Document:

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                                 EXHIBIT 10.1

                             INFORMATION STATEMENT

                      W.R. CARPENTER NORTH AMERICA, INC.

        Consent and Waiver of Compliance under the Indenture Governing
                its 10 5/8% Senior Subordinated Notes Due 2007

SUBJECT TO THE CONDITIONS DESCRIBED HEREIN, THE COMPANY WILL ACCEPT ALL CONSENTS
(AS DEFINED BELOW) RECEIVED PRIOR TO 5:00 P.M., NEW YORK TIME ON SEPTEMBER 22,
2000 (THE "EXPIRATION DATE").  IF THE REQUISITE NUMBER OF CONSENTS ARE NOT
RECEIVED BY THE EXPIRATION DATE, THE COMPANY MAY ELECT TO CONTINUE TO ACCEPT
ADDITIONAL CONSENTS UNTIL THE REQUISITE NUMBER OF CONSENTS HAVE BEEN RECEIVED.
CONSENTS MAY BE REVOKED AT ANY TIME PRIOR TO THE COMPANY'S RECEIPT OF THE
REQUISITE NUMBER OF CONSENTS.

W.R. Carpenter North America, Inc., a Delaware corporation (the "Company"), is
furnishing this Information Statement and the accompanying form of consent and
waiver (the "Consent") to holders of record (the "Noteholders") on September 1,
2000 (the "Record Date") of its 10 5/8% Senior Subordinated Notes Due 2007 (the
"Notes"), in connection with the consent and waiver of compliance regarding
certain provisions of the indenture dated as of June 10, 1997 (the "Indenture")
among the Company, certain guarantors, and U.S. Trust Company of California,
N.A., as Trustee (the "Trustee").

The Consent would waive any events of noncompliance and default under the
Indenture that would occur in connection with the proposed sale by the Company
(the "Horizon Transaction") of its wholly-owned subsidiary, Horizon High Reach,
Inc. ("Horizon") to United Rentals (North America), Inc. ("United") as a result
of the Company receiving less than 85% of the consideration from the sale of
Horizon in the form of cash or temporary cash investments, and otherwise would
consent to the Horizon Transaction.

United is a wholly-owned subsidiary of United Rentals, Inc., a New York Stock
Exchange-listed company.

A copy of the form of Consent is attached to this Information Statement as
Exhibit A.  Capitalized terms used but not defined in this Information Statement
have the meanings set forth in the Indenture.

Approval of the Consent requires the consent of the holders of not less than a
majority in aggregate principal amount of the outstanding Notes, provided that
Notes owned by the Company or any of its affiliates will be disregarded as
though they were not outstanding (the "Requisite Consents").  The Company and
its affiliates currently own $60.85 million in aggregate principal amount of the
Notes.

Duly executed Consents should be sent to U.S. Trust Company, N.A., as Trustee,
by facsimile to (646) 458-8123, followed by hand delivery or overnight courier
of the original to:

<TABLE>
<CAPTION>
                        BY HAND                                      BY OVERNIGHT COURIER OR FACSIMILE
                        -------                                      ---------------------------------
<S>                                                                 <C>
       U.S. Trust Company, National Association                  U.S. Trust Company, National Association
      c/o United States Trust Company of New York               c/o United States Trust Company of New York
               30 Broad Street, B Level                                 30 Broad Street, 14th Floor
                Corporate Trust Window                                   New York, NY  10004-2304
               New York, NY  10004-2304                              Attn:  Corporate Trust Operations
</TABLE>
<PAGE>

In no event should a Noteholder tender or deliver Notes.

If you require assistance, please contact the Trustee at (800) 548-6565 or
Graham D. Croot, Chief Financial Officer of the Company at (559) 353-3953.  The
Company has made no arrangements and has no understanding with any dealer,
salesman or person regarding the Consents.  No person has been authorized by the
Company to give any information or to make any representations in connection
with the Consents other than those contained herein, and, if given or made, such
other information or representations must not be relied upon as having been
authorized.  The delivery of this Information Statement shall not, under any
circumstances, create any implication that the information herein is correct as
of any time subsequent to the date hereof.

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

The request for Consents is not being made to, nor will the Company accept
Consents from, Noteholders in any jurisdiction in which the request would not be
in compliance with the securities or Blue Sky laws of such jurisdiction.

                                   BACKGROUND

The Horizon Transaction

On August 10, 2000, the Company entered into a letter of intent (the "Letter of
Intent") with United pursuant to which the Company agreed to sell all of the
outstanding capital stock of Horizon to United for an aggregate consideration of
$90 million (subject to certain adjustments) pursuant to definitive agreements
(the "Horizon Transaction Documents").  The Letter of Intent provides for a
purchase price comprised of (i) approximately $50 million payable in cash upon
the closing of the Horizon Transaction, and (ii) two unsecured senior promissory
notes (the "United Notes"), with an aggregate original principal amount of
approximately $40 million.  Consummation of the Horizon Transaction is subject
to, and will not take place without, applicable regulatory and governmental
approvals and other conditions, including the receipt by the Company of the
Requisite Consents.  The Company intends to use the cash proceeds from the
Horizon Transaction to repay senior indebtedness of its subsidiaries and for
general corporate purposes as permitted under the Indenture.  To facilitate the
Company's cash flow from this transaction, the Company may market and sell one
or both of the United Notes for cash to potential buyers, subject to applicable
securities laws and other considerations (including, but not limited to, market
conditions and restrictions on the transferability of the United Notes, as
further described below).

The United Notes

One of the United Notes (the "First Note") will be a senior unsecured promissory
note paying interest quarterly throughout its term at 10.20% per annum, with all
outstanding principal due at maturity.  The original principal amount of the
First Note will be approximately $20 million.  The First Note will not be
subject to any adjustment in principal amount and will be immediately marketable
by the Company.  The other United Note (the "Second Note") also will be a senior
unsecured promissory note in an original principal amount of approximately $20
million, bearing interest at 10.20% per annum.  The Second Note will be payable
in quarterly installments as follows: the first six installments will be
payments of interest only, and the remaining 14 installments will be comprised
of payments of interest and amortize 100% of the principal over the balance of
the term, with all outstanding principal and interest due at maturity.  The
principal amount of the Second Note will be subject to increase or decrease as a
result of potential post-closing adjustments to, and setoffs against, the Second
Note.  The Second Note also will not be marketable by the Company until
approximately 18 months after the Horizon Transaction closes.

The Company intends to use the proceeds that it receives from the sale or
prepayment of any of the United Notes for general corporate purposes as
permitted by the Indenture.

Each of the United Notes will constitute senior indebtedness of United, pari
passu with all other existing and future senior obligations of United and senior
to all subordinated indebtedness of United.  Upon a change in control of United,
all outstanding principal and interest under each of the United Notes will be
immediately due and payable.  In addition, United will have the right to prepay
each of the United Notes at any time without premium or penalty and the
obligation to prepay under certain other circumstances.

                                       2
<PAGE>

Release of Horizon as Guarantor

In accordance with Section 11.04 of the Indenture, upon consummation of the
Horizon Transaction, Horizon will be released from all of its obligations under
Section 11 of the Indenture and its Guarantee.

                         NONCOMPLIANCE WITH INDENTURE

Limitation on Certain Asset Sales

Under Section 4.10(ii) of the Indenture, the Company may not consummate an Asset
Sale (as defined in the Indenture) unless, among other things, at least 85% of
the consideration that the Company receives for the assets being sold is in the
form of cash or Temporary Cash Investments (as defined in the Indenture).  In
the Horizon Transaction, the Company will receive approximately $50 million of
the approximately $90 million purchase price in cash, which will be less than
the 85% required by Section 4.10(ii) of the Indenture.

If not waived by a majority in aggregate principal amount of the outstanding
Notes (excluding Notes owned by the Company or any of its affiliates), the
Company's failure to cure, within 60 days following receipt of notice from the
Trustee or the holders of not less than 25% in aggregate principal amount of the
Notes outstanding, its noncompliance with Section 4.10(ii) of the Indenture
would result in an Event of Default under Section 6.01(3) thereof, entitling the
Noteholders to accelerate the debt.

                              TERMS OF THE CONSENT

If approved, the Consent would waive compliance by the Company with the
provisions of Section 4.10(ii) of the Indenture in connection with the receipt
of the purchase price for the Horizon Transaction, and would otherwise consent
to the Horizon Transaction.

                              THE CONSENT PROCESS

Procedure for Giving Consents

Noteholders wishing to waive compliance with Section 4.10(ii) of the Indenture
and consent to the Consent should complete, sign, and date the accompanying form
of Consent (or a facsimile thereof) in accordance with the instructions set
forth herein and in the Consent and forward or hand deliver such Consent to the
Trustee on behalf of the Company at the appropriate address as set forth
therein.

Noteholders NOT wishing to waive compliance with Section 4.10(ii) of the
Indenture and consent to the Consent should mark the "Does Not Consent" box and
forward or hand deliver such Consent to the Trustee on behalf of the Company at
the appropriate address as set forth therein.

An "Accepted Consent" is a properly completed Consent executed by the Noteholder
of record on the Record Date (or the Noteholder's legal representative or
attorney-in-fact) that is (a) timely received by the Trustee on behalf of the
Company, and not thereafter revoked as provided herein and (b) accepted by the
Company in accordance with the provisions and subject to the terms and
conditions set forth in this Information Statement.

Only a registered Noteholder on the Record Date (or the Noteholder's legal
representative or attorney-in-fact) may deliver a Consent.  Except as provided
below, any beneficial owner of Notes who is not the registered holder of such
Notes must arrange with the registered holder to execute and deliver a consent
on the beneficial owner's behalf.

CONSENTS SHOULD BE SENT TO THE TRUSTEE BY FACSIMILE, FOLLOWED BY DELIVERY OF THE
ORIGINAL BY HAND OR BY OVERNIGHT COURIER.  IN NO EVENT SHOULD A NOTEHOLDER
TENDER OR DELIVER NOTES.

Consents should be delivered by facsimile with the original to follow by mail,
overnight express or hand to the Trustee at the address set forth herein and in
the Consent.

                                       3
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All questions as to the validity, form, eligibility (including time of receipt),
and acceptance of Consents will be resolved by the Company, whose determination
shall be final and binding.  The Company also reserves the right to waive any
irregularities or conditions of delivery as to particular Consents.  Neither the
Company nor the Trustee shall be under any duty to give notification of any such
irregularities or waiver.  Deliveries of such particular Consents will not be
deemed to have been made until such irregularities have been cured or waived.

Revocation of Consents

Section 9.04 of the Indenture provides that Consents may be revoked only before
the date the Consent becomes effective.  Prior to such time, Consents may be
revoked upon receipt by the Company of a notice of revocation by a Noteholder on
the Record Date.  The notice of revocation must indicate the serial number or
numbers of the Notes to which such revocation relates (or information sufficient
to enable the Company to identify such Notes), as well as the aggregate
principal amount represented by such Notes.  A properly executed Consent with
the "Does Not Consent" box marked, submitted in accordance with the foregoing
procedures, will be treated as a revocation of the Consent regarding the Notes
to which it relates.  A Noteholder on the Record Date who has delivered a
revocation may thereafter deliver a new Consent in accordance with the terms set
forth in this Information Statement.  Except as discussed above, a Consent given
by a holder of any Note shall be conclusive and binding upon such holder and
upon all future holders and owners of such Note, and of any Note issued in
exchange for or in substitution therefor, whether or not any notation in regard
thereto is made on such Note.  A revocation of a Consent shall be deemed to be
canceled by a subsequent delivered properly completed and executed Consent
relating to the same Note or Notes, if such subsequent Consent is given by the
same Noteholder of record.

Effective Date of the Consent

The Consents will be effective as of the date that the Company receives the
Requisite Consents.

                   CERTAIN FEDERAL INCOME TAX CONSIDERATIONS

The Company does not believe that the grant of the Consent, if approved, would
result in any tax consequence to the Noteholders for Federal income tax
purposes.  Each Noteholder is, however, urged to consult with its tax advisor as
to any potential tax consequences to it resulting from the Consent (including
consequences resulting from the application of any state, local or foreign
income or other tax laws).

                    ADDITIONAL INFORMATION ABOUT THE COMPANY

W.R. Carpenter North America, Inc. is subject to the reporting and information
requirements of the Securities Exchange Act of 1934, as amended, and in
accordance therewith files reports and other information with the Securities and
Exchange Commission (the "Commission").  The Company has previously furnished to
the Noteholders the Company's Annual Report on Form 10-K for its fiscal year
ending June 27, 1999, which, among other matters, contains a description of the
Company's business and its consolidated financial statements, and the Company's
Quarterly Report on Form 10-Q for its fiscal quarter ending March 26, 2000.
Information as of particular dates concerning the Company's directors and
officers, the remuneration of such persons and any material interest of such
persons in transactions with the Company, as the case may be, is set forth in
other reports filed with the Commission.  Such reports and other information may
be inspected and copies may be obtained at the principal offices of the
Commission at 450 Fifth Street, N.W., Washington, D.C. 20549; Citicorp Center,
500 West Madison Street, Suite 1400, Chicago, Illinois 60661; and 7 World Trade
Center, Suite 1300, New York, New York 10048.  Copies of such material can be
obtained from the Public Reference Section of the Commission at 450 Fifth
Street, N.W., Washington, D.C. 20549, upon payment of the prescribed fees.

Such reports and other information may also be obtained from the Company.

                                       4
<PAGE>

                             DELIVERY OF CONSENTS

Noteholders on the Record Date who wish to consent to the proposed Consent
should either (1) complete and sign the Consent (or a facsimile thereof) and
forward it by facsimile to the Trustee or (2) request their broker, bank or
trust company or nominee to do so on their behalf.  Requests for additional
copies of this Information Statement and the Consent should be directed to the
Trustee at the address and telephone and facsimile numbers listed below.

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

                          Consents Should Be Sent To:

<TABLE>
<CAPTION>
                        BY HAND                                      BY OVERNIGHT COURIER OR FACSIMILE
                        -------                                      ---------------------------------
<S>                                                                  <C>
       U.S. Trust Company, National Association                  U.S. Trust Company, National Association
      c/o United States Trust Company of New York               c/o United States Trust Company of New York
               30 Broad Street, B Level                                 30 Broad Street, 14th Floor
                Corporate Trust Window                                   New York, NY  10004-2304
               New York, NY  10004-2304                              Attn:  Corporate Trust Operations
</TABLE>

                                       5
<PAGE>

                                   EXHIBITS

A - Form of Consent and Waiver

                                       6
<PAGE>

                              CONSENT AND WAIVER

Reference is made to the Indenture ("Indenture") dated as of June 10, 1997 by
and among W. R. Carpenter North America, Inc. (the "Company"), the Guarantors
named therein, and U.S. Trust Company of California, N.A., as trustee.
Capitalized terms used herein have the meanings set forth in the Indenture
unless otherwise defined herein.

Pursuant to a letter of intent ("Letter of Intent") dated August 10, 2000 by and
between the Company and United Rentals (North America), Inc. ("United"), the
Company has agreed to sell all of the outstanding common stock of Horizon High
Reach, Inc. to United (the "Horizon Transaction"), subject, among other things,
to receiving this consent and waiver (without revocation) from holders
representing the majority in aggregate principal amount of the outstanding
Notes.

The undersigned, who represents and warrants to the Company that it is a
Noteholder of the Company's notes as of September 1, 2000, hereby:

[Please check only one box]

[_]    CONSENTS

[_]    DOES NOT CONSENT

       and waives compliance by the Company with the provisions of Section
       4.10(ii) of the Indenture in connection with the closing of the
       Horizon Transaction and otherwise consents to the Horizon Transaction.

----------------------------        -------------------------------------------
Principal Amount of Notes Held      Name of Noteholder:
                                    Name of Noteholder Signatory:
                                    Title:

Please fax this executed Consent prior to September 22, 2000 to U.S. Trust
Company, N.A., as Trustee, Facsimile: (646) 458-8123, Telephone: (800) 548-6565,
followed by hand delivery or overnight courier of the original to:

<TABLE>
<CAPTION>
                        BY HAND                                      BY OVERNIGHT COURIER OR FACSIMILE
                        -------                                      ---------------------------------
<S>                                                                  <C>
       U.S. Trust Company, National Association                  U.S. Trust Company, National Association
      c/o United States Trust Company of New York               c/o United States Trust Company of New York
               30 Broad Street, B Level                                 30 Broad Street, 14th Floor
                Corporate Trust Window                                   New York, NY  10004-2304
               New York, NY  10004-2304                              Attn:  Corporate Trust Operations
</TABLE>

                                       7<PAGE>

                                                                     EXHIBIT 4.3

                               WARRANT AGREEMENT

     THIS WARRANT AGREEMENT (this "Agreement") is made and entered into as of
(date) between BETA OIL & GAS, INC., a Nevada corporation (the "Company") and
{NAME}, an individual ("Holder").

                                R E C I T A L S
                                - - - - - - - -

     WHEREAS, the Company proposes to issue to Holder _____ warrants (the
"Warrants"), each such Warrant entitling the holder thereof to purchase one
share of Common Stock, $0.001 par value, of the Company (the "Shares" or the
"Common Stock"); and

     WHEREAS, the Warrants which are the subject of this Agreement will be
issued by the Company to Holder as part of consideration payable to Holder in
connection with employment of the Holder by the Company.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereto agree as follows:

                               A G R E E M E N T
                               - - - - - - - - -

     1.  Warrant Certificates.  The warrant certificates to be delivered
         --------------------
pursuant to this Agreement (the "Warrant Certificates") shall be in the form set
forth in Exhibit A, attached hereto and made a part hereof, with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Warrant Agreement.

     2.  Right to Exercise Warrants.  Each Warrant may be exercised from the
         --------------------------
date of this Agreement until 11:59 P.M. (Los Angeles time) on November 2, 2004
(the "Expiration Date").  Each Warrant not exercised on or before the Expiration
Date shall expire.

     Each Warrant shall entitle its holder to purchase from the Company one
share of Common Stock at an exercise price of $____per share, subject to
adjustment as set forth below ("Exercise Price").

     The Company shall not be required to issue fractional shares of capital
stock upon the exercise of this Warrant or to deliver Warrant Certificates which
evidence fractional shares of capital stock.  In the event that a fraction of an
Exercisable Share would, except for the provisions of this paragraph 2, be
issuable upon the exercise of this Warrant, the Company shall pay to the Holder
exercising the Warrant an amount in cash equal to such fraction multiplied by
the current market value of the Exercise Share.  For purposes of this paragraph
2, the current market value shall be determined as follows:

          (a)  if the Exercise Shares are traded in the over-the-counter market
and not on any national securities exchange and not in the NASDAQ Reporting
System, the average of the mean between the last bid and asked prices per share,
as reported by the National Quotation Bureau, Inc., or an equivalent generally
accepted reporting service, for the last business day prior to the date on which
this Warrant is exercised, or, if not so reported, the average of the closing
bid and asked prices for an Exercise Share as furnished to the Company by any
member of the National Association of Securities Dealers, Inc., selected by the
Company for that purpose.

          (b)  if the Exercise Shares are listed or traded on a national
securities exchange or in the NASDAQ Reporting System, the closing price on the
principal national securities exchange on which they are so listed or traded or
in the NASDAQ Reporting System, as the case may be, on the last business day
prior to the date of the exercise of this Warrant.  The closing price referred
to in this Clause (b) shall be the last reported sales price or, in case no such
reported sale takes place on such day, the average of the reported closing bid
and asked prices, in

                                       1
<PAGE>

either case on the national securities exchange on which the Exercise Shares are
then listed on in the NASDAQ Reporting System; or

          (c)  if no such closing price or closing bid and asked prices are
available, as determined in any reasonable manner as may be prescribed by the
Board of Directors of the Company.

     3.   Mutilated or Missing Warrant Certificates.  In case any of the Warrant
          -----------------------------------------
Certificates shall be mutilated, lost, stolen or destroyed prior to its
expiration date, the Company shall issue and deliver, in exchange and
substitution for and upon cancellation of the mutilated Warrant Certificate, or
in lieu of and in substitution for the Warrant Certificate lost, stolen or
destroyed, a new Warrant Certificate of like tenor and representing an
equivalent right or interest.

     4.   Reservation of Shares.  The Company will at all times reserve and keep
          ---------------------
available, free from preemptive rights, out of the aggregate of its authorized
but unissued Shares or its authorized and issued Shares held in its treasury for
the purpose of enabling it to satisfy its obligation to issue Shares upon
exercise of Warrants, the full number of Shares deliverable upon the exercise of
all outstanding Warrants.

     The Company covenants that all Shares which may be issued upon exercise of
Warrants will be validly issued, fully paid and nonassessable outstanding Shares
of the Company.

     5.   Rights of Holder.   The Holder shall not, by virtue of anything
          -----------------
contained in this Warrant Agreement or otherwise, prior to exercise of this
Warrant, be entitled to any right whatsoever, either in law or equity, of a
stockholder of the Company, including without limitation, the right to receive
dividends or to vote or to consent or to receive notice as a shareholder in
respect of the meetings of shareholders or the election of directors of the
Company of any other matter.

     6.   Investment Intent.  Holder represents and warrants to the Company that
          -----------------
Holder is acquiring the Warrants for investment and with no present intention of
distributing or reselling any of the Warrants.

     7.   Certificates to Bear Language.  The Warrants and the certificate or
          -----------------------------
certificates therefor shall bear the following legend by which each holder shall
be bound:

          "THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE
          SHARES OF COMMON STOCK (OR OTHER SECURITIES) ISSUABLE
          UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES ACT OF 1933. THE SHARES MAY NOT BE SOLD OR
          TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR
          TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
          OPINION OF COUNSEL THAT AN EXEMPTION FROM REGISTRATION
          UNDER SUCH ACT IS AVAILABLE."

          The Shares and the certificate or certificates evidencing any such
Shares shall bear the following legend:

          "THE SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS
          CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
          ACT OF 1933. THE SHARES MAY NOT BE SOLD OR TRANSFERRED IN
          THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL
          THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
          AVAILABLE."

     Certificates for Warrants without such legend shall be issued if such
warrants or shares are sold pursuant to an effective registration statement
under the Securities Act of 1933 (the "Act") or if the Company has received an

                                       2
<PAGE>

opinion from counsel reasonably satisfactory to counsel for the Company, that
such legend is no longer required under the Act.

     8.   Registration Rights.  The Company is obligated to register the shares
          --------------------
of Common Stock underlying the Warrants in any subsequent registration statement
filed by the Company with the Securities and Exchange Commission, so that
holders of such Common Stock shall be entitled to sell the same simultaneously
with and upon the terms and conditions as the securities sold for the account of
the Company are being sold pursuant to any such registration statement, subject
to such lock-up provisions as may be proposed by the underwriter of said
registration statement and agreed to by the investors (the "Piggyback
Registration Right"). In such registration, the Company shall pay all its
expenses and filing fees and shall make a reasonable number of copies of the
registration statement and any prospectus available to holders. The Company will
not pay any selling commissions or similar expenses incurred by Seller or of any
counsel or other representative of a seller.

     9.   Adjustment of Number of Shares and Class of Capital Stock Purchasable.
          ---------------------------------------------------------------------
The Number of Shares and Class of Capital Stock purchasable under this Warrant
Agreement are subject to adjustment from time to time as set forth in this
Section.

          (a)  Adjustment for Change in Capital Stock.  If the Company:
               ---------------------------------------

               (i)   pays a dividend or makes a distribution on its Common
Stock, in each case, in shares of its Common Stock;

               (ii)  subdivides its outstanding shares of Common Stock into a
greater number of shares;

               (iii) combines its outstanding shares of Common Stock into a
smaller number of shares;

               (iv)  makes a distribution on its Common Stock in shares of its
capital stock other than Common Stock; or

               (v)   issues by reclassification of its shares of Common Stock
any shares of its capital stock;

then the number and classes of shares purchasable upon exercise of each Warrant
in effect immediately prior to such action shall be adjusted so that the holder
of any Warrant thereafter exercised may receive the number and classes of shares
of capital stock of the Company which such holder would have owned immediately
following such action if such holder had exercised the Warrant immediately prior
to such action.

          For a dividend or distribution the adjustment shall become effective
immediately after the record date for the dividend or distribution. For a
subdivision, combination or reclassification, the adjustment shall become
effective immediately after the effective date of the subdivision, combination
or reclassification.

          If after an adjustment the holder of a Warrant upon exercise of it may
receive shares of two or more classes of capital stock of the Company, the Board
of Directors of the Company shall in good faith determine the allocation of the
adjusted Exercise Price between or among the classes of capital stock. After
such allocation, that portion of the Exercise Price applicable to each share of
each such class of capital stock shall thereafter be subject to adjustment on
terms comparable to those applicable to Common Stock in this Agreement.
Notwithstanding the allocation of the Exercise Price between or among shares of
capital stock as provided by this Section 9, a Warrant may only be exercised in
full by payment of the entire Exercise Price currently in effect.

          (b)  Consolidation, Merger or Sale of the Company. If the Company is a
               --------------------------------------------
party to a consolidation, merger or transfer of assets which reclassifies or
changes its outstanding Common Stock, the successor corporation (or corporation
controlling the successor corporation or the Company, as the case may be)

                                       3
<PAGE>

shall by operation of law assume the Company's obligations under this Warrant
Agreement. Upon consummation of such transaction the Warrants shall
automatically become exercisable for the kind and amount of securities, cash or
other assets which the holder of a Warrant would have owned immediately after
the consolidation, merger or transfer if the holder had exercised the Warrant
immediately before the effective date of such transaction. As a condition to the
consummation of such transaction, the Company shall arrange for the person or
entity obligated to issue securities or deliver cash or other assets upon
exercise of the Warrant to, concurrently with the consummation of such
transaction, assume the Company's obligations hereunder by executing an
instrument so providing and further providing for adjustments which shall be as
nearly equivalent as may be practical to the adjustments provided for in this
Section 9.

     10.  Successors.  All the covenants and provisions of this Agreement by or
          ----------
for the benefit of the Company or Holder shall bind and inure to the benefit of
their respective successor and assigns hereunder.

     11.  Counterparts.  This Agreement may be executed in any number of
          ------------
counterparts and each of such counterparts shall for all proposes be deemed to
be an original, and such counterparts shall together constitute by one and the
same instrument.

     12.  Notices.   All notices or other communications under this Warrant
          --------
shall be in writing and shall be deemed to have been given if delivered by hand
or by mail, postage prepaid, addressed as follows:  if to the Company: Beta Oil
& Gas, Inc., 901 Dove Street, Suite  Suite 230, Newport Beach, California,
92660, Attention: Chief Executive Officer, and to the Holder: at the address of
the Holder appearing on the books of the Company or the Company's transfer
agent, if any.

     Either the Company or the Holder may from time to time change the address
to which notices to it are to be mailed hereunder by notice in accordance with
the provisions of this Paragraph 12.

     13.  Supplements and Amendments.   The Company may from time to time
          ---------------------------
supplement or amend this Warrant Agreement without the approval of any Holders
of Warrants in order to cure any ambiguity or to be correct or supplement any
provision contained herein which may be defective or inconsistent with any other
provision, or to make any other provisions in regard to matters or questions
herein arising hereunder which the Company may deem necessary or desirable and
which shall not materially adversely affect the interest of the Holder.

     14.  Severability.   If for any reason any provision, paragraph or term of
          --------------
this Warrant Agreement is held to be invalid or unenforceable, all other valid
provisions herein shall remain in full force and effect and all terms,
provisions and paragraphs of this Warrant shall be deemed to be severable.

     15.  Governing Law and Venue.   This Warrant shall be deemed to be a
          ------------------------
contract made under the laws of the State of California and for all purposes
shall be governed and construed in accordance with the laws of said State.  Any
proceeding arising under this Warrant Agreement shall be instituted in Orange
County, State of California.

     16.  Headings. Paragraphs and subparagraph headings, used herein are
          --------
          included herein for convenience of reference only and shall not affect
          the construction of this Warrant Agreement nor constitute a part of
          this Warrant Agreement for any other purpose.

                                       4
<PAGE>

     WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, as of the date and year first above written.

"COMPANY"                                    "HOLDER"

BETA OIL & GAS, INC.                         {NAME}

_________________________________
BY:  Steve Antry                             By:
ITS: President

                                       5
<PAGE>

                                   EXHIBIT A

<TABLE>
<S>                                                                                                             <C>
NUMBER __                                                                                                                    WARRANT
                                                                                                                Warrant to Purchases

                                                                                                                              Shares
                                                       BETA OIL & GAS, INC.                                          see reverse for
                                                   COMMON STOCK PURCHASE WARRANT                                 certain definitions
                        will be void if not exercised prior to 11:59 P.M. Pacific Time on __________, 2004
</TABLE>

This Certifies that for value received, the registered holder or assigns
("Holder"),

is entitled to purchase from Beta Oil & Gas, Inc., a Nevada corporation (the
"Company") at any time after 9:00 A.M. Eastern Time on ________, 1999 at the
purchase price per share of $___ (the "Warrant Price"), the number of shares of
Common Stock of the Company set forth above (the "Shares"). The number of shares
purchasable upon exercise of each warrant evidenced hereby and the Warrant Price
per Share shall be subject to adjustment from time to time as set forth in the
Warrant Agreement referred to below. The Warrants expire on _______, 2004.
Holders will not have any rights or privileges of shareholders of the Company
prior to exercise of the Warrants. Holders of the Warrants evidenced hereby and
the shares of Common Stock issuable upon exercise hereof have certain rights
with respect to registration with the Securities and Exchange Commission of the
Warrants and Common Stock issuable upon exercise hereof. These registration
rights are set forth in that certain Warrant Agreement of even date herewith
pursuant to which this Warrant Certificate has been issued. The Warrant
evidenced hereby may be exercised in whole or in part by presentation of this
Warrant certificate with the Purchase Form on the reverse side hereof fully
executed (with a signature guarantee as provided on the reverse side hereof) and
simultaneous payment of the Warrant Price (subject to adjustment) at the
principal office of the Company. Payment of such price shall be made at the
option of the holder in cash or by certified check or bank draft. The Warrants
evidenced hereby are part of a duly authorized issue of Common Stock Purchase
Warrants with rights to purchase an aggregate of up to 1,500,000 shares of
Common Stock of the Company. Upon any partial exercise of the Warrant evidenced
hereby, there shall be countersigned and issued to the Holder a new Warrant
Certificate in respect of the Shares as to which the Warrants evidenced hereby
shall not have been exercised. This Warrant Certificate may be exchanged at the
office of the Company by surrender of this Warrant Certificate properly endorsed
with a signature guarantee either separately or in combination with one or more
other Warrants for one or more new Warrants to purchase the same aggregate
number of Shares as evidenced by the Warrant or Warrants exchanged. No
fractional Shares will be issued upon the exercise of rights to purchase
hereunder, but the Company shall pay the cash value of any fraction upon the
exercise of one or more Warrants. The Holder hereof may be treated by the
Company and all other persons dealing with this Warrant Certificate as the
absolute owner hereof for all purposes and as the person entitled to exercise
the rights represented hereby, any notice to the contrary notwithstanding, and
until such transfer is on such books, the Company may treat the Holder as the
owner for all purposes.

Dated: __________, 1999                    BETA OIL & GAS, INC.

             Secretary                     Chief Executive Officer

                             SEE LEGEND ON REVERSE

<PAGE>

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
CERTAIN STATES, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT
APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING
TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH
OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

                             ELECTION TO PURCHASE

     The undersigned hereby elects irrevocably to exercise the within Warrant
and to purchase _______________________ shares of Common Stock of Beta Oil &
Gas, Inc. and hereby makes payment of $_________ (at the rate of $________ per
share) in payment of the Exercise Price pursuant hereto. Please issue the shares
as to which this Warrant is exercised in accordance with the instructions given
below.

     The undersigned represents and warrants that the exercise of the within
Warrant was solicited by the member firm of the National Association of
Securities Dealers, Inc. ("NASD") listed below. If not solicited by an NASD
member, please write "unsolicited" in the space below.

            ______________________________________________________
                 (Insert Name of NASD Member or "Unsolicited")

Dated: ________________, 19______

           Signature: _____________________________________________

                    INSTRUCTIONS FOR REGISTRATION OF SHARES

Name (print) __________________________________________________________________

Address (print) ________________________________________________________________

                                  ASSIGNMENT

     FOR VALUE RECEIVED, ____________________________________ does hereby sell,
assign and transfer unto  ___________________________________________________,
the right to purchase ________________shares of Common Stock of Beta Oil & Gas,
Inc., evidenced by the within Warrant, and does hereby irrevocably constitute
and appoint __________________________________________ attorney to transfer such
right on the books of Beta Oil & Gas, Inc., with full power of substitution on
the premises.

Dated: ________________, 19______

           Signature: _____________________________________________

Notice: The signature of Election to Purchase or Assignment must correspond with
the name as written upon the face of the within Warrant in every particular
without alteration or enlargement or any change whatsoever. The signature(s)
must by guaranteed by an eligible guarantor institution (Banks, Stockbrokers,
Savings and Loan Associations and Credit Unions with membership in an approved
signature guarantee Medallion Program), pursuant to S.E.C. Rule 17Ad-15.

                                       _________________________________________
                                                             Signature Guarantee

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