tax) that may be imposed in respect of the issue or delivery thereof. The
Company shall not be required, however, to pay any tax or other charge imposed
In connection with any transfer involved in the issue of any certificate for
Shares in any name other than that of the Holder surrendered in connection with
the purchase of such Shares, and In such case the Company shall not be required
to issue or deliver any stock certificate until such tax or other charge has
been paid or it has been established to the Company's satisfaction that no tax
or other charge is due.

                 6. Reservation of Common Stock. The Company shall at all times
reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of issuance upon the exercise of this Warrant,
such number of shares of Common Stock as shall be issuable upon the exercise
hereof. The Company covenants and agrees that, upon exercise of this Warrant and
payment of the Purchase Price thereof, all Shares of Common Stock issuable upon
such exercise shall be duly and validly issued, fully paid and non-assessable.

                 7. Notices to Holder. Nothing contained in this Warrant shall
be construed as conferring upon the Holder hereof the right to vote or to
consent or to receive notice as a shareholder in respect of any meetings of
shareholders for the election of directors or any other matter or as having any
rights whatsoever as a shareholder of the Company. All notices, requests,
consents and other communications hereunder shall be in writing and shall be
deemed to have been duly made when delivered or mailed by registered or
certified mail, postage prepaid, return receipt requested:

                    a. If to the Holder, to the address of such Holder as shown
         on the books of the Company, or

                    b. If to the Company, to the address set forth in Section
         2(b) hereof or to any other address notice of which is delivered to the
         Holder by regular mail.

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                 8. Replacement of Warrant. Upon receipt of evidence reasonably
satisfactory to the Company of the ownership of and the loss, theft, destruction
or mutilation of this Warrant and (in case of loss, theft or destruction) upon
delivery of an indemnity agreement in an amount reasonably satisfactory to the
Company, or (in the case of mutilation) upon surrender and cancellation of the
mutilated Warrant, the Company will execute and deliver, in lieu thereof, a new
Warrant of like tenor.

                 9. Successors. All the covenants, agreements, representations
and warranties contained in this Warrant shall bind the parties hereto and their
respective heirs, executors, administrators, distributees, successors and
assigns.

                 10. Changes or Waiver. Neither this Warrant nor any term hereof
may be changed, waived, discharged or terminated orally but only by an
instrument in writing signed by the party against which enforcement of the
change, waiver, discharge or termination is sought.

                 11. Headings. The section headings in this Warrant are inserted
for purposes of convenience only and shall have no substantive effect.

                 12. Governing Law. This Warrant shall for all purposes be
construed and enforced in accordance with, and governed by, the internal laws of
the United States and the State of Colorado, without giving effect to principles
of conflict of laws.

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                 IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed by its duly authorized officer and this Warrant to be dated as of the
date first above written.

                                         Petro Union, Inc. d/b/a
                                         HORIZONTAL VENTURES, INC.

                                         By:
                                             ----------------------------------
                                             Randeep Grewal, Chief Executive
                                             Officer

                                         Countersigned:

                                         --------------------------------------
                                         Roger V. Daividson, Special Secretary

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                                    EXHIBIT A

                                SUBSCRIPTION FORM

   (To be Executed by the Registered Holder in order to Exercise the Warrant)

                 The undersigned hereby irrevocably elects to exercise the right
to purchase of the Shares covered by this Warrant according to the conditions
hereof and herewith makes payment of the Purchase Price of such Shares in full.

                 No. of Warrants Exercised
                                           ------------------------

                 Amount of exercise price delivered $
                                                     --------------
                 Dated _________________, 199___.

                                   --------------------------------------------
                                   Signature (must be as listed on Warrant
                                   Certificate)

                                   Name Shares to be issued to:

                                   --------------------------------------------

                                   Address for delivery:

                                   --------------------------------------------

                                   --------------------------------------------

                                   --------------------------------------------

                                        8<PAGE>   1
                                                                    EXHIBIT 4.4

                           HORIZONTAL VENTURES, INC.

                    CLASS B WARRANT TO PURCHASE COMMON STOCK

CERTIFICATE NO.                                                       WARRANTS
               ------                                           -----

                                FEBRUARY 26, 1999

                 Horizontal Ventures, Inc. ("Company") certifies that, for
valuable consideration, receipt of which is hereby acknowledged, that
____________ ("Holder") is entitled to purchase from the Company _______ shares
of the Company's no par value common stock (the "Shares") at the price of $10.00
per share ("Purchase Price").

                 1.      Exercise.

                         a. Time of Exercise. This Class B Warrant (hereinafter
         the "Warrant") may be exercised in whole or in part (but not as to
         fractional shares) at the office of the Company, at any time or from
         time to time until 5:00 p.m. EST, on December 31, 2001, after which
         time this Warrant shall expire and be null and void if not exercised,
         the "Expiration Date."

                         b. Manner of Exercise. This Warrant is exercisable at
         the Purchase Price, payable in cash or by check, payable to the order
         of the Company, subject to adjustment as provided in Section 3 hereof.
         Upon surrender of this Warrant with the annexed Subscription Form duly
         executed, together with payment of the Purchase Price for the Shares
         purchased (and any applicable transfer taxes) at the offices of the
         Company's Transfer Agent, American Securities Transfer and Trust, Inc.,
         938 Quail Street, Suite 101, Lakewood, Colorado 80215, the Holder shall
         be entitled to receive a certificate or certificates for the Shares so
         purchased.

                         c. Delivery of Stock Certificates. As soon as
         practicable, but not exceeding 10 days, after complete or partial
         exercise of this Warrant, the Company, at its expense, shall cause to
         be issued in the name of the Holder (or upon payment by the Holder of
         any applicable transfer taxes, the Holder's assigns) a certificate or
         certificates for the number of fully paid and non-assessable Shares to
         which the Holder shall be entitled upon such exercise, together with
         such other stock or securities or property or combination thereof to
         which the Holder shall be entitled upon such exercise, determined in
         accordance with Section 2 hereof.

                         d. Record Date of Issuance of Shares. Irrespective of
         the date of issuance and delivery of certificates for any stock or
         securities issuable upon the exercise of this Warrant, each person
         (including a corporation or partnership) in whose name any such
         certificate is to be issued shall for all purposes be deemed to have
         become the holder of record of the stock or other securities
         represented thereby

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         immediately prior to the close of business on the date on which a duly
         executed Subscription Form containing notice of exercise of this
         Warrant and payment of the Purchase Price is received by the Company's
         Transfer Agent.

                 2. Adjustment of Purchase Price. The Purchase Price shall be
subject to adjustment as follows:

                         a. In case the Company shall (1) pay a dividend in
         shares of its capital stock (other than an issuance of shares of
         capital stock to holders of Common Stock who have elected to receive a
         dividend in shares in lieu of cash), (ii) subdivide its outstanding
         shares of Common Stock, (iii) reduce, consolidate or combine its
         outstanding shares of Common Stock into a smaller number of shares, or
         (iv) Issue by reclassification of its shares of Common Stock any shares
         of the Company, the Purchase Price in effect immediately prior thereto
         shall be adjusted to that amount determined by multiplying the Purchase
         Price in effect immediately prior to such date by a fraction, of which
         the numerator shall be the number of shares of Common Stock outstanding
         on such date before giving effect to such divisions, subdivision,
         reduction, combination or consolidation or stock dividend and of which
         the denominator shall be the number of shares of Common Stock after
         giving affect thereto. The number of shares issuable shall also be
         adjusted upward or downward determined by multiplying the number of
         warrants owned by the Holder by a fraction of which the denominator
         shall be the number of shares of Common Stock outstanding on such date
         before giving effect to such divisions, subdivision, reduction,
         combination or consolidation or stock dividend and of which the
         numerator shall be the number of shares of Common Stock after giving
         affect thereto. Such adjustment shall be made successively whenever any
         such effective date or record date shall occur. An adjustment made
         pursuant to this subsection (a) shall become effective retroactively to
         the Effective Date immediately after the record date in the case of a
         dividend and shall become effective immediately after the effective
         date In the case of a subdivision, reduction, consolidation,
         combination or reclassification.

                         b. In case the Company shall distribute to all or
         substantially all holders of its Common Stock evidences of its
         indebtedness, shares of any class of the Company's stock other than
         Common Stock or assets (excluding cash dividends) or rights or warrants
         to subscribe, then in each such case the Purchase Price shall be
         determined by dividing the Purchase Price In effect immediately prior
         to such issuance by a fraction, of which the numerator shall be the
         Purchase Price on the date of such distribution and of which the
         denominator shall be such fair market value per share of the Common
         Stock, less the then fair market value (as determined by the board of
         directors of the Company, whose determination shall be conclusive, and
         described in a statement, which will have the applicable resolutions of
         the board of directors attached thereto, filed with the Company) of the
         portion of the assets or evidences of indebtedness or shares so
         distributed or of such subscription rights or warrants applicable to
         one share of the Common Stock, Such adjustment shall be made whenever
         any such distribution Is made and shall become effective retroactively
         immediately after the record date for the determination of stockholders
         entitled to receive such distribution.

                                        2
<PAGE>   3

                         c. If the Common Stock issuable upon the conversion of
         the Warrant shall be changed into the same or a different number of
         shares of any class or classes of stock, whether by capital
         reorganization, reclassification or otherwise (other than a subdivision
         or combination of shares or stock dividend provided for above, or a
         reorganization, merger, consolidation or sale of assets provided for in
         this Section 2), then, and in each such event, the Holder of this
         Warrant shall have the right thereafter to convert such Warrant into
         the kind and amount of shares of Common Stock and other securities and
         property receivable upon such reorganization, reclassification, or
         other change by the Holders of the number of shares of Common Stock
         into which such Warrant might have been converted, as reasonably
         determined by the Company's board of directors, immediately prior to
         such reorganization, reclassification, or change, all subject to
         further adjustment as provided herein.

                         d. If at any time or from time to time there shall be a
         capital reorganization of the Common Stock (other than a subdivision,
         combination, reclassification or exchange of shares provided for
         elsewhere in this Section 2) or a merger or consolidation of the
         Company with or into another corporation, or the sale of all or
         substantially all of the Company's properties and assets to any other
         person, then, as a part of such reorganization, merger, consolidation
         or sale, provision shall be made as reasonably determined by the
         Company's board of directors so that the Holder of the Warrant shall
         thereafter be entitled to receive upon conversion of such Warrant, the
         number of shares of stock or other securities or property of the
         Company or of the successor corporation resulting from such merger or
         consolidation or sale, to which a holder of Common Stock deliverable
         upon conversion would have been entitled on such capital
         reorganization, merger, consolidation or sale.

                         e. The adjustments provided for in this Section 2 are
         cumulative and shall apply to successive divisions, subdivisions,
         reductions, combinations, consolidations, issues, distributions or
         other events contemplated herein resulting in any adjustment under the
         provisions or this section, provided that, notwithstanding any other
         provision of this section, no adjustment of the Purchase Price shall be
         required unless such adjustment would require an increase or decrease
         of at least 1% in the Purchase Price then In effect; provided, however,
         that any adjustment which by reason of this subsection (a) are not
         required to be made shall be carried forward and taken into account in
         any subsequent adjustment.

                         f. Notwithstanding Section 2(b) above, no adjustment
         shall be made in the Purchase Price if provision is made for the Holder
         of this Warrant to participate in such distribution as if they had
         converted all of the principal balance of the Warrant into shares of
         Common Stock at the Purchase Price in effect immediately prior to such
         distribution.

                         g. Upon each adjustment of the Purchase Price, the
         Company shall give prompt written notice thereof addressed to the
         Holder at the address of such Holder as shown on the records of the
         Company, which notice shall state the Purchase Price resulting from
         such adjustment and the increase or decrease, if any, in the number of

                                        3
<PAGE>   4

         shares issuable upon the conversion of the Holder's warrants, setting
         forth in reasonable detail the method of calculation and the facts upon
         which such calculations is based.

                         h. In the event of any question arising with respect to
         the adjustments provided for In this Section 2, such question shall be
         conclusively determined by an opinion of independent certified public
         accountants appointed by the Company (who may be the auditors of the
         Company) and acceptable to the Holder of this Warrant. Such accountants
         shall have access to all necessary records of the Company, and such
         determination shall be binding upon the Company and the Holder.

                         i. The Company may in its sole discretion and without
         any obligation to do so reduce the Purchase Price then in effect by
         giving 15 days' written notice to the Holders. The Company may limit
         such reduction as to its temporal duration or may impose other
         conditions thereto in its sole discretion.

                 3. Registration Rights. The Company agrees to file a
Registration Statement to register the resale of the common share underlying the
Warrants within 120 days after issuance of these Warrants and use its best
efforts to have that Registration Statement declared effective at the earliest
practicable date.

                 4. Restriction on Transfer. The Holder, by its acceptance
hereof, represents, warrants, covenants and agrees that (i) the Holder is a non
U. S. person as that term is defined in Sec. 902(o) of Regulation S, (ii) the
Holder has knowledge of the business and affairs of the Company, and (iii) this
Warrant and the Shares issuable upon the exercise of this Warrant are being
acquired for investment and not with a view to the distribution hereof and that
absent an effective registration statement under the Securities Act of 1933 as
amended (the "Act") covering the disposition of this Warrant or the Shares
issued or issuable upon exercise of this Warrant, they will not be sold,
transferred, assigned, hypothecated or otherwise disposed of without first
providing the Company with an opinion of counsel (which may be counsel for the
Company) or other evidence, reasonably acceptable to the Company, to the effect
that such sale, transfer, assignment, hypothecation or other disposal will be
exempt from the registration and prospectus delivery requirements of the Act and
the registration or qualification requirements of any applicable state
securities laws. The Holder consents to the making of a notation in the
Company's records or giving to any transfer agent of the Warrant or the Shares
an order to implement such restriction on transferability.

                 This Warrant shall beer the following legend or a legend of
similar import, provided, however, that such legend shall be removed or not
placed upon the Warrant if such legend Is no longer necessary to assure
compliance with the Securities Act of 1933, as amended:

                 THESE WARRANTS AND THE SHARES ISSUABLE UPON THEIR EXERCISE HAVE
NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE. THIS WARRANT IS "RESTRICTED" AND MAY NOT
BE RESOLD OR TRANSFERRED NOR MAY THE WARRANT BE EXERCISED BY OR ON BEHALF OF

                                        4
<PAGE>   5
         ANY U.S. PERSON EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO THE
         REGISTRATION OF THE SECURITIES OR EXEMPTION THEREFROM.

                 5. Payment of Taxes. All Shares issued upon the exercise of
this Warrant shall be validly issued, fully paid and non-assessable and the
Company shall pay all taxes and other governmental charges (other than income
tax) that may be imposed in respect of the issue or delivery thereof. The
Company shall not be required, however, to pay any tax or other charge imposed
In connection with any transfer involved in the issue of any certificate for
Shares in any name other than that of the Holder surrendered in connection with
the purchase of such Shares, and In such case the Company shall not be required
to issue or deliver any stock certificate until such tax or other charge has
been paid or it has been established to the Company's satisfaction that no tax
or other charge is due.

                 6. Reservation of Common Stock. The Company shall at all times
reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of issuance upon the exercise of this Warrant,
such number of shares of Common Stock as shall be issuable upon the exercise
hereof. The Company covenants and agrees that, upon exercise of this Warrant and
payment of the Purchase Price thereof, all Shares of Common Stock issuable upon
such exercise shall be duly and validly issued, fully paid and non-assessable.

                 7. Notices to Holder. Nothing contained in this Warrant shall
be construed as conferring upon the Holder hereof the right to vote or to
consent or to receive notice as a shareholder in respect of any meetings of
shareholders for the election of directors or any other matter or as having any
rights whatsoever as a shareholder of the Company. All notices, requests,
consents and other communications hereunder shall be in writing and shall be
deemed to have been duly made when delivered or mailed by registered or
certified mail, postage prepaid, return receipt requested:

                         a. If to the Holder, to the address of such Holder as
         shown on the books of the Company, or

                         b. If to the Company, to the address set forth in
         Section 2(b) hereof or to any other address notice of which is
         delivered to the Holder by regular mail.

                 8. Replacement of Warrant. Upon receipt of evidence reasonably
satisfactory to the Company of the ownership of and the loss, theft, destruction
or mutilation of this Warrant and (in case of loss, theft or destruction) upon
delivery of an indemnity agreement in an amount reasonably satisfactory to the
Company, or (in the case of mutilation) upon surrender and cancellation of the
mutilated Warrant, the Company will execute and deliver, in lieu thereof, a new
Warrant of like tenor.

                 9. Successors. All the covenants, agreements, representations
and warranties contained in this Warrant shall bind the parties hereto and their
respective heirs, executors, administrators, distributees, successors and
assigns.

                                        5
<PAGE>   6

                 10. Changes or Waiver. Neither this Warrant nor any term hereof
may be changed, waived, discharged or terminated orally but only by an
instrument in writing signed by the party against which enforcement of the
change, waiver, discharge or termination is sought.

                 11. Headings. The section headings in this Warrant are inserted
for purposes of convenience only and shall have no substantive effect.

                 12. Governing Law. This Warrant shall for all purposes be
construed and enforced in accordance with, and governed by, the internal laws of
the United States and the State of Colorado, without giving effect to principles
of conflict of laws.

                                        6
<PAGE>   7

                 IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed by its duly authorized officer and this Warrant to be dated as of the
date first above written.

                                        HORIZONTAL VENTURES, INC.

                                        By:
                                            -----------------------------------
                                            Randeep Grewal, Chief Executive
                                            Officer

                                        Countersigned:

                                        ---------------------------------------
                                        Roger V. Davidson, Special Secretary

                                   ASSIGNMENT

                 For value received _______________________, hereby sells,
assigns and transfers all of the right, title and interest of __________Warrants
represented by this Certificate to ________________________ and appoint
___________________ as my attorney-in-fact to accomplish same.

                                     ------------------------------------------
                                     Signature of holder (exactly as it appears
                                     on this Certificate)

                                        7
<PAGE>   8

                                SUBSCRIPTION FORM

   (To be Executed by the Registered Holder in order to Exercise the Warrant)

                 The undersigned hereby irrevocably elects to exercise the right
to purchase the Shares covered by this Warrant according to the conditions
hereof and herewith makes payment of the Purchase Price of such Shares in full.

                 No. of Warrants Exercised
                                           ------------------------

                 Amount of exercise price delivered $
                                                     --------------
                 Dated ________________, 199___.

                                 ----------------------------------------------
                                 Signature (must be as listed on Warrant
                                 Certificate)

                                 Name Shares to be issued to:

                                 ----------------------------------------------

                                 Address for delivery:

                                 ----------------------------------------------

                                 ----------------------------------------------

                                 ----------------------------------------------

                                        8

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