Document:

Exhibit 10.5

                             PARTICIPATION AGREEMENT
                             -----------------------

     This  Participation  Agreement is made and  effective as of the 20th day of
September, 2005 between the following parties:

     Calibre Energy, Inc.  (hereafter "Calibre")
     1825 I Street NW
     Washington, DC 20006

     KEROGEN Energy, Inc.  (hereafter "Kerogen")
     Ashford Crossing II
     1880 Dairy Ashford South, Suite 545
     Houston, Texas 77077

     WHEREAS, Kerogen is in the business of generating oil and gas prospects;

     WHEREAS,  Calibre is willing to fund the  generation of shale gas prospects
by  Kerogen  and  exploit  such  prospects  with  Kerogen on the terms set forth
herein.

     NOW  THEREFORE,  the  Parties,  intending  to be  legally  bound,  agree as
follows:

                                       I.
                             Generation of Prospects
                             -----------------------

     1.01 Kerogen will  generate or identify in the market an initial  shale gas
Prospect in that portion of the Williston  Basin,  as delineated on the attached
plat Exhibit "A" (Williston  Basin) in general  accordance with the proposal set
forth in Exhibit "B" attached hereto.

     1.02  Kerogen  may  generate  additional  shale gas  Prospects  within  the
Williston Basin. Any such additional "Prospects" generated by Kerogen during the
term hereof shall be offered to Calibre on the terms and conditions set forth in
this Agreement.

                                       1
<PAGE>

                                       II.
                          Generation Funding by Calibre
                          -----------------------------

     2.01  Calibre  will pay Kerogen the sum of $638,600  (plus  approved  third
party  expenses)  for  generation  of shale gas  prospects  within the Williston
Basin,  with the  payments to be made as follows:  $350,000 on August 15,  2005;
$200,000  on or  before  October  15,  2005  and the  balance  to be  paid  upon
completion of the generation of a Prospect as per the attached Exhibit "B".

                                      III.
                                Calibre Election
                                ----------------

     3.01 All Prospects  generated,  identified  or acquired by Kerogen,  in the
Williston Basin,  during the Term of this Agreement shall be offered to Calibre.
Calibre will have the  opportunity to participate in the Prospect for 30% of the
interest available to Kerogen at the time of the Prospect Meeting.  In the event
either party, or an affiliate of either party, makes an acquisition in which all
or a portion the assets are located within the boundaries of the Williston Basin
as  depicted  on Exhibit  "A" that  acquisition  and all lands  information  and
production  will be  excluded  from the  terms of this  Agreement,  if the total
consideration  to make the  acquisition  is  excess of  twenty  million  dollars
($20,000,000).

                                       2
<PAGE>

     3.02 Once a  Prospect  is  generated  by Kerogen as per  Exhibit  "B",  the
Prospect  (with  studies)  will be presented  in writing to Calibre,  and within
thirty (30) days there from,  the parties  will convene a meeting to discuss the
Prospect  and a budget  for the  Prospect  ("Prospect  Meeting").  All  material
presented by Kerogen at the Prospect  Meeting will be  considered  "Intellectual
Property". It is also anticipated that during the Term of this Agreement Kerogen
will identify  projects being developed by third parties,  or propose to acquire
interests in projects which are already in the market.  If Kerogen evaluates any
of these  opportunities  that it considers  prospective,  it may call a Prospect
Meeting  (Note:  if the  opportunity is time sensitive to the degree that it may
not be available  later,  Kerogen may request a Prospect Meeting to occur within
48 hours) to present the opportunity to Calibre. For purposes of this Agreement,
such opportunity  will also be referred to and be considered a Prospect.  Within
fifteen  (15) days from the Prospect  Meeting,  Calibre must elect in writing to
participate in the Prospect on the terms contained in this Agreement, or forfeit
all  rights to such  Prospect  to  Kerogen.  Time is of the  essence  in Calibre
exercising  its rights under this P. 3.02;  failure to respond in writing within
the time provided shall be deemed an election not to  participate.  In the event
Calibre accepts the Prospect,  it will be committing to 30% of Kerogen's actual,
total  costs to acquire and develop the  Prospect.  All  interpretive  materials
created  by  Kerogen  and  presented  at  the  Prospect  Meeting  ("Intellectual
Property"),  shall  remain the sole  property of Kerogen  until the Initial Test
Well has been drilled and evaluated in any given  Prospect.  Thereafter  Calibre
will have earned a non exclusive  license in the Intellectual  Property for each
Prospect in which it participates. Calibre shall treat all Intellectual Property
provided to it by Kerogen as  confidential.  The parties  will execute a binding
confidentiality  agreement at the Prospect Meeting.  Should Calibre elect not to
participate  in any  Prospect  presented  by  Kerogen,  it  agrees  to keep  all
information provided at the Prospect Meeting confidential and further agrees not
to acquire any leases or rights to property  within the Contract Area designated
by Kerogen  for the  Prospect  for 2 years from the date the  Prospect  Meeting.
Should Calibre or any affiliate acquire such interests, it agrees to assign such
interests to Kerogen upon written request, at no cost.

                                       3
<PAGE>

                                       IV.
                          Leasing / Acquisition Program
                          -----------------------------

     4.01 Once a Prospect is  generated,  approved and accepted by Calibre,  the
parties shall immediately define in writing an Area of Mutual Interest (AMI) and
Contract  Area  around  the  geographic  boundaries  of  the  Prospect  for  the
acquisition of oil and gas leases.  Any party  acquiring an interest  within the
AMI during  the term of this  agreement  will  offer the other  party that other
party's  percentage  interest  and if that party  accepts by agreeing to pay its
percentage  interest  of  actual  costs  then the  ownership  of any  leases  or
properties acquired by either party within the Contract Area will be owned:

     Calibre 30% (Subject to Kerogen 10% Carried Interest)
     Kerogen 70%

Thereafter, the parties shall initiate a leasing program to lease (or farm-in) a
block of prospective acreage within the Contract Area. The parties shall
endeavor to lease between 10,000 and 20,000 acres (or such additional acreage as
may be reasonable). In the event the Prospect is to be acquired by an
acquisition or earned under a farmout or participation arrangement, then Kerogen
will take such actions as are necessary to effect such transaction. Kerogen will
take title in its name, to either the leases or contractual rights as is
necessary to implement the plan set forth in the Prospect Meeting. At such time
as Calibre has participated in the Operations necessary to test the Prospect by
drilling as discussed in the Operations section below, Kerogen will prepare and
deliver recordable assignments to effectively convey 90% of 30% of its interest
in the drill site spacing unit for such well. Kerogen will reserve all rights
not conveyed in such assignments. Kerogen will either participate for, or secure
additional participants for 70% of its interest. In the event Kerogen is not
able to place all or a portion of the remaining 70%, it will offer that interest
to Calibre on the same terms as the 30% (adjusted proportionately to the
interest so accepted by Calibre), if Calibre accepts the additional interest the
parties will proceed to develop the Prospect with the necessary adjustments
being made to this Agreement. In the event the entire interest cannot be placed,
either with Calibre, Kerogen or third parties the Prospect will be treated as
not accepted and the Parties will not pursue it. The 10% of 30% reserved to
Kerogen is a carried working interest that will bear none of the drilling nor
completion costs in any of the wells drilled on any of the Prospects.

                                       4
<PAGE>

     4.02 Calibre will fund 30% of all of Kerogen's actual costs for leasing and
acquisition activities related to the Prospect. Kerogen may provide Calibre with
a cash call representing Kerogen's estimate of costs and expenses to be incurred
during the next succeeding calendar month.  Calibre agrees to pay such cash call
invoice  within 10 business days of receipt.  In the event Calibre shall fail to
pay either an actual invoice or a cash call as provided  hereunder,  Kerogen may
tender a default  notice in  writing;  if within  thirty days of said notice the
payment  is not  received,  Kerogen  may elect to hold  Calibre  non-consent  as
provided  for under  the  Operating  Agreement,  or  Kerogen  may deem that such
default is an election to reject the Prospect, if drilling has not yet commenced
thereon.  Calibre  will  have  rights  to audit  the  invoices  pursuant  to the
Operating Agreement, should it dispute any invoice.

     4.03 Kerogen will be  responsible  for overseeing and directing the leasing
or acquisition  program.  Calibre will be consulted on both the budget and terms
being accepted for the leases and contracts  being secured in the Contract Area.
Should either party want to acquire a lease,  the terms of which the other party
does not want to  accept,  it shall  have the right to do so.  If such  lease is
acquired  for those terms,  then that lease shall be excluded  from the contract
area of the Operating  Agreement described in Article VI. Calibre will have full
rights to access the lease and title data within any  Prospect to assure  itself
that title and  environmental  conditions of the  properties  being acquired are
acceptable  to  Calibre.  Calibre is hereby  waiving any claims of action it may
have  against  Kerogen  as Kerogen  performs  its  duties  and  carries  out its
obligations  hereunder,  unless Kerogen is grossly negligent or performs acts of
willful  misconduct.  Any assignment(s)  delivered pursuant to the terms of this
Agreement will be without warranty of title except by through and under Kerogen.

                                       5
<PAGE>

                                       V.
                                Kerogen Election
                                ----------------

     5.01  Kerogen  shall have the right and option at any time to exchange  the
10% carried interest reserved above to a proportionately  reserved 3% overriding
royalty interest, proportionately reduced to the Calibre 30% working interest.

                                       VI.
                                   Operations
                                   ----------

     6.01 Once a  Prospect  is  accepted,  the  parties  will enter into a Joint
Operating  Agreement as described in P. 6.02. The Contract Area of which will be
defined  in the  Prospect  Meeting.  Kerogen  will be  carried  for 10%  working
interest  (proportionately  reduced to Calibre's  interest) through the tanks in
all wells  drilled  within  the  Contract  Areas,  during  the term of the Joint
Operating  Agreement for that Contract  Area.  Kerogen or a mutually  acceptable
third party will be  designated  as the Operator  for the Contract  Area for any
Prospects.
     6.02 All operations  shall be conducted under the 1982 A.A.P.L.  Model Form
Operating  Agreement  (Operating  Agreement).  Each  Contract  Area shall have a
separate  Operating  Agreement  signed by the  parties.  In lieu of  non-consent
penalties  in the  Operating  Agreement,  should  Calibre  not  timely  elect to
participate in a subsequent  well, it shall be deemed to have  relinquished  its
interest in the well and all leasehold  acreage not previously  assigned  within
the Contract Area to Kerogen.

                                       6
<PAGE>

                                      VII.
                                      Term
                                      ----

     7.01 This  Agreement  shall  continue for a Term expiring  September  20th,
2007. (The term of the Operating Agreement(s)  referenced in P. 6.02 shall be as
set forth in each Operating Agreement).

                                      VIII.
                                 No Partnership
                                 --------------

     8.01 This  Agreement  does not create,  and is not  intended  to create,  a
partnership  or joint  venture  between the  parties,  or a fiduciary or special
relationship between the parties.

                                       IX.
                            Limitation of Assignment
                            ------------------------

     Without  the prior  written  consent  of the other  Party,  the  rights and
privileges of this  Agreement,  or any Prospect,  or rights to any Contract Area
generated  pursuant to the terms hereof,  may not be shown or sold by any party.
Such consent may not be  unreasonably  withheld.  This  Limitation of Assignment
provision will terminate upon the completion of the first well for each Contract
Area as to that Contract Area. Any Assignment of any interest  acquired pursuant
to the terms of this Participation  Agreement will be made specifically  subject
to the terms and provisions of this Participation Agreement.

                                       7
<PAGE>

                                       X.
                         Entire Agreement and Amendments
                         -------------------------------

         9.01 This Agreement constitutes the entire understanding between the
parties with respect to the subject matter hereof, and supersedes all other
agreements written or oral between the parties with respect to such subject
matter. This Agreement may not be changed, modified or amended except by a
written agreement between the Parties, which specifies that it amends this
Agreement.

                                       XI.
                                   Arbitration
                                   -----------

     10.01 Any  disputes  arising  out of or related to this  Agreement  must be
arbitrated in accordance with the rules for commercial  arbitration disputes for
the American Arbitration Association.

                                      XII.
                                     Notice
                                     ------

     11.01 All  notices  authorized  or  required  to be given  pursuant to this
Agreement  shall be in writing  and may be  delivered  by hand,  mailed by first
class airmail, sent by  telecommunication,  or overnight delivery to the address
set forth in this Agreement.

     The notice shall be deemed to have been given and received:

     a.   if  delivered,  on  the  day on  which  it  was  delivered,  excluding
          Saturdays, Sundays and statutory holidays; or

     b.   if mailed, on the days received, or

     c.   if sent by telecommunication,  on the first business day following the
          day it was dispatched.

                                       8
<PAGE>

     A party may change its  address  for the  receipt of notices at any time by
giving written notice thereof to the other party.

                                      XII.
                             Counterpart Execution
                             ---------------------

     This Agreement may be executed in multiple counterparts.

CALIBRE Energy, Inc.
By:    /s/ Edward L. Moses
   ---------------------------
     Edward L. Moses,
     Sr. VP of Operations

KEROGEN RESOURCES, Inc.
By:    /s/ Thomas Harris
   ---------------------------
     Thomas Harris
     President

                                       9Exhibit 10.6

                               FIRST AMENDMENT TO
                               ------------------
                            PARTICIPATION AGREEMENTS
                            ------------------------

         This First Amendment to Participation Agreements is dated this 31st day
of October, 2005, by and between the parties listed below.

         Whereas Kerogen Resources, Inc. has entered into three separate
Participation Agreements described as follows:

1) Participation Agreement dated September 20th , 2005, by and between Kerogen
Resources Inc., with an address at Ashford Crossing II, 1880 Dairy Ashford
South, Suite 545, Houston, Texas 77077 (hereafter, "Kerogen") and Calibre
Energy, Inc. (hereinafter "Calibre"), 1825 I Street NW, Washington, DC 20006;

2) Participation Agreement dated October 19th, 2005 by and between Kerogen and
Triangle Petroleum USA, Inc. (hereafter "Triangle"), Suite 1110, 512 3rd Avenue
SW, Calgary, AB T2P3T3

3) Participation Agreement dated October 14th, 2005 by and between Kerogen and
Wynn-Crosby Partners I, LP (hereinafter "W-C"), 5500 West Plano Parkway, Suite
200 Plano, Texas 75093

         Whereas each of the three Participation Agreements provided for the
development of Prospects in the Southern Fort Worth Basin ("SFWB") being more
specifically described as including all of the lands in the following counties
in Texas; Johnson, Summerville, Bosque, Hill and Hood, ("Contract Area"). But
specifically excluding lands included under that certain Participating
Agreements with Reichmann Petroleum Inc. dated October 12th, 2005, ("Reichmann
Participation Agreements") which govern certain lands and operations located
within the SFWB, such lands and the operations described therein, including
lands and operations that may be covered by the AMI provisions of the Reichmann
Participation Agreement, are specifically excluded from the terms and conditions
of each of the three Participation Agreements described above. For purposes of
identifying excluded lands and operations, the Reichmann Participation
Agreements are incorporated herein by reference.

                                     PAGE 1

<PAGE>

         Whereas each of the Participation Agreements enumerated above generally
provide for the following terms as between each Participant and Kerogen, the
Parties hereto ("Parties") in accordance such Participation Agreements now
desire and do bind themselves to each other as to the terms and provisions set
forth herein. In the event of conflict between the Participation Agreements
enumerated above and the terms and provisions specifically addressed herein the
terms and provisions hereof will prevail.

         Now therefore, for and in consideration of the promises previously
exchanged in the Participation Agreements and in consideration of the mutual
agreements and promises stated herein, the parties hereto do agree as follows:

                                       I.
                            Elections by the Parties
                            ------------------------

         All Prospects generated, identified or acquired by the Parties
respectively, in the SFWB, during the Term of this Agreement, shall be offered
to the other Parties. For the purposes of this Agreement the terms "Prospect"
and "Prospect Area" shall consist of the individual governmental pro-ration area
for the relevant potential shale well proposed under this Agreement along with
all acreage that is directly adjacent to such pro-ration area unless a different
area is mutually agreed to by the Participating Parties (defined below) within
five (5) days after the relevant Prospect Meeting (defined below).. The Parties
receiving the offer will have the opportunity to participate in the offered
Prospect(s) for the following portion of the interest available to the offering
Party:

                  Kerogen           10%
                  Calibre           30%*
                  Triangle          30%*
                  W-C               30%*

                                     PAGE 2

<PAGE>

         *Subject to carried interest to Kerogen, which interest is specifically
         described in each Participation Agreement enumerated above, which
         carried interest is not in anyway amended or impacted by this First
         Amendment to Participation Agreements.

         Calibre and Triangle are the "Other Participants" to which reference is
made in the Participation Agreement dated October 14, 2005, and the
Participation Agreements above described are the "separate agreements" to which
reference is made in Section 3.01 of such Participation Agreement.
         It is recognized that the Parties may be involved in the acquisition of
producing properties within the SFWB and that the evaluation of and acquisition
of producing properties is outside the scope or purpose of this Agreement. By
executing this Agreement, each Party individually acknowledges and waives any
claim to any property, acreage or subsurface rights that, at the time the other
Party makes an offer to a third party to purchase, are part of or directly
related to the proration unit or allocated acreage of a well that is producing,
or capable of producing hydrocarbons, or has logged behind pipe pay (a
"Producing Property").
         Once a Prospect is generated by a Party ("Presenting Party"), the
Prospect (with studies and all other relevant subsurface and commercial data)
will be presented in writing to the other Parties, and within thirty (30) days
there from the Parties will convene a meeting to discuss the Prospect, including
all relevant technical, operational and commercial information and a budget for
the prospect ("Prospect Meeting"). All material presented by the Presenting
Party at the Prospect Meeting will be considered "Intellectual Property". It is
also anticipated that during the Term of this Agreement each Party may identify
Prospects being developed and/or marketed by third parties. If one of the
Parties evaluates any of these Prospects, it may call a Prospect Meeting (Note:
if the opportunity is time sensitive to the degree that it may not be available
later, the Presenting Party may request a Prospect Meeting to occur within 48
hours of the time it calls the Prospect Meeting) to present the relevant
Prospect to the other Party. Within fifteen (15) days from the Prospect Meeting,
the non-Presenting Party must elect in writing to participate in the Prospect on
the terms contained in this Agreement, or forfeit all rights to such Prospect to
the presenting Party. All Parties that participate in an individual Prospect
shall be deemed a "Participating Party" for that Prospect. Failure to respond in
writing within the time provided above shall be deemed an election not to
participate in the relevant Prospect. At the Prospect Meeting, the Parties will

                                     PAGE 3

<PAGE>

disclose any third party requirements that would prevent W-C from being Operator
of the Prospect ("Prospect Operator"), such as a third party already serving as
Operator under an existing operating agreement in the area covered by the
Prospect and if the Participating Parties in the relevant Prospect cannot obtain
the agreement of such third party operator to allow W-C to serve as Prospect
Operator, the Participating Parties shall designate such third party as Prospect
Operator. Additionally, in the event W-C does not have a rig available to drill
a particular well within a time frame necessary to maintain a material lease
within the relevant Prospect Area or within a reasonable time frame as a part of
the drilling program of W-C, if one of the other Participants has a specific rig
available within such time frame, upon such other Participant's request, the
other Participating Parties in the relevant Prospect shall designate such other
Participant as operator of the well for drilling and completion purposes and
after completion or plugging and abandonment of the well, the Participating
Parties will designate W-C as Prospect Operator for the purposes of production
and for any other operations on the relevant Prospect Area. Except as provided
in the previous two sentences, W-C may elect to serve as Operator. All
interpretive materials created by a Party and presented at the Prospect Meeting
("Intellectual Property"), shall remain the sole property of the presenting
Party until the Initial Test Well has been drilled and evaluated in the relevant
Prospect. Thereafter the non-presenting Parties will have earned a non exclusive
license in the Intellectual Property for each Prospect in which it participates.
Each Party shall treat all Intellectual Property provided to it by the other
Parties as confidential. The parties will execute a binding confidentiality
agreement at the Prospect Meeting. Should a Party elect not to participate in
any Prospect presented by the other Party, it agrees to keep all information
provided at the Prospect Meeting confidential and further agrees not to acquire
any leases or rights to property within the Prospect Area that is mutually
designated by the Parties for the Prospect for two years from the date of the
Prospect Meeting. Should the non-presenting Party or any affiliate acquire such
interests, it agrees to assign such interests to the Presenting Party, upon
written request, at no cost.
         Prior to the termination of this Agreement on October 31, 2007, each
Party will provide to the other Parties a Prospect Meeting and the opportunity
to elect to become a Participating Party concerning any portion of the Contract
Area in which the Presenting Party has obtained an oil and/or gas interest
during the term of this Agreement.

                                     PAGE 4

<PAGE>

                                       II.
                          Leasing / Acquisition Program
                          -----------------------------

         Once a Prospect is generated, approved and accepted by the Parties, the
Prospect Area shall be deemed an Area of Mutual Interest (AMI) for a period of
two years from the date of relevant Prospect meeting, for the acquisition of oil
and gas leases. Any Party acquiring an interest within the AMI during the term
of this Agreement will offer the other Parties the other Party's percentage
interest and if that Party accepts by agreeing to pay its percentage interest of
actual costs then the ownership of any leases or properties acquired by any
Party within the Contract Area as set forth above:
         Thereafter, the Parties through the "Prospect Operator" shall initiate
a leasing program to lease (or farm-in) any remaining necessary acreage within
the Prospect Area. The Parties anticipate that during the term of this
Agreement, Prospects shall be developed that will result in an effort to lease
between 25,000 and 45,000 acres in the area of each Prospect, on a Prospect by
Prospect basis (or such additional acreage as may be reasonable). In the event a
Prospect is to be acquired by an acquisition of leasehold from a third party or
earned under a farmout or participation arrangement, then the acquiring Party or
Prospect Operator, as appropriate, will take such actions as are necessary to
effect such transaction, subject to the provisions of Paragraph V of this
Amendment. The Prospect Operator or acquiring Party will take title in its name,
to either the leases or contractual rights as is necessary to implement the plan
set forth in the Prospect Meeting. All non-acquiring Parties shall receive
recordable assignments of their interest in a Prospect upon payment of their
proportionate share of the lease acquisition costs. In the event the entire
interest cannot be placed the Prospect will be treated as not accepted and the
Parties will not pursue it.
          The Party acquiring leasehold or conducting operations may provide the
other Parties with a cash call along with a detailed statement itemizing
estimated costs and expenses to be incurred during the next succeeding calendar
month. The Party receiving the cash call agrees to pay such cash call invoice
within 30 days of receipt. In the event the Party receiving the cash call fails
to pay all undisputed portions of the cash call as provided hereunder, the Party
making the cash call may tender a default notice in writing; if within ten days
of receipt of said default notice the payment is not received for all undisputed
amounts and a written explanation of the reasons for any disputed amounts, the
Party making the cash call may elect to hold the Party receiving the cash call
in a non-consent status as provided for under the Operating Agreement,
concerning the undisputed portions of the cash call and the disputed portions if
no written explanation concerning the disputed portions was provided by the
Party receiving the cash call, or may deem that such default is an election to
reject the Prospect, if drilling has not yet commenced thereon. The Party
receiving the cash call will have rights to audit all invoices and cash calls
pursuant to the Operating Agreement, should it dispute any such items.

                                     PAGE 5

<PAGE>

         Each Party will be responsible for overseeing and directing the leasing
or acquisition program until the Prospect meeting, concerning Prospects on which
it is the Presenting Party. The non-Presenting Parties will be consulted on both
the budget and terms being accepted for the leases and contracts being secured
in the relevant Prospect Area. Should any Party want to acquire a lease, the
terms of which another party does not want to accept, it shall have the right to
do so. If such lease is acquired for those terms, then that lease shall be
excluded from the relevant Prospect Area. The non-Presenting Party will have
full rights to access the lease and title data within any Prospect to assure
itself that title and environmental conditions of the properties being acquired
are acceptable to it. Each Party hereby waives any claims of action it may have
against the other Party concerning duties and obligations hereunder, unless a
Party is grossly negligent or performs acts of willful misconduct. Any
assignment(s) delivered pursuant to the terms of this Agreement will be without
warranty of title except by through and under the assigning Party.

                                      III.
                                   Operations
                                   ----------

         Once a Prospect is accepted, those parties that have elected to
participate in such Prospect will enter into an Operating Agreement the form of
which is attached hereto as Exhibit "A," covering such Prospect. The Prospect
Area and Operator will be defined in the Prospect Meeting and the Prospect Area
shall be the same as the Prospect Area defined above. All operations shall be
conducted under the terms and provisions of Exhibit "A". Each Prospect Area
shall have a separate Operating Agreement signed by the Parties. In lieu of
non-consent penalties for drill wells in the operating agreement, should a Party
not timely elect to participate in a subsequent well, it shall be deemed to have
relinquished its interest in the well and all leasehold acreage not allocated to
the governmental proration area for the initial well or other subsequent wells
in which the party has previously participated.

                                     PAGE 6

<PAGE>

                                       IV.
                                      Term
                                      ----

         This Agreement shall continue for a Term expiring October 31, 2007,
except as provided otherwise above in Article II. Concerning the AMI. The term
of the Operating Agreement(s) referenced in P. 6.02 shall be as set forth in
each Operating Agreement.

                                       V.
                             Relationship of Parties
                             -----------------------

         No relationship of partnership or principal and agent shall exist or
arise among the parties hereto because of the execution of this agreement or the
joint acquisition by them of properties and interests pursuant to this
agreement. No party hereto shall have any right, power or authority to contract
on behalf of any other party hereto or to commit any party hereto to any
obligation, liability or undertaking, except to the extent the party to be
obligated has expressly consented thereto (i) at a Prospect Meeting, or (ii) by
instrument in writing.

                                     PAGE 7

<PAGE>

                                       VI.
                            Limitation of Assignment
                            ------------------------

         Without the prior written consent of the other Party, the rights and
privileges of this Agreement, or any Prospect, or rights to any Prospect Area
generated pursuant to the terms hereof, may not be shown or sold by any Party.
Such consent may not be unreasonably withheld, but may be withheld if the Party
from whom consent is requested has a reasonable basis to question the financial
capability of the proposed assignee. This Limitation of Assignment provision
will terminate upon the completion of operations in the first well drilled on
each Prospect Area as to that Prospect Area. Any Assignment of any interest
acquired pursuant to the terms of this Participation Agreement will be made
specifically subject to the terms and provisions of this Agreement and the
Participation Agreement from which the Party acquired its interest.

                                      VII.
                         Entire Agreement and Amendments
                         -------------------------------

         This Agreement and the Participation Agreements referred to on the
first page of this Agreement, constitute the entire understanding between the
parties with respect to the subject matter hereof, and supersede all other
agreements written or oral between the parties with respect to such subject
matter (except for the Reichmann Participation Agreements described above). This
Agreement may not be changed, modified or amended except by a written agreement
between the Parties, which specifies that it amends this Agreement. This
Agreement shall govern in the event of conflict between this Agreement and the
Participation Agreements.

                                      VIII
                                   Arbitration
                                   -----------

         Any disputes arising out of or related to this Agreement must be
arbitrated in accordance with the rules for commercial arbitration disputes for
the American Arbitration Association for binding arbitration and such
arbitration shall be conducted in Houston, Texas.

                                     PAGE 8

<PAGE>

                                       IX.
                                     Notice
                                     ------

         All notices authorized or required to be given pursuant to this
Agreement shall be in writing and may be delivered by hand, mailed by first
class airmail, sent by telecommunication, or overnight delivery to the address
set forth in this Agreement.
         The notice shall be deemed to have been given and received:

               a.   if delivered, on the day on which it was delivered,
                    excluding Saturdays, Sundays and statutory holidays; or

               b.   if mailed, on the days received, or

               c.   if sent by telecommunication, on the first business day
                    following the day it was dispatched.

         A Party may change its address for the receipt of notices at any time
by giving written notice thereof to the other Party. With regard to any notice
that W-C is required to give the other Parties under this Agreement, or
responses from the other Parties to W-C, Kerogen shall act as the representative
of Triangle and Calibre.

                                       X.
                              Counterpart Execution
                              ---------------------

         This Agreement may be executed in multiple counterparts. It shall not
be binding on any party unless and until a counterpart is signed by all parties
and each party has been delivered a counterpart executed by all other parties.

WYNN-CROSBY PARTNERS I, LTD.
By: WCFM Partners I, Ltd., as General Partner
By: Wynn-Crosby Investments, Ltd., as General Partner

     /s/ Dan Koontz
---------------------------
BY:  Dan Koontz
     Vice President of Land

                                     PAGE 9

<PAGE>

KEROGEN RESOURCES, Inc.

By:               /s/ Thomas Harris
  ---------------------------------------------------
         Thomas Harris
         President

Triangle Petroleum, USA

By                /s/ Ron Hietala
  ---------------------------------------------------
         Ronald Hietala
         President

Calibre Energy, Inc.

By                /s/ Edward L. Moses
  ---------------------------------------------------
         Edward L. Mosses
         Sr. Vice President

                                    PAGE 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]