Document:

sab.htm

    

    CONSENT
OF SUTHERLAND ASBILL & BRENNAN LLP

    

    

    We
consent to the reference to our firm in the Statement of Additional Information
included in Post-Effective Amendment No. 17 to the Registration Statement on
Form N-4 for the Century II variable annuity, issued through the Kansas City
Life Variable Annuity Separate Account (File No. 33-89984).  In giving
this consent, we do not admit that we are in the category of persons whose
consent is required under Section 7 of the Securities Act of 1933.

    

    

    

    SUTHERLAND
ASBILL & BRENNAN LLP

    

    

    

    By:
/s/ W. Thomas
Conner                                               

          W.
Thomas Conner

    

    Washington,
D.C.

    April
30, 2008kpmg.htm

     

    Consent
of Independent Registered Public Accounting Firm

     

    The
Board of Directors

    Kansas
City Life Insurance Company:

     

    We
consent to the use of our reports dated February 29, 2008, with respect to
the consolidated financial statements of Kansas City Life Insurance Company
(the Company) and subsidiaries as of December 31, 2007 and 2006, and
for each of the years in the three-year period ended December 31, 2007 and
the effectiveness of internal control over financial reporting as of
December 31, 2006; and to the use of our report dated April 7, 2008,
with respect to the statement of net assets of Kansas City Life Variable Annuity
Separate Account (comprised of individual subaccounts as listed in note 1
to the financial statements) as of December 31, 2007, and the related
statement of operations for the period or year then ended; the statements of
changes in net assets for each of the periods or years in the two-year period
then ended; and financial highlights for each of the periods or years in the
five-year period then ended, which reports appear in the Statement of Additional
Information accompanying the Prospectus of Century II Variable Annuity, included
in the Post-Effective Amendment No. 17 to the Registration Statement under
the Securities Exchange Act of 1933 (File No. 33-89984) on Form N-4
and to the reference to our firm under the heading Experts, also in the
Statement of Additional Information. Our report on the consolidated financial
statements dated February 29, 2008 contains explanatory paragraphs stating that
as discussed in note 1 to the consolidated financial statements, the
Company adopted American Institute of Certified Public Accountants (AICPA)
Statement of Position (SOP) 05-01, Accounting by Insurance Enterprises
for Deferred Acquisition Costs in Connection with Modifications or Exchanges in
Insurance Contracts, effective January 1, 2007 and Financial
Accounting Standards Board Interpretation (FIN) No. 48, Accounting for Uncertainty in Income
Taxes — an interpretation of FASB Statement No. 109, effective
January 1, 2007.

     

    /s/ KPMG LLP

     

    Kansas
City, Missouri

    April 18,
2008sab.htm

    

    CONSENT
OF SUTHERLAND ASBILL & BRENNAN LLP

    

    

    We
consent to the reference to our firm in the Statement of Additional Information
included in Post-Effective Amendment No. 11 to the Registration Statement on
Form N-4 for the Affinity variable annuity, issued through the Kansas City Life
Variable Annuity Separate Account (File No. 333-52290).  In giving
this consent, we do not admit that we are in the category of persons whose
consent is required under Section 7 of the Securities Act of 1933.

    

    

    

    SUTHERLAND
ASBILL & BRENNAN LLP

    

    

    

    By:
/s/ W. Thomas
Conner                                               

          W.
Thomas Conner

    

    Washington,
D.C.

    April
30, 2008kpmg.htm

     

    
      Consent
of Independent Registered Public Accounting Firm

       

      The
Board of Directors

      Kansas
City Life Insurance Company:

       

      We
consent to the use of our reports dated February 29, 2008, with respect to
the consolidated financial statements of Kansas City Life Insurance Company
(the Company) and subsidiaries as of December 31, 2007 and 2006, and
for each of the years in the three-year period ended December 31, 2007 and
the effectiveness of internal control over financial reporting as of
December 31, 2007; and to the use of our report dated April 7, 2008,
with respect to the statement of net assets of Kansas City Life Variable Annuity
Separate Account (comprised of individual subaccounts as listed in note 1
to the financial statements) as of December 31, 2007, and the related
statement of operations for the period or year then ended; the statements of
changes in net assets for each of the periods or years in the two-year period
then ended; and financial highlights for each of the periods or years in the
five-year period then ended, which reports appear in the Statement of Additional
Information accompanying the Prospectus of Century II Affinity Variable
Annuity, included in the Post-Effective Amendment No. 11 to the
Registration Statement under the Securities Exchange Act of 1933 (File
No. 333-52290) on Form N-4 and to the reference to our firm under the
heading Experts, also in the Statement of Additional Information. Our report on
the consolidated financial statements dated February 29, 2008 contains
explanatory paragraphs stating that as discussed in note 1 to the
consolidated financial statements, the Company adopted American Institute of
Certified Public Accountants (AICPA) Statement of Position (SOP) 05-01, Accounting by Insurance Enterprises
for Deferred Acquisition Costs in Connection with Modifications or Exchanges in
Insurance Contracts, effective January 1, 2007 and Financial
Accounting Standards Board Interpretation (FIN) No. 48, Accounting for Uncertainty in Income
Taxes – an interpretation of FASB Statement No. 109, effective
January 1, 2007.

       

      /s/ KPMG LLP

       

      Kansas
City, Missouri

      April 18,
2008sab.htm

     

    CONSENT
OF SUTHERLAND ASBILL & BRENNAN LLP

    

    

    We
consent to the reference to our firm in the Statement of Additional Information
included in Post-Effective Amendment No. 8 to the Registration Statement on Form
N-4 for the Freedom variable annuity, issued through the Kansas City Life
Variable Annuity Separate Account (File No. 333-98805).  In giving
this consent, we do not admit that we are in the category of persons whose
consent is required under Section 7 of the Securities Act of 1933.

    

    

    

    SUTHERLAND
ASBILL & BRENNAN LLP

    

    

    

    By: /s/ W. Thomas
Conner                                              

          W.
Thomas Conner

    

    Washington,
D.C.

    April
30, 2008kpmg.htm

     

    Consent
of Independent Registered Public Accounting Firm

     

    The
Board of Directors

    Kansas
City Life Insurance Company:

     

    We
consent to the use of our reports dated February 29, 2008, with respect to
the consolidated financial statements of Kansas City Life Insurance Company (the
 Company) and subsidiaries as of December 31, 2007 and 2006, and for
each of the years in the three-year period ended December 31, 2007 and the
effectiveness of internal control over financial reporting as of
December 31, 2007; and to the use of our report dated April 7, 2008,
with respect to the statement of net assets of Kansas City Life Variable Annuity
Separate Account (comprised of individual subaccounts as listed in note 1
to the financial statements) as of December 31, 2006, and the related
statement of operations for the period or year then ended; the statements of
changes in net assets for each of the periods or years in the two-year period
then ended; and financial highlights for each of the periods or years in the
five-year period then ended, which reports appear in the Statement of Additional
Information accompanying the Prospectus of Century II Freedom Variable
Annuity, included in the Post-Effective Amendment No. 8 to the Registration
Statement under the Securities Exchange Act of 1933 (File No. 333-98805) on
Form N-4 and to the reference to our firm under the heading Experts, also
in the Statement of Additional Information. Our report on the consolidated
financial statements dated February 29, 2008 contains explanatory paragraphs
stating that as discussed in note 1 to the consolidated financial
statements, the Company adopted American Institute of Certified Public
Accountants (AICPA) Statement of Position (SOP) 05-01, Accounting by Insurance Enterprises
for Deferred Acquisition Costs in Connection with Modifications or Exchanges in
Insurance Contracts, effective January 1, 2007 and Financial
Accounting Standards Board Interpretation (FIN) No. 48, Accounting for Uncertainty in Income
Taxes – an interpretation of FASB Statement No. 109, effective
January 1, 2007.

     

    /s/ KPMG LLP

     

    Kansas
City, Missouri

    April 18,
2008ex10_1.htm

    
      

    

    Exhibit
10.1

     

    AGREEMENT OF PURCHASE AND
SALE

    

    THIS
AGREEMENT made as of the 21st day of
March, 2008.

     

    AMONG:

     

    MOGUL ENERGY INTERNATIONAL, INC.
a body corporate, incorporated pursuant to the laws of the State of
Delaware (hereinafter referred to as the "Vendor")

     

    - and
-

     

    EGYPT OIL HOLDINGS LTD., a
body corporate, incorporated pursuant to the laws of the federal government of
Canada (hereinafter referred to as the "Purchaser")

     

    - and
-

     

    SEA DRAGON ENERGY INC., a body
corporate, incorporated pursuant to the federal laws of Canada (hereinafter
referred to as “Sea
Dragon”)

     

    - and
-

     

    DOVER INVESTMENTS LIMITED, a
body corporate, incorporated pursuant to the laws of the Province Ontario
(hereinafter referred to as "Dover")

     

     

    WHEREAS Dover is the holder of
certain interests in and to the Assets as a bare trustee for Vendor

     

    AND WHEREAS Sea Dragon has
agreed to hold the Assets as bare trustee for the Purchaser;

     

    AND WHEREAS a deed of
assignment has been submitted by Dover to the ARE to transfer legal title to the
Assets to Sea Dragon;

     

    AND WHEREAS Sea Dragon is to
become an affiliate of Purchaser and, together with certain others, is
responsible to Dover for various liabilities and obligations relative to the
Concessions generally and relative to the Assets particularly;

     

    AND WHEREAS Vendor wishes to
sell and Purchaser wishes to purchase a beneficial interest in the Assets
subject to and in accordance with the terms and conditions hereof;

     

    NOW THEREFORE THIS AGREEMENT
WITNESSES that in consideration of the premises and the mutual covenants
and agreements hereinafter set forth, the Parties have agreed as
follows:

     

    ARTICLE
1

    INTERPRETATION

     

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In this
Agreement, including the recitals and schedules, unless the context otherwise
requires:

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (a)

            	
              "Abandonment and Reclamation
      Obligations" means all obligations to abandon the Wells and to
      decommission and remove the facilities and equipment and restore and
      reclaim the surface sites thereof, if
any;

            

    

     

    
      	
               
      

            	
              (b)

            	
              "Act" means the Income Tax Act (Canada)
      as amended and the regulations
thereunder;

            

    

     

    
      	
               
      

            	
              (c)

            	
              "AFE" means an
      authorization for expenditure, operation notice or other similar financial
      commitments;

            

    

     

    
      	
               
      

            	
              (d)

            	
              "Agreement" means this
      document, as updated or amended from time to time, together with the
      schedules attached thereto and made a part
  hereof;

            

    

     

    
      	
               
      

            	
              (e)

            	
              "this Agreement", " herein", "hereto", "hereof" and similar
      expressions refer to this agreement of purchase and sale as amended from
      time to time;

            

    

     

    
      	
               
      

            	
              (f)

            	
              "ARE" means Arab Republic
      of Egypt;

            

    

     

    
      	
               
      

            	
              (g)

            	
              "ARE Consent" means all
      consents and approvals of ARE (whether express consent or deemed consent)
      which are necessary in order to permit the transfer of the Assets between
      the Parties, including the transfer of the
  Concessions;

            

    

     

    
      	
               
      

            	
              (h)

            	
              "Assets" means the
      Petroleum and Natural Gas Rights and the Miscellaneous
      Interests;

            

    

     

    
      	
               
      

            	
              (i)

            	
              "Business Day" means any
      day which is not a Saturday, Sunday or statutory holiday in Vancouver,
      British Columbia;

            

    

     

    
      	
               
      

            	
              (j)

            	
              "Closing" means the
      transfer of the Assets from Vendor to Purchaser, the exchange of Specific
      Conveyances, the issuance of the Shares and the completion of other
      matters incidental thereto as herein provided
  for;

            

    

     

    
      	
               
      

            	
              (k)

            	
              "Closing Date" means the
      tenth (10th) Business Day after the date on which the last of the
      Conditions Precedent has been fulfilled or at such other time as the
      Parties may agree;

            

    

     

    
      	
               
      

            	
              (l)

            	
              "Concessions" means the
      leases, reservations, permits, licences or other documents of title
      described in Schedule "A" in which Vendor holds any interest and any
      document of title issued in substitution for, amendment of or in addition
      to any of them;

            

    

     

    
      	
               
      

            	
              (m)

            	
              "Conditions Precedent"
      means those conditions set forth in sections 5.1 and 5.2, for the
      respective benefit of Purchaser and
Vendor;

            

    

     

    
      	
               
      

            	
              (n)

            	
              "Data" means all records,
      data and information directly related to the Petroleum and Natural Gas
      Rights, well files, lease files, agreement files, and production records
      (including the Title and Operating Documents), but specifically excludes
      Withheld Information;

            

    

     

    
      	
               
      

            	
              (o)

            	
              "Effective Time" means
      8:00 a.m., Vancouver time, on December 3,
2007;

            

    

     

    
      	
               
      

            	
              (p)

            	
              "EGPC" means Egyptian
      General Petroleum Corporation;

            

    

     

    
      	
               
      

            	
              (q)

            	
              "EGPC Consent" means all
      consents and approvals of EGPC (whether express consent or deemed consent)
      which are necessary in order to permit the transfer of the Assets between
      the Parties, including the transfer of the
  Concessions;

            

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (r)

            	
              "Environmental
      Liabilities" means all liabilities in respect of the environment
      which relate to the Assets or which arise in connection with the ownership
      thereof or operations pertaining thereto, including, without limitation,
      liabilities related to or arising
from:

            

    

     

    
      	
               
      

            	
              (i)

            	
              transportation,
      storage, use or disposal of toxic or hazardous
  substances;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              release,
      spill, escape or emission of toxic or hazardous substances;
    or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              pollution
      or contamination of or damage to the
  environment;

            

    

     

    including,
without limitation, liabilities to compensate Third Parties for damages and
losses resulting from the items described in items (i), (ii) and (iii) above
(including, without limitation, damage to property, personal injury and death)
and obligations to take action to prevent or rectify damage to or otherwise
protect the environment and, for purposes of this Agreement, "the environment"
includes, without limitation, the air, the surface and subsurface of the earth,
bodies of water (including, without limitation, rivers, streams, lakes and
aquifers) and plant and animal life (including humans) but does not include
Abandonment and Reclamation Obligations;

    

    
      	
               
      

            	
              (s)

            	
              "Exemptions" has the
      meaning ascribed thereto in section 6.1(q);

            

    

     

    
      	
               
      

            	
              (t)

            	
              "General Conveyance"
      means the general conveyance in the form of Schedule
  "C";

            

    

     

    
      	
               
      

            	
              (u)

            	
              "Lands" means all of the
      lands described in Schedule "A" in which Vendor holds any interest,
      including any lands with which the Lands may be pooled or unitized, and
      includes the Petroleum Substances within, upon or under those Lands,
      together with the right to explore for and recover Petroleum Substances to
      the extent those rights are granted by the
  Concessions;

            

    

     

    
      	
               
      

            	
              (v)

            	
              "Land Schedule" means
      Schedule "A";

            

    

     

    
      	
               
      

            	
              (w)

            	
              "Losses and Liabilities"
      means, in relation to a Party, losses, costs, damages and expenses which
      such Party suffers, sustains, pays or incurs including reasonable legal
      fees on a solicitor and its own client
basis;

            

    

     

    
      	
               
      

            	
              (x)

            	
              "Miscellaneous Interests"
      means the entire interests of Vendor in and to all property, assets and
      rights, other than Petroleum and Natural Gas Rights, to the extent
      pertaining to the Petroleum and Natural Gas Rights or the Lands and to
      which Vendor is entitled at the Closing Date including, without
      limitation, the entire interests of Vendor in (i) the Title and Operating
      Documents; and (ii) all contracts, agreements, documents and engineering
      records to the extent that they relate to the Petroleum and Natural Gas
      Rights;

            

    

     

    
      	
               
      

            	
              (y)

            	
              "Obligations" means,
      subject to the provisions of sections 7.1 and 7.2, all obligations
      associated with the Assets;

            

    

     

    
      	
               
      

            	
              (z)

            	
              "Parties" means the
      parties to this Agreement and "Party" means any one of
      them;

            

    

     

    
      	
               
      

            	
              (aa)

            	
              "Permitted Encumbrances"
      means:

            

    

     

    
      	
               
      

            	
              (i)

            	
              liens
      for taxes, assessments and governmental charges for which payment is not
      due;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              liens
      incurred or created in the ordinary course of business as security in
      favor of the person who is conducting the development or operation of the
      property to which such liens relate for Vendor’s proportionate share of
      costs and expenses of such development or operation for which payment is
      not due;

            

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (iii)

            	
              easements,
      rights of way, servitudes and other similar rights in land (including,
      without limitation, rights of way and servitudes for roads, railways,
      sewers, drains, gas and oil pipelines, gas and water mains and electric
      light, power, telephone, telegraph and cable television conduits, poles,
      wires and cables);

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      right reserved to or vested in any municipality or government or other
      public authority by the terms of any lease, license, franchise, grant or
      permit or by any statutory provision, to terminate any such lease,
      license, franchise, grant or permit or to require annual or other periodic
      payments as a condition of the continuance
  thereof;

            

    

     

    
      	
               
      

            	
              (v)

            	
              rights
      of general application reserved to or vested in any governmental authority
      to levy taxes on Petroleum Substances or any of them or the income
      therefrom, and governmental requirements and limitations of general
      application as to production rates or the operations of any
      property;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              royalty
      burdens, liens, adverse claims, penalties, reductions in interests,
      conversion rights upon payout and other encumbrances set out in the Land
      Schedule;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              the
      reservations, limitations, provisions and conditions in any original
      grants from the ARE of any of the Lands or interests therein and statutory
      exceptions to title;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              the
      terms and conditions of the Concessions and the Title and Operating
      Documents;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              provisions
      for penalties and forfeitures which are disclosed in the Land Schedule and
      which have arisen under operating procedures or similar agreements as a
      consequence of elections prior to the Effective Time not to participate in
      operations on the Lands to which the relevant penalty applies;
      and

            

    

     

    
      	
               
      

            	
              (x)

            	
              liens
      granted in the ordinary course of business to a public utility,
      municipality or governmental authority with respect to operations
      pertaining to any of the Assets;

            

    

     

    
      	
               
      

            	
              (bb)

            	
              "Petroleum and Natural Gas
      Rights" means the entire working interests, royalty interests or
      any other interest of Vendor in the Lands and Concessions, as set forth on
      Schedule "A";

            

    

     

    
      	
               
      

            	
              (cc)

            	
              "Petroleum Substances"
      means petroleum, natural gas and related hydrocarbons and all other
      substances, whether liquid or solid and whether hydrocarbons or not,
      insofar as granted by the
Concessions;

            

    

     

    
      	
               
      

            	
              (dd)

            	
              "Purchase Price" has the
      meaning ascribed thereto in
section 2.2;

            

    

     

    
      	
               
      

            	
              (ee)

            	
              "Regulations" means all
      statutes, laws, rules, orders and regulations in effect from time to time
      and made by governments or governmental boards or agencies having
      jurisdiction over the Assets, Vendor or
  Purchaser;

            

    

     

    
      	
               
      

            	
              (ff)

            	
              "Resulting Entity" means
      the corporate entity that results from Purchaser amalgamating,
      consolidating with or merging into another
  corporation;

            

    

     

    
      	
               
      

            	
              (gg)

            	
              "Rights of First Refusal"
      means a right of first refusal, pre-emptive right of purchase or similar
      right whereby a Third Party has the right to acquire or purchase a portion
      of the Assets as a consequence of Vendor having agreed to sell the Assets
      to Purchaser in accordance herewith;

            

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (hh)

            	
              "Security Interests"
      means any assignment, security, general security agreement, deed of trust,
      debenture, land charge, mortgage, charge, pledge, negative pledge, lien or
      other security interest whatsoever or howsoever created or arising (and
      the registrations evidencing same) whether absolute or contingent, fixed
      or floating, perfected or not, which encumbers the title of Vendor in and
      to any or all of the Assets or any part or portion thereof or the proceeds
      to be received hereunder;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              "Securities Rules" has
      the meaning ascribed thereto in
  section 6.1(q);

            

    

     

    
      	
               
      

            	
              (jj)

            	
              "Shares" means four
      million (4,000,000) fully paid up and non-assessable common shares without
      nominal or par value in the capital stock of Purchaser or that number of
      fully paid up and non-assessable common shares of the Resulting Entity
      determined pursuant to Article 10;

            

    

     

    
      	
               
      

            	
              (kk)

            	
              "Specific Conveyances"
      means deeds of assignments, conveyances, assignments, transfers, novations
      and other documents or instruments that are reasonably required or
      desirable, in accordance with normal oil and gas industry practices, to
      convey, assign and transfer the Assets to Purchaser and/or Sea Dragon, as
      applicable, and to novate Purchaser and/or Sea Dragon, as applicable, into
      the Title and Operating Documents in the place and stead of Vendor and
      Dover with respect to the Assets;

            

    

     

    
      	
               
      

            	
              (ll)

            	
              "Third Party" means any
      partnership, corporation, trust, unincorporated organization, union,
      government, governmental department or agency, individual or any heir,
      executor, administrator or other legal representative of an individual
      other than a Party;

            

    

     

    
      	
            	
              (mm)

            	
              "Title and Operating
      Documents" means, to the extent directly related to the Petroleum
      and Natural Gas Rights, (i) the Concessions; (ii) unit agreements,
      assignments, trust declarations, operating agreements, royalty agreements,
      overriding royalty agreements, gross overriding agreements, participation
      agreements, farm-in agreements, sale and purchase agreements, pooling
      agreements, common stream agreements  and easements; (iii)
      agreements for construction, ownership and operation of gas plants, gas
      gathering systems and other facilities; (iv) permits, licenses and
      approvals; and (v) other agreements which relate to the Petroleum and
      Natural Gas Rights or the ownership, operation or exploitation
      thereof;

            

    

     

    
      	
               
      

            	
              (nn)

            	
              "TSX-V" means the TSX
      Venture Exchange;

            

    

     

    
      	
               
      

            	
              (oo)

            	
              "Wells" means all
      producing, shut-in, suspended, water source or injection wells insofar as
      they relate to the Lands and all well casings therein, including all
      facilities that service such wells, excluding any abandoned wells;
      and

            

    

     

    
      	
               
      

            	
              (pp)

            	
              "Withheld Information"
      means (i) all valuations of the Assets; and (ii) income tax and financial
      information.

            

    

     

    
      	
              1.2

            	
              Article,
      Section, and Schedule References

            

    

     

    Except as
otherwise expressly provided, a reference in this Agreement to an "Article",
"section", "subsection", "paragraph" or "Schedule" is a reference to an article,
section, subsection, paragraph, or schedule to this Agreement.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    
      	
              1.3

            	
              Interpretation
      Not Affected by Headings

            

    

     

    The
headings in this Agreement are for convenience only and shall not affect the
construction or interpretation of this Agreement.

     

    
      	
              1.4

            	
              Included
      Words

            

    

     

    When the
context reasonably permits, words suggesting the singular shall be construed as
suggesting the plural and vice versa, and words suggesting one gender shall be
construed as suggesting other genders.

     

    
      	
              1.5

            	
              Schedules:

            

    

     

    
      	
               
      

            	
              Appended
      hereto are the following schedules:

            

    

     

    
      	
               
      

            	
              Schedule
      "A"

            	
              -

            	
              Land
      Schedule

            

    

    
      	
               
      

            	
              Schedule
      "B"

            	
              -

            	
              Certificate
      re Representations and Warranties

            

    

    
      	
               
      

            	
              Schedule
      "C"

            	
              -

            	
              General
      Conveyance

            

    

    
      	
               
      

            	
              Schedule
      "D"

            	
              -

            	
              Certification
      of Investment Intent

            

    

    

     

    All
schedules hereto are incorporated into and as part of this Agreement by this
reference as fully as though contained in the body of this Agreement. Wherever
any term or condition, express or implied, of such schedule conflicts or is at
variance with any term or condition in the body of this Agreement, such term or
condition in the body of this Agreement shall prevail.

     

    
      	
              1.6

            	
              Knowledge
      or Awareness

            

    

     

    Where in
this Agreement a representation or warranty is limited to the knowledge or
awareness of Vendor, such knowledge or awareness consists of the actual
knowledge or awareness, as the case may be, of the current officers of Vendor
after reasonable inquiry but does not include knowledge or awareness of any
other person or persons or constructive knowledge.

     

    
      	
              1.7

            	
              Use
      of Canadian Funds

            

    

     

    All
references to "dollars" or "$" herein shall refer to lawful currency of
Canada.

     

    
      	
              1.8

            	
              Derivatives

            

    

     

    Where a
term is defined herein, a capitalized derivative of such term shall have a
corresponding meaning unless the context otherwise requires:

     

    
      	
               
      

            	
              (a)

            	
              any
      reference to a statute shall include and shall be deemed to be a reference
      to such statute and to the regulations made pursuant thereto, with all
      amendments made thereto and in force from time to time, and to any statute
      or regulation that may be passed which has the effect of supplementing or
      superseding the statute so referred to or the regulations made pursuant
      thereto; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      reference to "approval", "authorization" or "consent" of a party means,
      respectively, the written approval, the written authorization and the
      written consent of such party.

            

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

    

     

    
      	
              1.9

            	
              Interpretation
      If Closing Does Not Occur

            

    

     

    In the
event that Closing does not occur, each provision of this Agreement which
presumes that Purchaser has acquired the Assets hereunder shall be construed as
having been contingent upon Closing having occurred.

     

    
      	
              1.10

            	
              Conflicts

            

    

     

    If there
is any conflict or inconsistency between a provision of the body of this
Agreement and that of a schedule or a Specific Conveyance, the provision of the
body of this Agreement shall prevail.

     

    
      	
              1.11

            	
              Next
      Business Day

            

    

     

    If the
time for performing an act expires on a Saturday, Sunday or statutory holiday in
either the Province of British Columbia or Canada, the time for performing that
act shall be extended to the next Business Day.

     

    
      	
              1.12

            	
              Time

            

    

     

    Any
reference to time shall refer to Pacific Standard Time or Pacific Daylight
Savings Time during the respective intervals in which each is in
force.

     

    ARTICLE
2

    PURCHASE AND
SALE

     

     

    
      	
              2.1

            	
              Purchase
      and Sale

            

    

     

    Vendor
hereby agrees to sell the Assets to Purchaser and Purchaser hereby agrees to
purchase the Assets and assume the Obligations from Vendor, subject to and in
accordance with this Agreement.

     

    
      	
              2.2

            	
              Purchase
      Price

            

    

     

    The
purchase price to be paid by Purchaser to Vendor for the Assets shall be one of
either:

     

    
      	
               
      

            	
              (a)

            	
              Two
      Hundred Thousand Dollars ($200,000);
or

            

    

     

    
      	
               
      

            	
              (b)

            	
              One
      Hundred Thousand Dollars ($100,000) and the
  Shares.

            

    

     

    (the
"Purchase
Price")

     

    At least
three (3) days prior to the Closing Date, Vendor shall by written notice to the
Purchaser elect to receive one of the above options at Closing, and such
election shall be deemed to be the Purchase Price for the purposes of this
Agreement.

     

    
      	
              2.3

            	
              Allocation
      of Purchase Price

            

    

     

    The
Purchase Price shall be allocated among the Assets as follows:

     

    
      	
              Petroleum
      and Natural Gas Rights

            	
              100%
      of the value of the  Purchase Price less
$1.00

            
	 	 
	
              Miscellaneous
      Interests                                                      

            	
              $1.00

               

            

    

    

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

    

     

    In
determining the Purchase Price, Purchaser has taken into account its assumption
of responsibility for the future Abandonment and Reclamation Obligations
associated with the Assets and the release of Vendor's responsibility
therefor.

     

    
      	
              2.4

            	
              Payment
      of Purchase Price

            

    

     

    
      	
               
      

            	
              (a)

            	
              At
      Closing and in accordance with Vendor's election pursuant to section 2.2,
      the Purchaser shall pay or caused to be paid the cash component of the
      Purchase Price and issue or cause to be issued the Shares, if
      applicable.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Subject
      to the provisions of Article 4, at Closing Purchaser shall pay all amounts
      owing to Vendor and Vendor shall pay all amounts owing to Purchaser as of
      the Effective Time.

            

    

     

    ARTICLE
3

    CLOSING

     

     

    
      	
              3.1

            	
              Place
      of Closing

            

    

     

    Unless
otherwise agreed to in writing by the Parties, Closing shall take place at 11:00
a.m. Vancouver time on the Closing Date at the offices of Burstall Winger LLP at
Suite 1600, 333 – 7th Avenue
S.W., Calgary, Alberta, Canada.

     

    
      	
              3.2

            	
              Effective
      Time of Transfer

            

    

     

    The
transfer and assignment of the Assets from Vendor to Purchaser shall be
effective as of the Effective Time, however, possession and title to the Assets
shall not pass to Purchaser until the completion of Closing.

     

    
      	
              3.3

            	
              Deliveries
      at Closing

            

    

     

    
      	
               
      

            	
              (a)

            	
              At
      Closing, Vendor shall table the
following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              a
      copy of the relevant consents, approvals, confirmations or waivers, if
      any, and obtained by or on behalf of
Vendor;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      copy of all the documents comprising the EGPC Consent with respect to the
      transfer of an interest in the Concessions to Sea Dragon, as set out
      herein;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              a
      copy of all the documents comprising the ARE Consent with respect to the
      transfer of an interest in the Concessions to Sea Dragon, as set out
      herein;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      General Conveyance, executed by
Vendor;

            

    

     

    
      	
               
      

            	
              (v)

            	
              the
      Specific Conveyances, executed by Vendor and Dover, as
      applicable;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              the
      certificate described in subsection
5.1(a);

            

    

     

    
      	
               
      

            	
              (vii)

            	
              such
      other items as may be specifically required hereunder or as may be
      reasonably requested by Purchaser upon reasonable notice to
      Vendor.

            

    

     

    
      	
               
      

            	
              (b)

            	
              At
      Closing, Purchaser shall table the
following:

            

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (i)

            	
              a
      certified cheque, bank draft or wire for the cash component of the
      Purchase Price and a share certificate of Purchaser issued in the name of
      Vendor for the Shares, if
applicable;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      certificate described in section 5.2(a);
  and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              such
      other items as may be specifically required hereunder or as may be
      reasonably requested by Vendor upon reasonable notice to
      Purchaser.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      items tabled at Closing pursuant to subsections 3.3(a) and (b) shall be
      held in escrow until all of such items have been tabled and each of the
      Parties has acknowledged that it is satisfied therewith, whereupon such
      escrow shall be terminated and the Closing shall have
      occurred.  If such escrow is not released on or before 4:00 p.m.
      Vancouver time on the Closing Date and the Parties do not agree to an
      extension of the escrow, the Closing shall not occur, the General
      Conveyance and the Specific Conveyances will be destroyed and the balance
      of the documents tabled by a Party pursuant to this section 3.3 shall be
      returned to such Party.

            

    

     

    
      	
              3.4

            	
              Delivery
      of Data

            

    

     

    After
Closing, Vendor shall upon request of Purchaser from time-to-time and at any
time deliver copies of the Data which it has in its possession within five (5)
days of receiving such request.

     

    
      	
              3.5

            	
              Specific
      Conveyances

            

    

     

    Vendor
and Dover shall prepare the Specific Conveyances and Purchaser shall bear all
costs incurred in registering any Specific Conveyances and registering any
further assurances required to convey the Assets to Purchaser or to Sea Dragon,
as applicable.  Upon execution of this Agreement, Sea Dragon and Dover
shall forthwith execute and the Purchaser shall register all Specific
Conveyances required to be submitted to the EGPC or any other governmental
agency or department of the ARE with respect to the transfer of a 20% interest
in the Concessions (the "Concession
Interest").  Should Closing not occur for any reason and Sea
Dragon has been recognized by EGPC or ARE as the registered holder of the
Concession Interest, then Sea Dragon shall hold the Concession Interest in trust
as a bare trustee for the benefit of Vendor until such time as the Concession
Interest can be conveyed back to Dover.  Subject to section 8.3,
Purchaser shall register all other Specific Conveyances immediately after
Closing.  Each Party shall, upon request from the other Party, supply
evidence of compliance with foregoing obligations.

     

    ARTICLE
4

    ADJUSTMENTS

     

     

    
      	
              4.1

            	
              Costs
      and Revenues to be Apportioned

            

    

     

    
      	
               
      

            	
              (a)

            	
              Except
      as otherwise provided in this Agreement, all costs and expenses relating
      to the Assets (including, without limitation, maintenance, development,
      capital and operating costs) and all revenues relating to the Assets
      (including, without limitation, proceeds from the sale of production and
      fees from processing, treating or transporting Petroleum Substances on
      behalf of Third Parties) shall be apportioned as of the Effective Time
      between Vendor and Purchaser on an accrual basis in accordance with
      generally accepted accounting principles, provided
  that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              advances
      made by Vendor in respect of the costs of operations on the Lands or lands
      pooled or unitized therewith or facilities interests included in the
      Assets which are not applied to costs incurred prior to the Effective Time
      will be transferred to Purchaser and an adjustment will be made in favour
      of Vendor equal to the amount of the advance
  transferred;

            

      
        
           

        

        
          -9-

          
            

          

        

        
           

          
            -  -

          

        

      

    

     

    
      	
               
      

            	
              (ii)

            	
              deposits
      made by Vendor relative to operations on the Lands shall be returned to
      Vendor;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              costs
      and expenses of work done, services provided and goods supplied shall be
      deemed to accrue for the purposes of this Article when the work is done or
      the goods or services are provided, regardless of when such costs and
      expenses become payable;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              no
      adjustments shall be made in respect of Vendor’s overhead or recovery of
      overhead by Vendor in its capacity as operator;
  and

            

    

     

    
      	
               
      

            	
              (v)

            	
              all
      rentals and similar payments in respect of the Concessions comprised in
      the Assets and all taxes levied with respect to the Assets or operations
      in respect thereof shall be apportioned between Vendor and Purchaser on a
      per diem basis as of the Effective
Time.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Petroleum
      Substances which were produced, but not sold, as of the Effective Time
      shall be retained by Vendor and Vendor shall be responsible for all
      royalties or other encumbrances thereon and all processing, treating and
      transportation expenses pertaining thereto.  Petroleum
      Substances will be deemed to be sold on a first in, first out
      basis.

            

    

     

    
      	
              4.2

            	
              Adjustments
      to Account

            

    

     

    
      	
               
      

            	
              (a)

            	
              An
      interim accounting of the adjustments pursuant to section 4.1 shall be
      made at Closing.  Vendor shall provide a statement setting forth
      the adjustments to be made at Closing not later than three (3) Business
      Days prior to Closing and shall assist Purchaser in verifying the amounts
      set forth in such statement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              All
      accounting and adjustments not settled or not readily ascertainable at the
      Closing Date shall be settled between the Parties on the final statement
      of adjustments.  Vendor will use reasonable efforts to provide
      Purchaser with a proposed final statement of adjustments with all
      reasonable applicable back-up information within one hundred twenty (120)
      days following the Closing Date.  Purchaser shall be entitled to
      review and conduct an audit, if required, of the proposed final statement
      of adjustments.  Vendor and Purchaser will complete the final
      statement of adjustments no later than thirty (30) days following delivery
      of the proposed final statement of adjustments by Vendor to
      Purchaser.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Notwithstanding
      any other provision contained in this Agreement, the Parties shall not
      make any further adjustment after the expiry of thirty (30) days from
      delivery by Vendor to Purchaser of the proposed final statement of
      adjustments, unless such adjustment has been specifically requested, by
      notice, within such period.

            

    

     

    
      	
               
      

            	
              (d)

            	
              All
      adjustments provided for in this Article shall be adjustments and shall,
      for further clarity, constitute an increase or decrease, as the case may
      be, to the Purchase Price.  All adjustments shall be paid in
      cash.

            

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

    

     

    ARTICLE
5

    CONDITIONS OF
CLOSING

     

     

    
      	
              5.1

            	
              Purchaser’s
      Conditions

            

    

     

    The
obligation of Purchaser to purchase the Assets pursuant hereto is subject to the
satisfaction at or prior to the Closing Date of the following conditions, which
are for the exclusive benefit of Purchaser and may be waived by
Purchaser:

     

    
      	
               
      

            	
              (a)

            	
              Representations and
      Warranties: The representations and warranties of Dover and Vendor
      herein contained shall be true and correct in all material respects when
      made and as of the Closing Date and certificates of an officer of Dover
      and Vendor to that effect, in the forms of Schedule "B", shall have been
      delivered by Vendor to Purchaser at
Closing;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Obligations:
      All obligations of Dover and Vendor contained in this Agreement to be
      performed prior to or at Closing shall have been timely performed in all
      material respects and certificates of Dover and Vendor to that effect, in
      the forms of Schedule "B", shall have been delivered by Vendor to
      Purchaser at Closing; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              No Adverse
      Damage: There shall have been no material adverse physical damage
      to the Assets from the date hereof to the Closing Date and Vendor shall
      have delivered to Purchaser certificates of Dover and Vendor, dated as of
      the Closing Date in the forms of Schedule "B", that there has been no such
      damage to any of the Assets during such period, provided that a change in
      the prices at which Petroleum Substances may be sold in no event shall be
      regarded as material adverse physical damage to or an alteration of the
      Assets.

            

    

     

    
      	
              5.2

            	
              Vendors’
      Conditions

            

    

     

    The
obligation of Vendor to sell the Assets pursuant hereto is subject to the
satisfaction at or prior to the Closing Date of the following conditions, which
are for the exclusive benefit of Vendor and may be waived by
Vendor:

     

    
      	
               
      

            	
              (a)

            	
              Representations and
      Warranties: The representations and warranties of Purchaser herein
      contained shall be true and correct in all material respects when made and
      as of the Closing Date and a certificate of an officer of Purchaser to
      that effect, in the form of Schedule "B", shall have been delivered by
      Purchaser to Vendor at Closing;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Obligations:
      All obligations of Purchaser contained in this Agreement to be performed
      prior to or at Closing shall have been timely performed in all material
      respects and a certificate of an officer of Purchaser to that effect shall
      have been delivered by Purchaser to Vendor at Closing;
  and

            

    

     

    
      	
               
      

            	
              (c)

            	
              Payment: All
      amounts to be paid by Purchaser to Vendor at Closing pursuant hereto shall
      have been paid to Vendor by Purchaser in the form stipulated in this
      Agreement.

            

    

     

    
      	
              5.3

            	
              Efforts
      to Fulfill Conditions Precedent

            

    

     

    Purchaser,
Sea Dragon, Dover and Vendor shall proceed diligently and in good faith and use
all reasonable efforts to fulfill and assist in the fulfillment of the
Conditions Precedent.

     

    
      
        
           

        

        
          -11-

          
            

          

        

        
           

          
            -  -

          

        

      

    

     

    
      	
              5.4

            	
              Waiver
      Of Conditions

            

    

     

    The
conditions in sections 5.1 and 5.2 are for the sole benefit of Purchaser and
Vendor, respectively.  The Party for the benefit of which such
conditions have been included may waive any of them, in whole or in part, by
written notice to the other Party, without prejudice to any of the rights of the
Party waiving such condition, including, without limitation, reliance on or
enforcement of the representations, warranties or covenants which are preserved
and pertain to conditions similar to the condition so
waived.  However, Purchaser cannot waive the existence and operation
of any Right of First Refusal to purchase any of the Assets and Vendor cannot
waive the existence and operation of any Right of First Refusal to purchase any
of the Assets.

     

    
      	
              5.5

            	
              Failure
      To Satisfy Conditions

            

    

     

    In the
event any condition in sections 5.1 or 5.2 has not been satisfied at or before
the Closing Date (or the date set forth for satisfaction of such condition) and
such condition has not been waived by the Party for the benefit of which such
condition has been included, such Party may terminate this Agreement by written
notice to the other Party.  In such event, Purchaser and Vendor shall
be released and discharged from all obligations hereunder.  However, a
Party may not terminate this Agreement in such manner after Closing, and its
remedies thereafter, if any, with respect to the failure to satisfy such
condition shall be limited to damages.

     

    ARTICLE
6

    REPRESENTATIONS AND
WARRANTIES

     

     

    
      	
              6.1

            	
              Representations
      and Warranties of Vendor

            

    

     

    Vendor
represents and warrants to Purchaser that:

     

    
      	
               
      

            	
              (a)

            	
              Standing:
      Vendor is a corporation, validly existing under its jurisdiction of
      incorporation and now has all the requisite corporate power and authority
      to sell, assign, transfer and convey its interest in the Assets to
      Purchaser in accordance with this Agreement, except shareholder approval
      which Vendor shall in good faith use all reasonable efforts to obtain
      forthwith;

            

    

     

    
      	
               
      

            	
              (b)

            	
              No Conflicts:
      The consummation of the transactions contemplated herein will not violate,
      nor be in conflict with, any of the constating documents, by-laws or
      governing documents of it or any judgement, decree, order, law, statute,
      rule or regulation applicable to it or any agreement, instrument, permit
      or authority to which it is a Party or by which it is or the Assets are
      bound or subject;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Execution of
      Documents: This Agreement has been duly executed and delivered by
      it and all other documents (including the General Conveyance and the
      Specific Conveyances) executed and delivered by it pursuant hereto will be
      duly executed and delivered by it, and this Agreement does, and such
      documents will, constitute legal, valid and binding obligations of it
      enforceable in accordance with their respective terms, subject to
      bankruptcy, insolvency, preference, reorganization, moratorium and other
      similar laws affecting creditors' rights generally and the discretion of
      courts with respect to equitable or discretionary remedies and
      defences;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Finders' Fees:
      It has not incurred any obligation or liability, contingent or otherwise,
      for brokers' or finders' fees in respect of this transaction for which
      Purchaser shall have any obligation or
  liability;

            

    

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

            	
              No
      Authorizations: No authorization or approval or other action by,
      and no notice to or filing with, any governmental authority or regulatory
      body exercising jurisdiction over the Assets or it is required for the due
      execution, delivery and performance by it of this Agreement, other than
      the approval of ARE and EGPC of the transaction contemplated herein as
      required by the Concessions and the authorizations, approvals or
      exemptions previously obtained and currently in force; and the approval of
      the U.S. Securities and Exchange Commission, where applicable, of an
      Information Statement, pursuant to Section 14(c) of the Securities
      Exchange Act of 1934, as amended (“Exchange Act”), or a Proxy Statement,
      pursuant to Section 14(a) of the Exchange
Act;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Title:  Its
      beneficial interest in the Assets is as described in the Land Schedule
      and,  except for Permitted Encumbrances, is free and clear of
      all Security Interests, claims, options, net profit interests, mortgages,
      royalties, encumbrances and adverse claims or other burdens created by,
      through or under it or of which Vendor is otherwise actually
      aware;

            

    

     

    
      	
               
      

            	
              (g)

            	
              No Third Party
      Rights:  Subject to the terms of Concessions, the
      interests of it in the Assets are not subject either to reduction, by
      reference to payout of a well or otherwise, or to change to an interest of
      any other size or nature whatsoever by virtue of any right or interest
      granted by, through or under it or of which it is otherwise actually
      aware, except for the Permitted Encumbrances and any such rights and
      interests identified in the Land Schedule and it has not alienated or
      encumbered the Assets or any part or portions thereof and it is not aware
      of there having been committed any act or omission whereby the right of it
      in any of the Assets may be cancelled or
  determined;

            

    

     

    
      	
               
      

            	
              (h)

            	
              Quiet
      Enjoyment: Subject to the rents, covenants, conditions and
      stipulations in the Concessions and Permitted Encumbrances, from and after
      Closing, Purchaser will be entitled to hold and enjoy the interests
      attributed to it in the schedules hereto for Purchaser's own use and
      benefit without any interruption of or by it or any Third Party claiming
      by, through or under it;

            

    

     

    
      	
               
      

            	
              (i)

            	
              No Lawsuits or
      Claims: There are no unsatisfied judgments and no claims,
      proceedings, actions, governmental investigations or lawsuits in
      existence, and to its knowledge, contemplated or threatened against or
      with respect to the Assets or the interests of it therein which might
      result in impairment or loss of the interest of it in and to the Assets or
      which might otherwise adversely affect the Assets, and to its knowledge
      there exists no particular circumstance which will give rise to such a
      claim, proceeding, action, governmental investigation or
      lawsuit;

            

    

     

    
      	
               
      

            	
              (j)

            	
              AFEs: There are
      no AFEs or other financial commitments pursuant to which expenditures in
      respect of the Assets other than normal operating costs are or may be
      required after the Effective Time other than as may be authorized on
      behalf of Purchaser hereunder or otherwise disclosed to Purchaser in
      writing nor are there any outstanding or unresolved audits or audit
      enquiries relating to the Assets;

            

    

     

    
      	
               
      

            	
              (k)

            	
              Assessments:
      All royalty payments, ad valorem, property, production, severance and
      similar taxes and assessments based on or measured by the ownership of
      property or the production of Petroleum Substances or the receipt of
      proceeds therefrom payable in respect of the Assets up to the Closing Date
      (including all prior years) have been properly and fully paid and
      discharged;

            

    

     

    
      	
               
      

            	
              (l)

            	
              Environmental
      Matters:

            

      
        
           

        

        
          -13-

          
            

          

        

        
           

          
            -  -

          

        

      

    

     

    
      	
               
      

            	
              (i)

            	
              It
      has not received any orders or directives under the Regulations from a
      governmental authority relating to environmental matters requiring any
      work, repairs, constructions or capital expenditures with respect to the
      Assets, which order or directive remains outstanding on the Closing
      Date,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              It
      has not received any demand or notice from a governmental authority or
      third party (other than Purchaser) relating to the breach of any
      environmental, health or safety law applicable to the Assets, including
      without limitation, any Regulations relating to the use, storage,
      treatment, shipping or disposition of environmental contaminants, which
      demand or notice has not been complied with in all material respects,
      and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              It
      has made available to Purchaser all environmental information within its
      possession and has not knowingly withheld any such information from
      Purchaser relevant to environmental matters that relate to or affect the
      Assets;

            

    

     

    
      	
               
      

            	
              (m)

            	
              Rights of First
      Refusal: At the Closing Date none of the Assets will be subject to
      any unexpired or unwaived Rights of First
  Refusal;

            

    

     

    
      	
               
      

            	
              (n)

            	
              Production
      Penalties:  Excepting production limits of general
      application in the oil and gas industry, none of the Wells is subject to
      production or other penalties imposed by the Title and Operating Documents
      or by any other agreements and documents to which the Assets are subject,
      or by any laws, rules, regulations, orders or directions of governmental
      or other competent authorities;

            

    

     

    
      	
               
      

            	
              (o)

            	
              Production of
      Documents and Information: Vendor has made reasonable inquiries and
      searches for material documents and information relating to the Assets and
      for all information reasonably required to make the representations and
      warranties contained in this Agreement not misleading in light of the
      circumstances;

            

    

     

    
      	
               
      

            	
              (p)

            	
              Acquisition as
      Principal: If applicable, Vendor is acquiring the Shares as
      principal for its own account and not for the benefit of any other
      person;

            

    

     

    
      	
               
      

            	
              (q)

            	
              Vendor's
      Acknowledgement: Vendor acknowledges that the issuance of the
      Shares, if applicable, will be made pursuant to an appropriate exemption
      (the "Exemption")
      from the registration and prospectus or equivalent requirements of all
      rules, policies, notices, orders and legislation of any kind whatsoever
      (collectively the "Securities Rules") of
      all jurisdictions applicable to such issuance and, as a consequence of
      acquiring the Shares pursuant to this
Exemption:

            

    

     

    
      	
               
      

            	
              (i)

            	
              certain
      protections, rights and remedies provided by the Securities Rules,
      including statutory rights of rescission or damages, will not be available
      to Vendor,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Vendor
      may not receive information that might otherwise be required to be
      provided to Vendor, and Purchaser or the Resulting Entity, as the case may
      be, is relieved from certain obligations that would otherwise apply under
      the applicable Securities Rules if the Exemption were not being
      used,

            

    

     

    
      	
               
      

            	
              (iii)

            	
              no
      securities commission, stock exchange or similar regulatory authority has
      reviewed or passed on  the merits of the
  Shares,

            

    

     

    
      	
               
      

            	
              (iv)

            	
              there
      is no government or other insurance covering the
  Shares,

            

    

     

    
      	
               
      

            	
              (v)

            	
              there
      are risks associated with the acquisition of the Shares,
    and

            

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (vi)

            	
              there
      are trade restrictions on Vendor's ability to resell the Shares, and it is
      the responsibility of Vendor to find out what those trade restrictions are
      and to comply with them before selling the
  Shares;

            

    

     

    
      	
               
      

            	
              (r)

            	
              Legend
      Requirements: Because of the trade restrictions imposed by
      operation of the Securities Rules, the certificates representing the
      Shares will bear such legends as may be required by the Securities Rules
      and, if applicable, by the rules and policies of the
  TSX-V;

            

    

     

    
      	
               
      

            	
              (s)

            	
              Hold Period:
      Without in any way limiting the generality of the foregoing, the trade
      restrictions provide that Vendor must hold and not sell, transfer or in
      any manner dispose of the Shares, except in accordance with applicable
      U.S. securities laws and, for purposes of securities laws in Canada, not
      before the date that is four months and a day after the later of (i) the
      distribution date of the Shares; and (ii) the date the Purchaser became a
      reporting issuer, as defined under applicable Securities Rules, in any
      province or territory of Canada, unless the disposition is made in
      accordance with all applicable Securities
Rules.

            

    

     

    
      	
               
      

            	
              (t)

            	
              Independent
      Evaluation: Vendor has such knowledge and experience in financial
      and business matters as to be capable of evaluating the merits, and risks
      of the investment and it is able to bear the economic risk of loss of the
      investment.  Vendor has had the opportunity to ask questions of
      and receive answers from Purchaser regarding the investment, and has
      received all the information regarding Purchaser that it has
      requested;

            

    

     

    
      	
               
      

            	
              (u)

            	
              1933 Act
      Compliance: The
      Vendor understands and agrees that the Shares have not been and will not
      be registered under the 1933 Act, or applicable state securities laws,
      and  the Shares are being offered and sold on behalf of the
      Purchaser to the Vendor in reliance upon Rule 903 of Regulation S under
      the 1933 Act, or in the case the Vendor distributes such shares to its
      officers, directors, or shareholders, (collectively, "underlying holders") in
      reliance upon Rule 506 of Regulation D under the 1933 Act and/or section
      4(2) under the 1933 Act.  The Vendor agrees that it will cause
      each of the underlying shareholders, to whom Shares are distributed, to
      deliver to the Purchaser the certification in the form attached hereto as
      Schedule "D";

            

    

     

    
      	
               
      

            	
              (v)

            	
              US Legend
      Requirements: Vendor understands that upon the issuance thereof,
      and until such time as the same is no longer required under the applicable
      requirements of the 1933 Act or applicable U.S. state laws and
      regulations, the certificates representing the Shares will bear a legend
      in substantially the following
form:

            

    

     

    "THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").  THESE
SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR
INDIRECTLY, ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933
ACT, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
UNDER THE 1933 ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT
DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE
SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE
COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE
REASONABLY SATISFACTORY TO THE COMPANY.  DELIVERY OF THIS CERTIFICATE
MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK
EXCHANGES IN CANADA."

     

    
      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

    

     

    provided,
that if Shares are being sold under clause (B) above, at a time when the
Purchaser is a "foreign issuer" as defined in Rule 902 under the 1933 Act, the
legend set forth above may be removed by providing a declaration and other
documentation, evidencing the availability of the exemption, in the form as the
Purchaser may from time to time prescribe to the Purchaser’s transfer agent, to
the effect that the sale of the securities is being made in compliance with Rule
904 of Regulation S under the 1933 Act; and

    

    
      	
               
      

            	
              (w)

            	
              Removal of US
      Legend: If any of the Shares are being sold pursuant to Rule 144 of
      the 1933 Act, the legend may be removed by delivery to the Purchaser’s
      transfer agent of an opinion satisfactory to the Purchaser to the effect
      that the legend is no longer required under applicable requirements of the
      1933 Act or state securities laws.

            

    

     

    
      	
              6.2

            	
              Representation
      and Warranties of Dover

            

    

     

    Dover
represents and warrants to Purchaser that:

     

    
      	
               
      

            	
              (a)

            	
              Standing: Dover
      is a corporation, validly existing under its jurisdiction of
      incorporation, is authorized to carry on business in all jurisdictions in
      which the Assets are located, and now has all the requisite corporate
      power and authority to sell, assign, transfer and convey its interests in
      the Assets to Purchaser in accordance with this
  Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              No Conflicts:
      The consummation of the transactions contemplated herein will not violate,
      nor be in conflict with, any of the constating documents, by-laws or
      governing documents of it or any judgement, decree, order, law, statute,
      rule or regulation applicable to it or any agreement, instrument, permit
      or authority to which it is a Party or by which it is or the Assets are
      bound or subject;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Execution of
      Documents: This Agreement has been duly executed and delivered by
      it and all other documents (including the General Conveyance and the
      Specific Conveyances) executed and delivered by it pursuant hereto will be
      duly executed and delivered by it, and this Agreement does, and such
      documents will, constitute legal, valid and binding obligations of it
      enforceable in accordance with their respective terms, subject to
      bankruptcy, insolvency, preference, reorganization, moratorium and other
      similar laws affecting creditors' rights generally and the discretion of
      courts with respect to equitable or discretionary remedies and
      defences;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Finders' Fees:
      It has not incurred any obligation or liability, contingent or otherwise,
      for brokers' or finders' fees in respect of this transaction for which
      Purchaser shall have any obligation or
  liability;

            

    

     

    
      	
               
      

            	
              (e)

            	
              No
      Authorizations: No authorization or approval or other action by,
      and no notice to or filing with, any governmental authority or regulatory
      body exercising jurisdiction over the Assets or it is required for the due
      execution, delivery and performance by it of this Agreement, other than
      the approval of ARE and EGPC of the transaction contemplated herein as
      required by the Concessions and the authorizations, approvals or
      exemptions previously obtained and currently in
  force;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Title:  It
      has legal title to the Assets described in the Land Schedule and, except
      for the Vendor's beneficial interest and the Permitted Encumbrances,
      the Assets are free and clear of all Security Interests, claims, options,
      net profit interests, mortgages, royalties, encumbrances and adverse
      claims or other burdens created by, through or under it or of which Dover
      is otherwise actually aware;

            

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

    

    
      	
               
      

            	
              (g)

            	
              No Third Party
      Rights: Subject to the terms of Concessions, the interests of it in
      the Assets are not subject either to reduction, by reference to payout of
      a well or otherwise, or to change to an interest of any other size or
      nature whatsoever by virtue of any right or interest granted by, through
      or under it or of which it is otherwise actually aware, except for the
      Permitted Encumbrances and any such rights and interests identified in the
      Land Schedule and it has not alienated or encumbered the Assets or any
      part or portions thereof and it is not aware of there having been
      committed any act or omission whereby the right of it in any of the Assets
      may be cancelled or determined;

            

    

     

    
      	
               
      

            	
              (h)

            	
              Quiet
      Enjoyment: Subject to the rents, covenants, conditions and
      stipulations in the Concessions and Permitted Encumbrances, from and after
      Closing, Purchaser will be entitled to hold and enjoy the interests
      attributed to it in the schedules hereto for Purchaser's own use and
      benefit without any interruption of or by it or any Third Party claiming
      by, through or under it;

            

    

     

    
      	
               
      

            	
              (i)

            	
              No Lawsuits or
      Claims: There are no unsatisfied judgments and no claims,
      proceedings, actions, governmental investigations or lawsuits in
      existence, and to its knowledge, contemplated or threatened against or
      with respect to the Assets or the interests of it therein which might
      result in impairment or loss of the interest of it in and to the Assets or
      which might otherwise adversely affect the Assets, and to its knowledge
      there exists no particular circumstance which will give rise to such a
      claim, proceeding, action, governmental investigation or
      lawsuit;

            

    

     

    
      	
               
      

            	
              (j)

            	
              AFEs: there are
      no AFEs or other financial commitments pursuant to which expenditures in
      respect of the Assets other than normal operating costs are or may be
      required after the Effective Time other than as may be authorized on
      behalf of Purchaser hereunder or otherwise disclosed to Purchaser in
      writing nor are there any outstanding or unresolved audits or audit
      enquiries relating to the Assets;

            

    

     

    
      	
               
      

            	
              (k)

            	
              Assessments:
      All royalty payments, ad valorem, property, production, severance and
      similar taxes and assessments based on or measured by the ownership of
      property or the production of Petroleum Substances or the receipt of
      proceeds therefrom payable in respect of the Assets up to the Closing Date
      (including all prior years) have been properly and fully paid and
      discharged;

            

    

     

    
      	
               
      

            	
              (l)

            	
              Environmental
      Matters:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Dover
      has not received any orders or directives under the Regulations from a
      governmental authority relating to environmental matters requiring any
      work, repairs, constructions or capital expenditures with respect to the
      Assets, which order or directive remains outstanding on the Closing
      Date,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Dover
      has not received any demand or notice from a governmental authority or
      third party (other than Purchaser) relating to the breach of any
      environmental, health or safety law applicable to the Assets, including
      without limitation, any Regulations relating to the use, storage,
      treatment, shipping or disposition of environmental contaminants, which
      demand or notice has not been complied with in all material respects,
      and

            

      
        
           

        

        
          -17-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (iii)

            	
              Dover
      has made available to Purchaser all environmental information within its
      possession and has not knowingly withheld any such information from
      Purchaser relevant to environmental matters that relate to or affect the
      Assets;

            

    

     

    
      	
               
      

            	
              (m)

            	
              Rights of First
      Refusal: At the Closing Date none of the Assets will be subject to
      any unexpired or unwaived Rights of First
  Refusal;

            

    

     

    
      	
               
      

            	
              (n)

            	
              Production
      Penalties:  Excepting production limits of general
      application in the oil and gas industry, none of the Wells is subject to
      production or other penalties imposed by the Title and Operating Documents
      or by any other agreements and documents to which the Assets are subject,
      or by any laws, rules, regulations, orders or directions of governmental
      or other competent authorities;

            

    

     

    
      	
               
      

            	
              (o)

            	
              Production of
      Documents and Information:  Dover has made reasonable
      inquiries and searches for material documents and information relating to
      the Assets and for all information reasonably required to make the
      representations and warranties contained in this Agreement not misleading
      in light of the circumstances;

            

    

     

    
      	
              6.3

            	
              Negation
      of Other Representations

            

    

     

    
      	
               
      

            	
              (a)

            	
              Each
      of the foregoing representations and warranties of Vendor and Dover shall
      be qualified as at the date hereof and at Closing, by excepting therefrom
      all matters disclosed to Purchaser in writing and in the Schedules
      hereto.  Vendor and Dover make no representations or warranties
      (whether in contract or in tort) except as expressly set forth in sections
      6.1 and 6.2 respectively and, in particular, and without limitation,
      Vendor and Dover hereby expressly negate any representations or warranties
      by any of them, whether contained in any information memorandum or
      otherwise, with respect to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      data or information supplied by a Vendor or Dover to Purchaser or its
      representatives;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      quality, quantity or recoverability of Petroleum Substances within or
      under the Lands or any lands pooled or unitized
  therewith;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      value of the Assets or the future cash
  therefrom;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      engineering, geological, production or other information or
      interpretations thereof or any economic evaluations respecting the
      Assets;

            

    

     

    
      	
               
      

            	
              (v)

            	
              the
      quality, condition, fitness or merchantability of any tangible depreciable
      equipment or property interests in which are comprised in the Assets;
      or

            

    

     

    
      	
               
      

            	
              (vi)

            	
              the
      environmental condition of the Assets except as set forth in section
      6.1(l) and 6.2(l).

            

    

     

    Purchaser
acknowledges and confirms that it has not relied on any data, information or
advice from Vendor or from Dover with respect to any or all of the matters
specifically enumerated in this paragraph in connection with the purchase of the
Assets pursuant hereto and that, except for the representations and warranties
contained in sections 6.1 and 6.2, Purchaser is purchasing the Assets pursuant
hereto on a "as is, where is" basis.  The maximum cumulative liability
of Vendor to Purchaser as a result of any misrepresentations or breach of
warranty or covenant shall not exceed Vendor's portion of the Purchase
Price.  Purchaser confirms that it has not relied on any covenants,
representations or warranties of Vendor or of Dover outside this Agreement
(whether in contract or in tort).  Purchaser acknowledges and confirms
that it has performed its own due diligence and will continue to rely upon its
own due diligence, evaluations and projections as the same relate to the Assets,
including without limitation, environmental due diligence.

     

    
      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Except
      with respect to the representations and warranties in sections 6.1 and 6.2
      or in the event of fraud, Purchaser forever releases and discharges Vendor
      and Dover and their respective directors, officers, agents and employees
      from any claims and all liability to Purchaser or Purchaser's
      representatives, assigns and successors, as a result of the use or
      reliance upon advice, information, opinions or materials pertaining to the
      Assets which was or were delivered or made available to Purchaser by
      Vendor or by Dover or any of their respective directors, officers, agents
      or employees.

            

    

     

    
      	
              6.4

            	
              Representations
      and Warranties of Purchaser

            

    

     

    Purchaser
represents and warrants to Vendor, that:

     

    
      	
               
      

            	
              (a)

            	
              Standing:
      Purchaser is a corporation, duly organized and validly existing under the
      laws of the Province of British Columbia, is authorized to carry on
      business in all jurisdictions in which the Assets are located, and now has
      the corporate power and authority to purchase and pay for the Assets in
      accordance with this Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              No Conflicts:
      The consummation of the transactions contemplated by this Agreement will
      not violate, nor be in conflict with, the governing documents of Purchaser
      or any judgment, decree, order, law, statute, rule or regulation
      applicable to Purchaser;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Execution of
      Documents: This Agreement has been duly executed and delivered by
      Purchaser and all other documents (including the General Conveyance and
      the Specific Conveyances) executed and delivered by Purchaser or Sea
      Dragon pursuant hereto will be duly executed and delivered by Purchaser or
      Sea Dragon, as applicable, and this Agreement does, and such documents
      will, constitute legal, valid and binding obligations of Purchaser
      enforceable in accordance with their respective terms, subject to
      bankruptcy, insolvency, preference, reorganization, moratorium and other
      similar laws affecting creditors’ rights generally and the discretion of
      the courts with respect to equitable or discretionary remedies and
      defences;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Finders' Fees:
      Purchaser has not incurred any liability, contingent or otherwise, for
      brokers' or finders' fees in respect of this transaction for which any of
      Vendor or Dover shall have any obligation or
  liability;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Purchase Price:
      Purchaser either now has or will have at Closing all money that Purchaser
      will need to pay to Vendor upon Closing or Purchaser has a contractual
      right to receive all money that Purchaser will need to pay to Vendor and
      such money will be available to Purchaser for payment to Vendor at
      Closing;

            

    

     

    
      	
               
      

            	
              (f)

            	
              No
      Authorizations: No authorization or approval or other action by,
      and no notice to or filing with, any governmental authority or regulatory
      body exercising jurisdiction over the Assets or Purchaser is required for
      the due execution, delivery and performance by Purchaser of this
      Agreement, other than authorizations, approvals or exemptions previously
      obtained and currently in force;

            

    

     

    
      	
               
      

            	
              (g)

            	
              Investment Canada
      Act: The purchase of the Assets by Purchaser is not reviewable
      pursuant to the Investment Canada Act
      (Canada);

            

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (h)

            	
              Shares Validly
      Issued: If applicable, the Shares shall be validly issued, fully
      paid and non-assessable shares as at the date of Closing;
    and

            

    

     

    
      	
               
      

            	
              (i)

            	
              Reporting
      Issuer: The Purchaser is not a reporting issuer, as defined under
      applicable Securities Rules, of any province or territory of
      Canada.

            

    

     

    
      	
              6.5

            	
              Limitation

            

    

     

    Each
Party acknowledges that the other may rely on the representations and warranties
made by such Party pursuant to sections 6.1, 6.2 or 6.4, as the case may
be.  The representations and warranties in sections 6.1, 6.2 and 6.4
shall be true and correct as of the date hereof and on the Closing Date, as
applicable, and such representations and warranties shall continue in full force
and effect and shall survive the Closing Date for a period of twelve (12) months
or until the completion of a final statement of adjustments by the Parties as
described in section  4.2, whichever is later, for the benefit of the
Party for which such representations and warranties were made.  In the
absence of fraud, however, no claim or action shall be commenced with respect to
a breach of any such representation or warranty, unless, within such twelve (12)
month survival period, written notice specifying such breach in reasonable
detail has been provided to the Party which made such representation or
warranty.

     

    ARTICLE
7

    INDEMNITIES

     

     

    
      	
              7.1

            	
              Vendor's
      Indemnities for Representations and
Warranties

            

    

     

    Vendor
shall be liable to Purchaser for and shall, in addition, indemnify Purchaser
from and against, Losses and Liabilities of Purchaser which would not have been
suffered, sustained, paid or incurred had all of the representations and
warranties contained in section 6.1 been accurate and truthful, provided however
that nothing in this section 7.1 shall be construed so as to cause Vendor to be
liable to or indemnify Purchaser in connection with any representation or
warranty contained in section 6.1 if and to the extent that Purchaser did not
rely upon such representation or warranty.

     

    
      	
              7.2

            	
              Dover’s
      Indemnities for Representations and
Warranties

            

    

     

    Dover
shall be liable to Purchaser for and shall, in addition, indemnify Purchaser
from and against, Losses and Liabilities of Purchaser which would not have been
suffered, sustained, paid or incurred had all of the representations and
warranties of Dover contained in section 6.2 been accurate and truthful,
provided however that nothing in this section 7.2 shall be construed so as to
cause Dover to be liable to or indemnify Purchaser in connection with any
representation or warranty contained in section 6.2 if and to the extent that
Purchaser did not rely upon such representation or warranty.

     

    
      	
              7.3

            	
              Purchaser's
      General Indemnity

            

    

     

    Except as
otherwise provided in this Article 7 or in Article 4, Purchaser
shall:

     

    
      	
               
      

            	
              (a)

            	
              be
      liable for; and in addition

            

    

     

    
      	
               
      

            	
              (b)

            	
              indemnify
      Vendor and Dover from and against all Losses and Liabilities of Vendor and
      Dover in respect of;

            

    

     

    any claim
(whether valid or invalid) in respect of the Assets or operations in respect
thereof as a consequence of acts or omissions which occurred or are alleged to
have occurred after the Effective Time, except to the extent resulting from the
gross negligence of Dover or Vendor and except to the extent reimbursed to Dover
or Vendor by insurance.

     

    
      
        
           

        

        
          -20-

          
            

          

        

        
           

          
            -  -

          

        

      

    

     

    
      	
              7.4

            	
              Environmental
      Matters and Abandonment and Reclamation
  Obligations

            

    

     

    Purchaser
has taken into account Purchaser's assumption of responsibility for
Environmental Liabilities and Abandonment and Reclamation Obligations and the
release of Vendor from responsibility therefor when Purchaser evaluated the
Assets and determined the Purchase Price.  Except as provided in
section 7.5, Purchaser shall:

     

    
      	
               
      

            	
              (a)

            	
              be
      liable for; and in addition

            

    

     

    
      	
               
      

            	
              (b)

            	
              indemnify
      Vendor and Dover from and against all Losses and Liabilities of Vendor and
      Dover in respect of;

            

    

     

    all
Environmental Liabilities howsoever and by whomsoever caused and whether they
occur or arise in whole or in part prior to, on or subsequent to the Closing
Date and all Abandonment and Reclamation Obligations.  Purchaser shall
not be entitled to exercise and hereby waives any rights or remedies Purchaser
may now or in the future have against Vendor or Dover in respect of such
Environmental Liabilities or the Abandonment and Reclamation Obligations,
whether such rights and remedies are pursuant to the common law or statute or
otherwise, including without limitation, the right to name Vendor or Dover as a
third party to any action commenced by any Third Party against Purchaser except
for any claims which Purchaser may make pursuant to Article 6, section 7.1 or
section 7.2.

     

    
      	
              7.5

            	
              Limitation

            

    

     

    The
indemnities provided for in this Article 7 apply only if Closing
occurs.  Purchaser shall not be required to indemnify Vendors or Dover
pursuant to section 7.3 or 7.4 in respect of any matter if a representation and
warranty relating to such matter in section 6.1 or 6.2 as applicable, was untrue
at the date it was made and Purchaser has given notice of such breach to Vendor
within twelve (12) months of Closing.  Notwithstanding any other
provision herein, the liability of Vendor and Dover and the indemnity hereby
granted by Vendor and Dover in this Article 7 shall only apply with respect to
claims made by Purchaser within twelve (12) months of Closing.  The
maximum cumulative liability of the Vendors and Dover to Purchaser pursuant to
sections 7.1 and 7.2 shall not exceed $200,000.  The cumulative
liability of the Purchaser to Vendor pursuant to sections 7.3 and 7.4 shall not
exceed $200,000.

     

    
      	
              7.6

            	
              No
      Merger of Legal Responsibilities

            

    

     

    The
liabilities and indemnities created in this Article 7 shall be deemed to apply
to, and shall not merge in, all assignments, transfers, conveyances, novations,
trust agreements and other documents conveying any of the Assets from Vendor to
Purchaser or from Dover to Sea Dragon or any other documents between Vendor and
Purchaser, notwithstanding the terms of such assignments, transfers,
conveyances, novations and other documents, the Regulations or any rule of law
or equity to the contrary, and all such rules are hereby waived.

     

    
      	
              7.7

            	
              Substitution
      and Subrogation

            

    

     

    Insofar
as is possible, each Party shall have full rights of substitution and
subrogation in and to all covenants, representations and warranties by others
previously given or made in respect of the Assets or any of them.

     

    
      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

    

     

    ARTICLE
8

    POST CLOSING
ADMINISTRATION

     

     

    
      	
              8.1

            	
              Maintenance
      of Assets Prior to Closing

            

    

     

    From the
date hereof until the Closing Date, Vendor shall, to the extent that the nature
of its interest permits, and subject to the Title and Operating Documents and
any other agreements and documents to which the Assets are subject:

     

    
      	
               
      

            	
              (a)

            	
              maintain
      the Assets in a proper and prudent manner in accordance with good oil and
      gas industry practices and in material compliance with all applicable
      laws, rules, regulations, orders and directions of governmental and other
      competent authorities;

            

    

     

    
      	
               
      

            	
              (b)

            	
              pay
      or cause to be paid all costs and expenses relating to the Assets which
      become due from the date hereof to the Closing Date;
  and

            

    

     

    
      	
               
      

            	
              (c)

            	
              perform
      and comply with all covenants and conditions contained in the Title and
      Operating Documents and any other agreements and documents to which the
      Assets are subject.

            

    

     

    
      	
              8.2

            	
              Consent
      of Purchaser

            

    

     

    Notwithstanding
section 8.1, from the date hereof until the Closing Date, Vendor shall not,
without the written consent of Purchaser, which consent shall not be
unreasonably withheld by Purchaser and which, if provided, will be provided in a
timely manner:

     

    
      	
               
      

            	
              (a)

            	
              make
      any commitment or propose, initiate or authorize any capital expenditure
      with respect to the Assets of which Vendor's share is in excess of
      $25,000.00, except in case of an emergency or in respect of amounts which
      Vendor is committed to expend or is deemed to authorize without its
      specific authorization or approval in accordance with the Title and
      Operating Documents;

            

    

     

    
      	
               
      

            	
              (b)

            	
              surrender
      or abandon any of the Assets;

            

    

     

    
      	
               
      

            	
              (c)

            	
              amend
      or terminate any Title and Operating Documents or enter into any new
      agreement or commitment relating to the
Assets;

            

    

     

    
      	
               
      

            	
              (d)

            	
              sell,
      encumber, grant a Security Interest or otherwise dispose of any of the
      Assets or any part or portion thereof except sales of Petroleum Substances
      in the normal course of business;
or

            

    

     

    
      	
               
      

            	
              (e)

            	
              if
      an operation or the exercise of any right or option respecting the Assets
      is proposed in circumstances in which such operation or the exercise of
      such right or option would result in an obligation of Purchaser in excess
      of Twenty-Five Thousand Dollars ($25,000.00) the following provisions
      shall apply to such operation or the exercise of such right or option
      (hereinafter referred to as the "Proposal"):

            

    

     

    
      	
               
      

            	
              (i)

            	
              Vendor
      shall promptly give notice of the Proposal to Purchaser, including with
      such notice the particulars of such Proposal in reasonable
      detail;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Purchaser
      shall, not later than twenty-four (24) hours prior to the time Vendor is
      required to make its election with respect to the Proposal, advise Vendor,
      by notice, whether it wishes Vendor to exercise its rights with respect to
      the Proposal on behalf of Purchaser, provided that failure of Purchaser to
      make such election within such period shall be deemed to be an election by
      Purchaser to participate in the
Proposal;

            

      
        
           

        

        
          -22-

          
            

          

        

        
           

          
            -  -

          

        

      

    

     

    
      	
               
      

            	
              (iii)

            	
              Vendor
      shall make the election authorized by Purchaser with respect to the
      Proposal within the period during which Vendor may respond to the
      Proposal; and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      election by Purchaser not to participate in any Proposal required to
      preserve the existence of any of the Assets shall not entitle Purchaser to
      any reduction of the Purchase Price in the event that Vendor's interest
      therein is terminated as a result of such election, and such termination
      shall not constitute a failure of Vendor's representations and warranties
      pertaining to such Assets.

            

    

     

    
      	
              8.3

            	
              Following
      Closing

            

    

     

    
      	
               
      

            	
              (a)

            	
              Following
      Closing, Vendor and Dover shall hold their title to the Assets in trust
      for Purchaser until all necessary notifications, registrations and other
      steps required to transfer such title to Purchaser have been
      completed.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Following
      Closing, Vendor and Dover shall represent Purchaser in all matters arising
      under a Title and Operating Document until Purchaser is substituted as a
      party thereto in the place of Dover or Vendor, whether by novation, notice
      of assignment or otherwise and, in furtherance thereof all payments
      relating to the Assets received by Dover or  Vendor pursuant to
      the Title and Operating Documents, other than those to which Dover or
      Vendor is entitled under Article 4, shall be received and held by Vendor
      or Dover as a trustee for Purchaser and Vendor or Dover shall remit such
      amounts to Purchaser within a reasonable period of
  time.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Purchaser
      shall indemnify and save harmless Dover and Vendor from and against all of
      Vendor's or Dover's Losses and Liabilities arising as a consequence of the
      provisions of subsections 8.2(e), 8.3(a) or (b) hereof, except to the
      extent caused by the gross negligence or wilful misconduct of Vendor or
      Dover, or their respective servants, agents or employees and except to the
      extent reimbursed to Vendor or Dover by insurance.  Vendor and
      Dover shall indemnify and save harmless Purchaser from all of Purchaser’s
      Losses and Liabilities arising as a result of the gross negligence or
      wilful misconduct of  Vendor or Dover or their respective
      servants, agents or employees in connection with Vendor’s and Dover's
      obligations under subsections 8.3(a) or (b).  Acts or omissions
      taken by Vendor or Dover or their respective servants or agents with the
      approval of Purchaser shall not constitute gross negligence or wilful
      misconduct for purposes of this
subsection.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Insofar
      as Vendor or Dover maintains the Assets and takes actions with respect
      thereto on behalf of Purchaser pursuant to this Article, Vendor or Dover
      shall be deemed to have been the agent of Purchaser
      hereunder.  Purchaser ratifies all actions taken by Vendor or
      Dover, or refrained to be taken by Vendor or Dover, pursuant to the terms
      of this Article 8 in such capacity during such period, with the intention
      that all such actions shall be deemed to be those of
      Purchaser.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Insofar
      as Vendor or Dover participates in either operations or the exercise of
      rights or options as the agent of Purchaser pursuant to this Article,
      Vendor or Dover may require Purchaser to secure the costs to be incurred
      by Vendor or Dover on behalf of Purchaser pursuant to such election in
      such manner as may be reasonably appropriate in the
      circumstances.

            

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

    

     

    ARTICLE
9

    THIRD PARTY RIGHTS AND
CONSENTS

     

     

    
      	
              9.1

            	
              Consents

            

    

     

    Where an
assignment of any of the Assets requires the consent of Third Parties, Vendor
shall use commercially reasonable efforts to obtain such consents prior to
Closing.  After Closing, Vendor  and Dover shall cooperate
with Purchaser in Purchaser's attempts to secure such consents.

     

    ARTICLE
10

     ANTI-DILUTION

     

     

    
      	
              10.1

            	
              Reclassification,
      Subdivision or Redivision of Purchaser's Common
  Shares

            

    

     

    In the
event of any reclassification, subdivision or redivision of the issued common
shares of Purchaser at any time during the period commencing upon execution of
this Agreement up to and including the Closing Date, into a greater number of
common shares of Purchaser (including the declaration of payment of any stock
dividend), Purchaser shall deliver at Closing, at no additional cost to Vendor,
such greater number of common shares of Purchaser as represented by the Shares
if Closing had occurred prior to the date of reclassification, subdivision or
redivision.

     

    
      	
              10.2

            	
              Consolidation
      or Reduction of Purchaser's Common
Shares

            

    

     

    In the
event of any consolidation or change in the common shares of Purchaser at any
time during the period commencing upon execution of this Agreement up to and
including the Closing Date, to a lesser number of common shares of Purchaser,
Purchaser shall deliver at Closing such lesser number of common shares of
Purchaser as represented by the Shares if Closing had occurred prior to the date
of such consolidation or change.

     

    
      	
              10.3

            	
              Consolidation,
      Amalgamation or Merger

            

    

     

    In the
event that Purchaser at any time during the period commencing upon execution of
this Agreement up to and including the Closing Date, amalgamates, consolidates
with or merges into another corporation, the Resulting Entity shall deliver at
Closing such securities or property as represented by the Shares if Closing had
occurred prior to the completion date of such amalgamation, consolidation or
merger.  A sale of all or substantially all of the assets of Purchaser
for a consideration (apart from the assumption of obligations), consisting
primarily of securities, shall be deemed a consolidation, amalgamation or merger
for the foregoing purposes.

     

    
      	
              10.4

            	
              Adjustments
      Cumulative

            

    

     

    The
adjustments in the number of common shares issuable pursuant to this Agreement
as provided for in this Article 10 are to be cumulative.

     

    
      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

    

     

    ARTICLE
11

    GENERAL

     

     

    
      	
              11.1

            	
              Further
      Assurances

            

    

     

    Each
Party will, from time to time and at all times after Closing, without further
con­sideration, do such further acts and deliver all such further
assurances, deeds and documents as shall be reasonably required in order to
fully perform and carry out the terms of this Agreement.  Vendor shall
cooperate with Purchaser as reasonably required to secure execution by Third
Parties of the Specific Conveyances.

     

    
      	
              11.2

            	
              No
      Merger

            

    

     

    The
covenants, representations, warranties and indemnities contained in this
Agreement shall survive Closing and shall not merge in any assignments,
conveyances, transfers or other documents executed and delivered at or after
Closing, notwithstanding any rule of law, equity or statute to the contrary and
such rules are hereby waived.

     

    
      	
              11.3

            	
              Entire
      Agreement

            

    

     

    The
provisions contained in any and all documents and agreements collateral hereto
shall at all times be read subject to the provisions of this Agreement and, in
the event of conflict, the provisions of this Agreement shall
prevail.  This Agreement supersedes all other agreements, documents,
writings and verbal understanding among the Parties relating to the subject
matter hereof.

     

    
      	
              11.4

            	
              Governing
      Law

            

    

     

    This
Agreement shall be subject to and interpreted, construed and enforced in
accordance with the laws of the Province of Alberta and the laws of Canada
applicable therein and shall be treated as a contract made in the Province of
Alberta.  The Parties irrevocably attorn and submit to the
jurisdiction of the courts of the Province of Alberta and courts of appeal
therefrom in respect of all matters arising out of this Agreement.

     

    
      	
              11.5

            	
              Enurement

            

    

     

    This
Agreement may not be assigned by a Party without the prior written consent of
the other Party, which consent may be unreasonably and arbitrarily
withheld.  This Agreement shall be binding upon and shall enure to the
benefit of the Parties and their respective administrators, trustees, receivers,
successors and permitted assigns.

     

    
      	
              11.6

            	
              Time
      of Essence

            

    

     

    Time
shall be of the essence in the performance of this Agreement.

     

    
      	
              11.7

            	
              Notices

            

    

     

    The
addresses and fax number of each Party for notices shall be as
follows:

     

    
      
        
           

        

        
          -25-

          
            

          

        

        
           

        

      

    

     

    Vendor:

    Mogul
Energy International, Inc.

    520 Pike
Street, Suite 2210

    Seattle
Washington, USA

    98101

    
      	
               
      

            	
              Attention:

            	
              Naeem
      Tyab

            

    

    
      	
               
      

            	
              Facsimile:

            	
              (604)
      669-6317

            

    

    
      	
               
      

            	
              Email:

            	
              naeem@mogulenergy.com

            

    

    

    Purchaser:

    Egypt Oil
Holdings Ltd.

    C/O Axium
Law Corporation

    Suite
3350, Four Bentall Centre

    1055
Dunsmuir Street

    PO Box
49222

    Vancouver,
British Columbia

    V7X
1L2

    
      	
               
      

            	
              Attention:

            	
              Joseph
      Giuffre

            

    

    
      	
               
      

            	
              Facsimile:

            	
              604-692-4900

            

    

    
      	
               
      

            	
              E-mail:

            	
              jgiuffre@axiumlaw.com

            

    

    

    
      	
               
      

            	
              Dover:

            

    

    Dover
Investments Limited

    10225
Yonge Street

    Richmond
Hill, Ontario, Canada, L4C 3B2

    
      	
               
      

            	
              Attention:

            	
              Mr.
      Robert Salna

            

    

    
      	
               
      

            	
              Facsimile:

            	
              (905)
      884-5178

            

    

    
      	
               
      

            	
              Email:

            	
              petrozeit@hotmail.com

            

    

    

    Sea
Dragon:

    Sea
Dragon Energy Inc.

    1112 –
207 West  Hastings Street

    Vancouver,
British Columbia

    V6B
1H7

    
      	
               
      

            	
              asting
      h

            

    

    
      	
               
      

            	
              Attention:

            	
              David
      Thompson

            

    

    
      	
               
      

            	
              Facsimile:

            	
              (604)
      608-8704

            

    

    
      	
               
      

            	
              Email:

            	
              david@seadragon.ca

            

    

    

    Any
notice, communication or statement (a "notice") required, permitted or
contemplated hereunder shall be in writing and shall be delivered as
follows:

     

    
      	
               
      

            	
              (a)

            	
              by
      delivery to a Party between 8:00 a.m. Vancouver time and 4:00 p.m.
      Vancouver time on a Business Day at the address of such Party for notices,
      in which case the notice shall be deemed to have been received by that
      Party when it is delivered;

            

    

     

    
      	
               
      

            	
              (b)

            	
              by
      fax to a Party to the fax number of such Party for notices, in which case,
      if the notice was faxed prior to 4:00 p.m. Vancouver time on a Business
      Day the notice shall be deemed to have been received by that Party when it
      was faxed and if it is faxed on a day which is not a Business Day or is
      faxed after 4:00 p.m. Vancouver time on a Business Day, it shall be deemed
      to have been received on the next following Business Day;
    or

            

      
        
           

        

        
          -26-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (c)

            	
              except
      in the event of an actual or threatened postal strike or other labour
      disruption that may affect mail service, by first class registered postage
      prepaid mail to a Party at the address of such Party for notices, in which
      case the notice shall be deemed to have been received by that Party on the
      fifth (5th)
      Business Day following the date of
mailing.

            

    

     

    A Party
may from time to time change its address for service or its fax number for
service by giving written notice of such change to the other Party.

     

    In this
section "Business Day" means any day other than a Saturday, a Sunday or a
statutory holiday in British Columbia.

     

    
      	
              11.8

            	
              Invalidity
      of Provisions

            

    

     

    In case
any of the provisions of this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality or enforceability of the
remaining, provisions contained herein shall not in any way be affected or
impaired thereby.

    

    
      	
              11.9

            	
              Waiver

            

    

     

    No waiver
by any Party of any breach (whether actual or anticipated) of any of the terms,
conditions, representations or warranties contained herein shall take effect or
be binding upon that Party unless the waiver is expressed in writing under the
authority of that Party.  Any waiver so given shall extend only to the
particular breach so waived and shall not limit or affect any rights with
respect to any other or future breach.

    

    
      
        	
                11.10

              	
                Remedies
      Generally

              

      

    

     

    No
failure on the part of any Party in exercising any right or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or remedy preclude any other or further exercise thereof or the
exercise of any other right or remedy in law or in equity or by statute or
otherwise conferred.

     

    
      	
              11.11

            	
              Amendment

            

    

     

    This
Agreement shall not be varied in its terms or amended by oral agreement or by
representations or otherwise other than by an instrument in writing dated
subsequent to the date hereof, executed by a duly authorized representative of
each Party.

     

    
      	
              11.12

            	
              Consequences
      of Termination

            

    

     

    If this
Agreement is terminated in accordance with its terms on or prior to the Closing
Date, then except the covenants, warranties, representations or other
obligations breached prior to the time at which such termination occurs, the
Parties shall be released from all of their obligations under this
Agreement.  If this Agreement is so terminated, Purchaser shall
promptly return to Vendor all materials delivered to Purchaser by Vendor
hereunder, together with all copies of them that may have been made by or for
Purchaser.

     

    
      	
              11.13

            	
              Securities
      Act Disclosure

            

    

     

    At any
time within 4 years from the Closing Date (but not thereafter), should Purchaser
require an audited operating or financial statement with respect to the Assets
for a period during which the Assets were owned by Vendor, Vendor shall provide
access to the records of Vendor relevant to preparation of such an operating or
financial statement during such period.  Such access shall be provided
by Vendor to an independent auditing firm selected by Purchaser subject to the
entering into by the auditing firm of a confidentiality agreement reasonably
required by Vendor.  Vendor shall not be required to provide direct
access to Vendor’s records to Purchaser or any employees, consultants or other
representatives of Purchaser.  If the independent auditors require the
assistance of Vendor’s personnel to find, collect or interpret the necessary
information from Vendor’s records, Vendor shall cause such assistance to be
provided and Purchaser shall pay reasonable hourly costs to Vendor as
compensation for the time devoted by such personnel.

     

    
      
        
           

        

        
          -27-

          
            

          

        

        
           

        

      

    

     

    
      	
              11.14

            	
              Counterpart
      Execution

            

    

     

    This
Agreement may be executed in counterpart and by facsimile or other electronic
means and all executed counterparts together shall constitute one
agreement.

     

    
      	
              11.15

            	
              Legal
      Expenses

            

    

     

    All
reasonable legal expenses, up to a maximum of Six Thousand Dollars ($6,000.00),
incurred by Dover on its own behalf in connection with preparing and reviewing
this Agreement and giving effect to the transactions contemplated hereto, shall
be paid by Egypt Oil or by Sea Dragon.

     

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

    

    

    
      	
              EGYPT
      OIL HOLDINGS LTD.

            	 	
              MOGUL
      ENERGY INTERNATIONAL, INC.

            
	 
      	 	 
      
	 
      	 	 
      
	
              Per:

            	 
      	 	
              Per:

            	 
      
	 
      	 	 
      
	
              SEA
      DRAGON ENERGY INC.

            	 	
              DOVER
      INVESTMENTS LIMITED

            
	 
      	 	 
      
	 
      	 	 
      
	
              Per:

            	 
      	 	
              Per:

            	 
      

    

    

      
        
           

        

        
          -28-

          
            

          

        

        
           

        

      

    
      SCHEDULE
"A" TO AN AGREEMENT OF PURCHASE AND SALE DATED THE 21ST DAY OF
MARCH, 2008 AMONG EGYPT OIL HOLDINGS LTD., MOGUL ENERGY INTERNATIONAL, INC., SEA
DRAGON ENERGY INC. AND DOVER INVESTMENTS LIMITED

    

    

    LAND
SCHEDULE

    

    

    
      	
              Concessions

            	
              Petroleum
      and Natural Gas Rights

            	
              Encumbrance(s)

            	
              Lands

            
	
              Concession
      Agreement for Petroleum Exploration and Exploitation Between the Arab
      Republic of Egypt and the Egyptian General Petroleum Corporation and Dover
      Investments Limited in East Wadi Araba Area Gulf of Suez
      A.R.E.

            	
              Mogul
      - 20% beneficial interest (required to pay 33 1/3% of expenses until
      formation of joint operating company)

               

              Dover
      - 20% legal interest held as bare trustee for the benefit of
      Mogul

            	
              None

            	
              All
      Petroleum and Natural Gas Rights underlying a surface area of
      approximately 193.06 km2 as delineated by the following boundary
      coordinates:

            
	
              Point
      No.

            	
              Longitude

            	
              Latitude

            
	
              1

            	
              Intersection
      of Lat. 29' 17' 00.00" with shore line

            	
              29'
      17' 00.00"

            
	
              2

            	
              32'
      40' 30.00"

            	
              29'
      17' 00.00"

            
	
              3

            	
              32'
      40' 30.00"

            	
              29'
      15' 00.00"

            
	
              4

            	
              32'
      41' 30.00"

            	
              29'
      15' 00.00"

            
	
              5

            	
              32'
      41' 30.00"

            	
              29'
      14' 00.00"

            
	
              6

            	
              32'
      41' 00.00"

            	
              29'
      14' 00.00"

            
	
              7

            	
              32'
      41' 00.00"

            	
              29'
      13' 00.00"

            
	
              8

            	
              32'
      40' 00.00"

            	
              29'
      13' 00.00"

            
	
              9

            	
              32'
      40' 00.00"

            	
              29'
      09' 00.00"

            
	
              10

            	
              Intersection
      of Lat. 29' 09' 00.00" with shore line

            	
              29'
      09' 00.00"

            
	
              and

            
	
              11

            	
              32'
      40' 00.00"

            	
              29'
      09' 00.00"

            
	
              12

            	
              32'
      44' 30.00"

            	
              29'
      09' 00.00"

            
	
              13

            	
              32'
      44' 30.00"

            	
              29'
      08' 00.00"

            
	
              14

            	
              32'
      48' 00.00"

            	
              29'
      08' 00.00"

            
	
              15

            	
              32'
      48' 00.00"

            	
              29'
      03' 00.00"

            
	
              16

            	
              32'
      44' 00.00"

            	
              29'
      03' 00.00"

            
	
              17

            	
              32'
      44' 00.00"

            	
              28'
      54' 00.00"

            
	
              18

            	
              32'
      44' 00.00"

            	
              29'
      02' 29.45"

            
	
              19

            	
              32'
      40' 00.00"

            	
              29'
      02' 29.45"

            
	
              11

            	
              32'
      40' 00.00"

            	
              29'
      09' 00.00"

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	SCHEDULE "B" TO AN
      AGREEMENT OF PURCHASE AND SALE DATED THE 21ST
      DAY OF MARCH, 2008 AMONG EGYPT OIL HOLDINGS LTD., MOGUL ENERGY
      INTERNATIONAL, INC., SEA DRAGON ENERGY INC. AND DOVER INVESTMENTS
      LIMITED

    

     

    CERTIFICATE

    

    
      	
              TO:

            	
              ●

            

    

    

    
      
        	
                RE:

              	
                AGREEMENT
      OF PURCHASE AND SALE DATED THE 21ST
      DAY OF MARCH, 2008 AMONG EGYPT OIL HOLDINGS LTD., MOGUL ENERGY
      INTERNATIONAL, INC., SEA DRAGON ENERGY INC., AND DOVER INVESTMENTS LIMITED
      (the "Agreement")

              

      

    

    

    I, ● of the City of ●, in the ● of ●, HEREBY CERTIFY
THAT:

    

    1.            
I am the ● of ●, ("●") and in such capacity am
familiar with the Agreement.

    

    2.           
 The representations and warranties of ● contained in the Agreement
are true and correct in all material respects from March 21, 2008 to and
including the Closing Date.

    

    3.           
 ● has performed,
fulfilled and satisfied all covenants and obligations required by the Agreement
to be performed by • at or prior to the Closing Date.

    

    4.            
[There has been no alteration
of or damage to the Assets in the period from the Effective Date to Closing
Date.]  [Delete from Purchaser's Certificate]

    

    5.          
  This Certificate is made with full knowledge that Purchaser [Vendor] is relying on the
same for the Closing of the transactions contemplated by the
Agreement.

    

    6.          
  I make this Certificate in my capacity as ● of · and assume no personal
liability in respect of the matters certified herein.

    

    Unless
otherwise defined herein, capitalized terms shall have the meanings given to
them in the Agreement.

    

    IN
WITNESS WHEREOF I have executed this Certificate on this ● day of ●, 2008.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        	 SCHEDULE "C"
      TO AN AGREEMENT OF PURCHASE AND SALE DATED THE 21ST
      DAY OF MARCH, 2008 AMONG EGYPT OIL HOLDINGS LTD., MOGUL ENERGY
      INTERNATIONAL, INC., SEA DRAGON ENERGY INC. AND DOVER INVESTMENTS
      LIMITED

      

       

    

    GENERAL
CONVEYANCE

    

    THIS
AGREEMENT made as of the●
day of ●

     

    AMONG:

     

    MOGUL ENERGY INTERNATIONAL, INC.
a body corporate, incorporated pursuant to the laws of the state of
Delaware (hereinafter referred to as the "Vendor")

     

    - and
-

     

    EGYPT OIL HOLDINGS LTD., a
body corporate, incorporated pursuant to the laws of the federal government of
Canada (hereinafter referred to as the "Purchaser")

     

    

    WHEREAS Vendor has agreed to
sell and convey the Assets to Purchaser and Purchaser has agreed to purchase and
receive the Assets from Vendor;

    

    NOW THEREFORE for the
consideration provided in the Purchase Agreement and in consideration of the
premises hereto and the covenants and agreements hereinafter set forth and
contained, the Parties hereto covenant and agree as follows:

    

    
      	
              1.

            	
              Definitions

            

    

    

    In this
Agreement, including the premises hereto, "Purchase Agreement" means the
agreement entitled "Agreement of Purchase and Sale" dated March 21, 2008 and
made between Dover Investments Limited, Vendor and Purchaser and Sea Dragon
Energy Inc.  In addition, the definitions provided for in the Purchase
Agreement are adopted herein by this reference.

    

    
      	
              2.

            	
              Conveyance

            

    

    

    Pursuant
to and for the consideration provided for in the Purchase Agreement, Vendor
hereby sells, assigns, transfers, conveys and sets over to Purchaser the entire
right, title, estate and interest of Vendor in and to the Assets, to have and to
hold the same absolutely, together with all benefit and advantage to be derived
therefrom.

    

    
      	
              3.

            	
              Effective
      Time

            

    

    

    Possession
and beneficial ownership of the Assets shall pass from Vendor to Purchaser on
the Closing Date.  For all other purposes this conveyance shall be
effective as of the Effective Time.

    

    
      	
              4.

            	
              Subordinate
      Document

            

    

    

    This
agreement is executed and delivered by the Parties hereto pursuant to the
Purchase Agreement and the provisions of the Purchase Agreement shall prevail in
the event of a conflict between the provisions of the Purchase Agreement and the
provisions of this agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    
      	
              5.

            	
              Enurement

            

    

    

    This
agreement shall be binding upon and shall enure to the benefit of each of the
Parties hereto and their respective trustees, receivers, receiver-managers,
successors and assigns.

    

    
      	
              6.

            	
              Further
      Assurances

            

    

    

    Each
Party hereto will, from time to time and at all times hereafter, at the request
of the other Party but without further consideration, do all such further acts
and execute and deliver all such further documents as shall be reasonably
required in order to fully perform and carry out the terms hereof.

    

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

    

    
      	 
      	
              EGYPT
      OIL HOLDINGS LTD.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Per:

            	 
      
	 
      	 
      	 
      
	 
      	
              MOGUL
      ENERGY INTERNATIONAL, INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Per:

            	 
      

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	SCHEDULE "D" TO AN
      AGREEMENT OF PURCHASE AND SALE DATED THE 21ST
      DAY OF MARCH, 2008 AMONG EGYPT OIL HOLDINGS LTD., MOGUL ENERGY
      INTERNATIONAL, INC., SEA DRAGON ENERGY INC. AND DOVER INVESTMENTS
      LIMITED

    

     

    CERTIFICATION OF INVESTMENT
INTENT

     

    Egypt Oil
Holdings Ltd.

    C/O Axium
Law Corporation

    Suite
3350, Four Bentall Centre

    1055
Dunsmuir Street

    PO Box
49222

    Vancouver,
British Columbia

    V7X
1L2

    

    
      	
              Attention:

            	
              Joseph
      Giuffre

            

    

    
      	
              Facsimile:

            	
              604-692-4900

            

    

    

     

    Ladies
and Gentlemen:

     

    The
undersigned hereby tenders this certification to Egypt Oil Holdings Ltd. (the
“Company”) pursuant to
section 6.1(v) of the agreement of purchase and sale (the “Agreement”) dated March 21,
2008, by and between Mogul Energy International Inc., Sea Dragon Energy Inc.,
Dover Investments Limited and the Company, in connection with the distribution
to the undersigned as a shareholder of the Vendor of fully paid up and
non-assessable common shares without nominal or par value in the capital stock
of the Company (the “Shares”) held by the Vendor,
such Shares being acquired by the Vendor from the Company pursuant to the
Agreement.  By execution of this certification, the undersigned
acknowledges that the Company is relying upon the accuracy and completeness of
the representations contained herein in complying with its obligations under
applicable securities laws.

     

    1.           Undersigned’s
Representations.  The undersigned acknowledges and represents
that:

     

    (a)           The
undersigned is in a financial position to hold the Shares for an indefinite
period of time and is able to bear the economic risk and withstand a complete
loss of the undersigned’s investment in the Shares;

     

    (b)           The
undersigned believes the undersigned, either alone or with the assistance of the
undersigned’s own professional advisor, has such knowledge and experience in
financial and business matters that the undersigned is capable of reading and
interpreting financial statements and evaluating the merits and risks of the
prospective investment in the Shares and has the net worth to undertake such
risks;

     

    (c)           The
undersigned has obtained, to the extent the undersigned deems necessary, the
undersigned’s own personal professional advice with respect to the risks
inherent in the investment in the Shares, and the suitability of an investment
in the Shares in light of the undersigned’s financial condition and investment
needs;

     

    (d)           The
undersigned believes that the investment in the Shares is suitable for the
undersigned based upon the undersigned’s investment objectives and financial
needs, and the undersigned has adequate means for providing for the
undersigned’s current financial needs and personal contingencies and has no need
for liquidity of investment with respect to the Shares;

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    (e)           The
undersigned has been given access to full and complete information
regarding  the Company and has utilized such access to the
undersigned’s satisfaction for the purpose of obtaining information regarding
the Company;

     

    (f)           The
undersigned recognizes that an investment in the Shares involves a high degree
of risk, including, but not limited to, the risk of economic losses from
operations of the Company;

     

    (g)           The
undersigned realizes that (i) the purchase of the Shares is a long-term
investment; (ii) the purchaser of the Shares must bear the economic risk of
investment for an indefinite period of time because the Shares have not been
registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the
securities laws of any state and, therefore, none of such securities can be sold
unless they are subsequently registered under said laws or exemptions from such
registrations are available; (iii) the undersigned may not be able to
liquidate the undersigned’s investment in the event of an emergency or pledge
any of such securities as collateral for loans; and (iv) the
transferability of the Shares is restricted and (A) requires the written
consent of the Company and (B) legends will be placed on the certificate(s)
representing the Shares referring to the applicable restrictions on
transferability; and

     

    (h)           The
undersigned certifies, under penalties of perjury, that the undersigned is not subject to the backup
withholding provisions of section  3406(a)(i)(C) of the Internal
Revenue Code of 1986, as amended (Note:  you are subject to backup
withholding if (i) you fail to furnish your Social Security number or
taxpayer identification number herein; (ii) the Internal Revenue Service
notifies the Company that you furnished an incorrect Social Security number or
taxpayer identification number; (iii) you are notified that you are subject
to backup withholding; or (iv) you fail to certify that you are not subject
to backup withholding or you fail to certify your Social Security number or
taxpayer identification number.).

     

    (i)           The
undersigned is a bona fide resident of, is domiciled in and received the offer
and made the decision to invest in the Shares in the state set forth on the
signature page below, and the Shares are being purchased by the undersigned in
the undersigned’s name solely for the undersigned’s own beneficial interest and
not as nominee for, or on behalf of, or for the beneficial interest of, or with
the intention to transfer to, any other person, trust or
organization.

     

    (j)           The
undersigned has been advised that the Shares have not been registered under the
Securities Act, or applicable state securities laws and that such securities are
being offered and sold pursuant to exemptions from such laws and that the
Company’s reliance upon such exemptions is predicated in part on the
undersigned’s representations as contained herein.  The undersigned
represents and warrants that the Shares are being purchased for undersigned’s
own account and for investment and not with a view to distribution of the
Shares, that the undersigned has made no agreement with others regarding any of
the Shares and that the undersigned’s financial condition is such that it is not
likely that it will be necessary to dispose of any of the Shares in the
foreseeable future.  The undersigned is aware that, in the view of the
Securities and Exchange Commission, a purchase of the Shares with an intent to
distribute by reason of any foreseeable specific contingency or anticipated
change in market values, or any change in the condition of the Company, or in
connection with a contemplated liquidation or settlement of any loan obtained
for the acquisition of the Shares and for which the Shares were pledged, would
represent an intent inconsistent with the representations set forth
above.  The undersigned further represents and agrees that if,
contrary to the undersigned’s foregoing intentions, the undersigned should later
desire to dispose of or transfer any of the Shares in any manner, the
undersigned shall not do so without first obtaining (i) the opinion of
counsel acceptable to the Company that such proposed disposition or transfer
lawfully may be made without registration pursuant to the Securities Act and
applicable state securities laws or (ii) registration of the Shares under
the Securities Act (it being expressly understood that the Company shall not
have any obligation to register the securities for such purpose);

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    2.           Entities.  If
this purchase is made on behalf of a corporation, trust, partnership, limited
liability company or other form of business entity (an “Entity”), the undersigned
signatory certifies that he or she is empowered and duly authorized by the
Entity to execute and carry out the terms of this Certification of Investment
Intent and to purchase and hold the Shares, and certifies further that this
Certification of Investment Intent has been duly and validly executed on behalf
of the Entity and constitutes a legal and binding obligation of the
Entity.

     

    3.           Accredited Investor
Status.  The undersigned represents and warrants, by initialing
the appropriate statement, that the undersigned is an “accredited investor” as
defined in Rule 501(a) of Regulation D of the Securities Act, because the
undersigned meets at least one of the following criteria (please initial each applicable
item):

     

    
      	
              S _________

            	
              The
      undersigned is a natural person whose individual net worth, or joint net
      worth with his or her spouse, exceeds $1,000,000 at the time of the
      undersigned’s purchase; or

            

    

     

    
      	
              S _________

            	
              The
      undersigned is a natural person who had an individual income in excess of
      $200,000 in each of the two most recent years or joint income with the
      undersigned’s spouse in excess of $300,000 in each of those years and who
      reasonably expects to reach the same income level in the current year;
      or

            

    

     

    
      	
              S _________

            	
              The
      undersigned is a corporation, Massachusetts or similar business trust,
      partnership or an organization described in section  501(c)(3)
      of the Internal Revenue Code, not formed for the specific purpose of
      acquiring the Shares, with total assets in excess of $5,000,000;
      or

            

    

     

    
      	
              S _________

            	
              The
      undersigned is either (i) a bank as defined in
      section  3(a)(2) of the Securities Act, or any savings and loan
      association or other institution as defined in
      section  3(a)(5)(A) of the Securities Act whether acting in its
      individual or fiduciary capacity, (ii) a broker or dealer registered
      pursuant to section  15 of the Securities Exchange Act of 1934,
      as amended, (iii) an insurance company as defined in
      section  2(13) of the Securities Act, (iv) an investment
      company registered under the Investment Company Act of 1940, as amended,
      or a business development company as defined in section  2(a)(48) of
      such Act, (v) a Small Business Investment Company licensed by the
      U.S. Small Business Administration under section  301(c) or (d)
      of the Small Business Investment Act of 1958, (vi) a plan established or
      maintained by a state, its political subdivisions, or any agency or
      instrumentality of a state or its political subdivisions, for the benefit
      of its employees, if such plan has total assets in excess of $5,000,000 or
      (vii) an employee benefit plan within the meaning the Employee
      Retirement Income Security Act of 1974, if the investment decision is made
      by a plan fiduciary, as defined in section  3(21) of such Act,
      which plan fiduciary is either a bank, savings and loan association,
      insurance company or registered investment adviser, or if the employee
      benefit plan has total assets in excess of $5,000,000 or, if a
      self-directed plan, with investment decisions made solely by persons who
      are accredited investors; or

            

    

     

    
      	
              S _________

            	
              The
      undersigned is a private business development company as defined in
      section  202(a)(22) of the Investment Advisers Act of 1940;
      or

            

    

     

    
      	
              S _________

            	
              The
      undersigned is a director, executive officer or general partner of the
      Company, or a director, executive officer or general partner of a general
      partner of the Company; or

            

    

     

    
      	
              S _________

            	
              The
      undersigned is a trust, with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the Shares, whose purchase is
      directed by a sophisticated person as described in Rule 506(b)(2)(ii) of
      Regulation D of the Securities Act.

            

    

     

    
      	
              S _________

            	
              The
      undersigned is any entity in which all of the equity owners are accredited
      investors.  (Please submit  a copy of this page
      countersigned by each such equity owner if relying on this
      item).

            

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    State the
Interest of Undersigned in Vendor (e.g. Officer, Director,
Shareholder)

    

    
      
        

      

    

    

    Indicate
in which State the Investment Decision was made and this Certification was
executed:

    

    
      
        

      

    

    

    

    This
Certification of Investment Intent is signed this ____ day of _________
2008.

    

    
      	 
      If
      signed by individual:	If
      signed by entity:
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	
              Signature

            	 	
              Name
      of Entity

            	 
      
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	
              (Print
      Name)

            	 	
              Signature
      of Authorized Officer

            
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	
              (Print
      Name)

            
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	 
      	 
      
	 	 
      	 
      	 	
              (Title)

            
	 	 
      	 
      	 	 
      	 
      

    

    

    

    Address
of Undersigned:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]