Document:

Filed by sedaredgar.com - Crown and Gas Oil Inc. - Exhibit 10.11

  	CERTIFIED TRUE TRANSLATION 

        SLOVO & DELO TRANSLATION SERVICES 

LICENSE 
FOR THE
RIGHT TO USE 
SUBSURFACE MINERAL RESOURCES

	S 	R 	T 	 	0 	1 	0 	0 	0 	 	N 	R 

	SERIES 	NUMBER 	TYPE 

                                                                        
"ATTIK" Limited Liability Company 
Issued
to ---------------------------------------------------------------------------------------------------------------------------------------- 
                                                                                         (full name of legal
entity) 

                                                                            
Director, Elena Yurievna Denisova 
represented by -------------------------------------------------------------------------------------------------------------------------------- 

                                                      
  (first name, middle name, last name of authorized representative of legal entity)
  

                                                     
geological exploration, prospecting and production of hydrocarbons

purpose and types of works
---------------------------------------------------------------------------------------------------------------

                                                              
within limits of Tereshkinsky licensed area 
----------------------------------------------------------------------------------------------------------------------------------------------------

                                                                       
Volsky district of Saratov Region 
Subsurface site is located at --------------------------------------------------------------------------------------------------------------

(name of locality, district,
region) 

Description of limits of subsurface
site, corner point coordinates, copies of topographical plans, sections, etc are
indicated in Appendix         
1            
 (number of
appendix) 

Right to use land plots received from:
Administration of Volsky Municipality of
Saratov Region, letter No. 1735 of July 25, 2003

Copies of documents and description of
  limits of subsurface site are indicated in Appendix            
  2              

(number of appendix) 

Subsurface site has a status of:           
  geological allotment and mining allotment                               
   

License expiration
date:              
September 4,
2030                          

SEAL 

	/Seal: FEDERAL AGENCY OF SUBSURFACE USE, 
	SARATOV TERRITORIAL AGENCY OF SUBSURFACE USE 
	 
	R E G I S T E R E D 
	 
	" 5 "   September   
          2005 

	In register under no.      
        1000 / SRT 01000 NR                     
        
	Signature:                         /Morozov,
        Head of Agency               
        

The following documents are integral
parts of the present license: 

	 	1. 	
      Subsurface Use Agreement for
      Geological Prospecting, Exploration and Production of Hydrocarbons within
      limits of Tereshkinsky Area in Saratov Region – 12 pages;

	 	 	 
	 	2. 	
      Location map of Tereshkinsky Area – 1
      page;

	 	 	 
	 	3. 	
      Order No. 41 dated July 5, 2005 of
      Saratov Territorial Agency on Subsurface Use – 2 pages;

	 	 	 
	 	4. 	
      Letter No. 1735 of July 25, 2003 of
      Administration of Volsk Municipality of Saratov Region – 1
    page;

	 	 	 
	 	5. 	
      Certificate of state registration of
      legal entity – 1 page.

 

     Annex No. 1 
to license
01000

Subsurface Use Agreement 
for Geological Prospecting,
Exploration and Production of Hydrocarbons 
within limits of Tereshkinsky
Area in Saratov Region 

Preamble 

          The
territorial subsurface use agency for Saratov Region acting in the capacity of a
federal agency in charge of managing the state subsurface fund (hereinafter
referred to as the Subsoil Manager), represented by its acting Director V.Y.
Morozov, on the one hand, and Attik Limited Liability Company (hereinafter
referred to as the License Holder) represented by its Director E.Y. Denisova,
acting by virtue of the Company's Charter, on the other hand, hereinafter
collectively referred to as the Parties, have concluded this Tereshkinsky
subsurface use agreement governing relations between the Parties for the entire
license period.

Article 1. Subject Matter of the Agreement 

          1.1.
This Agreement is an integral part of the Tereshkinsky subsurface use license
and sets forth the key subsurface use terms and conditions. 

          1.2.
The right to use the Tereshkinsky subsurface resources for geological
prospecting, exploration and production of hydrocarbons is granted to the
License Holder in compliance with the provisions of the Law of the Russian
Federation "On Subsurface Resources", Article 101, Clause 5.

          1.3.
The right to use subsurface resources is granted following the outcome of the
auction held in pursuance of order No. 41 of the territorial subsurface use
agency for Saratov Region dated 05.07.2005 "On Approval of the Results of the
Tender for granting the Right to Use Subsurface Resources of Tereshkinsky Area
in Saratov Region for Geological Prospecting, Exploration and Production of
Hydrocarbons" (Annex No. 3 to the license).

          1.4.
Preliminary approvals for allocation of land plots for operations in
Tereshkinsky Area have been received from:

               •  
  Administration of Volsky municipality in Saratov Region (letter No. 1735 dated
  07/25/2003), annex No. 4 to the license. 

2 

          Allocation
of land plots in their finally determined boundaries and registration of the
License Holder's title thereto is carried out in the manner prescribed by the
Russian land laws.

          1.5.
Tereshkinsky subsurface site may not be subject to sale, purchase, donation,
succession, contribution, pledge or be otherwise alienated.

          The
right to use the Tereshkinsky subsurface resources shall not be assigned to
third parties, including without limitation in the form of assignment of rights
established by the civil law, unless otherwise provided by the Law of the
Russian Federation "On Subsurface Resources" or other federal laws.

Article 2. Term of the Agreement 

          2.1.
This Agreement shall remain in effect during the entire license period and shall
become effective on the day of license state registration.

          2.2.
The subsurface use period may be extended at the initiative of the License
Holder provided that it complies with the terms and conditions contained in the
license and it is required that field development be completed thus ensuring
efficient use and protection of subsurface resources, and performance of
abandonment operations.

          2.3.
The License Holder may waive its right to use the Tereshkinsky subsurface
resources by notifying the Subsoil Manager in writing thereof at least six
months prior to the established date.

          The
License Holder shall perform all of its obligations set out in the license in
the event of an early waiver of its rights prior to the established date on
which such subsurface use right terminates, repay any and all debts and pursuant
to the provisions of the Law of the Russian Federation "On Subsurface
Resources", Article 26 procure that all wells and facilities are in a state
approved by the Subsoil Manager and a respective governmental mining supervision
agency (suspension, disassembling, etc.).

          2.4.
The right to use subsurface resources shall terminate in compliance with the
provisions of the Law of the Russian Federation "On Subsurface Resources", Art.
20, Part 1, Clause 3 in the event of a failure to effect payments within the
periods of time specified in clause 6.1 hereof.

          2.5.
The right to use subsurface resources may be early terminated, suspended and
restricted in the manner prescribed and on the terms and conditions set out in
the Law of the Russian Federation "On Subsurface Resources", Articles 20, 21 and
23 including without limitation failures by the License Holder to comply with
the material subsurface use conditions which include subsurface use conditions
specified in clauses 4.1; 4.2 and 6.2; 6.3 and 7.6 hereof.

          2.6.
Pursuant to the provisions of the Law of the Russian Federation "On Subsurface
Resources", Articles 21 and 26 and prior to expiration of the license, including
without limitation early termination thereof, the License Holder shall: 

          -
  accomplish or discontinue all and any production and other operations in the
  subsurface resources area;

3 

          -
carry out all and any required and duly approved abandonment or suspension of
wells and other facilities used for purposes contemplated herein; 

          -
ensure reclamation of disturbed land and register handover thereof to the land
owner in an acceptance certificate in compliance with the established
procedures; 

          -
execute full payments of dues and taxes associated with the use of resources and
adverse environmental impact; 

          -
in compliance with the established procedures make geological, field and other
records available for filing; 

          -
return the license to the Subsoil Manager as applicable.

Article 3. Description of the Subsurface Area 

          3.1.
Tereshkinsky area is located in the north of the right-bank area of Saratov
Region within the boundaries of Volsky Administrative District. The area is
located at the junction of Neverkinsky depression and Pugachevsky fold with
recoverable resources under D1 category of 2 Million tons of oil equivalent. It
has neither discovered fields, nor proven reserves.

          3.2.
The status of Tereshkinsky area is that of a geological and mining allotment. It
is confined to its preliminary boundary with the following corner point
coordinates:

  	Point 

        No. 	   Northern latitude 	   Eastern longitude 
	deg. 	min. 	sec. 	deg. 	min. 	sec. 
	1 	 52 	8 	46 	 46 	56 	2 
	2 	 52 	9 	13 	 46 	57 	9 
	3 	 52 	9 	7 	 47 	0 	11 
	4 	 52 	9 	44 	 47 	2 	46 
	5 	 52 	9 	47 	 47 	9 	37 
	6 	 52 	8 	18 	 47 	12 	58 
	7 	 52 	7 	26 	 47 	15 	9 
	8 	 52 	10 	16 	 47 	20 	20 
	9 	 52 	13 	44 	 47 	15 	54 
	10 	 52 	24 	30 	 47 	2 	50 
	11 	 52 	22 	47 	 46 	58 	36 
	12 	 52 	21 	48 	 46 	58 	25 
	13 	 52 	21 	16 	 46 	59 	46 
	14 	 52 	19 	55 	 46 	58 	28 
	15 	 52 	19 	30 	 46 	57 	15 
	16 	 52 	19 	26 	 46 	56 	10 
	17 	 52 	17 	20 	 46 	53 	58 
	18 	 52 	17 	1 	 46 	58 	52 
	19 	 52 	16 	6 	 47 	0 	4 
	20 	 52 	15 	15 	 46 	59 	27 
	21 	 52 	15 	24 	 46 	58 	5 
	22 	 52 	14 	32 	 46 	58 	22 

4 

	23 	52 	14 	30 	46 	57 	56 
	24 	52 	15 	11 	46 	56 	58 
	25 	52 	16 	0 	46 	56 	 32 
	26 	52 	15 	37 	46 	55 	 43 
	27 	52 	14 	4 	46 	55 	53 
	28 	52 	13 	52 	46 	55 	26 
	29 	52 	14 	41 	46 	55 	6 
	30 	52 	13 	35 	46 	52 	49 
	31 	52 	14 	8 	46 	50 	50 

          Its
area is 502.1 sq.km. 

          For
Tereshkinsky location map refer to Annex 2 to the license. 

          3.3.
For the period of conducting geological prospecting, the subsurface use area is
granted the status of a geological allotment, which is unrestricted in terms of
its depth, and that of a mining allotment, for the time of hydrocarbons
production (in case of discovery of a field), which is restricted to the level
of 100 m below the top of the crystal basement.

          The
final boundaries of the mining allotment shall be determined in the prescribed
manner upon completion of field exploration operations, approval as applicable
of the technological field development design document, approval by the General
Staff of the Armed Forces of the Russian Federation, and obtainment of a
positive opinion of a state environmental expert review agency.

Article 4. Terms and Conditions of Subsurface Use 

          The
License Holder shall acquire all rights and assume all liabilities of a
Subsurface User in compliance with the Russian law.

          4.1.
The following are the key requirements applicable to geological prospecting,
exploration and production of hydrocarbons. The License Holder shall: Geological
prospecting (5 year period): 

          -
in the prescribed manner and within one year upon state registration of the
license and approval by the General Staff of the Armed Forces of the Russian
Federation develop and approve a program of geological prospecting in the
subsurface area and subsequently obtain the opinion of a state environmental
expert review agency; 

          -
within one year upon state registration of the license duly develop and approve
an area exploration and appraisal program; 

          -
within one year upon state registration of the license conduct seismic
operations using 2D common depth-point method prospecting in the amount of 200
linear kilometers and procure that the following minimal volumes of seismic
operations are carried out:

  	years 
	first 	second 	third 	fourth 	fifth 	total 
	200 	150 	90 	60 	- 	500 

5 

          -
within three years upon state registration of the license to complete
construction of at one prospecting-appraisal well and procure that the following
minimal volumes of prospecting-appraisal works are conducted:

  	years 
	first 	second 	third 	fourth 	fifth 	total 
	- 	- 	1 well 	1 well 	1 well 	3 wells 

     - within five years upon state
registration and following completion of geological prospecting submit to
Rosnedra (Federal Agency for Subsurface Use) or its territorial body information
on the results of prospecting-appraisal operations, specifying proposals on
transferring the subsurface area that has a geological allotment status to the
unallocated subsurface fund or its intention to develop new hydrocarbons
deposits (in case these are discovered).

     - provide to General Staff of the
  Armed Forces of the Russian Federation information on contractors, investors
  and other legal entities and individuals, which according to the existing plans
  may perform, may be contracted, or provide support thereof, and copies of licenses
  for various types of activities; 

          Exploration
  and production of hydrocarbons: 

          -
within one year upon state expert review of the reserves submit a field
development plan (in the event of the discovery of a field) to Saratovnedra
(Territorial Subsurface Use Agency for Saratov Region); 

          -
within two years upon state expert review of the field's reserves develop and
approve a pilot production project and commence test production at the field;

          -
within three years following the commencement of test production submit a
reserves appraisal report based on the outcome of test production and
exploration operations to a state expert review agency; 

          -
in the prescribed manner and within ten years upon registration of the license
develop and approve a technological design document governing development and
commissioning of the field; 

          -
maintain levels of hydrocarbons production in compliance with duly approved
technological design documents for field development that have received all
required approvals and for which expert opinions have been produced; 

          -
at its own cost during the period of the license monitor the technical state of
the abandoned and suspended well stock located in the subsurface area, including
wells whose drilling whose drilling costs were covered from the federal budget
and resource base recovery payments, and eliminate at its own cost identified
violations; 

          -
in the event of a discovery of new commercial hydrocarbons deposits, within
three years upon approval of hydrocarbons reserves commence their development;

          -
comply with the requirements contained in the approved technical field
development documents;

6 

          -
during field development operations keep accurate records of recovered
hydrocarbons reserves and reserves in place, as well as those of associated
components; 

          -
geological prospecting, exploration and production of hydrocarbons in
Tereshkinsky area shall be carried out without foreign workers or contractors on
the ground. The General Staff of the Armed Forces of the Russian Federation
shall have the right to monitor compliance with the terms and conditions of work
and shall receive from the License Holder all required reports on the progress
of work in the Licensed Area.

          4.2.
Production operations may take place only if the following items are available:

          -
duly approved hydrocarbons reserves and reserves of associated useful
components; 

          -
duly approved design documents governing field construction and development;

          -
mining allotment certificate supporting revised boundaries of the mining
allotment and issued by a respective territorial body of the Federal Service for
Supervision of Environment, Technology, and Nuclear Management; 

          -
executed mining allotment certificate for areas of operations; 

          4.3.
The License Holder owns the title to produced hydrocarbons.

Article 5. Rights and Liabilities of the License Holder

5.1. The License Holder shall: 

          -
within one year upon registration of the license assess the background pollution
of the area of operations in the subsoil area; 

          -
within two years upon registration of the license develop and approve in the
prescribed manner an environmental monitoring program and commence its
implementation with submission of data to governmental supervision agencies on a
free of charge basis; 

          -
within six months upon state registration of the license enter into an agreement
with the local government of Saratov Region on serving social, economic and
environmental interests of populated areas, located in the area of production
operations and governing the environmental impact of such operations in
Tereshkinsky area; 

          -
while conducting operations in the subsurface use area continuously keep
hydrocarbons production records, geological, surveyor, field and other required
records and ensure that these are in safe custody; 

          -
while conducting operations prevent groundwater pollution in the subsurface
area; 

          -
suspend and abandon wells that are out of use, and ensure reclamation of land in
compliance with the provisions contained in duly approved design documents; 

          -
ensure compliance with other requirements established by the applicable law,
duly approved standards (regulations, rules) governing subsurface and
environmental protection issues, including without limitation atmospheric, land,
forest and water protection, as well as protection of buildings and
constructions

7

against adverse impact resultant from operations involving use
of subsurface resources, and safe working practices; 

          -
within annually established periods of time submit required reports to
respective governmental agencies as established by the applicable Russian law.

          5.2.
According to its type of use the License Holder shall be entitled to: 

          -
use the subsurface area for any business or other activities that are in line
with the goals set out in the license; 

          -
select at its sole discretion forms of such activities that do not contravene
the applicable law; 

          -
contact the Subsurface Reserves Manager on the issue of revising the terms and
conditions hereof in the event of occurrence of circumstances that are
substantially different to those on which the license was granted.

Article 6. Taxes and Payments 

          6.1.
The License Holder shall make the following subsurface use payments: 6.1.1.
One-off payment for use of the Tereshkinsky subsurface resources in the amount
of 4,800,000 (four million eight hundred thousand) Russian Rubles established in
compliance with Auction Minutes No. 4 of 06/30/2005 – to be made within 20
business days following state registration of the subsurface use license.

          6.1.2.
Payment for using geological subsurface-related data collected as a result of
geological surveys of the subsurface resources that were funded from the budget,
in the amount of 10,000 (ten thousand) Russian Rubles – to be made within 20
business days upon state registration of the license entitling it to use the
subsurface area via the Federal Treasury's accounts to the federal budget in
compliance with the Russian budgetary law.

          6.1.3. Subsurface license fee
paid via the Federal Treasury's accounts in the amount of 116,000 (one hundred
and sixteen thousand) Russian Rubles – to be paid within 20 days upon state
registration of the license.

          6.1.4.
All and any payments shall be made in Russian Rubles via the Federal Treasury's
accounts. The payment date shall be the day of crediting of funds to respective
accounts.

          6.2.
The License Holder shall make the following regular subsurface use payments:
6.2.1. For operations involving prospecting and appraisal of hydrocarbons fields
– for the entire subsurface area excluding the area of discovered fields under
development at the following
rates: 
               -
310 Russian Rubles per 1 sq.km of the subsurface use area per year.

          6.2.2.
For field exploration - for the part of the subsurface area that has its
hydrocarbons reserves identified and recorded in the State Balance (except for
the area of the mining allotment) at the following
rates: 
               -
12000 Russian Rubles per 1 sq.km.

Article 7. Subsurface Data 

          7.1.
Geological and other subsurface data, collection of which is funded from the
State budget, is the property of the State. The Subsurface User shall pursuant
to

8 

the provisions of the Law of the Russian Federation "On
Subsurface Resources", Article 41, pay a fee for using such data. 

          7.2.
Geological and other subsurface data, collected at the user's expense, shall be
its property, and pursuant to the provisions of the law of the Russian
Federation "On Subsurface Resources" shall be made available by it to federal
and territorial geological data funds, specifying the terms for its use,
including without limitation its commercial use.

          7.3.
The License Holder shall preserve the core material recovered during well
drilling operations or upon approval of a territorial body of the Subsoil
Manager for Saratov Region deliver it to a data storing organization on a free
of charge basis.

          7.4.
The degree of confidentiality of such data, as well as the procedures and terms
and conditions of its use shall be determined by the owner of such data in
compliance with the applicable law.

          7.5.
The Ministry of Natural Resources of Russia, Rosnedra (Federal Agency for
Subsurface Use) and its territorial bodies shall be entitled to use such data on
a free of charge basis provided that such data is used solely to the benefit of
the state while developing federal and territorial geological surveys and
subsurface use programs, as well as mineral resource base recovery programs.

          7.6. A
subsurface user obtaining topo-geodesic areal data and geologic data on
subsurface resources within a licensed area, whether at its own cost or funded
out of the budget, shall not disclose it to third-party organizations, legal
entities and individuals without prior consent of the General Staff.

Article 8. Efficient Subsurface Management and Protection,
Environmental and Safety Requirements 

          8.1.
For the purpose of efficient subsurface management and protection, environmental
protection and safety the License Holder shall act in compliance with the
provisions hereof and regulations applicable in the Russian Federation and
Saratov Region governing efficient subsurface management and protection,
environmental and safety issues.

          8.2.
The terms and conditions governing safe performance of subsurface-related
operations, compliance with environmental and subsurface protection rules and
regulations shall be set forth in technological design documents for
Tereshkinsky Area in compliance with the applicable regulations and shall be
approved by respective bodies of the Federal Service for Supervision of
Environment, Technology, and Nuclear Management.

          8.3.
The following are the key requirements applicable to efficient subsurface
management and protection while performing work hereunder:

          - conduct complete
  geological surveys and ensure efficient integrated subsurface management and
protection;

          - carry out exploration operations providing an accurate estimation
of hydrocarbons reserves; 

           - implement more efficient and effective exploration
  and development programs, and oil, gas and associated components production
techniques;

9 

          -
eliminate occurrence of excessive losses of useful components and random
development of the most productive strata at fields resulting in deformation of
the overall energy system of deposits; 

          -
ensure timely submission of reserves appraisal records for state reserves expert
reviews; 

          -
prevent subsurface pollution during operations related to subsurface use; 

          -
comply with the established practices of well suspension and abandonment and
disturbed land reclamation; 

          -
prevent uncontrolled development of the deposit areas and comply with the rules
of using such areas for other purposes; 

          -
prevent accumulation industrial and household waste in catchment areas and
groundwater areas used for potable and industrial water supply.

     8.4. The key environmental
protection, environmental safety and safe subsurface management requirements
include: 

          -
use of scientific and technical environmental developments, intended to protect
and reclaim disturbed areas and generally ensuring the least possible
disturbance of natural geobotanical and hydrological environmental conditions;

          -
ensure development and construction of the field in strict compliance with the
requirements of the applicable Russian law in the field of environment,
subsurface protection and industrial safety; 

          -
continuously monitor the state of the subsurface resources within the mining
allotment in accordance with a duly approved project (program); 

          -
take all required measures aimed at ensuring treatment of wastewater and
disposal of waste resulting from operations, and at the same time use treatment
sites and facilities to introduce developments based on physical, chemical,
biological and mechanical processes; 

          -
ensure maximum concentration of facilities and utilities in areas with the most
favorable ground conditions; 

          -
conduct technical and biological reclamation of land available to the License
Holder for temporary use.

          -
conduct operations without causing damage to road networks, ensure that it is
possible for military columns to cross the area and carry out other
special-purpose operations that are in the interest of the Russian Armed
Forces.

          8.5.
The list of the key requirements set forth in clauses 8.3 and 8.4 is not
exhaustive. For all other issues not covered in the list of the key requirements
for efficient subsurface management and protection, environmental protection and
safety the License Holder shall be governed by the law of the Russian Federation
"On Subsurface Resources", Federal Law of the Russian Federation "On
Environmental Protection" and other regulations applicable in Russia.

          8.6.
The License Holder shall promptly advise environmental and natural resources
authorities and executive authorities in Saratov Region of any and all emergency
emissions (discharges) of pollutants into the environment.

10 

Article 9. Measurement and Recordkeeping of Hydrocarbons
Production 

          9.1.
The License Holder shall measure volumes and amounts of produced hydrocarbons
using such techniques and equipment that are in line with the requirements of
the applicable standards. 

          9.2.
  Recoverable resources produced in Tereshkinsky area shall be recorded by the
  License Holder and reflected in its accounting records in compliance with the
  applicable law of Russia.

          9.3.
The License Holder shall keep records of and monitor production of hydrocarbons
reserves at all development sites provided that these are not being developed as
one site. 

          9.4.
Should in conducting their inspections supervision agencies conclude that the
measurement equipment and devices used by the License Holder have inaccurate
readings, the aforementioned inaccuracies shall be deemed to have existed since
the last inspection of such equipment and devices.

Article 10. Reports 

          10.1.
The following are the items to be submitted by the License Holder to the Subsoil
Manager or its territorial body in Saratov Region: 

          a) annual report on compliance
  with the subsurface use terms and conditions on or prior to March 1st of the
  year following the reporting year in the form approved by the Parties; 

          b) data
  on reserves growth, production, use and losses of all recoverable resources
  registered on balance; 

          c) entire information on exploration, charges and
  payments for subsurface use in the form and with the periodicity established by
  the Subsoil Manager. 

          10.2.
The Subsoil Manager and the License Holder shall mutually agree on the forms,
content and periodicity of extra reports submitted by the License Holder.

Article 11. Monitoring of Compliance with the Subsurface Use
Terms And Conditions 

          11.1.
The Subsoil Manager shall be entitled to access the License Holder's technical,
geological and financial data related to the use of the subsurface area
(provided that it complies with all and any confidentiality restrictions).

          11.2.
Monitoring of compliance with the subsurface use terms and conditions,
inspections and implementation of measures aimed at eliminating identified
breaches shall take place in accordance with the applicable law. 

          11.3.
The License Holder shall procure that representatives of supervision agencies
are transported and are able to access the operations sites and on a
confidential basis, and shall provide all the required data related to
exploration and production of hydrocarbons in the subsurface use area.

Article 12. Force Majeure 

          12.1.
Performance of the Parties obligations hereunder shall be suspended, and the
license period shall be extended for the period of time during which the Parties
are unable to perform their obligations hereunder as a result of occurrence of
the force majeure. In the event of occurrence of force majeure the period of
time for

11 

performance of the Parties' obligations set forth herein shall
be extended on a "day-for-day" basis including the time spent suspending and
resuming the operations. 

          12.2.
Force majeure shall mean circumstances of insuperable force resulting from Acts
of God (earthquakes, floods, fires, etc.) or public events (hostilities,
breakouts, strikes, quarantines, transportation restrictions, etc).

          12.3.
The Party claiming occurrence of force majeure shall advise the other Party
thereof in writing immediately after occurrence of force majeure.

Article 13. Miscellaneous 

          13.1.
The License Holder shall notify the Subsoil Manager of any and all changes in
its contact phone numbers and amendments introduced to its constituent documents
within 15 days upon introduction of respective amendments.

          13.2.
Should all or any provisions hereof be in conflict with newly adopted laws of
Russia, the Parties shall be governed by such newly adopted laws and shall
introduce respective amendments hereto eliminating such conflict.

          13.3.
Any amendments to the provisions hereof shall be solely in the form of a
separate Annex to the License signed by both of the Parties.

          13.4.
For all other issues not covered in the Tereshkinsky subsurface use license and
annexes thereto, the Parties shall be governed by the applicable Russian
law.

Article 14. Addresses of the Parties: 

	 	14.1. 	
      Subsoil Manager:

	 		
      Territorial Subsurface Use Agency for Saratov
      Region

	 		
      410012, Saratov, Moskovskaya Street, 70

	 	 	 
	 	14.2. 	
      License Holder:

	 		
      ATTIK Limited Liability Company

	 		
      410005, Saratov, Bolshaya Gornaya Street,
  231/241

	Acting Head 	Director of 
	Territorial Subsurface Use Agency 	ATTIK LLC 
	for Saratov Region 	  
	  	  
	___________________________ V.Y. Morozov 	___________________________ E.Y. Denisova

	  	  
	September 5, 2005 	 September 5, 2005

	Seal/ FEDERAL SUBSURFACE USE AGENCY 	 	 
    
	(ROSNEDRA) 	 	  
	TERRITORIAL SUBSURFACE USE AGENCY 	 	Seal/ATTIK 
	FOR SARATOV REGION 	 	Limited Liability Company 
	(SARATOVNEDRA) *OGRN (PRIMARY STATE 	 	Saratov 
	REGISTRATION NUMBER) 1040405025040*Filed by sedaredgar.com - Crown and Gas Oil Inc. - Exhibit 10.12

  	CERTIFIED TRUE TRANSLATION 

        SLOVO & DELO TRANSLATION SERVICES 

LICENSE 

  FOR THE RIGHT TO USE 

  SUBSURFACE MINERAL RESOURCES

  	S 	R 	T 	 	0 	0	9	4	9	 	N 	R 

	SERIES 
	NUMBER 	
TYPE 

 

                                                                     
"ARTSTROY-XXI" Limited Liability Company 
Issued to ----------------------------------------------------------------------------------------------------------------------------------------

                                                                                          
(full name of legal entity) 

                                                                                
Director, Vladimir Nikolaevitch Nikitin 
represented by -------------------------------------------------------------------------------------------------------------------------------- 

                                                                (first name, middle name, last name of authorized
  representative of legal entity) 

                                                             
geological exploration, prospecting and production of hydrocarbons

purpose and types of works
---------------------------------------------------------------------------------------------------------------

                                                                          
within limits of Kikinsko-Gusikhinsky licensed area 
----------------------------------------------------------------------------------------------------------------------------------------------------

                                                                          
Baltay and Bazarno-Karabulaksky district of Saratov Region

Subsurface site is located
at --------------------------------------------------------------------------------------------------------------

(name of locality, district,
region) 

Description of limits of subsurface site,
  corner point coordinates, copies of topographical plans, sections, etc are indicated
  in Appendix      1       (number
  of appendix) 

Right to use land plots received from:
Head of Baltay Municipality of Saratov
Region, letter No. 585 of April 15, 2004 and Administration of
Bazarno-Karabulaksky Municipality of Saratov Region, letter No. 01-10/574 of
September 3, 2002

Copies of documents and description of
  limits of subsurface site are indicated in Appendix            2            
   

(number of appendix) 

Subsurface site has a status of:                    
  geological allotment and mining allotment        
   

License expiration
date:                                                    
 May 4,
2030             
 

SEAL 

	/Seal: FEDERAL AGENCY OF SUBSURFACE USE, 
	SARATOV TERRITORIAL AGENCY OF SUBSURFACE USE 
	 
	R E G I S T E R E D 
	" 5 "             
        May           
         2005 
	In register under no.     949/SRT00949NR                                  
	Signature:                       /Morozov,
        Head of Agency                     

The following documents are integral
parts of the present license: 

	 	1. 	
      Subsurface Use Agreement for
      Geological Prospecting, Exploration and Production of Hydrocarbons within
      limits of Kikinsko-Gusikhinsky Area in Saratov Region – 12
      pages;

	 	 	 
	 	2. 	
      Aerial map of location of
      Kikinsko-Gusikhinsky Area – 1 page;

	 	 	 
	 	3. 	
      Order No. 19 dated April 4, 2005 of
      Saratov Territorial Agency on Subsurface Use – 2 pages;

	 	 	 
	 	4. 	
      Letter No. 585 dated April 15, 2004
      of Head of Baltay Municipality of Saratov Region – 1
page;

	 	 	 
	 	5. 	
      Letter No. 01-10/574 dated September
      3, 2002 of Administration of Bazarno-Karabulaksky Municipality of Saratov
      Region – 1 page;

	 	 	 
	 	6. 	
      Certificate of a record made at
      Unified State Register of Legal Entities – 1
page.

 

     Annex No. 1

  to license CPT00949HP

 

Subsurface Use Agreement 
for Geological Prospecting,
Exploration and Production of Hydrocarbons 
within limits of
Kikinsko-Gusikhinsky Area in Saratov Region 

Preamble 

          The
territorial subsurface use agency for Saratov Region acting in the capacity of a
federal agency in charge of managing the state subsurface fund (hereinafter
referred to as the Subsoil Manager), represented by its acting Director V.Yu.
Morozov, on the one hand, and Artstroy-XXI Limited Liability Company
(hereinafter referred to as the License Holder), represented by its Director
V.N. Nikitin, acting by virtue of the Company's Charter, on the other hand,
hereinafter collectively referred to as the Parties, have concluded this
Kikinsko-Gusikhinsky subsurface use agreement governing relations between the
Parties for the entire license period.

Article 1. Subject Matter of the Agreement 

          1.1.
This Agreement is an integral part of the Kikinsko-Gusikhinsky subsurface use
license and sets forth the key subsurface use terms and conditions.

          1.2.
The right to use Kikinsko-Gusikhinsky subsurface resources for geological
prospecting, exploration and production of hydrocarbons is granted to License
Holder in compliance with the provisions of the Law of the Russian Federation
"On Subsurface Resources", Article 101, Clause 5.

          1.3.
The right to use subsurface resources is granted following the outcome of the
auction held in pursuance of order No. 19 of the territorial subsurface use
agency for Saratov Region dated 04/04/2005 "On Approval of the Results of the
Tender for Affording the Right to Use Subsurface Resources of the
Kikinsko-Gusikhinsky Area in Saratov Region for Geological Prospecting,
Exploration and Production of Hydrocarbons" (Annex No. 3 to the license).

          1.4.
Preliminary approvals for allocation of land plots designated for operation in
Kikinsko-Gusikhinsky Area (Annex 4 attached to the license) have been received
from: 

          •     
The administration of the consolidated municipality of
Bazarno-Karabulaksky District in Saratov Region (Letter No. 01-10/574 of
September 3, 2002).

          •     
The administration of the consolidated municipality of Baltay district in
Saratov Region (Letter No. 585 of April 15, 2004).

          Allocation
of land plots in their finally determined boundaries and registration of the
License Holder's title thereto is carried out in the manner prescribed by the
Russian land laws.

          1.5.
Kikinsko-Gusikhinsky subsurface site may not be subject to sale, purchase,
donation, succession, contribution, pledge or be otherwise alienated.

          The
right to use Kikinsko-Gusikhinsky subsurface resources shall not be assigned to
third parties, including without limitation in the form of assignment of rights
established by the civil law, unless otherwise provided by the Law of the
Russian Federation "On Subsurface Resources" or other federal laws.

Article 2. Term of the Agreement 

          2.1.
This Agreement shall remain in effect during the entire license validity period
and shall become effective on the day of license state registration.

          2.2.
The subsurface use period may be extended at the initiative of the License
Holder provided that it complies with the terms and conditions contained in the
license and it is required that field development be completed, thus ensuring
efficient use and protection of subsurface resources, and performance of
abandonment operations.

          2.3.
The License Holder may waive its right to use the Kikinsko-Gusikhinsky
subsurface resources by notifying the Subsoil Manager in writing thereof at
least six months prior to the established date.

          The
License Holder shall perform all of its obligations set out in the license for
the event of an early waiver of its rights prior to the established date, on
which such subsurface use right terminates, repay any and all debts and pursuant
to the provisions of the Law of the Russian Federation "On Subsurface
Resources", Article 26 procure that all wells and facilities are in a state
approved by the Subsoil Manager and a respective governmental mining supervision
agency (suspension, disassembling, etc.) 

          2.4. The right to use subsurface
  resources shall terminate in compliance with the provisions of the Law of the
  Russian Federation "On Subsurface Resources", Art. 20, Part 1, Clause 3 in the
  event of a failure to effect payments within the periods of time specified in
  clause 6.1 hereof.

          2.5.
The right to use subsurface resources may be early terminated, suspended or
restricted in the manner prescribed and on the terms and conditions set out in
the Law of the Russian Federation "On Subsurface Resources", Articles 20, 21 and
23 including without limitation failures by the License Holder to comply with
the material subsurface use conditions, which include subsurface use conditions
specified in clauses 4.1; 4.2 and 6.2; 6.3 hereof.

          2.6.
Pursuant to the provisions of the Law of the Russian Federation "On Subsurface
Resources", Articles 21 and 26 and prior to expiration of the license, including
without limitation early termination thereof, the License Holder shall: 

         
- accomplish or discontinue all and any production and other operations
in the subsurface resources area;

           -
carry out all and any required and duly approved abandonment or suspension of
wells and other facilities used for purposes contemplated herein;

         
- ensure reclamation of disturbed land and register handover thereof to
the land owner in an acceptance certificate in compliance with the established
procedures; 

         
- perform full payments of dues and taxes associated with the use of
resources and adverse environmental impact; 

         
- in compliance with the established procedures make geological, field
and other records available for filing; 

         
- return the license to the Subsoil Manager as applicable.

Article 3. Description of the Subsurface Area 

          3.1.
Kikinsko-Gusikhinsky Area is located within Baltay and Bazarno-Karabulaksky
Districts in Saratov Region. It has no open fields or proven reserves. The total
original initial resources in place under D1 category make up 0.4 million tons
of oil equivalent.

          3.2.
Kikinsko-Gusikhinsky Area is confined to its preliminary boundary with the
following corner point coordinates:

  	Point 	Northern 	Eastern 	 	Point 	Northern 	Eastern 
	No. 	latitude 	longitude 	 	No. 	latitude 	longitude 
	1 	52° 28' 25" 	46 05'05" 	 	11 	52 36' 42" 	46 44' 28" 
	2 	52 29' 49" 	46 07' 26" 	 	12 	52 37' 06" 	46 47' 26" 
	3 	52 35' 50" 	46 09' 20" 	 	13 	52 35' 52" 	46 49' 50" 
	4 	52 36' 37" 	46 16' 47" 	 	14 	52 35' 05" 	46 49' 12" 
	5 	52 38' 56" 	46 15' 48" 	 	15 	52 33' 14" 	46 51' 20" 
	6 	52 40' 36" 	46 18' 43" 	 	16 	52 25' 17" 	46 32' 59" 
	7 	52 39' 49" 	46 25' 36" 	 	17 	52 24' 27" 	46 33' 05" 
	8 	52 41' 42" 	46 35'36" 	 	18 	52 23' 04" 	46 35' 34" 
	9 	52 39' 45" 	46 36' 35" 	 	19 	52 22' 20" 	46 35' 37" 
	10 	52 38' 29" 	46 41' 13" 	 	20 	52 22' 56" 	46 26' 04" 

Its area is 1100 sq.km. 
For Kikinsko-Gusikhinsky
location map refer to Annex 2 to the license. 

          3.3.
For the period of conducting geological prospecting, the subsurface use area is
granted the status of a geological allotment, which is unrestricted in terms of
its depth, and that of a mining allotment, for the time of hydrocarbons
production (in case of discovery of a field), which is restricted to the level
of 100 m below the bottom of lowest productive stratum.

          The
final boundaries of the mining allotment shall be determined in compliance with
the established procedures upon completion of the field's exploration, approval
of the field development program, obtainment of a positive opinion of a state
environmental expert review body, and approval of the foregoing program by
respective governmental authorities.

Article 4. Terms and Conditions of Subsurface Use 

          The
License Holder shall acquire all rights and assume all liabilities of a
Subsurface User in compliance with the Russian law.

          4.1.
The following are the key requirements applicable to geological prospecting,
exploration and production of hydrocarbons. The License Holder shall: Geological
prospecting (5 year period): 

          - in the prescribed manner and within one year upon
  state registration of the license develop and approve a program of geological
  exploration at the subsurface area and subsequently obtain the opinion of a
  state environmental expertise agency; 

          - within three years upon registration of
  the license conduct seismic operations with their amount being at least 1100
  linear kilometers; 

          - within two years upon registration of the license commence
  drilling of exploratory wells in the subsurface area and the number of such
  exploratory wells shall be at least three wells drilled at the area within five
  years upon registration of the license; 

          - within five years upon state
  registration of the license submit as applicable a hydrocarbons reserves
  assessment report to a state expert review agency.

         
Exploration and production of hydrocarbons: 

          -
within one year upon state appraisal of reserves submit a field development plan
(in the event of the discovery of a field) to Saratovnedra (Saratov Territorial
Subsurface Use Agency);

           -
within two years upon state appraisal of the field's reserves develop and
approve a pilot production project and commence test production at the field;

         
- within three years following the commencement of test production
submit a reserves appraisal report based on the outcome of test production and
exploration operations to a state appraisal agency; 

         
- in the prescribed manner and within ten years upon registration of
the license develop and approve a technological document governing development
and commissioning of the field; 

         
- maintain levels of hydrocarbons production in compliance with duly
approved design documents for field development that have received all required
approvals and for which expert opinions have been produced; 

         
- at its own cost during the period of the license monitor the
technical state of the abandoned and suspended well stock located in the
subsurface area, including wells, for which the drilling costs were covered from
the federal budget

and resource base recovery payments, and eliminate at its own
cost identified violations; 

         
- in the event of a discovery of new commercial hydrocarbons deposits,
within three years upon approval of hydrocarbons reserves commence their
development; 

         
- comply with the requirements contained in the approved technical
field development documents; 

         
  - during field development operations keep accurate records of recovered
  hydrocarbons reserves and reserves in place, as well as those of associated
  components.

          4.2.
Production operations may take place only if the following items are available:

         
- duly approved hydrocarbons reserves and reserves of associated useful
components; 

         
- duly approved design documents governing field construction and
development; 

         
- mining allotment certificate supporting revised boundaries of the
mining allotment and issued by a respective territorial body of the Federal
Service for Supervision of Environment, Technology, and Nuclear Management; 

         
- executed mining allotment certificate for areas of operations; 

         
4.3. The License Holder owns the title to produced hydrocarbons.

Article 5. Rights and Liabilities of the License Holder

         
5.1. The License Holder shall: 

          -
within one year upon registration of the license assess the background pollution
of the area of operations in the subsoil area;

           -
within two years upon registration of the license develop and approve in the
prescribed manner an environmental monitoring program and commence its
implementation, with submission of data to governmental supervision agencies on
a free of charge basis; 

         
- within six months upon state registration of the license enter into
an agreement with the local government of Saratov Region on serving social,
economic and environmental interests of populated areas, located in the area of
production operations and governing the environmental impact of such operations
in the Saratov area; 

         
- while conducting operations in the subsurface use area continuously
keep hydrocarbons production records, geological, surveyor, field and other
required records and ensure that these are in safe custody; 

         
- while conducting operations prevent groundwater pollution in the
subsurface area; 

         
- suspend and abandon wells that are out of use, and ensure reclamation
of land in compliance with the provisions contained in duly approved design
documents; 

         
- ensure compliance with other requirements established by the
applicable law, duly approved standards (regulations, rules) governing
subsurface and environmental protection issues, including without limitation
atmospheric, land, forest and water protection, as well as protection of
buildings and constructions

against adverse impact resultant from operations involving use
of subsurface resources, and safe working practices; 

         
  - within annually established periods of time submit required reports
  to respective governmental agencies as established by the applicable Russian
  law.

         
5.2. According to its type of use the License Holder shall be entitled
to: 

         
- use the subsurface area for any business or other activities that are
in line with the goals set out in the license; 

         
- select at its sole discretion forms of such activities that do not
contravene the applicable law; 

         
- contact the Subsurface Reserves Manager on the issue of revising the
terms and conditions hereof in the event of occurrence of circumstances that are
substantially different to those on which the license was granted.

Article 6. Taxes and Payments 

          6.1.
The License Holder shall make the following subsurface use payments: 

         
6.1.1. One-off payment for use of the Kikinsko-Gusikhinsky subsurface
resources in the amount of 270,400 (two hundred seventy thousand and four
hundred) rubles established in compliance with Auction Minutes No. 2 of
03/28/2005 – to be made within 15 business days following state registration of
the subsurface use license.

          6.1.2.
Payment for using geological subsurface-related data collected as a result of
geological surveys of the subsurface resources that were funded from the budget,
in the amount of 15,000 (fifteen thousand) Russian Rubles – to be made within 30
business days upon state registration of the license entitling it to use the
subsurface area via the Federal Treasury's accounts to the federal budget in
compliance with the Russian budgetary law.

          6.1.3.
Subsurface license fee paid via the Federal Treasury's accounts in the amount of
173,025 (one hundred seventy three thousand and twenty five) Russian Rubles – to
be paid within 15 days upon state registration of the license.

          6.1.4.
All payments shall be made in Russian Rubles. The payment date shall be the day
of crediting of funds to respective accounts.

          6.2.
The License Holder shall make the following regular subsurface use payments:

           6.2.1.
For operations involving prospecting and evaluation of hydrocarbons fields – for
the entire subsurface area excluding the area of discovered fields under
development at the following
rates: 
              
120 RUR per 1 sq.km of the subsurface area during the first year of the
license
period, 
              
150 RUR per 1 sq.km – during the second year of the license
period, 
              
200 RUR per 1 sq.km – during the third year of the license
period, 
              
270 RUR per 1 sq.km – during the fourth year of the license
period, 
              
360 RUR per 1 sq.km – during the fifth year of the license period.

          6.2.2.
For field exploration - for the part of the subsurface area that has its
hydrocarbons reserves identified and recorded in the State Balance (except for
the area of the mining allotment) at the following
rates: 
              
5000 RUR per 1 sq.km - during the first year of
exploration, 
              
7000 RUR per 1 sq.km - during the second year of exploration,

              
10000 RUR per 1 sq.km - during the third year of
exploration, 
              
15000 RUR per 1 sq.km - during the fourth year of
exploration, 
              
20000 RUR per 1 sq.km - during the fifth and followingyears of
exploration.

          6.3.
Upon state registration of the license, the License Holder shall pay taxes and
duties, established by the applicable Russian law. 

Article 7. Subsurface Data 

          7.1.
Geological and other subsurface data, collection of which is funded from the
State budget, is the property of the State. The Subsurface User shall pursuant
to the provisions of the Law of the Russian Federation "On Subsurface
Resources", Article 41, pay a fee for using such data.

          7.2.
Geological and other subsurface data, collected at the user's expense, shall be
its property, and pursuant to the provisions of the law of the Russian
Federation "On Subsurface Resources" shall be made available by it to federal
and territorial geological data funds, specifying the terms for its use,
including without limitation its commercial use.

          7.3.
The License Holder shall preserve the core material, recovered during well
drilling operations, or upon approval of a territorial body of the Subsoil
Manager for Saratov Region deliver it to a data storing organization on a free
of charge basis.

          7.4.
The degree of confidentiality of such data, as well as the procedures and terms
and conditions of its use shall be determined by the owner of such data in
compliance with the applicable law.

          7.5.
The Ministry of Natural Resources of Russia, Rosnedra (Federal Agency for
Subsurface Use) and its territorial bodies shall be entitled to use such data on
a free of charge basis provided that such data is used solely to the benefit of
the state, while developing federal and territorial geological surveys and
subsurface use programs, as well as mineral resource base recovery programs.

Article 8. Efficient Subsurface Management and Protection,
Environmental and Safety Requirements 

          8.1.
For the purpose of efficient subsurface management and protection, environmental
protection and safety, the License Holder shall act in compliance with the
provisions hereof and regulations applicable in the Russian Federation and
Saratov Region, governing efficient subsurface management and protection,
environmental and safety issues.

          8.2.
The terms and conditions governing safe execution of subsurface-related
operations, compliance with environmental and subsurface protection rules and
regulations shall be set forth in technological design documents for
Kikinsko-Gusikhinsky Area, in compliance with the applicable regulations and
shall be approved by respective bodies of the Federal Service for Supervision of
Environment, Technology, and Nuclear Management.

          8.3.
The following are the key requirements, applicable to efficient subsurface
management and protection while performing work hereunder:

          -
conduct complete geological surveys and ensure efficient integrated subsurface
management and protection; 

         
- carry out exploration operations, providing an accurate estimation of
hydrocarbons reserves; 

         
- implement more efficient and effective exploration and development
programs, and oil, gas and associated components production techniques; 

         
- prevention of excessive losses of useful components and random
development of the most productive strata at fields, resulting in deformation of
the overall energy system of deposits; 

         
- ensure timely submission of reserves appraisal records for state
reserves expert reviews; 

         
- prevent subsurface pollution during operations related to subsurface
use; 

         
- comply with the established practices of well suspension and
abandonment and disturbed land reclamation; 

         
- prevent uncontrolled development of the deposit areas and comply with
the rules of using such areas for other purposes; 

         
- prevent accumulation industrial and household waste in catchment
areas and groundwater areas used for potable and industrial water supply.

          8.4.
The key environmental protection, environmental safety and safe subsurface
management requirements include: 

         
- use of scientific and technical environmental developments, intended
to protect and reclaim disturbed areas and generally ensuring the least possible
disturbance of natural geobotanical and hydrological environmental conditions;

         
- ensure development and construction of the field in strict compliance
with the requirements of the applicable Russian law in the field of environment,
subsurface protection and industrial safety; 

         
- continuously monitor the state of the subsurface resources within the
mining allotment in accordance with a duly approved project (program); 

         
- take all required measures aimed at ensuring treatment of wastewater
and disposal of waste resulting from operations, and at the same time use
treatment sites and facilities with introduction of developments based on
physical, chemical, biological and mechanical processes; 

         
- ensure maximum concentration of facilities and utilities in areas
with the most favorable ground conditions; 

         
- conduct technical and biological reclamation of land, made available
to the License Holder for temporary use.

          8.5.
The list of the key requirements set forth in clauses 8.3 and 8.4 is not
exhaustive. For all other issues not covered in the list of the key requirements
for efficient subsurface management and protection, environmental protection and
safety the License Holder shall be governed by the law of the Russian Federation
"On Subsurface Resources", Federal Law of the Russian Federation "On
Environmental Protection" and other regulations applicable in Russia.

          8.6.
The License Holder shall promptly advise environmental and natural resources
authorities and executive authorities in Saratov Region of any and all emergency
emissions (discharges) of pollutants into the environment.

Article 9. Measurement and Recordkeeping of Hydrocarbons
Production 

          9.1.
The License Holder shall measure volumes and amounts of produced hydrocarbons
using such techniques and equipment that are in line with the requirements of
the applicable standards.

          9.2.
Extractable resources produced in Kikinsko-Gusikhinsky area shall be recorded by
the License Holder and reflected in its accounting records in compliance with
the applicable law of Russia.

          9.3.
The License Holder shall keep records of and monitor extraction of hydrocarbons
reserves at all development sites provided that these are not being developed as
one site.

          9.4.
Should in conducting their inspections supervision agencies conclude that the
measurement equipment and devices used by the License Holder have inaccurate
readings, the aforementioned inaccuracies shall be deemed to have existed since
the last inspection of such equipment and devices.

Article 10. Reports 

          10.1.
The following are the items to be submitted by the License Holder to the Subsoil
Manager or its territorial body in Saratov Region: 

         
a) annual report on compliance with the subsurface use terms and
conditions on or prior to March 1st of the year following the reporting year in
the form approved by the Parties; 

         
b) data on reserves growth, production, use and losses of all
extractable resources, registered on balance;

         
c) entire information on exploration, charges and payments for
subsurface use in the form and with the periodicity established by the Subsoil
Manager.

         10.2.
The Subsoil Manager and the License Holder shall mutually agree on the forms,
content and periodicity of extra reports submitted by the License Holder.

Article 11. Monitoring of Compliance with the Subsurface Use
Terms And Conditions 

          11.1.
The Subsoil Manager shall be entitled to access the License Holder's technical,
geological and financial data related to the use of the subsurface area
(provided that it complies with all and any confidentiality restrictions).

          11.2.
Monitoring of compliance with the subsurface use terms and conditions,
inspections and implementation of measures aimed at eliminating identified
breaches shall take place in accordance with the applicable law.

          11.3.
The License Holder shall procure that representatives of supervision agencies
are transported and are able to access the operations sites and on a
confidential basis, and shall provide all the required data related to
exploration and production of hydrocarbons in the subsurface use area.

Article 12. Force Majeure 

          12.1.
Performance of the Parties' obligations hereunder shall be suspended, and the
license period shall be extended for the period of time during which the Parties
are unable to perform their obligations hereunder as a result of occurrence of
the force majeure. In the event of occurrence of force majeure the period of
time for performance of the Parties' obligations set forth herein shall be
extended on a "day-for-day" basis, including the time spent suspending and
resuming the operations.

          12.2.
Force majeure shall mean circumstances of insuperable force resulting from Acts
of God (earthquakes, floods, fires, etc.) or public events (hostilities,
breakouts, strikes, quarantines, transportation restrictions, etc).

          12.3.
The Party claiming occurrence of force majeure shall advise the other Party
thereof in writing immediately after occurrence of force majeure.

Article 13. Miscellaneous 

          13.1.
The License Holder shall notify the Subsoil Manager of any and all changes in
its contact phone numbers and amendments introduced to its constituent documents
within 15 days upon introduction of respective amendments.

          13.2.
Should all or any provisions hereof be in conflict with newly adopted laws of
Russia, the Parties shall be governed by such newly adopted laws and shall
introduce respective amendments hereto eliminating such conflict.

          13.3.
Any amendments to the provisions hereof shall be solely in the form of a
separate Annex to the License signed by both of the Parties.

          13.4.
For all other issues not covered in the Kikinsko-Gusikhinsky subsurface use
license and annexes thereto, the Parties shall be governed by the applicable
Russian law. 

Article 14. Addresses of the Parties: 

          14.1.
Subsoil Manager: 
Territorial Subsurface Use Agency for Saratov
Region
410012, Saratov, Moskovskaya Street, 70 

          14.2.
License Holder: 
Artstroy-XXI Limited Liability Company 
410031,
Saratov, Cheliuskintsev Street, 63/65 

	Acting Head 	Director of 
	Territorial Subsurface Use Agency 	Artstroy-XXI LLC 
	for Saratov Region 	  
	  	  
	___________ V.Y. Morozov 	___________ V.N. Nikitin 
	  	  
	May 4, 2005 	 May 4, 2005 

	FEDERAL SUBSURFACE USE AGENCY 	 	  
	(ROSNEDRA) 	 	ARTSTROY-XXI 
	TERRITORIAL SUBSURFACE USE 	 	Limited Liability 
	AGENCY FOR SARATOV REGION 	 	Company 
	(SARATOVNEDRA) *OGRN (PRIMARY 	 	Saratov 
	STATE REGISTRATION NUMBER) 	 	  
	1040405025040*

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