Document:

ASSIGNMENT OF STATE PARTICIPATING
                 INTEREST IN THE PRODUCTION SHARING CONTRACT FOR
                 BLOCK F, OFFSHORE REPUBLIC OF EQUATORIAL GUINEA

This  Assignment  of  State  Participating  Interest  in  the Production Sharing
Contract for Block F, Offshore Republic of Equatorial Guinea (this "Assignment")
that sets the terms and conditions for the participation of the STATE in Block F
offshore  the  Republic of Equatorial Guinea (the "STATE") is entered into as of
the  1st  day of January, 2000, between Triton Equatorial Guinea, Inc., a Cayman
Islands company ("Triton"), and Energy Africa Equatorial Guinea Limited, an Isle
of  Man  company ("Energy Africa"), and the STATE represented by the Ministry of
Mines  and  Energy.  Triton  and  Energy  Africa  are  hereinafter  collectively
referred  to as the "CONTRACTOR" and the CONTRACTOR and the STATE are sometimes,
depending  on  the context hereinafter individually referred to as a "Party" and
collectively  as  the  "Parties."

WHEREAS,  Triton  and  the  State  signed a Production Sharing Contract covering
Block F, offshore Republic of Equatorial Guinea, on March 26, 1997, effective as
of  April  14,  1997  (as  amended,  the  "Contract");

WHEREAS, with the approval of the STATE, Triton assigned a fifteen percent (15%)
interest  in  its  rights and obligations in the Contract to Energy Africa as of
June  1,  1999,  so  that  currently  Triton  holds an eighty-five percent (85%)
interest  and  Energy  Africa  holds  a  fifteen  percent  (15%) interest in the
Contract;

WHEREAS,  at the request of the STATE, the Parties agreed to modify the Contract
effective  January  1,  2000  by  that certain First Amendment to the Production
Sharing Contract for Block F, offshore Republic of Equatorial Guinea (the "First
Amendment") for the purposes of aligning certain terms thereof as reflected in a
Memorandum  of  Understanding  between  the  Parties  dated  December  7,  1999;

WHEREAS, as a consequence of the renegotiation the CONTRACTOR agreed to transfer
to  the  STATE a five percent (5%) interest during the phases of Development and
Production  in  each  Field  discovered and developed, or that may be discovered
and/or  developed  under  the  Contract  together  with all rights and interests
related thereto, provided however, the STATE shall not be required to contribute
cash  to  fund  such  costs;  and

WHEREAS,  the  STATE  accepts  such interest and agrees to become a party to the
existing  Joint  Operating  Agreement  for each Field Development and Production
between  the  entities  then  comprising the CONTRACTOR (the "Field JOA") on the
terms  set  forth  herein,  each  Party having in their possession a copy of the
Field  JOA.

NOW  THEREFORE,  in  consideration of the terms and conditions set forth herein,
the  Parties  hereby  agree  as  follows:

                                    ARTICLE 1
                                    ---------
                             ASSIGNMENT OF INTEREST

1.1     "Participating  Interest"  means  a  percentage  interest in the rights,
privileges,  duties  and  obligations  of  the  CONTRACTOR under the Contract as
amended  from  time  to  time.

1.2          Subject  to  the terms and conditions set forth in this Assignment:

(a)     CONTRACTOR hereby assigns, transfers and conveys to STATE a five percent
(5%)  Participating Interest in each Field discovered and/or to be discovered in
the  Contract  Area,  and  in  the  Field JOA corresponding to such Field, these
assignments to become effective upon the approval of the initial development and
production  plan  for  each  area  of  development  of  such  Field;  and

(b)     The  STATE  accepts  from  CONTRACTOR  the  assignment,  transfer  and
conveyance  of  such five percent (5%) Participating Interest in each such Field
and  interest in such Field JOA corresponding to this interest.  Such acceptance
shall  constitute  consent  by  the STATE to the transfer as required by Section
6.1(f)  of  the  Contract.

1.3     The assignment, transfer and conveyance referred to herein shall be free
of all liens, claims, mortgages and encumbrances except those arising out of the
Contract, this Assignment or the Field JOA and subject to Article 4 below, shall
include  five  percent  (5%)  of  CONTRACTOR's  interests  in  data,  materials,
equipment  and  other  assets  acquired  in  connection with all Development and
Production  Operations  for  each  Field.

1.4     The assignment, transfer and conveyance referred to herein also shall be
made  on  a  pro rata basis from each entity then comprising CONTRACTOR equal to
its  Participating  Interest  unless otherwise mutually agreed by such entities.

1.5     As  of  the effective date of each assignment of an interest in a Field,
the  Participating  Interests  of the entities comprising the CONTRACTOR in such
Field  shall  be:

                      STATE                   5.00%
                      Triton                 80.75%
                      Energy Africa          14.25%

Triton  and Energy Africa, and their respective successors and assigns (if any),
and  the  STATE shall constitute the "CONTRACTOR" with respect to such Field, in
the  sense  ascribed  to this term in the Contract and shall be bound by all the
covenants  contained  in  the  Contract  which  are  binding  on  the CONTRACTOR
according to their respective Participating Interests, with the exception of the
provisions  set  forth  in Articles 2, 4 and 5 below. If Triton or Energy Africa
transfers,  from  time  to  time,  all  or part of its Participating Interest as
permitted  by  the  Contract  and  this Assignment after the Amendment Date, but
prior  to  the  assignment  to  the STATE of the five percent (5%) Participating
Interest  in  a  Field under this Assignment, then the Participating Interest of
Triton  and  Energy  Africa  shown  above  shall  be  revised  accordingly.

                                    ARTICLE 2
                                    ---------
                   CARRIED PARTICIPATING INTEREST OF THE STATE

2.1     All  Petroleum Operations Expenditures, as defined in the Contract shall
continue  to  be  borne  and  paid  by  the  entities,  other  than  the  STATE,
constituting  part  of  the  CONTRACTOR  in  the  same ratio as their respective
Participating  Interests  prior to the assignment referred to in Article 1 above
(e.g.,  85%  by  Triton  and  15%  by Energy Africa or as to their successor and
assigns).  The  STATE shall not be required to contribute cash to fund Petroleum
Operations  Expenditures.

2.2     The  STATE  hereby  assigns,  transfers  and  conveys  to  the  entities
comprising  part  of  the  CONTRACTOR (i.e., Triton and Energy Africa, and their
respective successors and assigns), other than the STATE, in proportion to their
Participating Interests in the Field at the time of the assignment under Article
1  of  this  Assignment  all  rights  to  the  recovery of recoverable Petroleum
Operations  Expenditures  under  the  Contract  and  Field JOA in respect of the
STATE's  five  percent  (5%)  Participating Interest acquired under Article 1 of
this  Assignment.

                                    ARTICLE 3
                                    ---------
         JOINT OPERATING AGREEMENT FOR FIELD DEVELOPMENT AND PRODUCTION

3.1     The  STATE  hereby  ratifies and confirms its participation in the Field
JOA  with  respect to each Field in which it acquires an interest. The Field JOA
shall  apply  severally,  sequentially  and  automatically  to every Field under
development  or  developed  under  the  Contract.

3.2     Triton  and  Energy  Africa  agree  amongst  themselves  as the entities
comprising  the  CONTRACTOR  to conduct operations in each Field pursuant to the
Contract,  this  Assignment  and  the  Field  JOA.  The Parties acknowledge that
Triton  has been designated as Operator under the Field JOA and such designation
shall  not  be  affected  by  this  Assignment.

3.3     The  STATE's  participation as a party comprising part of the CONTRACTOR
under  the  Field  JOA  with  respect to each Field shall be effective as of the
effective  date  of  the  assignment  of  an  interest in such Field pursuant to
Article  1  of  this  Assignment  and  the  STATE  as a member of the CONTRACTOR
ratifies  and  confirms  on such effective date the conduct of the operations in
each  area  of  development  of  a  Field  pursuant  to  the  Contract.

                                    ARTICLE 4
                                    ---------
                               TITLE TO EQUIPMENT

Notwithstanding anything contained in Section XI of the Contract and Article 1.3
above,  the  STATE  shall have no rights, titles or interests in any unamortized
equipment  of  the  CONTRACTOR  referred  to  in  Section  11.2 of the Contract.

However,  any  equipment and fixed installations amortized before the expiration
of  the  Contract  shall  be  treated  pursuant  to  Section  11.1.

                                    ARTICLE 5
                                    ---------
                                  ASSIGNABILITY

5.1     Notwithstanding Section 6.1(e) of the Contract, in the case of the STATE
as  the  assigning  party  of  the  five  percent (5%) Participating Interest it
acquired  under  Article  1  of  this  Assignment,  the  right  to sell, assign,
transfer,  convey  or otherwise dispose of any part or all of such Participating
Interest in any Field in the Contract Area, from time to time, is limited solely
to  a  sale, assignment, transfer, conveyance or disposition to the national oil
company  or other wholly-owned STATE entity responsible (among other things) for
the  development  and  production  of Hydrocarbon deposits in the Contract Area,
with no other right of assignment except to assignees that meet the requirements
stated  in  this  Article  5.1.

5.2     Notwithstanding  Section  6.1(f) of the Contract, the Parties agree that
the  STATE  shall  have  no right to sell, assign, transfer, convey or otherwise
dispose  of  any  interest either in the Contract, this Assignment, any Field in
the  Contract  Area  or  Field  JOA  except  as  provided  in Article 5.1 above.

                                    ARTICLE 6
                                    ---------
                                  MISCELLANEOUS

6.1     Each  of  the  Parties shall do all such acts and obtain and execute all
such  documents  as  shall  be reasonably required in order to fully perform and
carry  out  this  Assignment.

6.2     This  Assignment  constitutes the entire agreement among the Parties and
may  not  be amended or modified except in writing signed by all of the Parties.
In  the  event of any conflict between the provisions of this Assignment and the
Field  JOA  with  respect  to the subject matter covered in this Assignment, the
provisions of this Assignment shall prevail.  The terms and phrases contained in
the  Contract  and used herein shall have the same meaning as in the Contract as
amended  unless  the  context  herein  otherwise  provides.

6.3  This Assignment shall inure to the benefit of and be binding upon the
successors and assigns of the Parties.

6.4  Upon signature by the Parties hereto, this Assignment shall have effect for
all purposes from 1st January 2000.

6.5     This  Assignment  is  written  signed  in  six  (6) copies, three (3) in
Spanish  and three (3) in English, which shall constitute one original document.
In  the  event  of a conflict between the English and Spanish texts, the Spanish
text shall prevail.  The Parties recognize, however, that the Field JOA attached
as  Annex  A  hereto,  is  written  solely  in  the  English  language.

6.6     In  the  event  of  a  dispute  arising  out  of  or  related  to  the
interpretation  or  meaning of this Assignment (excluding the Field JOA attached
hereto  as Annex A), the Consultation and Arbitration provisions of Section XIII
of  the  Contract  shall  apply.

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

TRITON  EQUATORIAL  GUINEA,  INC.

____________________________________

Name:   ______________________________
Title:  ______________________________
Date:   ______________________________

ENERGY  AFRICA  EQUATORIAL  GUINEA  LIMITED

____________________________________

Name:   ______________________________
Title:  ______________________________
Date:   ______________________________

FOR  THE  REPUBLIC  OF  EQUATORIAL  GUINEA

THE  MINISTRY  OF  MINES  AND  ENERGY  OF
THE  REPUBLIC  OF  EQUATORIAL  GUINEA

____________________________________

Name:    ______________________________
Title:   ______________________________
Date:    ______________________________

ANNEX A

                   ATTACHED TO AND MADE PART OF THE ASSIGNMENT
       OF STATE PARTICIPATING INTEREST IN THE PRODUCTION SHARING CONTRACT
       FOR BLOCK F, OFFSHORE REPUBLIC OF EQUATORIAL GUINEA, BY AND BETWEEN
     TRITON EQUATORIAL GUINEA, INC., ENERGY AFRICA EQUATORIAL GUINEA LIMITED
       AND THE REPUBLIC OF EQUATORIAL GUINEA, DATED AS OF JANUARY 1, 2000

                            JOINT OPERATING AGREEMENT
                      FOR FIELD DEVELOPMENT AND PRODUCTION

                                     BLOCK F
                           OFFSHORE EQUATORIAL GUINEA

                            JOINT OPERATING AGREEMENT
                      FOR FIELD DEVELOPMENT AND PRODUCTION

                                TABLE OF CONTENTS

ARTICLE  1  -  DEFINITIONS

ARTICLE  2  -  TERM

    2.1        Effective Date and Severability
    2.2        Survival
    2.3        Stand Alone Option

ARTICLE 3 - SCOPE

    3.1        Scope
    3.2        Participating Interest
    3.3        Ownership, Obligations, and Liabilities
    3.4        Accounting Procedure

ARTICLE 4 - OPERATOR

    4.1        Designation of Operator
    4.2        Rights and Duties of Operator
    4.3        Employees of Operator
    4.4        Information Supplied by Operator
    4.5        Settlement of Claims and Lawsuits
    4.6        Limitation on Liability of Operator
    4.7        Insurance Obtained by Operator
    4.8        Commingling of Funds
    4.9        Resignation of Operator
    4.10       Removal of Operator
    4.11       Appointment of Successor

ARTICLE 5 - OPERATING COMMITTEE

      5.1      Establishment of Operating Committee
      5.2      Powers and Duties of Operating Committee
      5.3      Authority to Vote
      5.4      Subcommittees and Project Teams
      5.5      Notice of Meeting
      5.6      Contents of Meeting Notice
      5.7      Location and Frequency of Meetings
      5.8      Operator's Duties for Meetings
      5.9      Voting Procedure
     5.10      Record of Votes
     5.11      Minutes
     5.12      Voting by Notice
     5.13      Effect of Vote

ARTICLE 6 - WORK PROGRAMS AND BUDGETS

     6.1       Work Program and Budgets
     6.2       Discovery and Evaluation
     6.3       Development and Production
     6.4       Itemization of Expenditures
     6.5       Contract Awards
     6.6       Authorization for Expenditure Procedure
     6.7       Overexpenditures of Work Programs and Budgets

ARTICLE 7 - DEFAULT

     7.1       Default and Notice
     7.2       Operating Committee Meetings and Data
     7.3       Allocation of Defaulted Accounts
     7.4       Remedies
     7.5       Survival
     7.6       No Right of Set Off

ARTICLE 8 - DISPOSITION OF PRODUCTION

     8.1       Right and Obligation to Take in Kind
     8.2       Offtake Agreement for Crude Oil
     8.3       Separate Agreement for Natural Gas

ARTICLE 9 - ABANDONMENT AND DECOMMISSIONING

     9.1       Joint Operations Abandonment and Decommissioning

ARTICLE  10  -  SURRENDER,  EXTENSIONS  AND  RENEWALS

    10.1       Surrender
    10.2       Extension of the Term

ARTICLE 11 - TRANSFER OF INTEREST OR RIGHTS

    11.1       Obligations
    11.2       Consent
    11.3       Rights

ARTICLE 12 - WITHDRAWAL FROM AGREEMENT

    12.1       Right of Withdrawal
    12.2       Complete Withdrawal
    12.3       Rights of a Withdrawing Party
    12.4       Obligations and Liabilities of a Withdrawing Party
    12.5       Emergency
    12.6       Assignment
    12.7       Approvals
    12.8       Abandonment Security
    12.9       Withdrawal or Decommissioning by all Parties

ARTICLE  13  -  RELATIONSHIP  OF  PARTIES  AND  TAX

    13.1       Relationship of Parties
    13.2       Tax
    13.3       United States Tax Election

ARTICLE 14 - CONFIDENTIAL INFORMATION-PROPRIETARY TECHNOLOGY

    14.1       Confidential Information
    14.2       Continuing Obligations
    14.3       Proprietary Technology
    14.4       Trades

ARTICLE 15 - FORCE MAJEURE

    15.1       Obligations
    15.2       Definition of Force Majeure

ARTICLE 16 - NOTICES

ARTICLE 17 - GOVERNING LAW AND DISPUTE RESOLUTION

    17.1       Governing Law
    17.2       Dispute Resolution

ARTICLE 18 - GENERAL PROVISIONS

    18.1       Conflicts of Interest
    18.2       Warranties As To No Payments, Gifts and Loans
    18.3       Public Announcements
    18.4       Successors and Assigns
    18.5       Waiver
    18.6       Severance of Invalid Provisions
    18.7       Contract Translation
    18.8       Construction
    18.9       Execution by Facsimile
   18.10       Entirety
   18.11       Modification

EXHIBIT  A  - ACCOUNTING  PROCEDURE

EXHIBIT B  -  ENGLISH TRANSLATION OF THE CONTRACT, LETTER, AND AMENDMENT

                             JOINT OPERATING AGREEMENT
                        FOR FIELD DEVELOPMENT AND PRODUCTION

     THIS  JOINT  OPERATING AGREEMENT FOR FIELD DEVELOPMENT AND PRODUCTION (this
"Agreement")  is  effective  as  of  the  Effective  Date,  between the Entities
Constituting Part of Contractor in the Field on the Effective Date, i.e., Triton
Equatorial  Guinea, Inc., a Cayman Islands company ("Triton"), and Energy Africa
Equatorial Guinea Limited, an Isle of Man company ("Energy Africa") and/or their
respective  successors and assigns, which may include the Republic of Equatorial
Guinea.  The  entities  referred to above may sometimes individually be referred
to  as  "Party"  and  collectively  as  the "Parties."  Triton and Energy Africa
and/or  their  successors and assigns as Contractor in the Field are hereinafter
collectively referred to as the Working Interest Parties.   The Working Interest
Parties  and  the  State are sometimes hereinafter individually referred to as a
"Party"  and  collectively  as  the  "Parties."

                                    RECITALS
                                    --------

     Triton  as  "CONTRACTOR"  therein, has entered into that certain Production
Sharing  Contract  (the "Original Contract"), as amended from time to time, with
the  Republic  of Equatorial Guinea, as "the STATE", executed on March 26, 1997,
effective  as  of  April  14,  1997,  covering  Block  F,  offshore  Republic of
Equatorial  Guinea,  more  particularly  described  therein.

     With  the  approval  of  the  Government, Triton assigned a fifteen percent
(15%) interest in its rights and obligations in the Contract to Energy Africa as
of  June  1,  1999.

     The  Parties  have participated in renegotiation discussions at the request
of  the  Government,  which discussions were held between representatives of the
Parties  in  London,  England, from November 30, 1999, to December 7, 1999, as a
result of which they have agreed to modify the Original Contract for the purpose
of  adjusting certain provisions thereof to reflect the new commercial structure
for  production  sharing  contracts  adopted by the Government as reflected in a
Memorandum  of  Understanding  dated  December  7,  1999  ("MOU").

     As  part  of  the  renegotiation  the  Contractor agreed to transfer to the
Government  a  five percent (5%) interest in each Field discovered and developed
under  the  Contract  together  with  all  rights  and interests related thereto
effective  upon  approval  of  the initial Development Plan for each such Field.

     The  Original  Contract  has  been  amended,  among  other  things,  by the
Amendment  to  the Production Sharing Contract for Block F, Offshore Republic of
Equatorial  Guinea,  dated  as  of  January  1,  2000  (the  "Amendment").

     The Government has agreed pursuant to the Assignment of State Participating
Interest  in  the  Production Sharing Contract for Block F, Offshore Republic of
Equatorial  Guinea  (the "Assignment") to accept a five percent (5%) interest in
each  Field discovered and developed under the Contract together with all rights
and  interests  related  thereto  subject  to this Agreement effective with each
assignment  under  the  Assignment  on  the terms agreed to herein by Triton and
Energy  Africa.

                                   AGREEMENTS
                                   ----------

     In  consideration  of  the  mutual agreements and obligations set out below
between  the Entities Constituting Part of Contractor on the Effective Date, the
Parties  agree  as  follows:

                                    ARTICLE 1
                                    ---------
                                   DEFINITIONS

The  following  terms  shall  have  the  meaning  assigned  to  them  below:

Accounting  Procedure  means the rules, provisions, and conditions set forth and
---------------------
contained  in  Exhibit  A  to  this  Agreement.

AFE  means  an  authorization  for  expenditure  issued pursuant to Section 6.6.
---

Affiliate means, in relation to any Party, any company or legal entity which (i)
---------
controls,  (ii)  is  controlled  by,  or  (iii) is controlled by an entity which
controls  a Party.  For the purpose of this definition, control means ownership,
directly or indirectly, of more than fifty percent (50%) of the voting rights in
a  company  or  legal  entity  or  the  possession  of  the  power,  directly or
indirectly,  to direct or cause the direction of the management or policies of a
Party,  whether  through  or  by  ownership,  contract  or  otherwise.

Agreed  Interest  Rate means a floating interest rate, compounded monthly, equal
----------------------
to the lesser of (i) the rate per annum published by The Wall Street Journal (or
if not published by The Wall Street Journal, published by the Financial Times of
London)  as  the  one month LIBOR for U.S. dollar deposits on the first Business
Day prior to the due date of payment and thereafter on the first Business Day of
each  succeeding  calendar  month, plus five percentage (5%) points, or (ii) the
maximum  rate  permitted  by  the  governing  law  specified  in  Section  17.1.

Agreement  means  this  Joint  Operating  Agreement  for  Field  Development and
---------
Production,  together with the Exhibits attached hereto, as amended from time to
time  in  writing  by  the  Parties.

Applicable  Law  means  the  Hydrocarbons Law as defined in the Contract and any
---------------
other  statute,  decree,  order,  directives,  regulation,  or rule (of whatever
nature)  as such may be validly issued by the Government and in effect from time
to  time,  including  without  limitation,  those  laws,  statutes,  rules  and
regulations  with  respect  to  the  exploration,  development and production of
Hydrocarbons  that govern the Contracts or are incorporated by the terms of such
Contracts.

Business  Day  means a day on which the banks in Dallas, Texas, U.S.A., are open
-------------
for  domestic  and  international  business.

Calendar  Quarter  means  a  period  of  three  (3)  consecutive calendar months
-----------------
beginning,  respectively,  on  January  1,  April  1,  July  1,  and  October 1.

Calendar Year means a period of twelve (12) months commencing with January 1 and
-------------
ending  on  the  following  December  31.

Carried  Costs means costs directly attributable to the Carried Party, which the
--------------
Working  Interest  Parties  are  obligated to bear and pay under the Assignment.

Carried  Party  means  the  State  or  other  wholly  owned  Government  entity
--------------
exclusively  responsible  for the development of Hydrocarbon deposits in a Field
in  the  Contract  Area,  who  receives  the assignment of the five percent (5%)
Participating  Interest  pursuant  to  Part  B  of  the  Assignment.

Cash  Call  is  defined  in  the  Accounting  Procedure.
----------

Commercial  Discovery  is  defined  in  the  Contract.
---------------------

Completion  means  an  operation  intended  to  complete a well as a producer of
----------
Hydrocarbons  in  one or more Zones, including the setting of production casing,
perforating,  stimulating  the  well,  and  production Testing conducted in such
operation.    Complete  and  other  derivatives  shall be construed accordingly.
              --------

Contract  means  the  Production  Sharing  Contract  between  The  Republic  of
--------
Equatorial  Guinea  and  Triton  Equatorial  Guinea, Inc., executed on March 26,
1997,  and  effective  as  of April 14, 1997 (the "Original Contract"), covering
Block  F,  Offshore  the Republic of Equatorial Guinea, as amended by the Letter
and  by  the  Amendment to the Production Sharing Contract For Block F, Offshore
Republic  of  Equatorial  Guinea, dated as of January 1, 2000 (the "Amendment"),
the  English  translation  of  which  is  attached  hereto as Exhibit B, and any
extension, renewal or amendment thereof agreed to in writing by the Parties from
time  to  time.

Contractor  means Triton, EA and the Government, and their respective successors
----------
and  permitted  assigns  under  the  Contract  and Assignment from time to time.

Contract  Area  means  the "Contract Area" delineated in Annex A of the Contract
--------------
and  described  in  Annex  B  of  the  Contract,  as  amended from time to time.

Contract  Period  means all or any of the periods of one (1) or two (2) Contract
----------------
Years  described  in Section 2.2 of the Contract, as may be further amended from
time  to time, including the extension of twelve (12) months provided for in the
Letter  and  ratified  by  the  Government.

Contract  Year  is  defined  in  the  Contract.
--------------

Crude  Oilis  defined  in  the  Contract.
----------

Day  means  a  calendar  day  unless  otherwise  specifically  provided.
---

"Decommissioning"  pursuant  to  the  Oil  Industry  International Exploration &
 ---------------
Production Forum (E&P Forum Report No. 10.12/232, December 1995), means platform
decommissioning  consisting  of three (3) distinct activities:  decommissioning,
the shutting down and making safe of the facilities and wells, including purging
and clearing systems of Petroleum and other chemicals; removal of all or part of
the  facility,  based  on environmental, economic and safety considerations; and
disposal  and/or  recycling  of  the  removed parts, in place, onshore, or in an
approved  deep  water  location.  Decommission  and  other  derivatives shall be
                                  ------------
construed  accordingly.

Default  Notice  is  defined  in  Section.7.1.
---------------

Defaulting  Party  is  defined  in  Section.7.1.
-----------------

Deepening  means  an  operation  whereby  a well is drilled to an objective Zone
---------
below  the  deepest  Zone in which the well was previously drilled, or below the
deepest  Zone  proposed  in  the  original well proposal (in the applicable Work
Program  and  Budget or pursuant to Article 6), whichever is deeper.  Deepen and
other  derivatives  shall  be  construed  accordingly.

Delivery  Point  means that point where Hydrocarbons and title thereto passes to
---------------
each  Party  from  the facilities that are operated for the Joint Account in the
Contract Area to the loading flange of the equipment into which such delivery is
being  made.

Development  Plan means a plan for the development of Hydrocarbons from a Field,
-----------------
which  is  described  in  Section  2.6  of  the  Contract.

Discovery means the discovery of an accumulation of Hydrocarbons whose existence
---------
until  that  moment  was  unproven  by  drilling.

Effective  Date  means  the  date  this Agreement comes into effect as stated in
---------------
Section  2.1.
----

EIA  means,  collectively  and/or  individually, any of the environmental impact
---
assessments  prepared  in connection with Operator's conduct of Joint Operations
or  any  permanent preventative and contingency plans required from time to time
under  the  Applicable  Laws,  and  any  amendments  and  updates  thereto.

Entitlement  means a quantity of Hydrocarbons to which a Party has the right and
-----------
obligation  to  take  delivery  pursuant  to  the Contract and the terms of this
Agreement,  after  adjustment  for  overlifts  and underlifts as contemplated in
Section  8.2.

Entity  Constituting  Part  of  Contractor  means  a  legal entity which holds a
------------------------------------------
Participating Interest in a Field as part of Contractor as constituted from time
to  time.

Equipping  means  the  installation  of  equipment for production of a Completed
---------
well,  including  surface  production  facilities.  Equip  and other derivatives
----                                               ------
shall  be  construed  accordingly.

Exploitation  Period  is  the  period  described in Section 2.7 of the Contract.
--------------------

Field is  defined  in  the  Contract.
-----

Force  Majeure  is  defined  in  Section  16.2  of  this  Agreement.
--------------

G  &  G  Data  means  geological,  geophysical,  and  geochemical  data,  aerial
-------------
photographic  reconnaissance, field reconnaissance, detailed field mapping, core
hole drilling, and other similar information that is not obtained through a well
bore.

Government  means the Government of the Republic of Equatorial Guinea or "State"
----------
as  defined  in  the  Contract,  including  any  national,  provincial, or local
government  in  the  Republic  of  Equatorial  Guinea  and  any  court,  agency,
corporation,  or  instrumentality  thereof.

Gross  Negligence  means  any  act  or  failure  to  act (whether sole, joint or
-----------------
concurrent) by any person or entity which was intended to cause, or which was in
reckless  disregard  of  or  wanton  indifference  to, harmful consequences such
person  or  entity  knew,  or  should have known, such failure would have on the
safety  or  property  of  another  person  or  entity.

Hydrocarbons means all substances including liquid and gaseous hydrocarbons
------------
which are  subject  to  and  covered  by  the  Contract.

Hydrocarbons  Law  is  defined  in  the  Contract.
-----------------

Indemnitees  is  defined  in  Section  4.6(B).
-----------

Joint Accounts means the accounts maintained for Joint Operations by Operator in
--------------
accordance  with  the provisions of this Agreement and the Accounting Procedure.

Joint  Operations  means  those  operations  and  activities  under the Contract
-----------------
carried  out  by  Operator  pursuant  to  this Agreement, the costs of which are
chargeable  to  all  Parties.

Joint  Property  means all wells, facilities, equipment, materials, information,
---------------
funds  and  the  property  held  for  use  in  Joint  Operations.

Letter  means  collectively,  those  certain  letters  dated September 29, 1998,
------
regarding  exploration  programme for Blocks F and G and Work Program and Budget
for  1998  for  Blocks  F  and  G,  attached  hereto  as  Exhibit  B.

Maximum  Efficient  Rate  ("MER")  is  defined  in  the  Contract.
---------------------------------

Minimum  Work  Obligation  means  those  work  and/or  expenditure  obligations
-------------------------
specified  in  the  Contract  which  must  be  performed during the then current
Contract  phase  or  period in order to satisfy the obligations of the Contract.

Natural  Gas  is  defined  in  the  Contract.
------------

Net  Crude  Oil  means  that  portion  of  the  total production of Hydrocarbons
---------------
remaining  after  payment  of  Royalty  and  recovery  of  Petroleum  Operations
Expenditures,  which  is allocated to the Parties under the terms of Section VII
of  the  Contract.

Non-Operator(s)  means  the  Party  or  Parties  to  this  Agreement  other than
---------------
Operator.

Operating  Committee  means the committee constituted in accordance with Section
--------------------
5.1.

Operator  means  a Party to this Agreement designated as such in accordance with
--------
this  Agreement.

Participating  Interest means the undivided percentage interest of each Party in
-----------------------
the  rights  and  obligations  derived  from  the  Contract  and this Agreement.

Party  means  any of the entities named in the first paragraph to this Agreement
-----
and  any  respective  successors or assigns in accordance with the provisions of
this  Agreement.

Petroleum  Operations  Expenditures  means  costs  and  expenses incurred by the
-----------------------------------
Parties  and  allowed  to  be  recovered  pursuant  to  the  Contract.

Plugging  Back  means  a  single operation whereby a deeper Zone is abandoned in
--------------
order  to  attempt  a  Completion  in  a  shallower  Zone.  Plug  Back and other
                                                            ----------
derivatives  shall  be  construed  accordingly.

Production  Bonus  means a bonus payable by the Parties under Section 9.3 of the
-----------------
Contract.

Recompletion means an operation whereby a Completion in one Zone is abandoned in
------------
order  to attempt a Completion in a different Zone within the existing wellbore.
Recomplete  and  other  derivatives  shall  be  construed  accordingly.
----------

Retained  Areas means those portions of the Contract Area retained by Contractor
---------------
as  part  of  the  Field  during  the Exploitation Period in accordance with the
Contract  and  the  Applicable  Law.

Reworking  means  an  operation  conducted in the wellbore of a well after it is
---------
Completed  to secure, restore, or improve production in a Zone that is currently
open  to  production  in  the wellbore. Such operations include well stimulation
operations,  but  exclude  any  routine repair or maintenance work, or drilling,
Sidetracking,  Deepening,  Completing, Recompleting, or Plugging Back of a well.
Rework  and  other  derivatives  shall  be  construed  accordingly.
------

Royalty  as  defined  in  the  Contract.
-------

Security  is  defined  in  Section  12.8.
--------

Senior  Supervisory  Personnel means with respect to a Party, any individual who
------------------------------
functions as such Party's designated manager or supervisor responsible for or in
charge  of  onsite  Joint  Operations,  including  drilling,  construction  and
production  and  any  individual  who  functions  for  such  Party or one of its
Affiliates  at a management level equivalent or superior to such manager, or any
officer  or  director  of  such  Party  or  one  of  its  Affiliates.

Sidetracking  means  the directional control and intentional deviation of a well
------------
from  the  vertical  so  as  to  change the bottom-hole location, unless done to
straighten  the  hole  or  to drill around junk in the hole or to overcome other
mechanical  difficulties.  Sidetrack  and  other  derivatives shall be construed
                           ---------
accordingly.

Special  Damages  means  any  costs,  expense,  or  liability for environmental,
----------------
consequential, punitive, special, or indirect damages or losses, including those
arising  from  business  interruption,  loss  of profits, reservoir or formation
damage,  inability  to produce Hydrocarbons, pollution control, or environmental
amelioration  or  reclamation.

State  means  the  Republic  of  Equatorial  Guinea.
----------------------------------------------------

Testing  means  a  well  bore operation intended to flow formation fluids to the
-------
surface  in  order  to  evaluate the capacity of a Zone to produce Hydrocarbons.
Test  and  other  derivatives  shall  be  construed  accordingly.
----

U.S.  Party  is  defined  in  Section  13.3(C).
-----------

Working  Interest  Parties  means  the  Parties to this Agreement other than the
--------------------------
Carried  Party.

Work  Program  and  Budget  means a work program for Joint Operations and budget
--------------------------
therefore  as  described  and  approved  in  accordance  with  Article  6.

Zone  means  a  geological  structure or stratigraphic trap capable of producing
----
Hydrocarbons  that  may  contain  one  or  more separate and distinct lithologic
members trapped by (i) impermeable rock or water barriers and characterized by a
single natural pressure system, or (ii) lithological or structural barriers that
prevent  pressure  communication.

                                    ARTICLE 2
                                    ---------
                                      TERM

2.1     Effective  Date and Severability.  This Agreement shall apply severally,
        ---------------------------------
sequentially and automatically to every Field developed under the Contract.  The
"Effective  Date"  is, for each Field, the approval date of Development Plan for
such  Field  under the terms of the Contract.  It shall continue in effect until
the  Contract  terminates,  and  all materials, equipment, and personal property
used  in  connection  with the Operations have been removed and disposed of, and
final  settlement  has  been  made  among the Parties.  The State shall become a
Party  to  this  Agreement  for  a  Field  in  which it receives a Participating
Interest  under  the  Contract  and  the  Assignment.

2.2     Survival.  The Articles and Section of this Agreement referred to in (A)
        ---------
and  (B)  below  shall  survive  termination  and  remain  in  effect  until:

     (A)     all  wells  have  been properly abandoned and all installations and
facilities  Decommissioned  in accordance with Article 9 or transferred with all
such  obligations  to  the  State  under  the  Contract;  and

     (B)     all  obligations,  claims,  arbitrations,  and  lawsuits  have been
settled  or otherwise disposed of in accordance with Section 4.5 and Article 17.

2.3     Stand  Alone  Option.  The  Parties  recognize  that  the  form  of this
        --------------------
Agreement,  which  is  an  Annex  to  the  Assignment,  will  be  construed  and
implemented  on  a  Field by Field basis effective January 1, 2000.  The form of
this  Agreement, however, may not be satisfactory to one or more of the Parties,
from time to time, particularly for the purpose of raising finance from external
sources  to  fund Joint Operations for one or more Fields.  Should any Party, at
any  time,  request to the other Parties that this Agreement, as it applies to a
particular  Field,  be  severed  from  the  Contract and recast as a stand alone
agreement,  then, in such event, the other Parties shall promptly cooperate with
the requesting Party in achieving the stated purpose and this Agreement shall be
modified  as to form, but not as to substance, to show the names of the Parties,
the  allocation  of  the Participating Interest and the Carried Costs by name of
Parties  and  everything that is necessary and proper to recast the arrangements
herein  in  the  form  of  a  stand  alone agreement, including signature lines,
signatures  and  date  of  execution.

                                    ARTICLE 3
                                    ---------
                                      SCOPE

3.1          Scope.
             ------

(A)     The  purpose of this Agreement is to establish the respective rights and
obligations  of  the Parties with regard to Field operations under the Contract,
including  the  joint  exploration,  evaluation,  development  and production of
Hydrocarbon  reserves  from  the  Field.

     (B)     Without  limiting  the  generality of Section 3.1(A), the following
activities  are  outside  of  the  scope of this Agreement and are not addressed
herein:

     (1)     Construction,  operation,  maintenance,  repair  and  removal  of
facilities  downstream  from  the  Delivery  Point  of  the  Parties'  shares of
Hydrocarbons  under  the  offtake  agreement  provided  for  in  Section  8.2;

     (2)     Transportation  of  Hydrocarbons  beyond  the Delivery Point of the
Parties' shares of Crude Oil under the offtake agreement provided for in Section
8.2  and  the  transportation  of  Natural  Gas  as provided for in Section 8.3;

     (3)     Marketing  and  sales of Hydrocarbons, except as expressly provided
in  Sections  7.4  and  in  Article  8;

     (4)     Acquisition  of rights to explore for, evaluate, develop or produce
Hydrocarbons  outside  of the applicable Field in the Contract Area  (other than
as  a  consequence of unitization with an adjoining field under the terms of the
Contract);  and

     (5)     Exploration,  evaluation,  development  or  production  of minerals
other  than  Hydrocarbons,  whether  inside  or  outside  of  the Contract Area.

3.2          Participating  Interest.
             ------------------------

     (A)     The Participating Interests of the Parties in a Field as of January
1,  2000  upon  assignment to the State in accordance with the provisions of the
Assignment  are:

                       State       5.00%
                       Triton     80.75%
                       EA         14.25%

If  a  Party  transfers,  from  time  to  time, all or part of its Participating
Interest  as permitted in the Assignment and Contract after January 1, 2000, but
prior  to  the  Effective  Date of this Agreement for a Field, the Participating
Interests  of  the  Parties  shown  above  shall  be  revised  accordingly.

(B)     The  Carried Costs will be borne as of the Effective Date by the Working
Interest  Parties and/or their respective successor and assigns after January 1,
2000  as  follows:

                       Triton      4.25%
                       EA          0.75%

If  a  Working  Interest  Party transfers, from time to time, all or part of its
Participating Interest after January 1, 2000, but prior to the Effective Date of
this  Agreement  for  a  Field,  the  Carried  Costs  to be borne by the Working
Interest  Parties  shown  above  shall  be  revised  accordingly.

(C)     If  a Party transfers all or part of its Participating Interest pursuant
to  the  provisions  of  this  Agreement  and as permitted in the Assignment and
Contract, the Participating Interests and the Carried Cost share, if applicable,
of  the  Parties  shall  be  revised accordingly.  In the event that the Parties
and/or  Participating  Interest  of  the  Parties  in a Field differs from other
Fields in the Contract Area, then the Parties agree that a separate and distinct
Field  JOA  shall  apply with regard to such Field with differing ownerships for
all  purposes,  provided however that the cross default provision of Section 7.7
shall  apply  to  all  operating  agreements  to which the Defaulting Party is a
party.

3.3     Ownership,  Obligations,  and Liabilities.  Unless otherwise provided in
        ------------------------------------------
this  Agreement:

     (A)     Except  as  otherwise  provided in the Assignment with respect to a
Field,  all  the  rights  and  interests  in  and  under the Contract, all Joint
Property,  and  any Hydrocarbons produced from the Field and attributable to the
Contractor  pursuant to the Contract shall be owned by the Parties in accordance
with  their  respective  Participating  Interests;

     (B)     The  obligations  of  the  Parties  under  the  Contract,  and  all
liabilities  and  expenses  incurred  by  Operator  in  connection  with  Joint
Operations,  shall  be charged to the Joint Account and all credits to the Joint
Account  shall be shared by the Parties, as among themselves, in accordance with
their  respective  Participating  Interests;  and

     (C)     Each  Working  Interest  Party  shall  bear  and  pay  when due, in
accordance  with  the  Accounting Procedure, its Participating Interest share of
Joint  Account and Carried Party's expenses incurred pursuant to this Agreement,
including  Cash  Calls,  billings  and accrued interest.  The Parties agree that
time  is  of  the  essence  for  payment  owing under this Agreement.  A Working
Interest  Party's  payment  of  any charge under this Agreement shall be without
prejudice  to  its  right  to  later  contest  the  charge.

3.4     Accounting  Procedure. The Accounting Procedure shall govern the accrual
        ----------------------
and  satisfaction  of the respective obligations, liabilities, and credits among
the  Parties.

                                    ARTICLE 4
                                    ---------
                                    OPERATOR

4.1     Designation  of  Operator.  Triton is designated as Operator, and agrees
        --------------------------
to  act  in  accordance  with  the terms and conditions of the Contract and this
Agreement,  which  terms  and  conditions  shall  also  apply  to  any successor
Operator.

4.2          Rights  and  Duties  of  Operator.
             ----------------------------------

     (A)     Subject  to  the  terms  and conditions of this Agreement, Operator
shall have all of the rights, functions, and duties of Contractor related to the
conduct of operations under the Contract, and shall have exclusive charge of and
shall conduct all Joint Operations.  Operator may employ independent contractors
or  agents (which may include Affiliates of Joint Operator) for such Operations.

     (B)          Operator  shall  and  is  authorized  to:

     (1)     Perform  Joint  Operations in accordance with the provisions of the
Contract,  this  Agreement,  the  approved  Work  Program  and  Budget  and  the
instructions  of  the  Operating  Committee not in conflict with this Agreement;

     (2)     Conduct  all  Joint  Operations  in a diligent, safe, and efficient
manner  in  accordance with good and prudent oilfield practices and conservation
principles  generally  followed  by  the  international petroleum industry under
similar  circumstances;

     (3)     Subject to Section 4.6 and the Accounting Procedure, neither gain a
profit  nor  suffer  a  loss as a result of being the Operator in its conduct of
Joint  Operations,  provided  that  Operator  may  rely upon Operating Committee
approval  of  specific  accounting practices not in conflict with the Accounting
Procedure;

     (4)     Perform  the  duties for the Operating Committee set out in Section
5.8, and prepare and submit to the Operating Committee the proposed Work Program
and  Budgets  and  AFEs  as  provided  in  Article  6;

     (5)     Acquire  all permits, consents, approvals, surface, or other rights
that  may be required for or in connection with the conduct of Joint Operations;

     (6)     Upon receipt of reasonable advance notice, permit the
representatives of any  of  the  Parties  to have reasonable access to the Joint
Operations (at all reasonable  times, upon reasonable advance notice, and at
such Parties' own risk and  expense) with the right to observe all such Joint
Operations and to inspect all  Joint  Property  associated  therewith  and  to
conduct financial audits as provided  in  the  Accounting  Procedure;

    (7)     Use  its  reasonable  efforts to maintain the Contract in full force
and effect  with  respect  to  the  Field;

    (8)     Pay  and  discharge  all  liabilities and expenses incurred in
connection  with  Joint  Operations  and  use its reasonable efforts to keep and
maintain  the  Joint  Property  free  from  all liens, charges, and encumbrances
arising  out  of  Joint  Operations;

    (9)     Pay  to  the  Government for the Joint Accounts, within the periods
and in the manner prescribed by the Contract and all Applicable Laws, all taxes,
fees  and other payments pertaining to Joint Operations, but excluding any taxes
measured  by  the  income, equity, or net assets of a Party, or any other taxes,
penalties,  fees  or  assessments  which  are the individual responsibility of a
Party;

   (10)     Carry out the obligations of Contractor under the Contract with
respect to  the Field, including the preparation and furnishing of reports,
records, and information  as  may  be  required  pursuant  to  the  Contract;
and

   (11)     Take  all  necessary  and  proper  measures for the protection of
life, health.  safety,  the  environment  and property in the case of an
emergency and notify  the  Parties  immediately of the details of such
emergency and measures.

(C)     Operator  shall have the exclusive right and obligation to represent the
Parties,  in  accordance  with the directives of the Operating Committee, in all
dealings  with the Government with respect to matters arising under the Contract
and  Joint  Operations.  Operator  shall  notify  the  other  Parties as soon as
possible  in  advance  of  such  meetings. Non-Operators shall have the right to
attend  such  meetings but only in the capacity of observers.  Nothing contained
in  this  Agreement  shall  restrict any Party from holding discussions with the
Government  with  respect  to  any  issue  peculiar  to  its particular business
interests  arising  under the Contract or this Agreement, but in such event such
Party  shall  promptly  advise the other Parties, if possible, before and in any
event  promptly  after  such  discussions; provided that such Party shall not be
required to divulge to the other Parties any matters discussed to the extent the
same involve proprietary information on matters not affecting the other Parties.

4.3     Employees  of  Operator.  Subject  to  the  Contract and this Agreement,
        ------------------------
Operator  shall  determine  the  number  of  employees,  the  selection  of such
employees, the hours of work, and the compensation to be paid all such employees
in connection with Joint Operations.  Operator shall employ only such employees,
agents,  and contractors as are reasonably necessary to conduct Joint Operations
in  accordance with good and prudent international petroleum industry practices.

4.4          Information  Supplied  by  Operator.
             ------------------------------------

     (A)     Operator shall provide Non-Operators the following data and reports
as  they are currently produced or compiled from Joint Operations for the Field:

(1)   A copy of all logs or surveys;

(2)   Daily drilling progress reports;

(3)   A copy of all Tests and core analysis reports;

(4)   A copy of the plugging reports;

(5)   Engineering studies, development schedules, and annual progress reports on
development projects;

(6)   Field and well performance reports, including reservoir studies, and
reserve estimates;

(7)   Copies of all reports relating to Joint Operations furnished by Operator
to the Government;

(8)     A  copy  of  the  final  G & G Data prepared by Operator or contractors,
except  magnetic  tapes, which shall be stored by Operator and made available on
request  for  inspection  or  copying,  at  the  sole  expense of the requesting
Non-Operator;

(9)     Other  reports  as  frequently  as  is justified by the activities or as
instructed  by  the  Operating  Committee;  and

(10)     Subject  to  Section  14.3,  such additional information requested by a
Non-Operator,  provided  that  the  requesting  Non-Operator  pays  the costs of
preparation  of  such  information  and that the preparation of such information
does  not  unduly  burden  Operator's  administrative  and  technical personnel.

     (B)     Operator shall give Non-Operators access at all reasonable times to
all  other  data  acquired in the conduct of Joint Operations.  Any Non-Operator
may  make  copies  of  such  other  data  at  its  sole  expense.

4.5          Settlement  of  Claims  and  Lawsuits.
             --------------------------------------

     (A)     Operator  shall  promptly notify the Parties of all material claims
or  suits  that  arise  out  of  Joint  Operations or relate in any way to Joint
Operations.  Operator shall represent the Parties and defend or oppose the claim
or  suit.  Operator  may  in  its  sole discretion compromise or settle any such
claim  or  suit  or  any  related series of claims or suits for an amount not to
exceed  the  equivalent  of  U.S.  Dollars One Hundred Thousand (US $100,000.00)
exclusive  of  legal  fees.  Operator shall obtain the approval and direction of
the Operating Committee prior to compromising or settling any claim or suite for
an amount in excess of the above stated amount. Each Non-Operator shall have the
right to be represented by its own counsel at its own expense in the settlement,
compromise,  or  defense  of  such  claims  or  suits.

     (B)     Any  Non-Operator  shall  promptly  notify the other Parties of any
claim  made  against such Non-Operator by a third party relating to or which may
affect  Joint  Operations  or  other Parties.  Such Non-Operator shall defend or
settle  any  claim  affecting Joint Operations in accordance with any directions
given  by  the  Operating  Committee.  All  costs,  expenses, and damages as are
payable  with  respect  to  such  defense  or  settlement shall be for the Joint
Account.

(C)     Notwithstanding Section 4.5(A) and Section 4.5(B), each Party shall have
the  right  to  participate  in  any  such  prosecution,  defense, or settlement
conducted  in accordance with Section 4.5(A) and Section 4.5(B) at its sole cost
and  expense;  provided  always  that  a  Party  may not unilaterally settle its
Participating  Interest  or Carried Cost share of any claim without agreement of
the  Operating  Committee such settlement will not prejudice the interest of any
other  Party  or  the  conduct  of  Joint  Operations.

4.6          Limitation  on  Liability  of  Operator.
             ----------------------------------------

     (A)     Except as set out in this Section 4.6, NEITHER THE PARTY DESIGNATED
AS  OPERATOR NOR ANY OTHER INDEMNITEE (AS DEFINED BELOW) SHALL BEAR (EXCEPT AS A
PARTY  TO  THE  EXTENT  OF  ITS  PARTICIPATING INTEREST) ANY DAMAGE, LOSS, COST,
EXPENSE,  OR  LIABILITY  RESULTING  FROM  PERFORMING (OR FAILING TO PERFORM) THE
DUTIES  AND  FUNCTIONS  OF THE OPERATOR, AND THE INDEMNITEES ARE HEREBY RELEASED
FROM LIABILITY TO NON-OPERATORS FOR ANY AND ALL DAMAGES, LOSSES, COSTS, EXPENSES
AND  LIABILITIES  ARISING OUT OF, INCIDENT TO OR RESULTING FROM SUCH PERFORMANCE
OR  FAILURE TO PERFORM, EVEN THOUGH CAUSED IN WHOLE OR IN PART BY A PRE-EXISTING
DEFECT,  THE  NEGLIGENCE  (WHETHER SOLE, JOINT OR CONCURRENT), GROSS NEGLIGENCE,
STRICT  LIABILITY,  OR  OTHER  LEGAL FAULT OF OPERATOR (OR ANY SUCH INDEMNITEE).

     (B)     Except  as  set  out  in  this  Section  4.6,  THE PARTIES SHALL IN
PROPORTION  TO  THEIR  PARTICIPATING INTERESTS DEFEND AND INDEMNIFY OPERATOR AND
ITS  AFFILIATES,  AND  THEIR  RESPECTIVE  SHAREHOLDERS,  DIRECTORS,  OFFICERS,
EMPLOYEES, AGENTS AND CONSULTANTS (COLLECTIVELY THE "INDEMNITEES"), FROM ANY AND
ALL DAMAGES, LOSSES, COSTS, EXPENSES (INCLUDING REASONABLE LEGAL COSTS, EXPENSES
AND  ATTORNEYS'  FEES) AND LIABILITIES INCIDENT TO CLAIMS, DEMANDS, OR CAUSES OF
ACTION  BROUGHT  BY OR ON BEHALF OF ANY PERSON OR ENTITY, WHICH CLAIMS, DEMANDS,
OR  CAUSES  OF  ACTION  ARISE OUT OF, ARE INCIDENT TO OR RESULT FROM OPERATIONS,
EVEN  THOUGH CAUSED IN WHOLE OR IN PART BY A PRE-EXISTING DEFECT, THE NEGLIGENCE
(WHETHER  SOLE,  JOINT  OR  CONCURRENT),  GROSS NEGLIGENCE, STRICT LIABILITY, OR
OTHER  LEGAL  FAULT  OF  OPERATOR  (OR  ANY  SUCH  INDEMNITEE).

     (C)     Nothing  in  this  Section 4.6 shall be deemed to relieve the Party
designated  as  Operator  from  its  Participating Interest share of any damage,
loss,  cost,  expense or liability arising out of, incident to or resulting from
Joint  Operations.

     (D)     Notwithstanding  Sections  4.6(A)  and  4.6(B),  if  any  Senior
Supervisory  Personnel  of Operator or its Affiliates engage in Gross Negligence
that  proximately  causes  the  Parties  to incur damage, loss, cost, expense or
liability for claims, demands or causes of action referred to in Sections 4.6(A)
or  4.6(B),  then,  in  addition  to its Participating Interest and Carried Cost
share,  Operator  shall  bear  only  the  first  U.S.  Dollars  Five  Million
(US$5,000,000.00)  of  such  damages,  losses,  expenses  and  liabilities  in a
Calendar  Year.

     (E)     NOTWITHSTANDING  THE  FOREGOING,  UNDER  NO  CIRCUMSTANCES  SHALL
OPERATOR OR ANY INDEMNITEE (EXCEPT AS A PARTY TO THE EXTENT OF ITS PARTICIPATING
INTEREST)  BEAR  ANY  SPECIAL  DAMAGES.

4.7          Insurance  Obtained  by  Operator.
             ----------------------------------

     (A)     Operator  shall  procure  and maintain, or cause to be procured and
maintained,  for  the  Joint  Accounts  all  insurance  in the types and amounts
required  by  the  Contract  and Applicable Law; if Operator is unable to do so,
Operator shall promptly advise the Operating Committee, and thereupon Operator's
liability  to  obtain  such  insurance  shall  be  suspended as to such specific
insurance  as  to  which  its  inability  relates.

     (B)     Operator shall obtain such further insurance, at competitive rates,
as  the  Operating  Committee  may  from  time  to  time  require.

     (C)     Any Party may elect not to participate in the coverage and the cost
of  any  insurance  to  be  procured  under  Section 4.7(B) provided such Party:

(1)  Gives prompt written notice to that effect to Operator;

(2)  Does nothing which may interfere with Operator's negotiations for such
insurance for the other Parties; and

(3)  Obtains and maintains such insurance (in respect of which an annual
certificate  of  adequate  coverage  from  a reputable insurance broker shall be
sufficient  evidence)  or other evidence of financial responsibility which fully
covers  its  Participating  Interest share of the risks that would be covered by
the  insurance  procured under Section 4.7(B), and which the Operating Committee
determines  is  acceptable.  No such determination of acceptability shall in any
way absolve a non-participating Party from its obligation to meet each Cash Call
including  any  Cash  Call  in respect of damages and losses and/or the costs of
remedying  the  same  in  accordance  with the terms of this Agreement.  If such
Party  obtains  other  insurance,  such  insurance  shall  contain  a  waiver of
subrogation  in favor of all the other Parties, the Operator and their insurers,
but  only  in  respect  of  their  interests  under this Agreement, and shall be
primary as respects any other insurance providing coverage to the other Parties,
the  Operator  and their insurers.  Such waiver of subrogation shall be in favor
of  any  contractor  or  subcontractor  in  respect of which Operator has waived
rights  of recourse on behalf of itself and/or the Parties with respect to Joint
Operations;  such  waivers  of  subrogation  shall  extend to the benefit of the
contractors and/or of the subcontractors so protected; or in the absence of such
insurance  such Party hereby releases and indemnifies all the other Parties from
any  claims  or  loss and damage that would have been covered by such insurance,
including  those  within  deductibles applying to such insurance with respect to
Joint  Operations.

     (D)     The cost of insurance for Joint Operations in which all the Parties
are  participating  shall be for the Joint Account, and the cost of insurance in
which  less  than  all  the Parties are participating pursuant to Section 4.7(C)
shall be charged to the Parties participating in proportion equal to a fraction,
the  numerator  of  which  is  such  Party's  Participating  Interest  and  the
denominator  of  which  is the sum of the Participating Interests of the Parties
that  are  participating  in  such  insurance.

     (E)     Operator  shall,  in  respect of all insurance obtained pursuant to
this  Section  4.7:

     (1)     Promptly  inform  the  participating Parties when such insurance is
obtained and  upon request supply them with copies of the relevant policies when
the  same  are  issued;

     (2)     Arrange  for  the  participating  Parties,  according  to  their
respective  Participating  Interests, to be named as co-insureds on the relevant
policies  with  waivers  of subrogation in favor of all the Parties and shall be
primary  as  respects any other insurance providing coverage to the Parties; and
shall  be  in  favor  of  any  contractor  or subcontractor in favor of whom the
Operator  in its capacity of Operator shall have waived rights or recourse; such
waivers  of  subrogation  shall  extend  to  the  benefit of the insurers of the
Parties  and/or  of  the  contractors  and/or  subcontractors  so protected; and

     (3)     Duly  file  all  claims  and take all necessary and proper steps to
collect  any  proceeds  and  credit any proceeds to the participating Parties in
proportion  to  their  respective  Participating  Interests.

     (F)     Operator  shall  use  its  reasonable  efforts  to  require  all
contractors  performing  work  in  respect  of  Joint  Operations  to obtain and
maintain  any and all insurance pertaining to such work in the types and amounts
required  by  any  Applicable  Law,  contract  or any directive of the Operating
Committee,  and shall use its reasonable efforts to require all such contractors
to name the Parties as additional insureds on contractor's insurance policies or
to  obtain  from  their  insurers  waivers of all rights of recourse against the
Parties.

(G)     Each  Party may, for its own account and at its own expense, obtain such
additional  insurance  pertaining to Joint Operations and the Contract as it may
deem  advisable;  provided  however,  that  the  obtaining  of  such  additional
insurance  shall  not  interfere  with  Operator's  placement  of  insurance  in
accordance  with  the  terms  of  this  Section  4.7.

4.8     Commingling  of Funds.  Operator may commingle with Operator's own funds
        ---------------------
the  monies  which  Operator receives from or for the Joint Accounts pursuant to
this  Agreement.  Notwithstanding  that  monies  of  a  Non-Operator  have  been
commingled  with  Operator's  funds, the Operator shall account to Non-Operators
for  the  monies of a Non-Operator advanced or paid to Operator, whether for the
conduct  of  Joint  Operations  or as proceeds from the sale of production under
this  Agreement.  Such  monies  shall  be applied only to their intended use and
shall  in  no  way be deemed to be funds belonging to Operator.  Notwithstanding
the foregoing, upon the agreement of all Non-Operators, Non-Operators shall have
the  right to request Operator to segregate from Operator's own funds the monies
which  Operator  receives from the Parties in connection with operations on each
Field,  and  the  Operator  shall  not  unreasonably  refuse  any  such request.

4.9     Resignation  of  Operator.  Subject to Section 4.11, Operator may resign
        --------------------------
as  Operator  at any time by so notifying the other Parties at least one hundred
and  twenty  (120)  Days  prior  to  the  effective  date  of  such resignation.

4.10  Removal of Operator.
      ---------------------

(A)  Subject to Section 4.11, Operator shall be removed upon receipt of notice
from any Non-Operator if:

     (1)     An  order  is made by a court or an effective resolution is passed
for the reorganization under any bankruptcy law, dissolution,  liquidation,  or
winding  up  of  Operator;

(2)  Operator dissolves, liquidates, is wound up, or otherwise terminates its
existence;

(3)  Operator becomes insolvent, bankrupt, or makes an assignment for the
benefit of creditors; or

(4)  A receiver is appointed for a substantial part of Operator's assets.

          If  the  removal of Operator is prevented by any applicable bankruptcy
law,  but  Operator  or any trustee acting on behalf of Operator properly elects
under  that  law  to reject or avoid all or any part of this Agreement, Operator
shall  be  deemed  to have resigned without any further action being required on
the  part  of  the  Non-Operators.

     (B)     Subject to Section 4.11, Operator may be removed by the decision of
the Working Interest Parties if Operator has committed a material breach of this
Agreement  and  has either failed to cure such breach within thirty (30) Days of
receipt  of  a notice from Working Interest Parties detailing the alleged breach
or  failed  to diligently pursue the cure to completion. Any decision of Working
Interest  Parties  to  give  notice  of breach to Operator or to remove Operator
under  this  Section 4.10(B) shall be made by an affirmative vote of all Working
Interest  Parties, excluding any Affiliates of Operator, provided that there are
at  least  two  (2)  Non-Affiliated  Working  Interest  Parties.

     (C)     If  Operator  together with any Affiliate of Operator is or becomes
the  holder  of a Participating Interest of less than twenty percent (20%), then
Operator  shall be required to promptly notify the other Parties.  The Operating
Committee  shall  then  vote  within  twenty  (20)  Days of such notification on
whether  or  not  a successor Operator should be named pursuant to Section 4.11.

4.11     Appointment of Successor.  When a change of Operator occurs pursuant to
         -------------------------
Section  4.9  or  Section  4.10:

     (A)     The Operating Committee shall meet as soon as possible to appoint a
successor Operator pursuant to the voting procedure of Section 5.9.  However, no
Party  may  be  appointed  successor  Operator  against  its  will.

     (B)     If  the  Operator  disputes  commission  of  or  failure  to cure a
material  breach  alleged  pursuant  to  Section  4.10(B),  and  proceedings are
initiated  pursuant  to  Section  17.2,  no  successor Operator may be appointed
pending  the conclusion or abandonment of such proceedings, subject to the terms
of  Section 7.3(B) with respect to Operator's breach of its payment obligations.

     (C)     If  an  Operator  is  removed  other  than  in  the case of Section
4.10(C),  neither Operator nor any Affiliate of Operator shall have the right to
vote  for  itself  or  the  Operator on the appointment of a successor Operator.

     (D)     A  resigning  or  removed  Operator shall be compensated out of the
Joint Account for its reasonable expenses directly related to its resignation or
removal,  except  in  the  case  of  Section  4.10(B).

     (E)     The  Operating  Committee  shall  arrange  for  the  taking  of  an
inventory  of all Joint Property and Hydrocarbons, and an audit of the books and
records  of  the removed Operator.  Such inventory and audit shall be completed,
if  possible,  no  later than the effective date of the change of Operator.  The
liabilities  and  expenses  of  such inventory and audit shall be charged to the
Joint  Accounts.

     (F)     The  resignation  or removal of Operator and its replacement by the
successor  Operator shall not become effective prior to receipt of any necessary
Government  approvals.

     (G)     Upon  the  effective  date  of  the  resignation  or  removal,  the
successor Operator shall succeed to all duties, rights, and authority prescribed
for  Operator.  The  former  Operator  shall  transfer to the successor Operator
custody  of  all  Joint  Property,  Joint Accounts, records, and other documents
maintained  by  Operator  pertaining to the Field and to Joint Operations.  Upon
delivery  of the above-described property and data, the former Operator shall be
released  and  discharged  from  all  obligations  and  liabilities  as Operator
accruing  after  such  date.

                                    ARTICLE 5
                                    ---------
                               OPERATING COMMITTEE

5.1     Establishment  of  Operating  Committee.  To  provide  for  the  overall
        ----------------------------------------
supervision and direction of Joint Operations, there is established an Operating
Committee  composed  of representatives of each Party.  Each Party shall appoint
one  (1)  representative  and  one  (1) alternate representative to serve on the
Operating  Committee.  Each  Party  shall  as soon as possible after the date of
this  Agreement  give  notice  in  writing  to the other Parties of the name and
address  of  its  representative  and  alternate  representative to serve on the
Operating  Committee.  Each  Party  shall  have  the  right  to  change  its
representative  and alternate at any time by giving notice to such effect to the
other  Parties.

5.2          Powers  and  Duties  of  Operating  Committee.
             ----------------------------------------------

     (A)     The  Operating Committee shall have power and duty to authorize and
supervise  Joint  Operations  that  are  necessary  or  desirable to fulfill the
Contract and properly exploit the Field in accordance with this Agreement and in
a  manner  appropriate  in  the  circumstances.

     (B)     Without  limiting  the  generality  of the foregoing, the Operating
Committee shall approve the initial form and all modifications to the following:

     (1)     the submission of the following matters to the Government; provided
that  if  such matters are not approved by the Operating Committee and submitted
at  least  thirty  (30) Days before the time limit set forth in the Contract for
submission  to  the Government, then such matters shall be decided and submitted
by  the  Operator:

(a)     Development Plan(s)-interim and final, including without limitation, the
designation  of  Retained  Areas;

(b)     Work Programs and Budgets insofar as they cover Minimum Work Obligations
and the timing, depth, and location of wells, or any other technical details not
specified  in  the  Minimum  Work  Obligations;

(c)     EIAs; and

(d)     MER;

     (2)  Work Programs and Budgets;

     (3)     The  sales, exchanges, or other dispositions of G & G Data or other
engineering,  technical,  or  proprietary  data and information related to Joint
Operations;

     (4)     Surrender  of  any  portion  or  portions  of  the  Contract  Area
encompassing  the  Field as required by Applicable Law or the Contract; provided
that  each  such  surrender shall be determined in accordance with Section 10.1;

     (5)  Construction of processing, treatment, compression, gathering,
transportation and other downstream facilities;

     (6)  Unitization, other than one imposed upon the Parties by the
Government, and the terms thereof; and

     (7)     Request  under  Section 6.1(m) of the Contract by Contractor to
State to redress  the  imbalance  resulting from a material change to the
economic or tax condition  of  the  Contract.

5.3     Authority  to Vote. The representative of a Party, or in his absence his
        -------------------
alternate  representative,  shall be authorized to represent and bind such Party
with respect to any matter which is within the powers of the Operating Committee
and  is  properly  brought  before  the  Operating  Committee.  Each  such
representative  shall  have  a  vote  equal to the Participating Interest of the
Party  such  person represents.  Each alternate representative shall be entitled
to  attend  all  Operating  Committee  meetings  but  shall have no vote at such
meetings  except  in  the  absence  of  the  representative  for  whom he is the
alternate.  In addition to the representative and alternate representative, each
Party  may  also  bring  to  any Operating Committee meetings such technical and
other  advisors  as  it  may  deem  appropriate.

5.4     Subcommittees  and Project Teams.  The Operating Committee may establish
        ---------------------------------
such  subcommittees and project teams, including technical subcommittees, as the
Operating  Committee  may deem appropriate.  The functions of such subcommittees
and  project  teams  shall  be  in  an  advisory capacity or as otherwise deemed
unanimously  by  the  Parties.  Such  subcommittees  and  project  teams,  if
established,  shall  be under the control and direction of the Operator.  In the
event  a  project  team  is  established  by  the Operating Committee to provide
services to the Operator, the amount and invoicing of the costs and expenses, if
any,  incurred  by the Non-Operator providing personnel to the project team must
be approved by the Operating Committee and shall, to the extent permitted by the
Contract  and  Applicable  Law,  be  charged  to  the  Joint  Account.

     Project  teams will not be utilized in cases where the costs for the use of
such  teams  or  the  contracts  to  be  entered  into cannot, in the Operator's
reasonable  opinion,  be  charged  to  the  Joint  Account or deductible for tax
purposes  and  the  cost to perform same would have been chargeable to the Joint
Account and deductible for tax purposes had such work been performed by Operator
alone  or  through  a  third  party  contractor  other  than  a  Non-Operator.
Notwithstanding  the  foregoing,  the  Parties  shall attempt to utilize project
teams  in  a  manner that will be chargeable to the Joint Account and deductible
for  tax  purposes  under  the  Contract.

5.5          Notice  of  Meeting.
             --------------------

     (A)     Operator  may  call  a meeting of the Operating Committee by giving
notice  to  the  Parties  at least fifteen (15) Days in advance of such meeting.

     (B)     Any  Non-Operator  with  a material agenda may request a meeting of
the  Operating  Committee by giving proper notice to all the other Parties. Upon
receiving  such  request,  Operator  shall call such meeting for a date not less
than  fifteen  (15)  Days  nor  more  than twenty (20) Days after receipt of the
request.

     (C)     The notice periods above may only be waived with the unanimous
consent of all the Parties.

5.6  Contents of Meeting Notice.
     ----------------------------

     (A)     Each notice of a meeting of the Operating Committee as provided by
Operator shall contain:

            (1)   The date, time and location of the meeting; and

            (2)   An agenda of the matters and proposals to be considered and
                  voted upon.

    (B)     A Party, by notice to the other Parties given not less than seven
(7) Days prior to a meeting, may add additional
matters  to  the  agenda  for  a  meeting.

     (C)     On  the  request  of a Party, and with the unanimous consent of all
Parties,  the  Operating  Committee  may  consider  at  a meeting a proposal not
contained  in  such  meeting  agenda.

5.7     Location  and  Frequency  of  Meetings.  All  meetings  of the Operating
        ---------------------------------------
Committee  shall  be  held  at  Operator's  offices in Dallas, Texas, U.S.A., or
elsewhere  as  may  be  decided by the Operating Committee, and shall be held at
least  once  every  Calendar  Year.

5.8  Operator's Duties for Meetings.
     --------------------------------

(A)  With respect to meetings of the Operating Committee and any subcommittee,
Operator's duties shall include:

     (1)  Timely preparation and distribution of the agenda and supporting
          materials;

     (2)  Organization and conduct of the meeting; and

    (3)   Preparation of a written record or minutes of each meeting.

(B)  Operator shall have the right to appoint the chairman of the Operating
Committee, project teams and all subcommittees.

5.9     Voting  Procedure.  Except  as  otherwise  expressly  provided  in  this
        ------------------
Agreement,  all  decisions,  approvals,  and  other  actions  of  the  Operating
Committee  on  all  proposals  coming  before  it  under this Agreement shall be
decided  by  the  affirmative vote of the representatives of Parties then having
collectively  at  least  seventy  percent  (70%) of the Participating Interests,
provided  always  that  if  there  are  at that time a total of four (4) or more
Non-Affiliated  Parties,  the  affirmative  vote  of  not  less  than  three (3)
Non-Affiliated  Parties  shall  be  required.

5.10     Record of Votes.  The chairman of the Operating Committee shall appoint
         ----------------
a secretary who shall make a record of each proposal voted on and the results of
such voting at each Operating Committee meeting.  Each representative shall sign
and be provided a copy of such record at the end of such meeting and it shall be
considered  the  final  record  of  the  decisions  of  the Operating Committee.

5.11     Minutes.  The  secretary  shall  provide  each Party with a copy of the
         --------
minutes  of  the  Operating Committee meeting within fifteen (15) Days after the
end  of  the  meeting.  Each Party shall have fifteen (15) Days after receipt of
such  minutes  to give notice of its objections to the minutes to the secretary.
A  failure  to  give  notice  specifying  objection  to such minutes within said
fifteen  (15) Day period shall be deemed to be approval of such minutes.  In any
event,  the  votes  recorded  under  Section 5.10 shall take precedence over the
minutes  described  above.

5.12          Voting  by  Notice.
              -------------------

     (A)     In  lieu  of  a  meeting,  any Party may submit any proposal to the
Operating  Committee  for  a  vote  by  written  notice.  The proposing Party or
Parties  shall  notify  Operator  who  shall  give  each  representative  notice
describing  the proposal so submitted.  Each Party shall communicate its vote by
notice to Operator and the other Parties within one of the following appropriate
time  periods  after  receipt  of  Operator's  notice:

     (1)  Forty-eight  (48) hours in the case of operations which involve the
          use  of  a  drilling  rig  that  is  standing  by  in  the  Contract
          Area;

     (2)  Ten (10) Days in the case of approval of a contract award pursuant to
          Section 6.5(C)(6);

     (3)  Fifteen (15) Days in the case of all other proposals.

     (B)     Except  in  the  case  of  Section  5.12(A)(1)  and 5.12(A)(2), any
Non-Operator may, by a reply notice delivered to all Parties within two (2) Days
of  receipt  of  Operator's  notice,  request  that the proposal be decided at a
meeting rather than by vote by notice.  In such an event, that proposal shall be
decided  at  a  meeting  duly  called  for  that  purpose.

     (C)     Except  as  provided  in  Section  9.1(B),  any  Party  failing  to
communicate  its  vote  in a timely manner shall be deemed to have voted against
such  proposal.

     (D)     If  a  meeting  is  not  requested,  then  at the expiration of the
appropriate  time  period specified in Section 5.12(A), Operator shall give each
Party  a  confirmation  notice  stating  the tabulation and results of the vote.

5.13     Effect  of  Vote.  All  decisions  taken  by  the  Operating  Committee
         -----------------
pursuant  to  this  Article, shall be conclusive and binding on all the Parties,
except  that  once  a  Joint  Operation  for  the  drilling, Deepening, Testing,
Sidetracking, Plugging Back, Completing, Recompleting, Reworking, or Plugging of
a well has been approved and commenced, such operation shall not be discontinued
without  the  consent  of  the Operating Committee; provided, however, that such
operation  may  be  discontinued,  if:

     (1)     an  impenetrable  substance  or  other  condition  in  the  hole is
encountered which in the reasonable judgment of Operator causes the continuation
of  such  operation  to  be  impractical;  or

     (2)     other  circumstances  occur  which  in  the  reasonable judgment of
Operator  causes  the continuation of such operation to be unwarranted and after
notice  the  Operating  Committee  within  the  period  required  under  Section
5.12(A)(1)  approves  discontinuing  such  operation.

     On  the  occurrence  of either of the above, Operator shall promptly notify
the Parties that such operation is being discontinued pursuant to the foregoing.

                                    ARTICLE 6
                                    ---------
                            WORK PROGRAM AND BUDGETS

6.1          Work  Program  and  Budgets.
             ---------------------------

     (A)     On  or  before the 15th Day of July of each Calendar Year, Operator
shall  deliver  to  the Parties a proposed Work Program and Budget detailing the
Joint Operations to be performed in the Contract Area for the following Calendar
Year.  Within thirty (30) Days from such delivery, the Operating Committee shall
meet  to  approve  the  Work  Program  and  Budget.

     (B)     The  Work  Program  and  Budget agreed pursuant to this Section 6.1
shall  include the Minimum Work Obligation required to be carried out during the
Calendar  Year  in  question under the terms of the Contract plus any additional
Joint Operations approved by the Operating Committee.  Any approved Work Program
and  Budget  decided  and  submitted  by  Operator to the Government pursuant to
Section  5.2(B)(1)(c)  instead  of  being  decided  by  the  Operating Committee
pursuant  to  Section  5.9,  however, shall include only such operations for the
Joint  Account  as  are  necessary  to  maintain  the Contract in full force and
effect,  including  such operations as are necessary to fulfill the Minimum Work
Obligation  required  for  the  given  Calendar  Year.

     (C)     If  the  Work Program and Budget is approved by the Operating
Committee, Operator  shall  take such steps as may be required under the
Contract to secure approval  of  the  Work  Program  and  Budget  by the
Government.  The Operating Committee  shall  consider  any  amendments or
revisions to the Work Program and Budget  requested  by  the  Government, and
the Work Program and Budget shall be amended  to agree with the changes
requested and agreed to by the Government and by  the  Operating  Committee.

     (D)     Any  approved  Work  Program  and  Budget  may  be  revised  by the
Operating  Committee  from  time  to  time.  To  the  extent  such revisions are
approved  by the Operating Committee, including revisions in connection with the
evaluation  of  a  Discovery  or a Development Plan, the Work Program and Budget
shall  be  amended  accordingly;  provided, however, that no such revision shall
invalidate  a  commitment  or  expenditure  already  made pursuant to a previous
authorization  under  the  Work  Program  and  Budget.

     (E)     Subject to Section 6.7, approval of drilling operations in any Work
Program and Budget shall include approval for any expenditures necessary for the
drilling,  Testing,  Completing  and  Equipping  of  the  applicable  well.

     (F)     Operator  shall  submit Operator's recommendation to the Parties in
accordance  with  Section 5.12(A)(1) on whether to Complete, plug and abandon or
temporarily  abandon  a  well  and  an  AFE  for  such  costs.

6.2          Discovery  and  Evaluation.
             ---------------------------

     If  a  Discovery  is  made,  Operator shall deliver any notice of Discovery
required  under the Contract and shall as soon as possible submit to the Parties
a  report  containing  available details concerning the Discovery and Operator's
recommendation  as  to  whether  the Discovery merits evaluation.  Within thirty
(30)  Days  from  receiving  the report, the Operating Committee shall determine
whether  the  Discovery merits evaluation and, if so, the Operator within thirty
(30)  Days,  shall  deliver to the Parties a proposed Evaluation Program. Within
thirty  (30)  Days  from  delivery  of  the  Evaluation  Program,  or earlier if
necessary  to  meet  any  applicable  deadline under the Contract, the Operating
Committee  shall  meet to consider, modify and then either approve or reject the
Evaluation  Program  and  revise  the  then  current  Work  Program  and  Budget
accordingly.  If  the Evaluation Program is approved by the Operating Committee,
Operator  shall  take such steps as may be required under the Contract to secure
approval  of  the  Evaluation  Program  and the revised current Work Program and
Budget  by  the Government.  In the event the Government requires changes in the
Evaluation  Program,  the matter shall be resubmitted to the Operating Committee
for  further  consideration.  If  the  Evaluation  Program  is  approved  by the
Operating Committee, such work shall be incorporated into and form a part of the
applicable  Work  Program  and  Budget.

6.3          Development  and  Production.
             ----------------------------

     (A)     If  the  Operating  Committee  determines  that  a  Discovery  is a
Commercial Discovery, the Operator shall, as soon as practicable, deliver to the
Parties a Development Plan together with the revised Work Program and Budget for
the  current Year and provisional Work Programs and Budgets for the remainder of
the  development  of  the  Discovery,  which  shall  contain,  inter  alia:

     (1)  Details  of  the proposed work to be undertaken, personnel required
and  expenditures  to  be  incurred, including the timing of same, on a Calendar
Year  basis;

     (2)  An estimated date for the commencement of production of Hydrocarbons;

     (3)  A delineation of the proposed Field;

     (4)  The Delivery Point; and

     (5)  Any other information requested by the Operating Committee or required
by the Contract.

(B)     After  receipt  of  the  Development  Plan and at least thirty (30) Days
prior  to  any  applicable  deadline under the Contract, the Operating Committee
shall meet to consider, modify and then either approve or reject the Development
Plan  and  the revised Work Program and Budget for the current Calendar Year for
the  development  submitted by Operator.  If the Development Plan is approved by
the Operating Committee, Operator shall, as soon as possible, deliver any notice
required  under  the Contract and take such other steps as may be required under
the  Contract  to secure approval of the Development Plan by the Government.  In
the  event  the  Government requires changes in the Development Plan, the matter
shall  be  resubmitted to the Operating Committee for further consideration.  If
the  Development Plan is approved by the Operating Committee, such work shall be
incorporated  into  and  form  part  of  the  annual  Work  Program and Budgets.

6.4          Itemization  of  Expenditures.
             ------------------------------

     (A)     During  the  preparation of the proposed Work Programs and Budgets,
Operator  shall  consult  with  the  Operating  Committee  or  the  appropriate
subcommittees  regarding  the  contents  of  such  Work  Programs  and  Budgets.

     (B)     Each Work Program and Budget submitted by Operator shall contain an
itemized estimate of the costs of Joint Operations and all other expenditures to
be  made  for  the  Joint  Account  during  the  Calendar  Year  in  question.

6.5          Contract  Awards.   Subject to the Contract and any Applicable Law:
             -----------------

     (A)     For  contracts equal to or less than U.S. Dollars Two Hundred Fifty
Thousand (US $250,000.00), Operator shall award each contract for approved Joint
Operations to the best qualified contractor as determined by cost and ability to
perform  the  contract,  without  the  obligation to tender for bids and without
informing or seeking the approval of the Operating Committee; except that before
entering  into  contracts with Affiliates of the Operator exceeding U.S. Dollars
Fifty  Thousand  (US  $50,000.00),  Operator  shall  obtain  the approval of the
Operating  Committee.

     (B)     For  contracts greater than U.S. Dollars Two Hundred Fifty Thousand
(US  $250,000.00)  and  equal  to  or  less  than  U.S.  Dollars One Million (US
$1,000,000.00),  Operator  shall  follow a competitive bid process in accordance
with  Operator's  internal  regulations,  the  Contract  and Applicable Law, and
inform  the Non-Operators of the entity to be awarded the contract, and upon the
request  of  a Party, provide such Party with a copy of the tender documents and
the  final  version  of  the  contract.

(C)  For contracts greater than U.S. Dollars One Million (US $1,000,000.00),
Operator shall:

    (1)  Provide the Parties with a list of the entities whom Operator proposes
         to invite to tender for the said contract;

    (2)  Add to such list any entity whom a Party requests to be added within
         seven (7) Days of receipt of such list;

    (3)  Prepare and dispatch the tender documents to the entities on the list
         as aforesaid and to Non-Operators;

    (4)  After the expiration of the period allowed for tendering, consider and
         analyze the details of all bids received;

    (5)  Prepare  and  circulate  to the Parties a competitive bid analysis,
         stating Operator's recommendation as to whom the contract should be
         awarded, the reasons  therefor,  and  the  technical,  commercial and
         contractual terms to be agreed  upon;

    (6)  Obtain the approval of the Operating Committee to the recommended
         contract award as provided under Section 5.9; and

    (7)  Upon the request of a Party, provide such Party with a copy of the
         final version of the contract.

6.6          Authorization for Expenditure Procedure.
             ---------------------------------------

     (A)     Prior to incurring any commitment or making any expenditure for the
Joint  Accounts  that  is  estimated to be in excess of U.S. Dollars Two Hundred
Fifty  Thousand  (US  $250,000.00),  Operator  shall  send  to each Non-Operator
entitled  to  receive  an  AFE  containing Operator's best estimate of the total
funds required to carry out such work, the estimated timing of expenditures, and
any  other  available  related  information  as  described  in  Section  6.6(E).

     (B)     Except  as  provided  under  Section 6.6(C) and Section 6.7(B), all
AFEs  shall be for informational purposes only.  Approval of an operation in the
current  Work  Program  and  Budget  shall  authorize  Operator  to  conduct the
operation  (subject  to  Section  6.6(C)  and  Section  6.7)  without  further
authorization  from  the  Operating  Committee.

     (C)     Prior  to  incurring  any  commitment  or expenditure for the Joint
Accounts,  which  is  subject  to  the  AFE  procedure  in Section 6.6(A) and is
estimated  to  be  in  excess  of  U.S.  Dollars One Million (US $1,000,000.00),
Operator shall obtain the approval of the Operating Committee to an AFE for cost
and  technical  control  purposes.  A  Party  may only vote to disapprove an AFE
issued  in furtherance of an approved Work Program and Budget under this Section
6.6(C)  if  (i)  some  or  all of the costs described in the AFE exceed the line
items  in  the  approved Work Program and Budget by more than is permitted under
Section 6.7, or (ii) the proposed terms of any third party contract described in
the AFE do not approximate fair market terms or (iii) in such Party's good faith
opinion, any material technical specifications contained in the AFE that are not
in  the  approved  Work  Program and Budget are imprudent or not consistent with
current  economic  standards  of the international petroleum industry or are not
supported  by the known data about the formations being drilled.  A Party's vote
shall  be  considered  a  vote  to approve the AFE unless the Party specifically
describes one or more of the three (3) reasons listed above as the basis for its
vote  of  disapproval.  If  the  Operating  Committee  approves  an  AFE for the
operations  within the applicable time period under Section 5.12, Operator shall
be  authorized  to  conduct the operation under the terms of this Agreement.  If
the  Operating  Committee  fails  to approve an AFE for the operation within the
applicable  time  period,  the  operations  shall  be  deemed rejected.  When an
operation  is rejected under this Section 6.6(C) or an operation is approved for
differing  amounts  than  those provided for in the applicable line items of the
approved Work Program and Budget, the Work Program and Budget shall be deemed to
be  revised  accordingly.

     (D)     Notwithstanding the above, Operator shall not be obliged to furnish
an AFE to the Parties with respect to any Minimum Work Obligations, workovers of
wells  and  general  and  administrative  costs that are listed as separate line
items  in  an  approved  Work  Program  and  Budget.

     (E)     Each AFE proposed by the Operator shall:

             (1)  Identify the operation by specific reference to the applicable
                  line items in the Work Program and Budget;

             (2)  Describe the work in detail;

             (3)  Contain Operator's best estimate of the total funds required
                  to carry out such work;

             (4)  Outline the proposed work schedule;

             (5)  Provide a timetable of expenditures, if known; and

             (6)  Be accompanied by such other supporting information as is
                  necessary for an informed decision.

6.7     Overexpenditures of Work Programs and Budgets.
        ---------------------------------------------

     (A)     Operator shall be entitled to incur an overexpenditure for any line
item  of an approved Work Program and Budget, or if Section 6.6(C) applies, then
for any AFE, up to ten percent (10%) of the authorized amount for such line item
or  AFE  item;  provided that the cumulative total of all overexpenditures for a
Calendar  Year  shall not exceed five percent (5%) of the total Work Program and
Budget  in  question.

(B)     At  such time that Operator is certain that the limits of Section 6.7(A)
will  be  exceeded,  Operator shall furnish a supplemental AFE for the estimated
overexpenditures  to  the Operating Committee for its approval, such approval to
be rendered in accordance with the procedures in Section 5.12, and shall provide
the  Parties with full details of such overexpenditures.  If Operating Committee
does  not approve such supplemental AFE, Operator shall not incur the additional
expense covered by such supplemental AFE and the Operation carried thereby shall
immediately cease, unless otherwise agreed by the Operating Committee.  Operator
shall  promptly  give  notice  of  the amounts of overexpenditures when actually
incurred.

(C)     The  restrictions  contained  in  Article  5 and this Article 6 shall be
without  prejudice  to  Operator's  rights  to  make  expenditures as set out in
Section  4.2(B)(11)  and  Section  12.5.

                                    ARTICLE 7
                                    ---------
                                     DEFAULT

7.1     Default  and  Notice.  Any Working Interest Party that fails to pay when
        ---------------------
due  its  Participating  Interest  or  Carried  Cost share of any Joint Accounts
expenses,  including  Cash  Calls,  billings  and  accrued interest, shall be in
default  under  this  Agreement  (a  "Defaulting  Party").  Operator,  or  any
non-defaulting  Working  Interest  Party  in the case Operator is the Defaulting
Party,  shall  promptly  give  written  notice of such default to the Defaulting
Party  and  each  of  the  non-defaulting Working Interest Parties (the "Default
Notice").  The  amount not paid by the Defaulting Party shall bear interest from
the  date  due  until  paid  in  full  at  the  Agreed  Interest  Rate.

7.2     Operating Committee Meetings and Data.  Beginning five (5) Business Days
        --------------------------------------
from  the date of the Default Notice, the Defaulting Party shall not be entitled
to attend Operating Committee, project team and subcommittee meetings or to vote
on  any  matter  coming before the Operating Committee or any subcommittee until
all  of its defaults have been remedied (including payment of accrued interest).
Unless  agreed  otherwise  by  the  non-defaulting Working Interest Parties, the
voting interest of each non-defaulting Working Interest Party during this period
shall  be  its  percentage  of  the  total  Participating  Interests  of  the
non-defaulting Working Interest Parties.  Any matters requiring a unanimous vote
of the Parties shall not require the vote of the Defaulting Party.  In addition,
beginning  five  (5)  Business  Days  from  the  date of the Default Notice, and
thereafter  while  the Defaulting Party remains in default, the Defaulting Party
shall  not  have access to any data or information relating to Joint Operations.
During  this  period,  the  non-defaulting  Working  Interest  Parties  shall be
entitled  to  trade  data  without  such  Defaulting  Party's  consent,  and the
Defaulting Party shall have no right to any data received in such a trade unless
and until its default is remedied in full.  The Defaulting Party shall be deemed
to  have  elected not to participate in any Joint Operations that are voted upon
at  least five (5) Business Days after the date of the Default Notice but before
all  of  its defaults have been remedied to the extent such an election would be
permitted  by  Section 5.13(B) of this Agreement.  The Defaulting Party shall be
deemed  to  have  approved,  and  shall  join with the non-defaulting Parties in
taking  any  other  actions  voted  on  during  that  period.

7.3          Allocation  of  Defaulted  Accounts.
             ------------------------------------

     (A)     The  Party  providing  the  Default  Notice pursuant to Section 7.1
shall  include  in  the  Default  Notice to each non-defaulting Working Interest
Party  a  statement of the sum of money that the non-defaulting Working Interest
Party  is  to  pay  as  its  portion  (such portion being in the ratio that each
non-defaulting  Working  Interest  Party's  Participating Interests bears to the
Participating  Interests  of all non-defaulting Working Interest Parties) of the
amount  in  default  (excluding  interest), subject to the terms of this Section
7.3.  If  the  Defaulting  Party  remedies  its  default in full within five (5)
Business  Days  from  the  date of the Default Notice, the notifying Party shall
promptly  notify  each  non-defaulting  Working  Interest Party by telephone and
facsimile, and the non-defaulting Working Interest  Parties shall be relieved of
their  obligation  to  pay  a  share  of the amounts in default. Otherwise, each
non-defaulting  Working  Interest  Party  shall  pay  Operator,  within five (5)
Business Days after receipt of the Default Notice, its share of the amount which
the  Defaulting  Party  failed  to  pay.  If any non-defaulting Working Interest
Party  fails  to pay its share of the amount in default as aforesaid, such Party
shall  thereupon be a Defaulting Party subject to the provisions of this Article
7.  The non-defaulting Working Interest Parties which pay the amount owed by any
Defaulting  Party  shall  be  entitled to receive their respective shares of the
principal and interest payable by such Defaulting Party pursuant to this Article
7.

     (B)     If  Operator  is  a  Defaulting  Party, then all payments otherwise
payable  to Operator for Joint Account costs pursuant to this Agreement shall be
made  to the notifying Working Interest Party instead until the default is cured
or  a  successor Operator appointed.  The notifying Working Interest Party shall
maintain  such  funds  in  a  segregated account separate from its own funds and
shall  apply  such  funds  to  third party claims due and payable from the Joint
Account  of  which  it has notice, to the extent Operator would be authorized to
make such payments under the terms of this Agreement.  The notifying Party shall
be  entitled  to  bill  or  Cash  Call  the other Parties in accordance with the
Accounting  Procedure for proper third party charges that become due and payable
during  such  period  to  the  extent  sufficient funds are not available.  When
Operator  has  cured  its  default  or  a  successor  Operator is appointed, the
notifying  Party  shall turn over all remaining funds in the account to Operator
and  shall  provide Operator and the other Parties with a detailed accounting of
the  funds  received  and  expended  during  this  period.

     (C)     The notifying Party shall not be liable for damages, losses, costs,
expenses or liabilities arising as a result of its actions under Section 7.3(B),
except  to  the  extent  Operator  would  be  liable  under  Section  4.6.

7.4          Remedies.
             ---------

     (A)     During the continuance of a default, the Defaulting Party shall not
have  a right to its Entitlement, which shall vest in and be the property of the
non-defaulting  Working  Interest  Parties.  Operator (or the notifying Party if
Operator  is a Defaulting Party) shall be authorized to sell such Entitlement in
an  arm's-length  sale  on  terms  that  are  commercially  reasonable under the
circumstances  and,  after deducting all costs, charges and expenses incurred in
connection  with  such  sale, pay the net proceeds to the non-defaulting Working
Interest  Parties  in  proportion to the amounts they are owed by the Defaulting
Party  hereunder  (and  apply  such  net  proceeds toward the establishment of a
reserve  fund  under  Section  7.4(C), if applicable) until all such amounts are
recovered  and such reserve fund is established.  Any surplus remaining shall be
paid  to  the  Defaulting Party, and any deficiency shall remain a debt due from
the  Defaulting  Party  to  the  non-defaulting  Working Interest Parties.  When
making  sales  under  this  Section  7.4(A)  the non-defaulting Working Interest
Parties  shall have no obligation to share any existing market or obtain a price
equal  to  the  price  at  which  their  own  production  is  sold.

     (B)     If  Operator  disposes of any Joint Property or any other credit or
adjustment  is  made to any Joint Account, while a Party is in default, Operator
(or  the  notifying  Party if Operator is Defaulting Party) shall be entitled to
apply  the  Defaulting  Party's  Participating Interest share of the proceeds of
such  disposal, credit or adjustment against all amounts owing by the Defaulting
Party  to  the  non-defaulting  Working Interest Party hereunder (and toward the
establishment  of  a  reserve  fund  under  Section 7.4(C), if applicable).  Any
surplus  remaining  shall  be  paid  to the Defaulting Party, and any deficiency
shall  remain a debt due from the Defaulting Party to the non-defaulting Working
Interest  Parties.

     (C)     The  non-defaulting  Working  Interest Parties shall be entitled to
apply  proceeds received under Sections 7.4(A) and 7.4(B) toward the creation of
a  reserve  fund  in  an  amount  equal  to the Defaulting Party's Participating
Interest share of (i) the estimated cost to abandon any wells and other property
in which the Defaulting Party participated, (ii) the estimated cost of severance
benefits  for  local  employees upon cessation of Operations and (iii) any other
identifiable  costs  that the non-defaulting Parties anticipate will be incurred
in  connection  with the cessation of Operations and as otherwise required under
the  Contract.

     (D)     If  a  Defaulting Party fails to remedy its default by the sixtieth
(60th)  Day following the date of the Default Notice, then, without prejudice to
any  other  rights  available  to the non-defaulting Working Interest Parties to
recover  amounts  owing  to them under this Agreement, each non-defaulting Party
shall  have  the  option, exercisable at anytime thereafter until the Defaulting
Party  has  completely  cured its defaults, to require that the Defaulting Party
completely  withdraw  from  the  Contract Area, this Agreement and the Contract.
Such  option  shall  be  exercised  by  notice  to the Defaulting Party and each
non-defaulting  Working  Interest  Party.  If  such  option  is  exercised,  the
Defaulting  Party shall be deemed to have transferred, pursuant to Section 12.6,
effective on the date of the non-defaulting Working Interest Party's notice, all
of  its  right,  title  and beneficial interest in and under this Agreement, the
Contract  Area, and the Contract to the non-defaulting Working Interest Parties.
The  Defaulting  Party  shall,  without  delay  following  any  request from the
non-defaulting Working Interest Parties, do any and all acts required to be done
by  Applicable Law or regulation in order to render such transfer legally valid,
including,  without limitation, obtaining all Government consents and approvals,
and  shall  execute  any  and all documents and take such other action as may be
necessary  in  order  to  effect  a  prompt  and valid transfer of the interests
described above.  The Defaulting Party shall be obligated to promptly remove any
liens  and  encumbrances  which  may  exist  on such transferred interests.  For
purposes  of this Section 7.4(D), each Party constitutes and appoints each other
Party  its  true  and  lawful attorney to execute such instruments and make such
filings  and  applications  as  may  be  necessary to make such transfer legally
effective and to obtain any necessary consents of the Government.  Actions under
this  power  of  attorney  may  be  taken  by any Party individually without the
joinder  of  the  others.  This power of attorney is irrevocable for the term of
this  Agreement and is coupled with an interest.  If requested, each Party shall
execute a form prescribed by the Operating Committee setting forth this power of
attorney  in  more detail.  In the event all Government approvals are not timely
obtained,  the  Defaulting  Party shall hold its Participating Interest in trust
for  the non-defaulting Working Interest Parties who are entitled to receive the
Defaulting Party's Participating Interest.  Notwithstanding the terms of Article
7,  in  the  absence  of  an agreement among the non-defaulting Working Interest
Parties  to  the  contrary,  any transfer to the non-defaulting Working Interest
Parties  following  a  withdrawal  pursuant  to  this Section 7.4(D) shall be in
proportion to the Participating Interests of the non-defaulting Working Interest
Parties.  The  acceptance  by  a  non-defaulting  Working  Interest Party of any
portion  of  a  Defaulting  Party's  Participating  Interest shall not limit any
rights or remedies that the non-defaulting Working Interest Party has to recover
all  amounts  (including  interest) owing under this Agreement by the Defaulting
Party.

     (E)     The  non-defaulting  Working  Interest  Party  shall be entitled to
recover  from  the Defaulting Party all reasonable attorneys' fees and all other
reasonable  costs sustained in the collection of amounts owing by the Defaulting
Party.

     (F)     The  rights  and  remedies  granted  to  the non-defaulting Working
Interest Parties in this Agreement shall be cumulative, not exclusive, and shall
be  in  addition  to  any other rights and remedies that may be available to the
non-defaulting Working Interest Parties, whether at law, in equity or otherwise.
Each  right  and remedy available to the non-defaulting Working Interest Parties
may  be  exercised  from  time  to time and so often and in such order as may be
considered  expedient  by  the  non-defaulting Working Interest Parties in their
sole  discretion.

7.5     Survival.  The obligations of the Defaulting Party and the rights of the
        ---------
non-defaulting  Parties shall survive the surrender of the Contract, abandonment
and/or  Decommissioning  of  Joint Operations and termination of this Agreement.

7.6     No  Right  of  Set  Off.  Subject to the terms of the Assignment and the
        ------------------------
Contract,  each  Party  acknowledges and accepts that a fundamental principle of
this  Agreement  is  that  each  Party pays its Participating Interest share and
Carried Cost share of all amounts due under this Agreement as and when required.
Accordingly,  any  Party  which  becomes  a Defaulting Party undertakes that, in
respect of either any exercise by the non-defaulting Working Interest Parties of
any  rights  under or the application of any of the provisions of this Article7,
such  Defaulting  Party  hereby  waives  any right to raise by way of set off or
invoke as a defense, whether in law or equity, any failure by any other Party to
pay  amounts  due  and owing under this Agreement or any alleged claim that such
Party  may  have against Operator or any Non-Operator, whether such claim arises
under  this  Agreement  or otherwise.  Each Party further agrees that the nature
and  the  amount of the remedies granted to the non-defaulting Parties hereunder
are  reasonable  and  appropriate  in  the  circumstances.

7.7     Cross-Default.  Non-Defaulting  Parties  shall  have  the  rights  and
        --------------
remedies  against  a  Defaulting  Party under this Article 7 and similar default
provision  under  any  other joint operating agreement covering the Contract and
Contract  Area  to which the Defaulting Party is a party for any default arising
under  any  one or more such agreements.  The creation of more than one Field in
the  Contract Area shall in no event affect the scope or efficacy of such rights
and remedies, which scope and effect shall remain unchanged as if separate joint
operating  agreements  for  each  Field  had  not  been  established.

                                    ARTICLE 8
                                    ---------
                            DISPOSITION OF PRODUCTION

8.1     Right  and  Obligation to Take in Kind.  Except as otherwise provided in
        ---------------------------------------
this  Article  8 or in Article 7, each Party shall have the right and obligation
to  take  in  kind  and  separately  dispose  of  the  share of total production
available  to  it  from any Field pursuant to the Contract and this Agreement in
such  quantities  and  in accordance with such procedures as may be set forth in
the  offtake agreement referred to in Section 7.2 or in the special arrangements
for  Natural  Gas  referred  to  in  Section  8.3.

8.2     Offtake  Agreement for Crude Oil.  If Crude Oil is to be produced from a
        ---------------------------------
Field, the Parties shall in good faith, and not less than three (3) months prior
to first delivery of Crude Oil, negotiate and conclude the terms of an agreement
to  cover  the  offtake  of Crude Oil produced under the Contract.  This offtake
agreement  shall, to the extent consistent with the Contract and, in particular,
the  interest  of  the  Carried  Party under the Assignment, make provision for:

     (A)     The  Delivery  Point,  at  which  title  and  risk  of  loss  of
Participating Interest shares of Crude Oil shall pass to the Parties with rights
to  such  Crude  Oil  (or  as  the  Parties  may  otherwise  agree);

     (B)     Operator's  regular  periodic advice to the Parties of estimates of
total  available  Crude  Oil produced for succeeding periods, quantities of each
grade  of  Crude Oil and each Party's share for as far ahead as is necessary for
Operator  and  the Parties to plan offtake arrangements.  Such advice shall also
cover  for  each  grade  of  Crude  Oil  total  available Crude Oil produced and
deliveries  for  the  preceding  period, inventory and overlifts and underlifts;

     (C)     Nomination by the Parties to Operator of acceptance of their shares
of total available production for the succeeding period.  Such nominations shall
in  any  one  period  be  for  each Party's entire share of available production
during that period subject to operational tolerances and agreed minimum economic
cargo  sizes  or  as  the  Parties  may  otherwise  agree;

     (D)          Elimination  of  overlifts  and  underlifts;

     (E)     If  offshore  loading  or  a  shore  terminal for vessel loading is
involved,  risks  regarding  acceptability  of  tankers,  demurrage  and  (if
applicable)  availability  of  berths;

     (F)     Distribution  to  the  Parties  of  available grades, gravities and
qualities  of  Hydrocarbons  to  ensure,  to the extent Parties take delivery of
their  Entitlements as they accrue, that each Party shall receive in each period
Entitlements  of grades, gravities and qualities of Hydrocarbons from each Field
in  which  it  participates  similar  to  the grades, gravities and qualities of
Hydrocarbons  received  by  each other Party from participating in such Field in
that  period;

     (G)     To  the  extent  that distribution of Entitlements on such basis is
impracticable  due  to  availability  of  facilities  and minimum cargo sizes, a
method  of  making  periodic  adjustments;

    (H)     The  option  and  the  right of the other Parties to sell an
Entitlement which a Party fails to nominate for acceptance pursuant to Section
8.2 (C) above or of which a Party fails to take delivery, in accordance with
applicable agreed procedures, provided that such failure either constitutes a
breach of Operator's or  Parties' obligations under the terms of the Contract,
or is likely to result in  the  curtailment or shut-in of production.  Such
sales shall be made only to the  limited extent necessary to avoid disruption
in Joint Operations.  Operator shall  give  all  Parties as much notice as is
practicable of such situation and that  a  sale  option  has  arisen.  Any
sale  shall  be  of the unnominated or undelivered Entitlement as the case may
be and for reasonable periods of time as are  consistent with the minimum needs
of the industry and in no event to exceed twelve (12) months.  The right of
sale shall be revocable at will subject to any prior  contractual  commitments.
Payment  terms  for production sold under this option  shall  be  established
in  the  offtake  agreement;  and

    (I)     Carried  Party's  Participating Interest share of Net Crude Oil
shall be treated  separate  from and not commingled with the State's share of
Royalty and Net  Crude  Oil  under  the  Contract.

     If  an  offtake  agreement  has  not been entered into by the date of first
delivery of Crude Oil, the Parties shall be bound by the principles set forth in
this  Section  8.2  until an offtake agreement has been entered into.  All Crude
Oil  which  is attributable to the recovery of Petroleum Operations Expenditures
pursuant to the Contract, shall be lifted only by those Working Interest Parties
who  contributed  to  the  payment  of  such  Petroleum Operations Expenditures,
including  the  payment  of  the  Carried  Party's share of such Expenditures as
provided  under  the  Assignment.

8.3     Separate  Agreement  for  Natural  Gas.  The  Parties  recognize that if
        ---------------------------------------
Natural  Gas  is  discovered  it  may be necessary for the Parties to enter into
special  arrangements  for the disposal of the Natural Gas, which are consistent
with  the  terms  of  the  Contract.

                                    ARTICLE 9
                                    ---------
                         ABANDONMENT AND DECOMMISSIONING

9.1          Joint  Operations  Abandonment  and  Decommissioning.
             -----------------------------------------------------

     (A)     A  decision to plug and abandon any well which has been drilled and
to  Decommission any installations and facilities which have been constructed as
a  Joint  Operation  shall  require  the  approval  of  the Operating Committee.

     (B)     Should  any  such  Party  fail  to  reply  within  the applicable
period prescribed in Section 5.12(A)(1) or Section 5.12(A)(2), whichever is
applicable, after  delivery  of  notice  of the Operator's proposal to plug and
abandon such well,  such Party shall be deemed to have consented to the proposed
abandonment.

     (C)     Any well plugged and abandoned under this Agreement shall be
plugged and abandoned in accordance with Applicable Law and at the cost, risk
and expense of the  Parties  who  participated  in  the  cost  of  drilling
such  well.

                                   ARTICLE 10
                                   ----------
                       SURRENDER, EXTENSIONS AND RENEWALS

10.1          Surrender.
              ----------

     (A)     If  the  Contract  requires the Parties to surrender any portion of
the  Contract  Area,  Operator  shall  advise  the  Operating  Committee of such
requirement at least one hundred and twenty (120) Days in advance of the earlier
of  the date for filing irrevocable notice of such surrender or the date of such
surrender.  Prior  to  the  end  of  such  period, the Operating Committee shall
determine  pursuant  to  Article  5  the size and shape of the surrendered area,
consistent  with  the requirements of the Contract.  If a sufficient vote of the
Operating  Committee cannot be attained, then the proposal supported by a simple
majority  of  the  Participating  Interests  shall  be  adopted.  If no proposal
attains  the  support  of a simple majority of the Participating Interests, then
the  proposal  receiving the largest aggregate Participating Interest vote shall
be  adopted.  In  the  event  of  a  tie,  the  Operator  shall choose among the
proposals  receiving  the  largest  aggregate  Participating Interest vote.  The
Parties  shall  execute any and all documents and take such other actions as may
be  necessary  to  effect  the  surrender.  Each  Party renounces all claims and
causes  of  action against Operator and any other Parties on account of any area
surrendered  in  accordance with the foregoing but against its recommendation if
Hydrocarbons  are  subsequently  discovered  under  the  surrendered  area.

     (B)     A  surrender of all or any part of a Field which is not required by
the  Contract  shall  require  the  unanimous  consent  of  the Working Interest
Parties.

10.2          Extension  of  the  Term.
              -------------------------

     (A)     With  regard  to  a Field, a proposal by any Party to enter into or
extend  the  term  of  any  Contract  Period  or  Exploitation  Period under the
Contract,  or  a  proposal  to extend the term of the Contract, shall be brought
before  the  Operating  Committee  pursuant  to  Article 5.  A proposal for such
extension  that  impacts  the  whole Contract Area, will entail agreement of the
parties  to  the  other  joint  operating  agreement  covering  the Contract and
Contract  Area

     (B)     With  regard  to a Field, any Working Interest Party shall have the
right  to  enter  into or extend the term of any Contract Period or Exploitation
Period  under  the Contract or to extend the term of the Contract, regardless of
the  vote  taken  by the Operating Committee.  If any such Party or Parties take
such  action,  any  Party not electing to enter into or to extend shall withdraw
from  this  Agreement  to  the  extent  that  such election relates to the whole
Contract  Area, to the Retained Area, or to a Field, as the case may be, subject
always  to  the  requirements  of  Article  12.

                                   ARTICLE 11
                                   ----------
                         TRANSFER OF INTEREST OR RIGHTS

11.1          Obligations.
              ------------

     (A)     Subject always to the requirements of the Contract, the transfer of
all  or  part  of a Party's Participating Interest, except transfers pursuant to
Article  7  or Article 12, shall be effective only if it satisfies the terms and
conditions  of  this  Article  11.

     (B)     Except  as  provided  in  the  Assignment or in the case of a Party
transferring all of its Participating Interest, no transfer shall be made by any
Party  which results in the transferor or the transferee holding a Participating
Interest  of  less  than ten percent (10%), except where otherwise agreed by all
Parties,  or  holding any interest other than a uniform, undivided Participating
Interest  in  the  Field  and  this  Agreement.

     (C)     The  transferring  Party  shall,  notwithstanding  the transfer, be
liable  to  the other Parties for any obligations, financial or otherwise, which
have  vested,  matured,  or  accrued under the provision of the Contract or this
Agreement  prior  to such transfer.  Such obligations shall include any proposed
expenditure  approved by the Operating Committee prior to the transferring Party
notifying  the  other Parties of its proposed transfer (whether such expenditure
is  actually  expended  before  or  after  the  transfer  date).

     (D)     The  transferee  shall have no right in and under the Contract, the
Field,  or  this  Agreement unless and until it obtains any necessary Government
approval  and  expressly  undertakes  in an instrument satisfactory to the other
Parties to perform the obligations of the transferor under the Contract and this
Agreement  in  respect  of  the  Participating  Interest  being  transferred and
furnishes  any  guarantees  required  by  the  Government  or  the  Contract.

     (E)     A  transferee (other than an Affiliate) shall have no rights in and
under the Contract, the Field, or this Agreement unless each Party has consented
in  writing  to  such  transfer,  which  consent  shall  be  denied only if such
transferee  fails to establish to the reasonable satisfaction of each such Party
its capability to perform its obligations under the Contract and this Agreement.

     (F)     Nothing  contained  in  this  Article 11 shall prevent a Party from
mortgaging,  pledging,  charging  or  otherwise  encumbering  all or part of its
interest  in  the  Field  and  in  and  under  this Agreement for the purpose of
security  relating  to  finance  provided  that:

     (1)     Such Party shall remain liable for all obligations relating to such
interest;

     (2)     the  encumbrance  shall be subject to any necessary approval of the
Government  and  be  expressly  subordinated  to the rights of the other Parties
under  this  Agreement;

     (3)     such  Party  shall ensure that any such mortgage, pledge, charge or
encumbrance shall be expressed to be without prejudice to the provisions of this
Agreement;

     (4)     the Parties agree that the mortgagee or pledgee of all or part of a
Party's  interest  in  the  Field,  may, but shall not be obliged to, perform or
cause  to  perform  such  act or take such action or pay such money, or cure any
default  hereunder  and under the Contract of such Party, if such Party fails to
perform  any  act  hereunder  or  is otherwise in default hereunder or under the
Contract;  and

     (5)     the  foreclosure  or other realization of collateral interest under
any  such  mortgage  or  pledge  shall  not  be  considered  a  transfer  of  a
Participating  Interest  under  Section  11.1(F).

11.2     Consent.  The Parties shall promptly join in such reasonable actions as
         --------
may  be  necessary  or  desirable  to  obtain  any  consent of the Government in
accordance  with  Section 12.1(F) of the Contract and shall execute and deliver,
any  and  all  documents  reasonably  necessary  to effect, any such assignment.

11.3     Rights.  Each  Party shall have the right, subject to the provisions of
         -------
Section  11.1 and 11.2, to freely transfer its Participating Interest; provided,
however,  that  the  Carried  Party  shall  only have the right to sell, assign,
transfer,  convey  or  otherwise  dispose  of  any part or all of its rights and
interests and obligations under the Contract and/or in any Field in the Contract
Area  to  the national oil company of the Republic of Equatorial Guinea or other
wholly  owned  Government  entity exclusively responsible for the development of
Hydrocarbon  deposits  in  the  Contract  Area.

                                   ARTICLE 12
                                   ----------
                            WITHDRAWAL FROM AGREEMENT

12.1          Right  of  Withdrawal.
              ----------------------

(A)     Subject  to  the  provisions  of this Article 12, any Party may withdraw
from  this  Agreement,  the Contract, and a Field in the Contract Area by giving
notice  to all other Parties stating its decision to withdraw. Such notice shall
be  unconditional  and  irrevocable  when  given,  except  as may be provided in
Section  12.7.

(B)     Notwithstanding  Section 12.1(A), during the Exploration Period, a Party
shall  not have the right to withdraw from this Agreement and the Contract until
the  Minimum  Work  Obligations  for  the  current  Contract  Period  have  been
fulfilled.

(C)     The  effective  date  of withdrawal for a withdrawing Party shall be the
end  of  the  calendar month following the calendar month in which the notice of
withdrawal  is  given,  provided  that  if  all  Parties  elect to withdraw, the
effective  date  of  withdrawal  for  each Party shall be the date determined by
Section  12.9.

12.2          Complete  Withdrawal.
              ---------------------

     (A)     Within  thirty  (30)  Days  of  receipt of each withdrawing Party's
notification,  each of the other Parties may also give notice that it desires to
withdraw  from  this  Agreement  and  the Contract.  Should all Working Interest
Parties  give  notice  of  withdrawal,  the Parties shall proceed to abandon the
Field  and  terminate  the  Contract insofar as it relates to the Field and this
Agreement.  If less than all of the Working Interest Parties give such notice of
withdrawal,  then  the withdrawing Parties shall take all steps to withdraw from
the  Contract,  this  Agreement,  and  any  Fields  in  the Contract Area on the
earliest  possible  date  and  execute and deliver all necessary instruments and
documents to assign their Participating Interest to the Working Interest Parties
which  are  not  withdrawing, without any compensation whatsoever, in accordance
with  the  provisions  of  Section  12.6.

     (B)     Any  Party withdrawing under Section 10.2 or this Article 12, shall
withdraw  from  the entirety of the Field, and thus abandon to the other Parties
not  joining in its withdrawal all its rights to Hydrocarbons produced after the
effective  date  of  such  withdrawal  and  all  rights in such associated Joint
Property.

12.3     Rights  of  a  Withdrawing  Party.  A  withdrawing Party shall have the
         ----------------------------------
right  to receive its Entitlement of Hydrocarbons produced through the effective
date  of  its  withdrawal and shall retain the right to (and responsibility for)
its  Participating  Interest  share  of  subsequent audit adjustment relating to
periods  prior  to such effective date.  The withdrawing Party shall be entitled
to  receive all information to which such Party is otherwise entitled under this
Agreement  until  the  effective  date  of  its  withdrawal.  After  giving  its
notification of withdrawal, a Party shall not be entitled to vote on any matters
coming  before  the Operating Committee, other than matters for which such Party
has  financial  responsibility.

12.4          Obligations  and  Liabilities  of  a  Withdrawing  Party.
              ---------------------------------------------------------

     (A)     A  withdrawing  Party,  prior  to its withdrawal, shall satisfy all
obligations  and liabilities it has incurred or attributable to it prior to such
withdrawal  regardless  of  when  they  are actually incurred, including (i) any
expenditures  budgeted  and/or  approved by the Operating Committee prior to its
written  notification  of  withdrawal  (development  projects  included),  (ii)
emergency  expenditures  as  described in Sections 4.2(B)(11) and 12.5 and (iii)
all  other  obligations and liabilities of the Parties or Consenting Parties, as
applicable,  with respect to acts or omissions under this Agreement prior to its
withdrawal  for  which  such  Party would have been liable, had it not withdrawn
from  this  Agreement and the Contract.  If such obligations and liabilities are
not  identified  or identifiable at the time of withdrawal the withdrawing Party
shall  nonetheless  remain liable therefor.  Furthermore, any liens, charges and
other  encumbrances  which  the  withdrawing  Party  placed  on  such  Party's
Participating  Interest  prior  to  its  withdrawal  shall be fully satisfied or
released,  at  the  withdrawing  Party's  expense,  prior  to  its  withdrawal.

     (B)     Notwithstanding  the  foregoing,  a  withdrawing Party shall not be
liable  for any operations or expenditures (participation in which, or liability
therefor, is not mandatory hereunder except as a sole consequence of the binding
effect  of  a  Operating  Committee  decision)  it  voted  against in a properly
constituted  Operating  Committee  vote  if  it  delivers  notification  of  its
withdrawal  within  five  (5)  Days  (or  within  twenty-four  (24) hours if the
drilling  rig  to be used in such operation is standing by on the Contract Area)
of  the  Operating  Committee  vote  approving such operation or expenditure.  A
Party  voting  against  voluntary  entering  or  extending  a  Contract  Period,
Exploration  Period  or  Exploitation Period shall not be liable for the Minimum
Work Obligations associated therewith provided that it sends notification of its
withdrawal  within  thirty  (30)  Days  of  such  vote pursuant to Section 10.2.

     (C)     The  obligations  and  liabilities  for  which  a withdrawing Party
remains  liable  shall  specifically  include  its  share  of  any  costs  of
Decommissioning  wells,  or  portion  of  wells,  field  flowlines,  pipelines,
structures  and  facilities  in which it participated (or was required to bear a
share  of  the  costs  pursuant to Section 12.4(A)), to the extent such costs of
Decommissioning  are  payable  by  the  Parties  under  the  Contract.

12.5     Emergency.  If a well goes out of control or a fire, blow out, sabotage
         ----------
or  other  emergency occurs prior to the effective date of a Party's withdrawal,
the  notification  of withdrawal shall become effective only after the emergency
has been contained and the withdrawing Party has paid, or has provided, security
satisfactory to the Parties for its Participating Interest share of the costs of
such  emergency.

12.6     Assignment.  A  withdrawing  Party  shall  assign  its  Participating
         -----------
Interest free of cost to each of the non-withdrawing Working Interest Parties in
the  proportion  which  each  of  their  Participating  Interests  (prior to the
withdrawal)  bears  to  the  total  Participating  Interests  of  all  the
non-withdrawing  Working  Interest Parties (prior to the withdrawal), unless the
non-withdrawing  Working  Interest  Parties  agree  otherwise.  The  expenses
associated with the withdrawal and assignments shall be borne by the withdrawing
Party.

12.7     Approvals.  A  withdrawing Party shall promptly join in such actions as
         ----------
may  be  necessary or desirable  to  obtain  any  Government  approvals required
in connection with the withdrawal and assignments, and any penalties or expenses
incurred by the Parties in connection with such withdrawal shall be borne by the
withdrawing  Party.  If the Government does not approve a Party's withdrawal and
assignment  to the other Parties, then the withdrawing Party shall at its option
either  (1)  retract its notice of withdrawal by notice to the other Parties and
remain  a  Party as if such notice of withdrawal had never been sent or (2) hold
its  Participating  Interest  in trust for the sole and exclusive benefit of the
non-withdrawing  Working Interest Parties with the right to be reimbursed by the
non-withdrawing  Working  Interest  Parties  for  any  subsequent  costs  and
liabilities  incurred  by  it  for  which  it would not have been liable, had it
successfully  withdrawn.

12.8          Abandonment  Security.
              ----------------------

     (A)     As  a  condition  to  the  effectiveness  of  its  withdrawal,  a
withdrawing  Party  shall  provide Security reasonably satisfactory to the other
Parties  to  satisfy  any such obligations or liabilities which were approved or
accrued  prior  to  notice  of  withdrawal,  but  which  become  due  after  its
withdrawal,  including  Security  to  cover  the  costs  of  any abandonment and
Decommissioning  and  the  special  reserve  account  under  the  Contract,  if
applicable.

(B)     Failure  to  provide  Security  shall  constitute  default  under  this
Agreement.

(C)     "Security"  means  a  standby letter of credit issued by a bank or an on
demand  bond  issued  by a corporation, such bank or corporation having a credit
rating  indicating  it  has  sufficient  worth  to  pay  its  obligations in all
reasonably  foreseeable  circumstances,  or,  failing the provision of either of
those,  cash  deposited  in  an escrow account with withdrawal rights granted to
Operator.

12.9     Withdrawal or Decommissioning by all Parties.  In the event all Parties
         ---------------------------------------------
decide  to withdraw, the Parties agree that they shall be bound by the terms and
conditions  of  this  Agreement  for  so long as may be necessary to wind up the
affairs  of  the  Parties  with  the  Government, to satisfy any requirements of
Applicable Law and to facilitate the sale, disposition or Decommissioning of the
Joint  Property.

                                   ARTICLE 13
                                   ----------
                         RELATIONSHIP OF PARTIES AND TAX

13.1     Relationship  of  Parties.  The  rights,  duties,  obligations,  and
         --------------------------
liabilities  of  the Parties under this Agreement shall be individual, not joint
or collective.  It is not the intention of the Parties to create, nor shall this
Agreement  be deemed or construed to create a mining or other partnership, joint
venture,  association or trust.  This Agreement shall not be deemed or construed
to  authorize  any  Party  to act as an agent, servant or employee for any other
Party  for  any  purpose  whatsoever  except  as  explicitly  set  forth in this
Agreement.  In their relations with each other under this Agreement, the Parties
shall  not  be  considered fiduciaries, except as expressly provided in Sections
7.4(D)  and  12.7.

13.2     Tax.  Each Party shall be responsible for reporting and discharging its
         ----
own tax measured by the income of the Party and the satisfaction of such Party's
share  of  all contract obligations under the Contract and under this Agreement.
Each Party shall protect, defend and indemnify each other Party from any and all
loss,  cost or liability arising from the indemnifying Party's failure to report
and  discharge  such taxes or satisfy such obligations.  The Parties intend that
all  income  and  all  tax  benefits (including, but not limited to, deductions,
depreciation,  credits and capitalization) with respect to the expenditures made
by  the Parties hereunder will be allocated by the Government tax authorities to
the  Parties  based  on the share of each tax item actually received or borne by
each  Party.  If  such  allocation is not accomplished due to the application of
the  laws  and  regulations  of  the  Government or other Government action, the
Parties  shall  attempt to adopt mutually agreeable arrangements that will allow
the  Parties  to achieve the financial results intended.  Operator shall provide
each  Party,  in  a  timely  manner, with such information with respect to Joint
Operations  as  such  Party  may  reasonably  request for preparation of its tax
returns  or  responding  to  any  audit  or  other  tax  proceeding.

13.3          United  States  Tax  Election.
              ------------------------------

     (A)     If  for  United  States federal income tax purposes, this Agreement
and  the  operations  under this Agreement are regarded as a partnership (and if
the  Parties have not agreed to form a tax partnership), the Parties elect to be
excluded  from  the  application  of  all  of  the provisions of Subchapter "K",
Chapter  1,  Subtitle "A" of the United States Internal Revenue Code of 1986, as
amended  (the  "Code") as permitted and authorized by Section 761(a) of the Code
and  the regulations promulgated under the Code. There being no U.S Party at the
time  of  the  execution  of  this  Agreement, no Party is designated as the tax
matters  party.  Should  any person become a Party to this agreement at a future
date  and should that person be a U.S. Party (or should any current Party become
a  U.S.  Party),  such  person  may  elect,  to  the  extent required by Section
6231(a)(7)  of  the  Code,  to  be designated as the tax matters party by giving
written  notice to the other Parties to the Agreement.  Such person shall remain
the  tax  matters  party  as  long  as  it  is  a  Party to the agreement and is
authorized and directed to execute and file for each U.S. Party such evidence of
this  election  as  may  be  required by the Internal Revenue Service, including
specifically,  but not by way of limitation, all of the returns, statements, and
the  data  required  by  United  States Treasury Regulations Section 1.761-2 and
1.6031-1(d)(2),  and  shall  provide  a copy thereof to each U.S. Party.  Should
there  be  any  requirement  that  any  U.S. Party give further evidence of this
election,  each  U.S.  Party shall execute such documents and furnish such other
evidence  as  may  be  required  by  the  Internal  Revenue Service or as may be
necessary  to  evidence  this  election.

     (B)     No  U.S.  Party  shall  give  any  notice  or take any other action
inconsistent  with the election made above.  If any income tax laws of any state
or  other  political  subdivision  of the United States or any future income tax
laws  of  the United States or any such political subdivision contain provisions
similar to those in Subchapter "K," Chapter 1, Subtitle "A" of the United States
Internal  Revenue Code of 1986, under which an election similar to that provided
by Section 761 of the Code is permitted, the Parties shall make such election as
may  be  permitted  or required by such laws.  In making the foregoing election,
each  U.S. Party states that the income derived by it from operations under this
Agreement  can  be  adequately determined without the computation of partnership
taxable  income.

     (C)     For  the  purposes  of this Article 13, "U.S. Party" shall mean any
Party, which is subject to the income tax law of the United States of America in
respect  of  operations  under  this  Agreement.

     (D)     No  activity  shall  be  conducted  under this Agreement that would
cause  any  Party  that  is  not  a  U.S.  Person (within the meaning of Section
7701(a)(30)  of  the  Code)  to  be  deemed to be engaged in a trade or business
within  the  United States of America under applicable tax laws and regulations.

     (E)     A  Party  which is not a U.S. Party shall not be required to do any
act  or  execute  any  instrument  which  might  subject  it  to  the  taxation
jurisdiction  of  the  United  States  of  America.

                                   ARTICLE 14
                                   ----------
                           CONFIDENTIAL INFORMATION -
                             PROPRIETARY TECHNOLOGY

14.1          Confidential  Information.
              --------------------------

     (A)     Subject  to  the provisions of the Contract, the Parties agree that
all  information  and data acquired or obtained by any Party in respect of Joint
Operations  shall  be considered confidential and shall be kept confidential and
not  be  disclosed during the term of the Contract to any person or entity not a
Party  to  this  Agreement,  except:

     (1)  To an Affiliate, provided such Affiliate maintains confidentiality as
provided in this Article 14;

     (2)  To a Government agency or other entity when required by the Contract;

     (3)     To the extent such data and information is required to be furnished
in  compliance with any Applicable Laws, or pursuant to any legal proceedings or
because  of  any  order  of  any  court  binding  upon  a  Party;

     (4)     Subject  to  Section  14.1(B),  to potential contractors, insurers,
consultants and attorneys employed by any Party where disclosure of such data or
information  is  essential  to  such  contractor's, insurer's or consultant's or
attorney's  work;

     (5)     Subject  to  Section 14.1(B), to a bona fide prospective transferee
of  a  Party's  Participating Interest (including an entity with whom a Party or
its  Affiliates  is  conducting bona fide negotiations directed toward a merger,
consolidation  or  the  sale  of  a  majority  of its or an Affiliate's shares);

     (6)     Subject  to  Section  14.1(B),  to  a  bank  or  other  financial
institution  to  the  extent  appropriate  to  a  Party  arranging  for funding;

     (7)     To  the extent such data and information must be disclosed pursuant
to  any  rules  or  requirements  of  any  government  or  stock exchange having
jurisdiction  over  such  Party,  or  its  Affiliates;

     (8)     To its respective employees and attorneys for the purposes of Joint
Operations,  subject  to  each Party taking customary precautions to ensure such
data  and  information  is  kept  confidential;  and

     (9)     Any data or information which, through no fault of a Party, becomes
a  part  of  the  public  domain.

     (B)     Disclosure  as  pursuant to Sections 14.1(A)(4), (5), and (6) shall
not  be made unless prior to such disclosure the disclosing Party has obtained a
written  undertaking  from  the recipient party to keep the data and information
strictly confidential and not to use or disclose the data and information except
for  the  express  purpose  for  which  disclosure  is  to  be  made.

14.2     Continuing  Obligations.  Any  Party  ceasing  to  own  a Participating
         ------------------------
Interest during the term of this Agreement shall nonetheless remain bound by the
obligations  of  confidentiality  in  Section  14.1  and  any  disputes shall be
resolved  in  accordance  with  Article  17.

14.3     Proprietary  Technology.  Nothing  in  this  Agreement  shall require a
         ------------------------
Party  to  divulge  proprietary  technology  to the other Parties; provided that
where  the cost of development of proprietary technology has been charged to the
Joint  Account,  such  proprietary  technology shall be disclosed to all Parties
bearing  a  portion of such cost and may be used by such Party or its Affiliates
in  other  operations.

14.4     Trades.  Notwithstanding  the  foregoing provisions of this Article 14,
         -------
Operator  may,  with  approval  of the Operating Committee, make well trades and
data  trades  for the benefit of the Parties who participated in the cost of the
data  that  was  traded.  Operator  shall cause any third party to such trade to
enter  into  an  undertaking  to  keep  the  traded  data  confidential.

                                   ARTICLE 15
                                   ----------
                                  FORCE MAJEURE

15.1     Obligations.  If  as  a  result  of Force Majeure any Party is rendered
         ------------
unable,  wholly  or  in part, to carry out its obligations under this Agreement,
other  than  the  obligation to pay any amounts due or to furnish security, then
the  obligations  of  the  Party giving such notice, so far as and to the extent
that  the  obligations  are  affected  by such Force Majeure, shall be suspended
during the continuance of any inability so caused and for such reasonable period
thereafter  as may be necessary for the Party to put itself in the same position
that it occupied prior to the Force Majeure, but for no longer period. The Party
claiming  Force  Majeure  shall  notify  the  other Parties of the Force Majeure
within  a  reasonable time after the occurrence of the facts relied on and shall
keep  all  Parties  informed of all significant developments.  Such notice shall
give  reasonably  full  particulars  of the Force Majeure, and also estimate the
period  of  time  which  the  Party  will  probably  require to remedy the Force
Majeure.  The  affected  Party  shall  use all reasonable diligence to remove or
overcome  the  Force  Majeure  situation  as  quickly as possible in an economic
manner,  but  shall not be obligated to settle any labor dispute except on terms
acceptable  to  it  and  all  such  disputes  shall  be  handled within the sole
discretion  of  the  affected  Party.

15.2     Definition  of  Force  Majeure.  For  the  purposes  of this Agreement,
         -------------------------------
"Force  Majeure"  shall  mean circumstances beyond the reasonable control of the
Party  concerned,  including  those  circumstances  and  limitations  to  such
circumstances  described  in  Section  17.1  of    the  Contract.

                                   ARTICLE 16
                                   ----------
                                     NOTICES

Except  as  otherwise  specifically provided, all notices authorized or required
between  the  Parties  by  any  of the provisions of this Agreement, shall be in
writing,  in  English  and  delivered  in person or by courier service or by any
electronic  means  of transmitting written communications which provides written
confirmation  of  complete  transmission,  and  addressed  to  such  Parties  as
designated below.  Oral communication does not constitute notice for purposes of
this  Agreement,  and  telephone  numbers  for the Parties are listed below as a
matter  of convenience only and for purposes of Section 7.3(A).  The originating
notice  given  under  any  provision of this Agreement shall be deemed delivered
only  when  received  by the Party to whom such notice is directed, and the time
for  such  Party  to  deliver  any notice in response to such originating notice
shall  run  from the date the originating notice is received.  The second or any
responsive  notice  shall  be  deemed  delivered  when received.  "Received" for
purposes  of  this  Article  16  shall mean actual delivery of the notice to the
address  of  the  Party to be notified specified in accordance with this Article
16.  Each  Party  shall  have the right to change its address at any time and/or
designate  that  copies  of  all  such  notices be directed to another person at
another  address,  by  giving  written  notice  thereof  to  all  other Parties.

   Triton Equatorial Guinea, Inc.
   c/o Triton Energy
   6688 North Central Expressway, Suite 1400
   Dallas, Texas 75206
   United States
   Attention:  Mr. Brian Maxted
   Telecopy:  1-(214) 365-9011
   Telephone: 1-(214) 696-7554

   Energy Africa Equatorial Guinea Limited
   5  Parliament Square
   Castletown
   Isle of Man  IM9 1LA
   Attention:  Company Secretary
   Telecopy:   011-44-1624827301
   Telephone:  011-44-1624827310

   with copy to:

   Energy Africa Equatorial Guinea Limited
   c/o Energy Africa Limited
   21st Floor, Metlife Centre
   7 Coen Steytler Avenue
   P. O. Box 5544
   Cape Town 8001
   Republic of South Africa
   Attention:  Mr. Adrian Nel
   Telecopy:   011-27-21-400-7660
   Telephone:  011-27-21-400-7600

   Republic of Equatorial Guinea
   c/o Ministry of Mines & Energy
   Malabo Bioko Norte
   Republic of Equatorial Guinea
   Attention:  Minister
   Telecopy:   011-(240)-9-3353
   Telephone: 011-(240)-9-3567, -3405, - 2086

                                   ARTICLE 17
                                   ----------
                      GOVERNING LAW AND DISPUTE RESOLUTION

17.1     Governing  Law.  THIS  AGREEMENT  SHALL  BE  GOVERNED  BY,  CONSTRUED,
         ---------------
INTERPRETED  AND APPLIED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, USA,
EXCLUDING  ANY  CHOICE  OF  LAW RULES WHICH WOULD REQUIRE THE APPLICATION OF THE
LAWS  OF  ANOTHER  JURISDICTION.

17.2          Dispute  Resolution.
              --------------------

     (A)     Any  dispute,  controversy  or claim of any and every kind or type,
whether based on contract, tort, statute, regulation or otherwise arising out of
or  in relation to or in connection with this Agreement, the relationship of the
Parties,  the  obligations  of  the Parties, or the operations carried out under
this  Agreement,  including  without limitation any dispute as to the existence,
construction,  validity,  interpretation,  negotiation,  performance,
non-performance,  enforceability  or  breach  of  this Agreement, that cannot be
settled  within  thirty  (30)  Days  after  written notice from one Party to the
others,  shall  be  exclusively  and  finally settled by binding arbitration, it
being  the  intention  of  the  Parties that this is a broad form of arbitration
agreement designed to encompass all possible disputes among the Parties relating
to  the  project  that  is  the  subject  of  the  Parties'  agreement.

     (B)     The  arbitration  shall be conducted and finally settled by a three
(3)  person  arbitration tribunal.  Each side shall appoint an arbitrator of its
choice within thirty (30) Days of the end of the period in Section 17.2(A).  The
Party-appointed  arbitrators shall in turn appoint a presiding arbitrator of the
tribunal,  who  is  an  attorney (at the time is admitted to practice law in the
State  of  Texas) and is familiar with the international petroleum practices and
agreements,  within  thirty  (30)  Days  following  appointment  of  both
Party-appointed  arbitrators.  If  the  Party-appointed arbitrators cannot reach
agreement  on a presiding arbitrator of the tribunal and/or one Party refuses to
appoint  its  Party-appointed arbitrator within said thirty (30) Day period, the
appointing  authority for the implementation of such procedure shall be the Vice
President  or  the  President  of  the London Court of International Arbitration
("LCIA")  who  shall  appoint  an  independent  arbitrator who does not have any
financial  interest in the dispute, controversy or claim and who meets the legal
qualifications  above.  All  decisions  and  awards  by the arbitration tribunal
shall  be  made by majority vote.  The Arbitration Rules of LCIA as amended from
time  to  time  (the "LCIA Rules") shall govern the arbitration in all respects.

     (C)     If  there  are  only two (2) parties to a dispute or if the parties
can  be  conveniently  grouped  together into two (2) groups based upon a common
interest  and  common  position  in  the dispute, then each party or group shall
appoint  one  arbitrator,  within  thirty  (30) Days of receipt of notice of the
commencement  of  the  arbitration, or within thirty (30) Days of the receipt of
notice  from the LCIA of its grouping of the parties to the dispute, and the two
(2)  arbitrators  so  selected shall select the third, and presiding, arbitrator
within  thirty (30) Days after the later of the two (2) arbitrators is appointed
by  the  parties.

          If  there  are  three  (3)  Parties to a dispute who cannot be grouped
together  based  on  a common interest and common position in the dispute, or if
there  are  three  groups of Parties, then each Party or group shall appoint one
arbitrator  within  thirty (30) Days of receipt of notice of the commencement of
the  arbitration,  or  within thirty (30) Days of the receipt of notice from the
LCIA  of  its  grouping  of  the  Parties  to  said dispute, and these three (3)
arbitrators shall constitute the arbitral tribunal and shall select one of their
members  to  be  the  presiding  arbitrator.

          If  there  are four (4) or more Parties who cannot be grouped together
based  on  a common interest and common position in the dispute, or if there are
four  (4)  groups  of Parties or more, then the LCIA shall appoint all three (3)
arbitrators  taking  into  account  the  qualifications agreed herein, and these
three  (3)  arbitrators  shall  select  one of their members to be the presiding
arbitrator.

          If  the  Parties  cannot  agree  within  thirty  (30)  Days  after the
commencement  of the arbitration that they will be grouped together, or how they
will  be  grouped,  for  purposes  of the appointment of an arbitrator, then any
Party  may  request  that the LCIA decide whether, and how, to group the Parties
for  the purposes of appointing an arbitrator, and such decision will be binding
on  the  Parties.

(D)  Unless otherwise expressly agreed in writing by the Parties to the
arbitration proceedings:

     (1)  The arbitration proceedings shall be held in London, England, and
shall be administered by the LCIA;

     (2)   The arbitration proceedings shall be conducted in the English
language and the arbitrator(s) shall  be  fluent  in  the  English  language;

     (3)  The arbitrator or arbitral tribunal, as the case may be, shall be and
remain at all times wholly independent and impartial;

     (4)  The arbitration proceedings shall be conducted under LCIA Rules, as
amended from time to time;

     (5)  Any  procedural  issues  not  determined  under  the  arbitral  rules
selected pursuant to Section 17.2(C) shall be determined  by  the  law  of  the
place  of  arbitration;

     (6)     The costs of the arbitration proceedings (including attorneys' fees
and  costs)  shall  be  borne in the manner determined by the arbitral tribunal;

     (7)     The decision of the majority of the arbitrators shall be reduced to
writing;  final  and binding without the right of appeal; the sole and exclusive
remedy  regarding  any claims, counterclaims, issues or accountings presented to
the arbitrators; made and promptly paid in U.S. dollars free of any deduction or
offset;  and  any  costs  or  fees incident to enforcing the award, shall to the
maximum  extent  permitted  by  law, be charged against the Party resisting such
enforcement;

     (8)     Special  Damages shall not be allowed except those payable to third
parties  that  are  allocated  by  the  arbitral  award;

     (9)     The  award  shall  include  interest from the date of any breach or
violation  of  this Agreement, as determined by the arbitral award, and from the
date  of  the  award  until  paid  in  full,  at  the  Agreed  Interest  Rate;

     (10)     Judgment  upon  the  award  may  be  entered  in  any court having
jurisdiction  over  the  person or the assets of the party owing the judgment or
application may be made to such court for a judicial acceptance of the award and
an  order  of  enforcement,  as  the  case  may  be;

     (11)     If  the  Parties to this Agreement or others who are bound to this
or  another  similar  arbitration  agreement  initiate  multiple  arbitration
proceedings, the subject matters of which are related by common questions of law
or  fact  and  which could result in conflicting awards or obligations, then the
Parties hereby agree that all such proceedings may be consolidated into a single
arbitral  proceeding;

     (12)     For  purposes of allowing the arbitration provided in this Article
17, the enforcement and execution of any arbitration decision and award, and the
issuance  of  any  attachment  or other interim remedy, any governmental body or
agency which is a Party to this Agreement agrees to waive all sovereign immunity
by  whatever  name  or  title  with respect to disputes, controversies or claims
arising  out  of  or  in relation to or in connection with this Agreement or the
operations  carried  out  under  this  Agreement;  and

     (13)     The arbitration shall proceed in the absence of a party who, after
due notice, fails to answer or appear.  An award shall not be made solely on the
default of a party, but the arbitrator(s) shall require the party who is present
to  submit  such  evidence  as  the  arbitrator(s)  may  determine is reasonably
required  to  make  an  award.

                                   ARTICLE 18
                                   ----------
                               GENERAL PROVISIONS

18.1          Conflicts  of  Interest.
              ------------------------

     (A)     Each  Party undertakes that it shall avoid any conflict of interest
between  its  own  interests  (including  the  interests  of Affiliates) and the
interests  of  the  other  Parties  in dealing with suppliers, customers and all
other  organizations  or  individuals  doing  or seeking to do business with the
Parties  in  connection  with  activities  contemplated  under  this  Agreement.

     (B)  The provisions of the preceding paragraph shall not apply to:

         (1)  A Party's performance which is in accordance with the local
preference laws or policies of the Government; or

         (2)  A Party's acquisition of products or services from an Affiliate,
or the  sale  thereof to an Affiliate, made in accordance with rules and
procedures established  by  the  Operating  Committee.

18.2     Warranties  As  To  No  Payments, Gifts and Loans.  Each of the Parties
         --------------------------------------------------
warrants  that  neither it nor its Affiliates has made or will make with respect
to  the  matters  provided  for hereunder, any offer, payment, promise to pay or
authorization  of  the payment of any money, or any offer, gift, promise to give
or  authorization of the giving of anything of value, directly or indirectly, to
or for the use of benefit of any official or employee of the Government or to or
for  the  use  of benefit of any political party, official, or candidate for the
purpose  of  (i)  influencing  an  official  act or decision of the person; (ii)
inducing  that  person  to  do  or omit to do any act in violation of his or her
lawful  duty; or (iii) inducing that person to use his or her influence with the
Government  to  affect any Government decision unless such offer, payment, gift,
promise or authorization is authorized by the written laws or regulations of the
Republic  of  Equatorial  Guinea.  Each  of  the  Parties  further warrants that
neither  it  nor  its  Affiliates has made or will make any such offer, payment,
gift,  promise or authorization to or for the use or benefit of any other person
if  the  Party  knows,  has  a  firm  belief,  or  is aware that there is a high
probability  that  the other person would use such offer, payment, gift, promise
or  authorization  for  any of the purposes described in the preceding sentence.
The  foregoing warranties do not apply to any facilitating or expediting payment
to  secure  the  performance  of  routine Government action.  Routine Government
action,  for  purposes  of  this  Section  18.2,  shall not include, among other
things, Government action regarding the terms, assignment, award or continuation
of the Contract.  Each Party shall respond promptly and in reasonable detail, to
any  notice  from any other Party or its auditors pertaining to the above stated
warranty  and  representation  and  shall  furnish  documentary support for such
response  upon  request  for  such  other  Party.

18.3          Public  Announcements.
              ----------------------

     (A)     Operator  shall  be  responsible for the preparation and release of
all  public  announcements  and statements regarding this Agreement or the Joint
Operations;  provided  that, no public announcement or statement shall be issued
or  made  unless prior to its release all the Parties have been furnished with a
copy  of  such  statement  or  announcement and the approval of at least two (2)
non-affiliated  Parties  holding  fifty  percent  (50%),  or  more,  of  the
Participating  Interests  has  been  obtained.  Where  a  public announcement or
statement  becomes  necessary or desirable because of danger to or loss of life,
damage  to  property  or  pollution as a result of activities arising under this
Agreement,  Operator  is  authorized  to  issue  and  make  such announcement or
statement  without prior approval of the Parties, but shall promptly furnish all
the  Parties  with  a  copy  of  such  announcement  or  statement.

     (B)     If  a  Party  wishes  to  issue  or make any public announcement or
statement  regarding  this Agreement or the Joint Operations, it shall not do so
unless prior to its release, such Party furnishes all the Parties with a copy of
such  announcement  or  statement,  and obtains the approval of at least two (2)
non-affiliated  Parties holding fifty percent (50%) or more of the Participating
Interests;  provided  that, notwithstanding any failure to obtain such approval,
no Party shall be prohibited from issuing or making any such public announcement
or  statement if it is necessary to do so in order to comply with the applicable
laws,  rules  or  regulations  of  any  government,  legal  proceedings or stock
exchange having jurisdiction over such Party as set forth in Sections 14.1(A)(3)
and  (7).

     (C)     Notwithstanding  Section  18.3(A)  and  Section 18.3(B), any public
announcement or statement regarding this Agreement or the Joint Operations shall
be  in  accordance  with  the  terms  of  the  Contract.

18.4     Successors  and  Assigns.  Subject  to  the  limitations  on  transfer
         -------------------------
contained  in  Article  11 and the Assignment, this Agreement shall inure to the
benefit  of  and  be  binding  upon  the permitted successors and assigns of the
Parties.

18.5     Waiver.  No  waiver by any Party of any one or more defaults by another
         -------
Party  in  the  performance of this Agreement shall operate or be construed as a
waiver of any future default or defaults by the same Party, whether of a like or
of  a  different  character.  Except  as expressly provided in this Agreement no
Party  shall  be  deemed  to have waived, released or modified any of its rights
under this Agreement unless such Party has expressly stated, in writing, that it
does  waive,  release  or  modify  such  right.

18.6     Severance  of  Invalid Provisions.  If and for so long as any provision
         ----------------------------------
of  this  Agreement  shall  be  deemed  to  be  judged  invalid  for  any reason
whatsoever,  such  invalidity  shall not affect the validity or operation of any
other  provision  of  this Agreement except only so far as shall be necessary to
give  effect  to  the  construction  of  such  invalidity,  and any such invalid
provision  shall  be  deemed  severed  from this Agreement without affecting the
validity  of  the  balance  of  this  Agreement.

18.7     Contract  Translation.  The  Parties  agree that the English version of
         ----------------------
the  Contract  attached  hereto as Exhibit B shall be, as among the Parties, the
official  version  of  the  Contract  for  purposes  of applying this Agreement.

18.8          Construction.    In  construing  this  Agreement:
              -------------

     (A)     No  consideration  shall  be given to the captions of the Articles,
Sections,  or  Subsections  which  are  inserted for convenience in locating the
provisions  of  this  Agreement  and  not  as  an  aid  in  its  construction;

     (B)     No consideration shall be given to the fact or presumption that one
Party  had  a  greater  or  lesser  hand  in  drafting  this  Agreement;

     (C)     Examples shall not be construed to limit, expressly or by
implication, the matter they illustrate;

     (D)     The word  "includes" and its derivatives means "includes, but is
not limited to" and corresponding derivative expressions;

     (E)     A  defined  term  has its defined meaning throughout this Agreement
and  each  exhibit,  attachment,  and  schedule to this Agreement, regardless of
whether  it  appears  before  or  after  the  place  where  it  is  defined;

     (F)     The plural shall be deemed to include the singular, and vice versa;

     (G)     Each gender shall be deemed to include the other genders;

     (H)     Each  exhibit,  attachment,  and schedule to this Agreement is a
part of this  Agreement,  but if there is any conflict or inconsistency between
the main body  of this Agreement and any exhibit, attachment, or schedule, the
provisions of  the  main  body  of  this  Agreement  shall  prevail;

     (I)     The  terms  "herein," "hereunder," "hereof," "hereby," and similar
termsrefer  to this Agreement as a whole and not to an article, section or
subsection unless  expressly  otherwise  limited;  and

     (J)     Each  reference  to  an Article, Section or Subsection refers to an
Article,  Section  or  Subsection  of  this Agreement unless expressly otherwise
provided.

18.9     Execution by Facsimile. The Parties agree that the signature of a Party
         -----------------------
to  this  Agreement  transmitted  by  facsimile  machine shall be accepted as an
original  signature.  A  Party shall promptly furnish an original signature page
of  this  Agreement  if  requested  by  another  Party.

18.10     Entirety.  This  Agreement  is the entire agreement of the Parties and
          ---------
supersedes  all prior understandings and negotiations of the Parties. Each Party
hereto  does  hereby  expressly  warrant  and  represent  that  no  promise  nor
agreement,  which is not herein expressed has been made to it in connection with
this  Agreement  and  that  neither  Party  is  relying  upon  any statement nor
representation  of  any  employee  or  agent  of the other Parties other than as
provided  herein.  Each  party  is  relying  upon  its own judgment and has been
represented  by  its  own  legal  counsel  in  connection with the execution and
understanding  of  the  legal  consequences  hereof.

18.11     Modification.  Except  as provided in Sections 10.2(B) and 18.6, there
-----     -------------
shall  be  no  modification  of this Agreement or the Contract except by written
consent  of  all  Parties.

IN  WITNESS  of  their  agreement  Triton and Energy Africa have caused its duly
authorized  representative  to  sign  this  instrument to be effective as of the
Effective  Date.

     TRITON  EQUATORIAL  GUINEA,  INC.

By:  ______________________________________
     Name:
     Title:

     ENERGY  AFRICA  EQUATORIAL  GUINEA  LIMITED

By:  ______________________________________
     Name:
     Title:ASSIGNMENT OF STATE PARTICIPATING
                 INTEREST IN THE PRODUCTION SHARING CONTRACT FOR
                 BLOCK G, OFFSHORE REPUBLIC OF EQUATORIAL GUINEA

This  Assignment  of  State  Participating  Interest  in  the Production Sharing
Contract for Block G, Offshore Republic of Equatorial Guinea (this "Assignment")
that sets the terms and conditions for the participation of the STATE in Block G
offshore  the  Republic of Equatorial Guinea (the "STATE") is entered into as of
the  1st  day of January, 2000, between Triton Equatorial Guinea, Inc., a Cayman
Islands company ("Triton"), and Energy Africa Equatorial Guinea Limited, an Isle
of  Man  company ("Energy Africa"), and the STATE represented by the Ministry of
Mines  and  Energy.  Triton  and  Energy  Africa  are  hereinafter  collectively
referred  to as the "CONTRACTOR" and the CONTRACTOR and the STATE are sometimes,
depending  on  the context hereinafter individually referred to as a "Party" and
collectively  as  the  "Parties."

WHEREAS,  Triton  and  the  State  signed a Production Sharing Contract covering
Block G, offshore Republic of Equatorial Guinea, on March 26, 1997, effective as
of  April  14,  1997  (as  amended,  the  "Contract");

WHEREAS, with the approval of the STATE, Triton assigned a fifteen percent (15%)
interest  in  its  rights and obligations in the Contract to Energy Africa as of
June  1,  1999,  so  that  currently  Triton  holds an eighty-five percent (85%)
interest  and  Energy  Africa  holds  a  fifteen  percent  (15%) interest in the
Contract;

WHEREAS,  at the request of the STATE, the Parties agreed to modify the Contract
effective  January  1,  2000  by  that certain First Amendment to the Production
Sharing Contract for Block G, offshore Republic of Equatorial Guinea (the "First
Amendment") for the purposes of aligning certain terms thereof as reflected in a
Memorandum  of  Understanding  between  the  Parties  dated  December  7,  1999;

WHEREAS, as a consequence of the renegotiation the CONTRACTOR agreed to transfer
to  the  STATE a five percent (5%) interest during the phases of Development and
Production  in  each  Field  discovered and developed, or that may be discovered
and/or  developed  under  the  Contract  together  with all rights and interests
related thereto, provided however, the STATE shall not be required to contribute
cash  to  fund  such  costs;  and

WHEREAS,  the  STATE  accepts  such interest and agrees to become a party to the
existing  Joint  Operating  Agreement  for each Field Development and Production
between  the  entities  then  comprising the CONTRACTOR (the "Field JOA") on the
terms  set  forth  herein,  each  Party having in their possession a copy of the
Field  JOA.

NOW  THEREFORE,  in  consideration of the terms and conditions set forth herein,
the  Parties  hereby  agree  as  follows:

                                    ARTICLE 1
                                    ---------
                             ASSIGNMENT OF INTEREST

1.1     "Participating  Interest"  means  a  percentage  interest in the rights,
privileges,  duties  and  obligations  of  the  CONTRACTOR under the Contract as
amended  from  time  to  time.

1.2          Subject  to  the terms and conditions set forth in this Assignment:

(a)     CONTRACTOR hereby assigns, transfers and conveys to STATE a five percent
(5%)  Participating Interest in each Field discovered and/or to be discovered in
the  Contract  Area,  and  in  the  Field JOA corresponding to such Field, these
assignments to become effective upon the approval of the initial development and
production  plan  for  each  area  of  development  of  such  Field;  and

(b)     The  STATE  accepts  from  CONTRACTOR  the  assignment,  transfer  and
conveyance  of  such five percent (5%) Participating Interest in each such Field
and  interest in such Field JOA corresponding to this interest.  Such acceptance
shall  constitute  consent  by  the STATE to the transfer as required by Section
6.1(f)  of  the  Contract.

1.3     The assignment, transfer and conveyance referred to herein shall be free
of all liens, claims, mortgages and encumbrances except those arising out of the
Contract, this Assignment or the Field JOA and subject to Article 4 below, shall
include  five  percent  (5%)  of  CONTRACTOR's  interests  in  data,  materials,
equipment  and  other  assets  acquired  in  connection with all Development and
Production  Operations  for  each  Field.

1.4     The assignment, transfer and conveyance referred to herein also shall be
made  on  a  pro rata basis from each entity then comprising CONTRACTOR equal to
its  Participating  Interest  unless otherwise mutually agreed by such entities.

1.5     As  of  the effective date of each assignment of an interest in a Field,
the  Participating  Interests  of the entities comprising the CONTRACTOR in such
Field  shall  be:

             STATE                   5.00%
             Triton                 80.75%
             Energy Africa          14.25%

Triton  and Energy Africa, and their respective successors and assigns (if any),
and  the  STATE shall constitute the "CONTRACTOR" with respect to such Field, in
the  sense  ascribed  to this term in the Contract and shall be bound by all the
covenants  contained  in  the  Contract  which  are  binding  on  the CONTRACTOR
according to their respective Participating Interests, with the exception of the
provisions  set  forth  in Articles 2, 4 and 5 below. If Triton or Energy Africa
transfers,  from  time  to  time,  all  or part of its Participating Interest as
permitted  by  the  Contract  and  this Assignment after the Amendment Date, but
prior  to  the  assignment  to  the STATE of the five percent (5%) Participating
Interest  in  a  Field under this Assignment, then the Participating Interest of
Triton  and  Energy  Africa  shown  above  shall  be  revised  accordingly.

                                    ARTICLE 2
                                    ---------
                   CARRIED PARTICIPATING INTEREST OF THE STATE

2.1     All  Petroleum Operations Expenditures, as defined in the Contract shall
continue  to  be  borne  and  paid  by  the  entities,  other  than  the  STATE,
constituting  part  of  the  CONTRACTOR  in  the  same ratio as their respective
Participating  Interests  prior to the assignment referred to in Article 1 above
(e.g.,  85%  by  Triton  and  15%  by Energy Africa or as to their successor and
assigns).  The  STATE shall not be required to contribute cash to fund Petroleum
Operations  Expenditures.

2.2     The  STATE  hereby  assigns,  transfers  and  conveys  to  the  entities
comprising  part  of  the  CONTRACTOR (i.e., Triton and Energy Africa, and their
respective successors and assigns), other than the STATE, in proportion to their
Participating Interests in the Field at the time of the assignment under Article
1  of  this  Assignment  all  rights  to  the  recovery of recoverable Petroleum
Operations  Expenditures  under  the  Contract  and  Field JOA in respect of the
STATE's  five  percent  (5%)  Participating Interest acquired under Article 1 of
this  Assignment.

                                    ARTICLE 3
                                    ---------
         JOINT OPERATING AGREEMENT FOR FIELD DEVELOPMENT AND PRODUCTION

3.1     The  STATE  hereby  ratifies and confirms its participation in the Field
JOA  with  respect to each Field in which it acquires an interest. The Field JOA
shall  apply  severally,  sequentially  and  automatically  to every Field under
development  or  developed  under  the  Contract.

3.2     Triton  and  Energy  Africa  agree  amongst  themselves  as the entities
comprising  the  CONTRACTOR  to conduct operations in each Field pursuant to the
Contract,  this  Assignment  and  the  Field  JOA.  The Parties acknowledge that
Triton  has been designated as Operator under the Field JOA and such designation
shall  not  be  affected  by  this  Assignment.

3.3     The  STATE's  participation as a party comprising part of the CONTRACTOR
under  the  Field  JOA  with  respect to each Field shall be effective as of the
effective  date  of  the  assignment  of  an  interest in such Field pursuant to
Article  1  of  this  Assignment  and  the  STATE  as a member of the CONTRACTOR
ratifies  and  confirms  on such effective date the conduct of the operations in
each  area  of  development  of  a  Field  pursuant  to  the  Contract.

                                    ARTICLE 4
                                    ---------
                               TITLE TO EQUIPMENT

Notwithstanding anything contained in Section XI of the Contract and Article 1.3
above,  the  STATE  shall have no rights, titles or interests in any unamortized
equipment  of  the  CONTRACTOR  referred  to  in  Section  11.2 of the Contract.

However,  any  equipment and fixed installations amortized before the expiration
of  the  Contract  shall  be  treated  pursuant  to  Section  11.1.

                                    ARTICLE 5
                                    ---------
                                  ASSIGNABILITY

5.1     Notwithstanding Section 6.1(e) of the Contract, in the case of the STATE
as  the  assigning  party  of  the  five  percent (5%) Participating Interest it
acquired  under  Article  1  of  this  Assignment,  the  right  to sell, assign,
transfer,  convey  or otherwise dispose of any part or all of such Participating
Interest in any Field in the Contract Area, from time to time, is limited solely
to  a  sale, assignment, transfer, conveyance or disposition to the national oil
company  or other wholly-owned STATE entity responsible (among other things) for
the  development  and  production  of Hydrocarbon deposits in the Contract Area,
with no other right of assignment except to assignees that meet the requirements
stated  in  this  Article  5.1.

5.2     Notwithstanding  Section  6.1(f) of the Contract, the Parties agree that
the  STATE  shall  have  no right to sell, assign, transfer, convey or otherwise
dispose  of  any  interest either in the Contract, this Assignment, any Field in
the  Contract  Area  or  Field  JOA  except  as  provided  in Article 5.1 above.

                                    ARTICLE 6
                                    ---------
                                  MISCELLANEOUS

6.1     Each  of  the  Parties shall do all such acts and obtain and execute all
such  documents  as  shall  be reasonably required in order to fully perform and
carry  out  this  Assignment.

6.2     This  Assignment  constitutes the entire agreement among the Parties and
may  not  be amended or modified except in writing signed by all of the Parties.
In  the  event of any conflict between the provisions of this Assignment and the
Field  JOA  with  respect  to the subject matter covered in this Assignment, the
provisions of this Assignment shall prevail.  The terms and phrases contained in
the  Contract  and used herein shall have the same meaning as in the Contract as
amended  unless  the  context  herein  otherwise  provides.

6.3  This Assignment shall inure to the benefit of and be binding upon the
successors and assigns of the Parties.

6.4  Upon signature by the Parties hereto, this Assignment shall have effect for
all purposes from 1st January 2000.

6.5     This  Assignment  is  written  signed  in  six  (6) copies, three (3) in
Spanish  and three (3) in English, which shall constitute one original document.
In  the  event  of a conflict between the English and Spanish texts, the Spanish
text shall prevail.  The Parties recognize, however, that the Field JOA attached
as  Annex  A  hereto,  is  written  solely  in  the  English  language.

6.6     In  the  event  of  a  dispute  arising  out  of  or  related  to  the
interpretation  or  meaning of this Assignment (excluding the Field JOA attached
hereto  as Annex A), the Consultation and Arbitration provisions of Section XIII
of  the  Contract  shall  apply.

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

TRITON  EQUATORIAL  GUINEA,  INC.

____________________________________

Name:   ______________________________
Title:  ______________________________
Date:   ______________________________

ENERGY  AFRICA  EQUATORIAL  GUINEA  LIMITED

____________________________________

Name:   ______________________________
Title:  ______________________________
Date:   ______________________________

FOR  THE  REPUBLIC  OF  EQUATORIAL  GUINEA

THE  MINISTRY  OF  MINES  AND  ENERGY  OF
THE  REPUBLIC  OF  EQUATORIAL  GUINEA

____________________________________

Name:    ______________________________
Title:   ______________________________
Date:    ______________________________

ANNEX A

                   ATTACHED TO AND MADE PART OF THE ASSIGNMENT
       OF STATE PARTICIPATING INTEREST IN THE PRODUCTION SHARING CONTRACT
       FOR BLOCK G, OFFSHORE REPUBLIC OF EQUATORIAL GUINEA, BY AND BETWEEN
     TRITON EQUATORIAL GUINEA, INC., ENERGY AFRICA EQUATORIAL GUINEA LIMITED
       AND THE REPUBLIC OF EQUATORIAL GUINEA, DATED AS OF JANUARY 1, 2000

                            JOINT OPERATING AGREEMENT
                      FOR FIELD DEVELOPMENT AND PRODUCTION

                                     BLOCK G
                           OFFSHORE EQUATORIAL GUINEA

                            JOINT OPERATING AGREEMENT
                      FOR FIELD DEVELOPMENT AND PRODUCTION

                                TABLE OF CONTENTS

ARTICLE  1  -  DEFINITIONS

ARTICLE  2  -  TERM

    2.1        Effective Date and Severability
    2.2        Survival
    2.3        Stand Alone Option

ARTICLE 3 -    SCOPE

    3.1        Scope
    3.2        Participating Interest
    3.3        Ownership, Obligations, and Liabilities
    3.4        Accounting Procedure

ARTICLE 4 -    OPERATOR

     4.1       Designation of Operator
     4.2       Rights and Duties of Operator
     4.3       Employees of Operator
     4.4       Information Supplied by Operator
     4.5       Settlement of Claims and Lawsuits
     4.6       Limitation on Liability of Operator
     4.7       Insurance Obtained by Operator
     4.8       Commingling of Funds
     4.9       Resignation of Operator
    4.10       Removal of Operator
    4.11       Appointment of Successor

ARTICLE 5 -    OPERATING COMMITTEE

     5.1       Establishment of Operating Committee
     5.2       Powers and Duties of Operating Committee
     5.3       Authority to Vote
     5.4       Subcommittees and Project Teams
     5.5       Notice of Meeting
     5.6       Contents of Meeting Notice
     5.7       Location and Frequency of Meetings
     5.8       Operator's Duties for Meetings
     5.9       Voting Procedure
    5.10       Record of Votes
    5.11       Minutes
    5.12       Voting by Notice
    5.13       Effect of Vote

ARTICLE 6 -    WORK PROGRAMS AND BUDGETS

    6.1        Work Program and Budgets
    6.2        Discovery and Evaluation
    6.3        Development and Production
    6.4        Itemization of Expenditures
    6.5        Contract Awards
    6.6        Authorization for Expenditure Procedure
    6.7        Overexpenditures of Work Programs and Budgets

ARTICLE 7 -    DEFAULT

    7.1        Default and Notice
    7.2        Operating Committee Meetings and Data
    7.3        Allocation of Defaulted Accounts
    7.4        Remedies
    7.5        Survival
    7.6        No Right of Set Off

ARTICLE 8 -    DISPOSITION OF PRODUCTION

    8.1        Right and Obligation to Take in Kind
    8.2        Offtake Agreement for Crude Oil
    8.3        Separate Agreement for Natural Gas

ARTICLE 9 -    ABANDONMENT AND DECOMMISSIONING

    9.1        Joint Operations Abandonment and Decommissioning

ARTICLE 10 -   SURRENDER,  EXTENSIONS  AND  RENEWALS

   10.1        Surrender
   10.2        Extension of the Term

ARTICLE 11 -   TRANSFER OF INTEREST OR RIGHTS

   11.1        Obligations
   11.2        Consent
   11.3        Rights

ARTICLE 12 -   WITHDRAWAL FROM AGREEMENT

   12.1        Right of Withdrawal
   12.2        Complete Withdrawal
   12.3        Rights of a Withdrawing Party
   12.4        Obligations and Liabilities of a Withdrawing Party
   12.5        Emergency
   12.6        Assignment
   12.7        Approvals
   12.8        Abandonment Security
   12.9        Withdrawal or Decommissioning by all Parties

ARTICLE 13 -   RELATIONSHIP  OF  PARTIES  AND  TAX

   13.1        Relationship of Parties
   13.2        Tax
   13.3        United States Tax Election

ARTICLE 14 -   CONFIDENTIAL INFORMATION-PROPRIETARY TECHNOLOGY

   14.1        Confidential Information
   14.2        Continuing Obligations
   14.3        Proprietary Technology
   14.4        Trades

ARTICLE 15 -   FORCE MAJEURE

   15.1        Obligations
   15.2        Definition of Force Majeure

ARTICLE 16 -   NOTICES

ARTICLE 17 -   GOVERNING LAW AND DISPUTE RESOLUTION

   17.1        Governing Law
   17.2        Dispute Resolution

ARTICLE 18 -   GENERAL PROVISIONS

   18.1        Conflicts of Interest
   18.2        Warranties As To No Payments, Gifts and Loans
   18.3        Public Announcements
   18.4        Successors and Assigns
   18.5        Waiver
   18.6        Severance of Invalid Provisions
   18.7        Contract Translation
   18.8        Construction
   18.9        Execution by Facsimile
  18.10        Entirety
  18.11        Modification

EXHIBIT  A  -    ACCOUNTING  PROCEDURE

EXHIBIT  B  -    ENGLISH TRANSLATION OF THE CONTRACT, LETTER, AND AMENDMENT

                           JOINT OPERATING AGREEMENT
                       FOR FIELD DEVELOPMENT AND PRODUCTION

     THIS  JOINT  OPERATING AGREEMENT FOR FIELD DEVELOPMENT AND PRODUCTION (this
"Agreement")  is  effective  as  of  the  Effective  Date,  between the Entities
Constituting Part of Contractor in the Field on the Effective Date, i.e., Triton
Equatorial  Guinea, Inc., a Cayman Islands company ("Triton"), and Energy Africa
Equatorial Guinea Limited, an Isle of Man company ("Energy Africa") and/or their
respective  successors and assigns, which may include the Republic of Equatorial
Guinea.  The  entities  referred to above may sometimes individually be referred
to  as  "Party"  and  collectively  as  the "Parties."  Triton and Energy Africa
and/or  their  successors and assigns as Contractor in the Field are hereinafter
collectively referred to as the Working Interest Parties.   The Working Interest
Parties  and  the  State are sometimes hereinafter individually referred to as a
"Party"  and  collectively  as  the  "Parties."

                                    RECITALS
                                    --------

     Triton  as  "CONTRACTOR"  therein, has entered into that certain Production
Sharing  Contract  (the "Original Contract"), as amended from time to time, with
the  Republic  of Equatorial Guinea, as "the STATE", executed on March 26, 1997,
effective  as  of  April  14,  1997,  covering  Block  G,  offshore  Republic of
Equatorial  Guinea,  more  particularly  described  therein.

     With  the  approval  of  the  Government, Triton assigned a fifteen percent
(15%) interest in its rights and obligations in the Contract to Energy Africa as
of  June  1,  1999.

     The  Parties  have participated in renegotiation discussions at the request
of  the  Government,  which discussions were held between representatives of the
Parties  in  London,  England, from November 30, 1999, to December 7, 1999, as a
result of which they have agreed to modify the Original Contract for the purpose
of  adjusting certain provisions thereof to reflect the new commercial structure
for  production  sharing  contracts  adopted by the Government as reflected in a
Memorandum  of  Understanding  dated  December  7,  1999  ("MOU").

     As  part  of  the  renegotiation  the  Contractor agreed to transfer to the
Government  a  five percent (5%) interest in each Field discovered and developed
under  the  Contract  together  with  all  rights  and interests related thereto
effective  upon  approval  of  the initial Development Plan for each such Field.

     The  Original  Contract  has  been  amended,  among  other  things,  by the
Amendment  to  the Production Sharing Contract for Block G, Offshore Republic of
Equatorial  Guinea,  dated  as  of  January  1,  2000  (the  "Amendment").

     The Government has agreed pursuant to the Assignment of State Participating
Interest  in  the  Production Sharing Contract for Block G, Offshore Republic of
Equatorial  Guinea  (the "Assignment") to accept a five percent (5%) interest in
each  Field discovered and developed under the Contract together with all rights
and  interests  related  thereto  subject  to this Agreement effective with each
assignment  under  the  Assignment  on  the terms agreed to herein by Triton and
Energy  Africa.

                                   AGREEMENTS
                                   ----------

     In  consideration  of  the  mutual agreements and obligations set out below
between  the Entities Constituting Part of Contractor on the Effective Date, the
Parties  agree  as  follows:

                                    ARTICLE 1
                                    ---------
                                   DEFINITIONS

The  following  terms  shall  have  the  meaning  assigned  to  them  below:

Accounting  Procedure  means the rules, provisions, and conditions set forth and
---------------------
contained  in  Exhibit  A  to  this  Agreement.

AFE  means  an  authorization  for  expenditure  issued pursuant to Section 6.6.
---
Affiliate means, in relation to any Party, any company or legal entity which (i)
---------
controls,  (ii)  is  controlled  by,  or  (iii) is controlled by an entity which
controls  a Party.  For the purpose of this definition, control means ownership,
directly or indirectly, of more than fifty percent (50%) of the voting rights in
a  company  or  legal  entity  or  the  possession  of  the  power,  directly or
indirectly,  to direct or cause the direction of the management or policies of a
Party,  whether  through  or  by  ownership,  contract  or  otherwise.

Agreed  Interest  Rate means a floating interest rate, compounded monthly, equal
----------------------
to the lesser of (i) the rate per annum published by The Wall Street Journal (or
if not published by The Wall Street Journal, published by the Financial Times of
London)  as  the  one month LIBOR for U.S. dollar deposits on the first Business
Day prior to the due date of payment and thereafter on the first Business Day of
each  succeeding  calendar  month, plus five percentage (5%) points, or (ii) the
maximum  rate  permitted  by  the  governing  law  specified  in  Section  17.1.

Agreement  means  this  Joint  Operating  Agreement  for  Field  Development and
---------
Production,  together with the Exhibits attached hereto, as amended from time to
time  in  writing  by  the  Parties.

Applicable  Law  means  the  Hydrocarbons Law as defined in the Contract and any
---------------
other  statute,  decree,  order,  directives,  regulation,  or rule (of whatever
nature)  as such may be validly issued by the Government and in effect from time
to  time,  including  without  limitation,  those  laws,  statutes,  rules  and
regulations  with  respect  to  the  exploration,  development and production of
Hydrocarbons  that govern the Contracts or are incorporated by the terms of such
Contracts.

Business  Day  means a day on which the banks in Dallas, Texas, U.S.A., are open
-------------
for  domestic  and  international  business.

Calendar  Quarter  means  a  period  of  three  (3)  consecutive calendar months
-----------------
beginning,  respectively,  on  January  1,  April  1,  July  1,  and  October 1.

Calendar Year means a period of twelve (12) months commencing with January 1 and
-------------
ending  on  the  following  December  31.

Carried  Costs means costs directly attributable to the Carried Party, which the
--------------
Working  Interest  Parties  are  obligated to bear and pay under the Assignment.

Carried  Party  means  the  State  or  other  wholly  owned  Government  entity
--------------
exclusively  responsible  for the development of Hydrocarbon deposits in a Field
in  the  Contract  Area,  who  receives  the assignment of the five percent (5%)
Participating  Interest  pursuant  to  Part  B  of  the  Assignment.

Cash  Call  is  defined  in  the  Accounting  Procedure.
----------

Commercial  Discovery  is  defined  in  the  Contract.
---------------------

Completion  means  an  operation  intended  to  complete a well as a producer of
----------
Hydrocarbons  in  one or more Zones, including the setting of production casing,
perforating,  stimulating  the  well,  and  production Testing conducted in such
operation.    Complete  and  other  derivatives  shall be construed accordingly.
              --------

Contract  means  the  Production  Sharing  Contract  between  The  Republic  of
--------
Equatorial  Guinea  and  Triton  Equatorial  Guinea, Inc., executed on March 26,
1997,  and  effective  as  of April 14, 1997 (the "Original Contract"), covering
Block  G,  Offshore  the Republic of Equatorial Guinea, as amended by the Letter
and  by  the  Amendment to the Production Sharing Contract For Block G, Offshore
Republic  of  Equatorial  Guinea, dated as of January 1, 2000 (the "Amendment"),
the  English  translation  of  which  is  attached  hereto as Exhibit B, and any
extension, renewal or amendment thereof agreed to in writing by the Parties from
time  to  time.

Contractor  means Triton, EA and the Government, and their respective successors
----------
and  permitted  assigns  under  the  Contract  and Assignment from time to time.

Contract  Area  means  the "Contract Area" delineated in Annex A of the Contract
--------------
and  described  in  Annex  B  of  the  Contract,  as  amended from time to time.

Contract  Period  means all or any of the periods of one (1) or two (2) Contract
----------------
Years  described  in Section 2.2 of the Contract, as may be further amended from
time  to time, including the extension of twelve (12) months provided for in the
Letter  and  ratified  by  the  Government.

Contract  Year  is  defined  in  the  Contract.
--------------

Crude  Oil is  defined  in  the  Contract.
----------

Day  means  a  calendar  day  unless  otherwise  specifically  provided.
---

"Decommissioning"  pursuant  to  the  Oil  Industry  International Exploration &
 ---------------
Production Forum (E&P Forum Report No. 10.12/232, December 1995), means platform
decommissioning  consisting  of three (3) distinct activities:  decommissioning,
the shutting down and making safe of the facilities and wells, including purging
and clearing systems of Petroleum and other chemicals; removal of all or part of
the  facility,  based  on environmental, economic and safety considerations; and
disposal  and/or  recycling  of  the  removed parts, in place, onshore, or in an
approved  deep  water  location.  Decommission  and  other  derivatives shall be
                                  ------------
construed  accordingly.

Default  Notice  is  defined  in  Section.7.1.
---------------

Defaulting  Party  is  defined  in  Section.7.1.
-----------------

Deepening  means  an  operation  whereby  a well is drilled to an objective Zone
---------
below  the  deepest  Zone in which the well was previously drilled, or below the
deepest  Zone  proposed  in  the  original well proposal (in the applicable Work
Program  and  Budget or pursuant to Article 6), whichever is deeper.  Deepen and
other  derivatives  shall  be  construed  accordingly.

Delivery  Point  means that point where Hydrocarbons and title thereto passes to
---------------
each  Party  from  the facilities that are operated for the Joint Account in the
Contract Area to the loading flange of the equipment into which such delivery is
being  made.

Development  Plan means a plan for the development of Hydrocarbons from a Field,
-----------------
which  is  described  in  Section  2.6  of  the  Contract.

Discovery means the discovery of an accumulation of Hydrocarbons whose existence
---------
until  that  moment  was  unproven  by  drilling.

Effective  Date  means  the  date  this Agreement comes into effect as stated in
---------------
Section  2.1.

EIA  means,  collectively  and/or  individually, any of the environmental impact
---
assessments  prepared  in connection with Operator's conduct of Joint Operations
or  any  permanent preventative and contingency plans required from time to time
under  the  Applicable  Laws,  and  any  amendments  and  updates  thereto.

Entitlement  means a quantity of Hydrocarbons to which a Party has the right and
-----------
obligation  to  take  delivery  pursuant  to  the Contract and the terms of this
Agreement,  after  adjustment  for  overlifts  and underlifts as contemplated in
Section  8.2.

Entity  Constituting  Part  of  Contractor  means  a  legal entity which holds a
------------------------------------------
Participating Interest in a Field as part of Contractor as constituted from time
to  time.

Equipping  means  the  installation  of  equipment for production of a Completed
---------
well,  including  surface  production  facilities.  Equip  and other derivatives
                                                    -----
shall  be  construed  accordingly.

Exploitation  Period  is  the  period  described in Section 2.7 of the Contract.
--------------------

Field is  defined  in  the  Contract.
-----

Force  Majeure  is  defined  in  Section  16.2  of  this  Agreement.
--------------

G  &  G  Data  means  geological,  geophysical,  and  geochemical  data,  aerial
-------------
photographic  reconnaissance, field reconnaissance, detailed field mapping, core
hole drilling, and other similar information that is not obtained through a well
bore.

Government  means the Government of the Republic of Equatorial Guinea or "State"
----------
as  defined  in  the  Contract,  including  any  national,  provincial, or local
government  in  the  Republic  of  Equatorial  Guinea  and  any  court,  agency,
corporation,  or  instrumentality  thereof.

Gross  Negligence  means  any  act  or  failure  to  act (whether sole, joint or
-----------------
concurrent) by any person or entity which was intended to cause, or which was in
reckless  disregard  of  or  wanton  indifference  to, harmful consequences such
person  or  entity  knew,  or  should have known, such failure would have on the
safety  or  property  of  another  person  or  entity.

Hydrocarbons means all substances including liquid and gaseous hydrocarbons
------------
which are  subject  to  and  covered  by  the  Contract.

Hydrocarbons  Law  is  defined  in  the  Contract.
-----------------

Indemnitees  is  defined  in  Section  4.6(B).
-----------

Joint Accounts means the accounts maintained for Joint Operations by Operator in
--------------
accordance  with  the provisions of this Agreement and the Accounting Procedure.

Joint  Operations  means  those  operations  and  activities  under the Contract
-----------------
carried  out  by  Operator  pursuant  to  this Agreement, the costs of which are
chargeable  to  all  Parties.

Joint  Property  means all wells, facilities, equipment, materials, information,
---------------
funds  and  the  property  held  for  use  in  Joint  Operations.

Letter  means  collectively,  those  certain  letters  dated September 29, 1998,
------
regarding  exploration  programme for Blocks F and G and Work Program and Budget
for  1998  for  Blocks  F  and  G,  attached  hereto  as  Exhibit  B.

Maximum  Efficient  Rate  ("MER")  is  defined  in  the  Contract.
---------------------------------

Minimum  Work  Obligation  means  those  work  and/or  expenditure  obligations
-------------------------
specified  in  the  Contract  which  must  be  performed during the then current
Contract  phase  or  period in order to satisfy the obligations of the Contract.

Natural  Gas  is  defined  in  the  Contract.
------------

Net  Crude  Oil  means  that  portion  of  the  total production of Hydrocarbons
---------------
remaining  after  payment  of  Royalty  and  recovery  of  Petroleum  Operations
Expenditures,  which  is allocated to the Parties under the terms of Section VII
of  the  Contract.

Non-Operator(s)  means  the  Party  or  Parties  to  this  Agreement  other than
---------------
Operator.

Operating  Committee  means the committee constituted in accordance with Section
--------------------
5.1.

Operator  means  a Party to this Agreement designated as such in accordance with
--------
this  Agreement.

Participating  Interest means the undivided percentage interest of each Party in
-----------------------
the  rights  and  obligations  derived  from  the  Contract  and this Agreement.

Party  means  any of the entities named in the first paragraph to this Agreement
-----
and  any  respective  successors or assigns in accordance with the provisions of
this  Agreement.

Petroleum  Operations  Expenditures  means  costs  and  expenses incurred by the
-----------------------------------
Parties  and  allowed  to  be  recovered  pursuant  to  the  Contract.

Plugging  Back  means  a  single operation whereby a deeper Zone is abandoned in
--------------
order  to  attempt  a  Completion  in  a  shallower  Zone.  Plug  Back and other
                                                            ----------
derivatives  shall  be  construed  accordingly.

Production  Bonus  means a bonus payable by the Parties under Section 9.3 of the
-----------------
Contract.

Recompletion means an operation whereby a Completion in one Zone is abandoned in
------------
order  to attempt a Completion in a different Zone within the existing wellbore.
Recomplete  and  other  derivatives  shall  be  construed  accordingly.
----------

Retained  Areas means those portions of the Contract Area retained by Contractor
---------------
as  part  of  the  Field  during  the Exploitation Period in accordance with the
Contract  and  the  Applicable  Law.

Reworking  means  an  operation  conducted in the wellbore of a well after it is
---------
Completed  to secure, restore, or improve production in a Zone that is currently
open  to  production  in  the wellbore. Such operations include well stimulation
operations,  but  exclude  any  routine repair or maintenance work, or drilling,
Sidetracking,  Deepening,  Completing, Recompleting, or Plugging Back of a well.
Rework  and  other  derivatives  shall  be  construed  accordingly.
------

Royalty  as  defined  in  the  Contract.
-------

Security  is  defined  in  Section  12.8.
--------

Senior  Supervisory  Personnel means with respect to a Party, any individual who
------------------------------
functions as such Party's designated manager or supervisor responsible for or in
charge  of  onsite  Joint  Operations,  including  drilling,  construction  and
production  and  any  individual  who  functions  for  such  Party or one of its
Affiliates  at a management level equivalent or superior to such manager, or any
officer  or  director  of  such  Party  or  one  of  its  Affiliates.

Sidetracking  means  the directional control and intentional deviation of a well
------------
from  the  vertical  so  as  to  change the bottom-hole location, unless done to
straighten  the  hole  or  to drill around junk in the hole or to overcome other
mechanical  difficulties.  Sidetrack  and  other  derivatives shall be construed
                           ---------
accordingly.

Special  Damages  means  any  costs,  expense,  or  liability for environmental,
----------------
consequential, punitive, special, or indirect damages or losses, including those
arising  from  business  interruption,  loss  of profits, reservoir or formation
damage,  inability  to produce Hydrocarbons, pollution control, or environmental
amelioration  or  reclamation.

State  means  the  Republic  of  Equatorial  Guinea.
----------------------------------------------------

Testing  means  a  well  bore operation intended to flow formation fluids to the
-------
surface  in  order  to  evaluate the capacity of a Zone to produce Hydrocarbons.
Test  and  other  derivatives  shall  be  construed  accordingly.
----
U.S.  Party  is  defined  in  Section  13.3(C).
-----------

Working  Interest  Parties  means  the  Parties to this Agreement other than the
--------------------------
Carried  Party.

Work  Program  and  Budget  means a work program for Joint Operations and budget
--------------------------
therefore  as  described  and  approved  in  accordance  with  Article  6.

Zone  means  a  geological  structure or stratigraphic trap capable of producing
----
Hydrocarbons  that  may  contain  one  or  more separate and distinct lithologic
members trapped by (i) impermeable rock or water barriers and characterized by a
single natural pressure system, or (ii) lithological or structural barriers that
prevent  pressure  communication.

                                    ARTICLE 2
                                    ---------
                                      TERM

2.1     Effective  Date and Severability.  This Agreement shall apply severally,
        ---------------------------------
sequentially and automatically to every Field developed under the Contract.  The
"Effective  Date"  is, for each Field, the approval date of Development Plan for
such  Field  under the terms of the Contract.  It shall continue in effect until
the  Contract  terminates,  and  all materials, equipment, and personal property
used  in  connection  with the Operations have been removed and disposed of, and
final  settlement  has  been  made  among the Parties.  The State shall become a
Party  to  this  Agreement  for  a  Field  in  which it receives a Participating
Interest  under  the  Contract  and  the  Assignment.

2.2     Survival.  The Articles and Section of this Agreement referred to in (A)
        ---------
and  (B)  below  shall  survive  termination  and  remain  in  effect  until:

     (A)     all  wells  have  been properly abandoned and all installations and
facilities  Decommissioned  in accordance with Article 9 or transferred with all
such  obligations  to  the  State  under  the  Contract;  and

     (B)     all  obligations,  claims,  arbitrations,  and  lawsuits  have been
settled  or otherwise disposed of in accordance with Section 4.5 and Article 17.

2.3     Stand  Alone  Option.  The  Parties  recognize  that  the  form  of this
        --------------------
Agreement,  which  is  an  Annex  to  the  Assignment,  will  be  construed  and
implemented  on  a  Field by Field basis effective January 1, 2000.  The form of
this  Agreement, however, may not be satisfactory to one or more of the Parties,
from time to time, particularly for the purpose of raising finance from external
sources  to  fund Joint Operations for one or more Fields.  Should any Party, at
any  time,  request to the other Parties that this Agreement, as it applies to a
particular  Field,  be  severed  from  the  Contract and recast as a stand alone
agreement,  then, in such event, the other Parties shall promptly cooperate with
the requesting Party in achieving the stated purpose and this Agreement shall be
modified  as to form, but not as to substance, to show the names of the Parties,
the  allocation  of  the Participating Interest and the Carried Costs by name of
Parties  and  everything that is necessary and proper to recast the arrangements
herein  in  the  form  of  a  stand  alone agreement, including signature lines,
signatures  and  date  of  execution.

                                    ARTICLE 3
                                    ---------
                                      SCOPE

3.1          Scope.
             ------

     (A)     The  purpose of this Agreement is to establish the respective
rights and obligations  of  the Parties with regard to Field operations under
the Contract, including  the  joint  exploration,  evaluation,  development
and production of Hydrocarbon  reserves  from  the  Field.

     (B)     Without  limiting  the  generality of Section 3.1(A), the following
activities  are  outside  of  the  scope of this Agreement and are not addressed
herein:

     (1)     Construction,  operation,  maintenance,  repair  and  removal  of
facilities  downstream  from  the  Delivery  Point  of  the  Parties'  shares of
Hydrocarbons  under  the  offtake  agreement  provided  for  in  Section  8.2;

     (2)     Transportation  of  Hydrocarbons  beyond  the Delivery Point of the
Parties' shares of Crude Oil under the offtake agreement provided for in Section
8.2  and  the  transportation  of  Natural  Gas  as provided for in Section 8.3;

     (3)     Marketing  and  sales of Hydrocarbons, except as expressly provided
in  Sections  7.4  and  in  Article  8;

     (4)     Acquisition  of rights to explore for, evaluate, develop or produce
Hydrocarbons  outside  of the applicable Field in the Contract Area  (other than
as  a  consequence of unitization with an adjoining field under the terms of the
Contract);  and

     (5)     Exploration,  evaluation,  development  or  production  of minerals
other  than  Hydrocarbons,  whether  inside  or  outside  of  the Contract Area.

3.2          Participating  Interest.
             ------------------------

     (A)     The Participating Interests of the Parties in a Field as of January
1,  2000  upon  assignment to the State in accordance with the provisions of the
Assignment  are:

                           State    5.00%
                           Triton  80.75%
                           EA      14.25%

If  a  Party  transfers,  from  time  to  time, all or part of its Participating
Interest  as permitted in the Assignment and Contract after January 1, 2000, but
prior  to  the  Effective  Date of this Agreement for a Field, the Participating
Interests  of  the  Parties  shown  above  shall  be  revised  accordingly.

(B)     The  Carried Costs will be borne as of the Effective Date by the Working
Interest  Parties and/or their respective successor and assigns after January 1,
2000  as  follows:

                           Triton  4.25%
                           EA      0.75%

If  a  Working  Interest  Party transfers, from time to time, all or part of its
Participating Interest after January 1, 2000, but prior to the Effective Date of
this  Agreement  for  a  Field,  the  Carried  Costs  to be borne by the Working
Interest  Parties  shown  above  shall  be  revised  accordingly.

(C)     If  a Party transfers all or part of its Participating Interest pursuant
to  the  provisions  of  this  Agreement  and as permitted in the Assignment and
Contract, the Participating Interests and the Carried Cost share, if applicable,
of  the  Parties  shall  be  revised accordingly.  In the event that the Parties
and/or  Participating  Interest  of  the  Parties  in a Field differs from other
Fields in the Contract Area, then the Parties agree that a separate and distinct
Field  JOA  shall  apply with regard to such Field with differing ownerships for
all  purposes,  provided however that the cross default provision of Section 7.7
shall  apply  to  all  operating  agreements  to which the Defaulting Party is a
party.

3.3     Ownership,  Obligations,  and Liabilities.  Unless otherwise provided in
        ------------------------------------------
this  Agreement:

     (A)     Except  as  otherwise  provided in the Assignment with respect to a
Field,  all  the  rights  and  interests  in  and  under the Contract, all Joint
Property,  and  any Hydrocarbons produced from the Field and attributable to the
Contractor  pursuant to the Contract shall be owned by the Parties in accordance
with  their  respective  Participating  Interests;

     (B)     The  obligations  of  the  Parties  under  the  Contract,  and  all
liabilities  and  expenses  incurred  by  Operator  in  connection  with  Joint
Operations,  shall  be charged to the Joint Account and all credits to the Joint
Account  shall be shared by the Parties, as among themselves, in accordance with
their  respective  Participating  Interests;  and

     (C)     Each  Working  Interest  Party  shall  bear  and  pay  when due, in
accordance  with  the  Accounting Procedure, its Participating Interest share of
Joint  Account and Carried Party's expenses incurred pursuant to this Agreement,
including  Cash  Calls,  billings  and accrued interest.  The Parties agree that
time  is  of  the  essence  for  payment  owing under this Agreement.  A Working
Interest  Party's  payment  of  any charge under this Agreement shall be without
prejudice  to  its  right  to  later  contest  the  charge.

3.4     Accounting  Procedure. The Accounting Procedure shall govern the accrual
        ----------------------
and  satisfaction  of the respective obligations, liabilities, and credits among
the  Parties.

                                    ARTICLE 4
                                    ---------
                                    OPERATOR

4.1     Designation  of  Operator.  Triton is designated as Operator, and agrees
        --------------------------
to  act  in  accordance  with  the terms and conditions of the Contract and this
Agreement,  which  terms  and  conditions  shall  also  apply  to  any successor
Operator.

4.2          Rights  and  Duties  of  Operator.
             ----------------------------------

     (A)     Subject  to  the  terms  and conditions of this Agreement, Operator
shall have all of the rights, functions, and duties of Contractor related to the
conduct of operations under the Contract, and shall have exclusive charge of and
shall conduct all Joint Operations.  Operator may employ independent contractors
or  agents (which may include Affiliates of Joint Operator) for such Operations.

     (B)          Operator  shall  and  is  authorized  to:

     (1)     Perform  Joint  Operations in accordance with the provisions of the
Contract,  this  Agreement,  the  approved  Work  Program  and  Budget  and  the
instructions  of  the  Operating  Committee not in conflict with this Agreement;

     (2)     Conduct  all  Joint  Operations  in a diligent, safe, and efficient
manner  in  accordance with good and prudent oilfield practices and conservation
principles  generally  followed  by  the  international petroleum industry under
similar  circumstances;

     (3)     Subject to Section 4.6 and the Accounting Procedure, neither gain a
profit  nor  suffer  a  loss as a result of being the Operator in its conduct of
Joint  Operations,  provided  that  Operator  may  rely upon Operating Committee
approval  of  specific  accounting practices not in conflict with the Accounting
Procedure;

     (4)     Perform  the  duties for the Operating Committee set out in Section
5.8, and prepare and submit to the Operating Committee the proposed Work Program
and  Budgets  and  AFEs  as  provided  in  Article  6;

     (5)     Acquire  all permits, consents, approvals, surface, or other rights
that  may be required for or in connection with the conduct of Joint Operations;

(6)     Upon receipt of reasonable advance notice, permit the representatives of
any  of  the  Parties  to have reasonable access to the Joint Operations (at all
reasonable  times, upon reasonable advance notice, and at such Parties' own risk
and  expense) with the right to observe all such Joint Operations and to inspect
all  Joint  Property  associated  therewith  and  to conduct financial audits as
provided  in  the  Accounting  Procedure;

(7)     Use  its  reasonable  efforts to maintain the Contract in full force and
effect  with  respect  to  the  Field;

          (8)     Pay  and  discharge  all  liabilities and expenses incurred in
connection  with  Joint  Operations  and  use its reasonable efforts to keep and
maintain  the  Joint  Property  free  from  all liens, charges, and encumbrances
arising  out  of  Joint  Operations;

     (9)     Pay  to  the  Government for the Joint Accounts, within the periods
and in the manner prescribed by the Contract and all Applicable Laws, all taxes,
fees  and other payments pertaining to Joint Operations, but excluding any taxes
measured  by  the  income, equity, or net assets of a Party, or any other taxes,
penalties,  fees  or  assessments  which  are the individual responsibility of a
Party;

(10)     Carry out the obligations of Contractor under the Contract with respect
to  the Field, including the preparation and furnishing of reports, records, and
information  as  may  be  required  pursuant  to  the  Contract;  and

(11)     Take  all  necessary  and  proper  measures for the protection of life,
health.  safety,  the  environment  and property in the case of an emergency and
notify  the  Parties  immediately of the details of such emergency and measures.

(C)     Operator  shall have the exclusive right and obligation to represent the
Parties,  in  accordance  with the directives of the Operating Committee, in all
dealings  with the Government with respect to matters arising under the Contract
and  Joint  Operations.  Operator  shall  notify  the  other  Parties as soon as
possible  in  advance  of  such  meetings. Non-Operators shall have the right to
attend  such  meetings but only in the capacity of observers.  Nothing contained
in  this  Agreement  shall  restrict any Party from holding discussions with the
Government  with  respect  to  any  issue  peculiar  to  its particular business
interests  arising  under the Contract or this Agreement, but in such event such
Party  shall  promptly  advise the other Parties, if possible, before and in any
event  promptly  after  such  discussions; provided that such Party shall not be
required to divulge to the other Parties any matters discussed to the extent the
same involve proprietary information on matters not affecting the other Parties.

4.3     Employees  of  Operator.  Subject  to  the  Contract and this Agreement,
        ------------------------
Operator  shall  determine  the  number  of  employees,  the  selection  of such
employees, the hours of work, and the compensation to be paid all such employees
in connection with Joint Operations.  Operator shall employ only such employees,
agents,  and contractors as are reasonably necessary to conduct Joint Operations
in  accordance with good and prudent international petroleum industry practices.

4.4          Information  Supplied  by  Operator.
             ------------------------------------

     (A)     Operator shall provide Non-Operators the following data and reports
as  they are currently produced or compiled from Joint Operations for the Field:

     (1)  A copy of all logs or surveys;

     (2)  Daily drilling progress reports;

     (3)  A copy of all Tests and core analysis reports;

     (4)  A copy of the plugging reports;

     (5)  Engineering studies, development schedules, and annual progress
reports on development projects;

     (6)  Field and well performance reports, including reservoir studies, and
reserve estimates;

     (7)  Copies of all reports relating to Joint Operations furnished by
Operator to the Government;

     (8)  A  copy  of  the  final  G & G Data prepared by Operator or
contractors, except  magnetic  tapes, which shall be stored by Operator and made
available on request  for  inspection  or  copying,  at  the  sole  expense of
the requesting Non-Operator;

     (9)  Other  reports  as  frequently  as  is justified by the activities or
 asinstructed  by  the  Operating  Committee;  and

     (10)  Subject to Section 14.3,  such additional information requested by a
Non-Operator,  provided  that  the  requesting  Non-Operator  pays  the costs of
preparation  of  such  information  and that the preparation of such information
does  not  unduly  burden  Operator's  administrative  and  technical personnel.

     (B)     Operator shall give Non-Operators access at all reasonable times to
all  other  data  acquired in the conduct of Joint Operations.  Any Non-Operator
may  make  copies  of  such  other  data  at  its  sole  expense.

4.5          Settlement  of  Claims  and  Lawsuits.
             --------------------------------------

     (A)     Operator  shall  promptly notify the Parties of all material claims
or  suits  that  arise  out  of  Joint  Operations or relate in any way to Joint
Operations.  Operator shall represent the Parties and defend or oppose the claim
or  suit.  Operator  may  in  its  sole discretion compromise or settle any such
claim  or  suit  or  any  related series of claims or suits for an amount not to
exceed  the  equivalent  of  U.S.  Dollars One Hundred Thousand (US $100,000.00)
exclusive  of  legal  fees.  Operator shall obtain the approval and direction of
the Operating Committee prior to compromising or settling any claim or suite for
an amount in excess of the above stated amount. Each Non-Operator shall have the
right to be represented by its own counsel at its own expense in the settlement,
compromise,  or  defense  of  such  claims  or  suits.

     (B)     Any  Non-Operator  shall  promptly  notify the other Parties of any
claim  made  against such Non-Operator by a third party relating to or which may
affect  Joint  Operations  or  other Parties.  Such Non-Operator shall defend or
settle  any  claim  affecting Joint Operations in accordance with any directions
given  by  the  Operating  Committee.  All  costs,  expenses, and damages as are
payable  with  respect  to  such  defense  or  settlement shall be for the Joint
Account.

     (C)     Notwithstanding Section 4.5(A) and Section 4.5(B), each Party shall
have the  right  to  participate  in  any  such  prosecution,  defense, or
settlement conducted  in accordance with Section 4.5(A) and Section 4.5(B) at
its sole cost and  expense;  provided  always  that  a  Party  may not
unilaterally settle its Participating  Interest  or Carried Cost share of any
claim without agreement of the  Operating  Committee such settlement will not
prejudice the interest of any other  Party  or  the  conduct  of  Joint
Operations.

4.6          Limitation  on  Liability  of  Operator.
             ----------------------------------------

     (A)     Except as set out in this Section 4.6, NEITHER THE PARTY DESIGNATED
AS  OPERATOR NOR ANY OTHER INDEMNITEE (AS DEFINED BELOW) SHALL BEAR (EXCEPT AS A
PARTY  TO  THE  EXTENT  OF  ITS  PARTICIPATING INTEREST) ANY DAMAGE, LOSS, COST,
EXPENSE,  OR  LIABILITY  RESULTING  FROM  PERFORMING (OR FAILING TO PERFORM) THE
DUTIES  AND  FUNCTIONS  OF THE OPERATOR, AND THE INDEMNITEES ARE HEREBY RELEASED
FROM LIABILITY TO NON-OPERATORS FOR ANY AND ALL DAMAGES, LOSSES, COSTS, EXPENSES
AND  LIABILITIES  ARISING OUT OF, INCIDENT TO OR RESULTING FROM SUCH PERFORMANCE
OR  FAILURE TO PERFORM, EVEN THOUGH CAUSED IN WHOLE OR IN PART BY A PRE-EXISTING
DEFECT,  THE  NEGLIGENCE  (WHETHER SOLE, JOINT OR CONCURRENT), GROSS NEGLIGENCE,
STRICT  LIABILITY,  OR  OTHER  LEGAL FAULT OF OPERATOR (OR ANY SUCH INDEMNITEE).

     (B)     Except  as  set  out  in  this  Section  4.6,  THE PARTIES SHALL IN
PROPORTION  TO  THEIR  PARTICIPATING INTERESTS DEFEND AND INDEMNIFY OPERATOR AND
ITS  AFFILIATES,  AND  THEIR  RESPECTIVE  SHAREHOLDERS,  DIRECTORS,  OFFICERS,
EMPLOYEES, AGENTS AND CONSULTANTS (COLLECTIVELY THE "INDEMNITEES"), FROM ANY AND
ALL DAMAGES, LOSSES, COSTS, EXPENSES (INCLUDING REASONABLE LEGAL COSTS, EXPENSES
AND  ATTORNEYS'  FEES) AND LIABILITIES INCIDENT TO CLAIMS, DEMANDS, OR CAUSES OF
ACTION  BROUGHT  BY OR ON BEHALF OF ANY PERSON OR ENTITY, WHICH CLAIMS, DEMANDS,
OR  CAUSES  OF  ACTION  ARISE OUT OF, ARE INCIDENT TO OR RESULT FROM OPERATIONS,
EVEN  THOUGH CAUSED IN WHOLE OR IN PART BY A PRE-EXISTING DEFECT, THE NEGLIGENCE
(WHETHER  SOLE,  JOINT  OR  CONCURRENT),  GROSS NEGLIGENCE, STRICT LIABILITY, OR
OTHER  LEGAL  FAULT  OF  OPERATOR  (OR  ANY  SUCH  INDEMNITEE).

     (C)     Nothing  in  this  Section 4.6 shall be deemed to relieve the Party
designated  as  Operator  from  its  Participating Interest share of any damage,
loss,  cost,  expense or liability arising out of, incident to or resulting from
Joint  Operations.

     (D)     Notwithstanding  Sections  4.6(A)  and  4.6(B),  if  any  Senior
Supervisory  Personnel  of Operator or its Affiliates engage in Gross Negligence
that  proximately  causes  the  Parties  to incur damage, loss, cost, expense or
liability for claims, demands or causes of action referred to in Sections 4.6(A)
or  4.6(B),  then,  in  addition  to its Participating Interest and Carried Cost
share,  Operator  shall  bear  only  the  first  U.S.  Dollars  Five  Million
(US$5,000,000.00)  of  such  damages,  losses,  expenses  and  liabilities  in a
Calendar  Year.

     (E)     NOTWITHSTANDING  THE  FOREGOING,  UNDER  NO  CIRCUMSTANCES  SHALL
OPERATOR OR ANY INDEMNITEE (EXCEPT AS A PARTY TO THE EXTENT OF ITS PARTICIPATING
INTEREST)  BEAR  ANY  SPECIAL  DAMAGES.

4.7          Insurance  Obtained  by  Operator.
             ----------------------------------

     (A)     Operator  shall  procure  and maintain, or cause to be procured and
maintained,  for  the  Joint  Accounts  all  insurance  in the types and amounts
required  by  the  Contract  and Applicable Law; if Operator is unable to do so,
Operator shall promptly advise the Operating Committee, and thereupon Operator's
liability  to  obtain  such  insurance  shall  be  suspended as to such specific
insurance  as  to  which  its  inability  relates.

     (B)     Operator shall obtain such further insurance, at competitive rates,
as  the  Operating  Committee  may  from  time  to  time  require.

     (C)     Any Party may elect not to participate in the coverage and the cost
of  any  insurance  to  be  procured  under  Section 4.7(B) provided such Party:

       (1)  Gives prompt written notice to that effect to Operator;

       (2)  Does nothing which may interfere with Operator's negotiations for
such insurance for the other Parties; and

       (3)  Obtains and maintains such insurance (in respect of which an annual
certificate  of  adequate  coverage  from  a reputable insurance broker shall be
sufficient  evidence)  or other evidence of financial responsibility which fully
covers  its  Participating  Interest share of the risks that would be covered by
the  insurance  procured under Section 4.7(B), and which the Operating Committee
determines  is  acceptable.  No such determination of acceptability shall in any
way absolve a non-participating Party from its obligation to meet each Cash Call
including  any  Cash  Call  in respect of damages and losses and/or the costs of
remedying  the  same  in  accordance  with the terms of this Agreement.  If such
Party  obtains  other  insurance,  such  insurance  shall  contain  a  waiver of
subrogation  in favor of all the other Parties, the Operator and their insurers,
but  only  in  respect  of  their  interests  under this Agreement, and shall be
primary as respects any other insurance providing coverage to the other Parties,
the  Operator  and their insurers.  Such waiver of subrogation shall be in favor
of  any  contractor  or  subcontractor  in  respect of which Operator has waived
rights  of recourse on behalf of itself and/or the Parties with respect to Joint
Operations;  such  waivers  of  subrogation  shall  extend to the benefit of the
contractors and/or of the subcontractors so protected; or in the absence of such
insurance  such Party hereby releases and indemnifies all the other Parties from
any  claims  or  loss and damage that would have been covered by such insurance,
including  those  within  deductibles applying to such insurance with respect to
Joint  Operations.

     (D)     The cost of insurance for Joint Operations in which all the Parties
are  participating  shall be for the Joint Account, and the cost of insurance in
which  less  than  all  the Parties are participating pursuant to Section 4.7(C)
shall be charged to the Parties participating in proportion equal to a fraction,
the  numerator  of  which  is  such  Party's  Participating  Interest  and  the
denominator  of  which  is the sum of the Participating Interests of the Parties
that  are  participating  in  such  insurance.

     (E)     Operator  shall,  in  respect of all insurance obtained pursuant to
this  Section  4.7:

     (1)     Promptly  inform  the  participating Parties when such insurance is
obtained and  upon request supply them with copies of the relevant policies when
the  same  are  issued;

     (2)     Arrange  for  the  participating  Parties,  according  to  their
respective  Participating  Interests, to be named as co-insureds on the relevant
policies  with  waivers  of subrogation in favor of all the Parties and shall be
primary  as  respects any other insurance providing coverage to the Parties; and
shall  be  in  favor  of  any  contractor  or subcontractor in favor of whom the
Operator  in its capacity of Operator shall have waived rights or recourse; such
waivers  of  subrogation  shall  extend  to  the  benefit of the insurers of the
Parties  and/or  of  the  contractors  and/or  subcontractors  so protected; and

     (3)     Duly  file  all  claims  and take all necessary and proper steps to
collect  any  proceeds  and  credit any proceeds to the participating Parties in
proportion  to  their  respective  Participating  Interests.

     (F)     Operator  shall  use  its  reasonable  efforts  to  require  all
contractors  performing  work  in  respect  of  Joint  Operations  to obtain and
maintain  any and all insurance pertaining to such work in the types and amounts
required  by  any  Applicable  Law,  contract  or any directive of the Operating
Committee,  and shall use its reasonable efforts to require all such contractors
to name the Parties as additional insureds on contractor's insurance policies or
to  obtain  from  their  insurers  waivers of all rights of recourse against the
Parties.

     (G)     Each Party may, for its own account and at its own expense, obtain
such additional  insurance  pertaining to Joint Operations and the Contract as
it maydeem  advisable;  provided  however,  that  the  obtaining  of  such
additional insurance  shall  not  interfere  with  Operator's  placement  of
insurance  in accordance  with  the  terms  of  this  Section  4.7.

4.8     Commingling  of Funds.  Operator may commingle with Operator's own funds
        ---------------------
the  monies  which  Operator receives from or for the Joint Accounts pursuant to
this  Agreement.  Notwithstanding  that  monies  of  a  Non-Operator  have  been
commingled  with  Operator's  funds, the Operator shall account to Non-Operators
for  the  monies of a Non-Operator advanced or paid to Operator, whether for the
conduct  of  Joint  Operations  or as proceeds from the sale of production under
this  Agreement.  Such  monies  shall  be applied only to their intended use and
shall  in  no  way be deemed to be funds belonging to Operator.  Notwithstanding
the foregoing, upon the agreement of all Non-Operators, Non-Operators shall have
the  right to request Operator to segregate from Operator's own funds the monies
which  Operator  receives from the Parties in connection with operations on each
Field,  and  the  Operator  shall  not  unreasonably  refuse  any  such request.

4.9     Resignation  of  Operator.  Subject to Section 4.11, Operator may resign
        --------------------------
as  Operator  at any time by so notifying the other Parties at least one hundred
and  twenty  (120)  Days  prior  to  the  effective  date  of  such resignation.

4.10  Removal of Operator.
      ---------------------

     (A)  Subject to Section 4.11, Operator shall be removed upon receipt of
notice from any Non-Operator if:

     (1) An  order  is made by a court or an effective resolution is passed
for the reorganization under any bankruptcy law, dissolution, liquidation,
or winding  up  of  Operator;

    (2)  Operator dissolves, liquidates, is wound up, or otherwise terminates
its existence;

    (3)  Operator becomes insolvent, bankrupt, or makes an assignment for the
benefit of creditors; or

    (4)  A receiver is appointed for a substantial part of Operator's assets.

          If  the  removal of Operator is prevented by any applicable bankruptcy
law,  but  Operator  or any trustee acting on behalf of Operator properly elects
under  that  law  to reject or avoid all or any part of this Agreement, Operator
shall  be  deemed  to have resigned without any further action being required on
the  part  of  the  Non-Operators.

     (B)     Subject to Section 4.11, Operator may be removed by the decision of
the Working Interest Parties if Operator has committed a material breach of this
Agreement  and  has either failed to cure such breach within thirty (30) Days of
receipt  of  a notice from Working Interest Parties detailing the alleged breach
or  failed  to diligently pursue the cure to completion. Any decision of Working
Interest  Parties  to  give  notice  of breach to Operator or to remove Operator
under  this  Section 4.10(B) shall be made by an affirmative vote of all Working
Interest  Parties, excluding any Affiliates of Operator, provided that there are
at  least  two  (2)  Non-Affiliated  Working  Interest  Parties.

     (C)     If  Operator  together with any Affiliate of Operator is or becomes
the  holder  of a Participating Interest of less than twenty percent (20%), then
Operator  shall be required to promptly notify the other Parties.  The Operating
Committee  shall  then  vote  within  twenty  (20)  Days of such notification on
whether  or  not  a successor Operator should be named pursuant to Section 4.11.

4.11     Appointment of Successor.  When a change of Operator occurs pursuant to
         -------------------------
Section  4.9  or  Section  4.10:

     (A)     The Operating Committee shall meet as soon as possible to appoint a
successor Operator pursuant to the voting procedure of Section 5.9.  However, no
Party  may  be  appointed  successor  Operator  against  its  will.

     (B)     If  the  Operator  disputes  commission  of  or  failure  to cure a
material  breach  alleged  pursuant  to  Section  4.10(B),  and  proceedings are
initiated  pursuant  to  Section  17.2,  no  successor Operator may be appointed
pending  the conclusion or abandonment of such proceedings, subject to the terms
of  Section 7.3(B) with respect to Operator's breach of its payment obligations.

     (C)     If  an  Operator  is  removed  other  than  in  the case of Section
4.10(C),  neither Operator nor any Affiliate of Operator shall have the right to
vote  for  itself  or  the  Operator on the appointment of a successor Operator.

     (D)     A  resigning  or  removed  Operator shall be compensated out of the
Joint Account for its reasonable expenses directly related to its resignation or
removal,  except  in  the  case  of  Section  4.10(B).

     (E)     The  Operating  Committee  shall  arrange  for  the  taking  of  an
inventory  of all Joint Property and Hydrocarbons, and an audit of the books and
records  of  the removed Operator.  Such inventory and audit shall be completed,
if  possible,  no  later than the effective date of the change of Operator.  The
liabilities  and  expenses  of  such inventory and audit shall be charged to the
Joint  Accounts.

     (F)     The  resignation  or removal of Operator and its replacement by the
successor  Operator shall not become effective prior to receipt of any necessary
Government  approvals.

     (G)     Upon  the  effective  date  of  the  resignation  or  removal,  the
successor Operator shall succeed to all duties, rights, and authority prescribed
for  Operator.  The  former  Operator  shall  transfer to the successor Operator
custody  of  all  Joint  Property,  Joint Accounts, records, and other documents
maintained  by  Operator  pertaining to the Field and to Joint Operations.  Upon
delivery  of the above-described property and data, the former Operator shall be
released  and  discharged  from  all  obligations  and  liabilities  as Operator
accruing  after  such  date.

                                    ARTICLE 5
                                    ---------
                               OPERATING COMMITTEE

5.1     Establishment  of  Operating  Committee.  To  provide  for  the  overall
        ----------------------------------------
supervision and direction of Joint Operations, there is established an Operating
Committee  composed  of representatives of each Party.  Each Party shall appoint
one  (1)  representative  and  one  (1) alternate representative to serve on the
Operating  Committee.  Each  Party  shall  as soon as possible after the date of
this  Agreement  give  notice  in  writing  to the other Parties of the name and
address  of  its  representative  and  alternate  representative to serve on the
Operating  Committee.  Each  Party  shall  have  the  right  to  change  its
representative  and alternate at any time by giving notice to such effect to the
other  Parties.

5.2          Powers  and  Duties  of  Operating  Committee.
             ----------------------------------------------

     (A)     The  Operating Committee shall have power and duty to authorize and
supervise  Joint  Operations  that  are  necessary  or  desirable to fulfill the
Contract and properly exploit the Field in accordance with this Agreement and in
a  manner  appropriate  in  the  circumstances.

     (B)     Without  limiting  the  generality  of the foregoing, the Operating
Committee shall approve the initial form and all modifications to the following:

     (1)     the submission of the following matters to the Government; provided
that  if  such matters are not approved by the Operating Committee and submitted
at  least  thirty  (30) Days before the time limit set forth in the Contract for
submission  to  the Government, then such matters shall be decided and submitted
by  the  Operator:

(a)     Development Plan(s)-interim and final, including without limitation, the
designation  of  Retained  Areas;

(b)     Work Programs and Budgets insofar as they cover Minimum Work Obligations
and the timing, depth, and location of wells, or any other technical details not
specified  in  the  Minimum  Work  Obligations;

(c)  EIAs; and

(d)  MER;

     (2)  Work Programs and Budgets;

     (3)     The  sales, exchanges, or other dispositions of G & G Data or other
engineering,  technical,  or  proprietary  data and information related to Joint
Operations;

     (4)     Surrender  of  any  portion  or  portions  of  the  Contract  Area
encompassing  the  Field as required by Applicable Law or the Contract; provided
that  each  such  surrender shall be determined in accordance with Section 10.1;

     (5)     Construction of processing, treatment, compression, gathering,
transportation and other downstream facilities;

     (6)     Unitization, other than one imposed upon the Parties by the
Government, and the terms thereof; and

     (7)     Request  under  Section 6.1(m) of the Contract by Contractor to
State to redress  the  imbalance  resulting from a material change to the
economic or tax condition  of  the  Contract.

5.3     Authority  to Vote. The representative of a Party, or in his absence his
        -------------------
alternate  representative,  shall be authorized to represent and bind such Party
with respect to any matter which is within the powers of the Operating Committee
and  is  properly  brought  before  the  Operating  Committee.  Each  such
representative  shall  have  a  vote  equal to the Participating Interest of the
Party  such  person represents.  Each alternate representative shall be entitled
to  attend  all  Operating  Committee  meetings  but  shall have no vote at such
meetings  except  in  the  absence  of  the  representative  for  whom he is the
alternate.  In addition to the representative and alternate representative, each
Party  may  also  bring  to  any Operating Committee meetings such technical and
other  advisors  as  it  may  deem  appropriate.

5.4     Subcommittees  and Project Teams.  The Operating Committee may establish
        ---------------------------------
such  subcommittees and project teams, including technical subcommittees, as the
Operating  Committee  may deem appropriate.  The functions of such subcommittees
and  project  teams  shall  be  in  an  advisory capacity or as otherwise deemed
unanimously  by  the  Parties.  Such  subcommittees  and  project  teams,  if
established,  shall  be under the control and direction of the Operator.  In the
event  a  project  team  is  established  by  the Operating Committee to provide
services to the Operator, the amount and invoicing of the costs and expenses, if
any,  incurred  by the Non-Operator providing personnel to the project team must
be approved by the Operating Committee and shall, to the extent permitted by the
Contract  and  Applicable  Law,  be  charged  to  the  Joint  Account.

     Project  teams will not be utilized in cases where the costs for the use of
such  teams  or  the  contracts  to  be  entered  into cannot, in the Operator's
reasonable  opinion,  be  charged  to  the  Joint  Account or deductible for tax
purposes  and  the  cost to perform same would have been chargeable to the Joint
Account and deductible for tax purposes had such work been performed by Operator
alone  or  through  a  third  party  contractor  other  than  a  Non-Operator.
Notwithstanding  the  foregoing,  the  Parties  shall attempt to utilize project
teams  in  a  manner that will be chargeable to the Joint Account and deductible
for  tax  purposes  under  the  Contract.

5.5          Notice  of  Meeting.
             --------------------

     (A)     Operator  may  call  a meeting of the Operating Committee by giving
notice  to  the  Parties  at least fifteen (15) Days in advance of such meeting.

     (B)     Any  Non-Operator  with  a material agenda may request a meeting of
the  Operating  Committee by giving proper notice to all the other Parties. Upon
receiving  such  request,  Operator  shall call such meeting for a date not less
than  fifteen  (15)  Days  nor  more  than twenty (20) Days after receipt of the
request.

     (C)     The notice periods above may only be waived with the unanimous
consent of all the Parties.

5.6  Contents of Meeting Notice.
     ----------------------------

     (A)     Each notice of a meeting of the Operating Committee as provided by
Operator shall contain:

         (1)  The date, time and location of the meeting; and

         (2)  An agenda of the matters and proposals to be considered and voted
upon.

     (B)     A Party, by notice to the other Parties given not less than seven
(7) Days prior to a meeting, may add additional matters  to  the  agenda  for  a
meeting.

     (C)     On  the  request  of a Party, and with the unanimous consent of all
Parties,  the  Operating  Committee  may  consider  at  a meeting a proposal not
contained  in  such  meeting  agenda.

5.7     Location  and  Frequency  of  Meetings.  All  meetings  of the Operating
        ---------------------------------------
Committee  shall  be  held  at  Operator's  offices in Dallas, Texas, U.S.A., or
elsewhere  as  may  be  decided by the Operating Committee, and shall be held at
least  once  every  Calendar  Year.

5.8  Operator's Duties for Meetings.
     --------------------------------

     (A)     With respect to meetings of the Operating Committee and any
subcommittee, Operator's duties shall include:

        (1)   Timely preparation and distribution of the agenda and supporting
materials;

         (2)  Organization and conduct of the meeting; and

         (3)  Preparation of a written record or minutes of each meeting.

     (B)     Operator shall have the right to appoint the chairman of the
Operating Committee, project teams and all subcommittees.

5.9     Voting  Procedure.  Except  as  otherwise  expressly  provided  in  this
        ------------------
Agreement,  all  decisions,  approvals,  and  other  actions  of  the  Operating
Committee  on  all  proposals  coming  before  it  under this Agreement shall be
decided  by  the  affirmative vote of the representatives of Parties then having
collectively  at  least  seventy  percent  (70%) of the Participating Interests,
provided  always  that  if  there  are  at that time a total of four (4) or more
Non-Affiliated  Parties,  the  affirmative  vote  of  not  less  than  three (3)
Non-Affiliated  Parties  shall  be  required.

5.10     Record of Votes.  The chairman of the Operating Committee shall appoint
         ----------------
a secretary who shall make a record of each proposal voted on and the results of
such voting at each Operating Committee meeting.  Each representative shall sign
and be provided a copy of such record at the end of such meeting and it shall be
considered  the  final  record  of  the  decisions  of  the Operating Committee.

5.11     Minutes.  The  secretary  shall  provide  each Party with a copy of the
         --------
minutes  of  the  Operating Committee meeting within fifteen (15) Days after the
end  of  the  meeting.  Each Party shall have fifteen (15) Days after receipt of
such  minutes  to give notice of its objections to the minutes to the secretary.
A  failure  to  give  notice  specifying  objection  to such minutes within said
fifteen  (15) Day period shall be deemed to be approval of such minutes.  In any
event,  the  votes  recorded  under  Section 5.10 shall take precedence over the
minutes  described  above.

5.12          Voting  by  Notice.
              -------------------

     (A)     In  lieu  of  a  meeting,  any Party may submit any proposal to the
Operating  Committee  for  a  vote  by  written  notice.  The proposing Party or
Parties  shall  notify  Operator  who  shall  give  each  representative  notice
describing  the proposal so submitted.  Each Party shall communicate its vote by
notice to Operator and the other Parties within one of the following appropriate
time  periods  after  receipt  of  Operator's  notice:

     (1)     Forty-eight  (48) hours in the case of operations which involve the
use  of  a  drilling  rig  that  is  standing  by  in  the  Contract  Area;

     (2)  Ten (10) Days in the case of approval of a contract award pursuant to
Section 6.5(C)(6);

     (3)  Fifteen (15) Days in the case of all other proposals.

     (B)     Except  in  the  case  of  Section  5.12(A)(1)  and 5.12(A)(2), any
Non-Operator may, by a reply notice delivered to all Parties within two (2) Days
of  receipt  of  Operator's  notice,  request  that the proposal be decided at a
meeting rather than by vote by notice.  In such an event, that proposal shall be
decided  at  a  meeting  duly  called  for  that  purpose.

     (C)     Except  as  provided  in  Section  9.1(B),  any  Party  failing  to
communicate  its  vote  in a timely manner shall be deemed to have voted against
such  proposal.

     (D)     If  a  meeting  is  not  requested,  then  at the expiration of the
appropriate  time  period specified in Section 5.12(A), Operator shall give each
Party  a  confirmation  notice  stating  the tabulation and results of the vote.

5.13     Effect  of  Vote.  All  decisions  taken  by  the  Operating  Committee
         -----------------
pursuant  to  this  Article, shall be conclusive and binding on all the Parties,
except  that  once  a  Joint  Operation  for  the  drilling, Deepening, Testing,
Sidetracking, Plugging Back, Completing, Recompleting, Reworking, or Plugging of
a well has been approved and commenced, such operation shall not be discontinued
without  the  consent  of  the Operating Committee; provided, however, that such
operation  may  be  discontinued,  if:

     (1)     an  impenetrable  substance  or  other  condition  in  the  hole is
encountered which in the reasonable judgment of Operator causes the continuation
of  such  operation  to  be  impractical;  or

     (2)     other  circumstances  occur  which  in  the  reasonable judgment of
Operator  causes  the continuation of such operation to be unwarranted and after
notice  the  Operating  Committee  within  the  period  required  under  Section
5.12(A)(1)  approves  discontinuing  such  operation.

     On  the  occurrence  of either of the above, Operator shall promptly notify
the Parties that such operation is being discontinued pursuant to the foregoing.

                                    ARTICLE 6
                                    ---------
                            WORK PROGRAM AND BUDGETS

6.1          Work  Program  and  Budgets.
             ---------------------------

     (A)     On  or  before the 15th Day of July of each Calendar Year, Operator
shall  deliver  to  the Parties a proposed Work Program and Budget detailing the
Joint Operations to be performed in the Contract Area for the following Calendar
Year.  Within thirty (30) Days from such delivery, the Operating Committee shall
meet  to  approve  the  Work  Program  and  Budget.

     (B)     The  Work  Program  and  Budget agreed pursuant to this Section 6.1
shall  include the Minimum Work Obligation required to be carried out during the
Calendar  Year  in  question under the terms of the Contract plus any additional
Joint Operations approved by the Operating Committee.  Any approved Work Program
and  Budget  decided  and  submitted  by  Operator to the Government pursuant to
Section  5.2(B)(1)(c)  instead  of  being  decided  by  the  Operating Committee
pursuant  to  Section  5.9,  however, shall include only such operations for the
Joint  Account  as  are  necessary  to  maintain  the Contract in full force and
effect,  including  such operations as are necessary to fulfill the Minimum Work
Obligation  required  for  the  given  Calendar  Year.

     (C)     If  the  Work Program and Budget is approved by the Operating
Committee, Operator  shall  take such steps as may be required under the
Contract to secure approval  of  the  Work  Program  and  Budget  by the
Government.  The Operating Committee  shall  consider  any  amendments or
revisions to the Work Program and Budget  requested  by  the  Government, and
the Work Program and Budget shall be amended  to agree with the changes
requested and agreed to by the Government and by  the  Operating  Committee.

     (D)     Any  approved  Work  Program  and  Budget  may  be  revised  by the
Operating  Committee  from  time  to  time.  To  the  extent  such revisions are
approved  by the Operating Committee, including revisions in connection with the
evaluation  of  a  Discovery  or a Development Plan, the Work Program and Budget
shall  be  amended  accordingly;  provided, however, that no such revision shall
invalidate  a  commitment  or  expenditure  already  made pursuant to a previous
authorization  under  the  Work  Program  and  Budget.

     (E)     Subject to Section 6.7, approval of drilling operations in any Work
Program and Budget shall include approval for any expenditures necessary for the
drilling,  Testing,  Completing  and  Equipping  of  the  applicable  well.

     (F)     Operator  shall  submit Operator's recommendation to the Parties in
accordance  with  Section 5.12(A)(1) on whether to Complete, plug and abandon or
temporarily  abandon  a  well  and  an  AFE  for  such  costs.

6.2          Discovery  and  Evaluation.
             ---------------------------

     If  a  Discovery  is  made,  Operator shall deliver any notice of Discovery
required  under the Contract and shall as soon as possible submit to the Parties
a  report  containing  available details concerning the Discovery and Operator's
recommendation  as  to  whether  the Discovery merits evaluation.  Within thirty
(30)  Days  from  receiving  the report, the Operating Committee shall determine
whether  the  Discovery merits evaluation and, if so, the Operator within thirty
(30)  Days,  shall  deliver to the Parties a proposed Evaluation Program. Within
thirty  (30)  Days  from  delivery  of  the  Evaluation  Program,  or earlier if
necessary  to  meet  any  applicable  deadline under the Contract, the Operating
Committee  shall  meet to consider, modify and then either approve or reject the
Evaluation  Program  and  revise  the  then  current  Work  Program  and  Budget
accordingly.  If  the Evaluation Program is approved by the Operating Committee,
Operator  shall  take such steps as may be required under the Contract to secure
approval  of  the  Evaluation  Program  and the revised current Work Program and
Budget  by  the Government.  In the event the Government requires changes in the
Evaluation  Program,  the matter shall be resubmitted to the Operating Committee
for  further  consideration.  If  the  Evaluation  Program  is  approved  by the
Operating Committee, such work shall be incorporated into and form a part of the
applicable  Work  Program  and  Budget.

6.3          Development  and  Production.
             ----------------------------

     (A)     If  the  Operating  Committee  determines  that  a  Discovery  is a
Commercial Discovery, the Operator shall, as soon as practicable, deliver to the
Parties a Development Plan together with the revised Work Program and Budget for
the  current Year and provisional Work Programs and Budgets for the remainder of
the  development  of  the  Discovery,  which  shall  contain,  inter  alia:

     (1)     Details  of  the proposed work to be undertaken, personnel required
and  expenditures  to  be  incurred, including the timing of same, on a Calendar
Year  basis;

     (2)  An estimated date for the commencement of production of Hydrocarbons;

     (3)  A delineation of the proposed Field;

     (4)  The Delivery Point; and

     (5)  Any other information requested by the Operating Committee or required
by the Contract.

     (B)     After  receipt  of  the  Development  Plan and at least thirty (30)
Days prior  to  any  applicable  deadline under the Contract, the Operating
Committee shall meet to consider, modify and then either approve or reject the
Development Plan  and  the revised Work Program and Budget for the current
Calendar Year for the  development  submitted by Operator.  If the Development
Plan is approved by the Operating Committee, Operator shall, as soon as
possible, deliver any notice required  under the Contract and take such other
steps as may be required under the  Contract  to secure approval of the
Development Plan by the Government.  In the  event  the  Government requires
changes in the Development Plan, the matter shall  be  resubmitted to the
Operating Committee for further consideration.  Ifthe  Development Plan is
approved by the Operating Committee, such work shall be incorporated  into
and  form  part of  the  annual  Work  Program and Budgets.

6.4          Itemization  of  Expenditures.
             ------------------------------

     (A)     During  the  preparation of the proposed Work Programs and Budgets,
Operator  shall  consult  with  the  Operating  Committee  or  the  appropriate
subcommittees  regarding  the  contents  of  such  Work  Programs  and  Budgets.

     (B)     Each Work Program and Budget submitted by Operator shall contain an
itemized estimate of the costs of Joint Operations and all other expenditures to
be  made  for  the  Joint  Account  during  the  Calendar  Year  in  question.

6.5          Contract  Awards.   Subject to the Contract and any Applicable Law:
             -----------------

     (A)     For  contracts equal to or less than U.S. Dollars Two Hundred Fifty
Thousand (US $250,000.00), Operator shall award each contract for approved Joint
Operations to the best qualified contractor as determined by cost and ability to
perform  the  contract,  without  the  obligation to tender for bids and without
informing or seeking the approval of the Operating Committee; except that before
entering  into  contracts with Affiliates of the Operator exceeding U.S. Dollars
Fifty  Thousand  (US  $50,000.00),  Operator  shall  obtain  the approval of the
Operating  Committee.

     (B)     For  contracts greater than U.S. Dollars Two Hundred Fifty Thousand
(US  $250,000.00)  and  equal  to  or  less  than  U.S.  Dollars One Million (US
$1,000,000.00),  Operator  shall  follow a competitive bid process in accordance
with  Operator's  internal  regulations,  the  Contract  and Applicable Law, and
inform  the Non-Operators of the entity to be awarded the contract, and upon the
request  of  a Party, provide such Party with a copy of the tender documents and
the  final  version  of  the  contract.

     (C)     For contracts greater than U.S. Dollars One Million
(US $1,000,000.00), Operator shall:

     (1)  Provide the Parties with a list of the entities whom Operator proposes
to invite to tender for the said contract;

     (2)  Add to such list any entity whom a Party requests to be added within
seven (7) Days of receipt of such list;

     (3)  Prepare and dispatch the tender documents to the entities on the list
as aforesaid and to Non-Operators;

     (4)  After the expiration of the period allowed for tendering, consider and
analyze the details of all bids received;

     (5)     Prepare  and  circulate  to the Parties a competitive bid analysis,
stating Operator's recommendation as to whom the contract should be awarded, the
reasons  therefor,  and  the  technical,  commercial and contractual terms to be
agreed  upon;

     (6)     Obtain the approval of the Operating Committee to the recommended
contract award as provided under Section 5.9; and

     (7)     Upon the request of a Party, provide such Party with a copy of the
final version of the contract.

6.6  Authorization for Expenditure Procedure.
     -----------------------------------------

     (A)     Prior to incurring any commitment or making any expenditure for the
Joint  Accounts  that  is  estimated to be in excess of U.S. Dollars Two Hundred
Fifty  Thousand  (US  $250,000.00),  Operator  shall  send  to each Non-Operator
entitled  to  receive  an  AFE  containing Operator's best estimate of the total
funds required to carry out such work, the estimated timing of expenditures, and
any  other  available  related  information  as  described  in  Section  6.6(E).

     (B)     Except  as  provided  under  Section 6.6(C) and Section 6.7(B), all
AFEs  shall be for informational purposes only.  Approval of an operation in the
current  Work  Program  and  Budget  shall  authorize  Operator  to  conduct the
operation  (subject  to  Section  6.6(C)  and  Section  6.7)  without  further
authorization  from  the  Operating  Committee.

     (C)     Prior  to  incurring  any  commitment  or expenditure for the Joint
Accounts,  which  is  subject  to  the  AFE  procedure  in Section 6.6(A) and is
estimated  to  be  in  excess  of  U.S.  Dollars One Million (US $1,000,000.00),
Operator shall obtain the approval of the Operating Committee to an AFE for cost
and  technical  control  purposes.  A  Party  may only vote to disapprove an AFE
issued  in furtherance of an approved Work Program and Budget under this Section
6.6(C)  if  (i)  some  or  all of the costs described in the AFE exceed the line
items  in  the  approved Work Program and Budget by more than is permitted under
Section 6.7, or (ii) the proposed terms of any third party contract described in
the AFE do not approximate fair market terms or (iii) in such Party's good faith
opinion, any material technical specifications contained in the AFE that are not
in  the  approved  Work  Program and Budget are imprudent or not consistent with
current  economic  standards  of the international petroleum industry or are not
supported  by the known data about the formations being drilled.  A Party's vote
shall  be  considered  a  vote  to approve the AFE unless the Party specifically
describes one or more of the three (3) reasons listed above as the basis for its
vote  of  disapproval.  If  the  Operating  Committee  approves  an  AFE for the
operations  within the applicable time period under Section 5.12, Operator shall
be  authorized  to  conduct the operation under the terms of this Agreement.  If
the  Operating  Committee  fails  to approve an AFE for the operation within the
applicable  time  period,  the  operations  shall  be  deemed rejected.  When an
operation  is rejected under this Section 6.6(C) or an operation is approved for
differing  amounts  than  those provided for in the applicable line items of the
approved Work Program and Budget, the Work Program and Budget shall be deemed to
be  revised  accordingly.

     (D)     Notwithstanding the above, Operator shall not be obliged to furnish
an AFE to the Parties with respect to any Minimum Work Obligations, workovers of
wells  and  general  and  administrative  costs that are listed as separate line
items  in  an  approved  Work  Program  and  Budget.

     (E)    Each AFE proposed by the Operator shall:

        (1)  Identify the operation by specific reference to the applicable line
items in the Work Program and Budget;

        (2)  Describe the work in detail;

        (3)  Contain Operator's best estimate of the total funds required to
carry out such work;

        (4)  Outline the proposed work schedule;

        (5)  Provide a timetable of expenditures, if known; and

        (6)  Be accompanied by such other supporting information as is necessary
for an informed decision.

6.7  Overexpenditures of Work Programs and Budgets.
     -----------------------------------------------

     (A)     Operator shall be entitled to incur an overexpenditure for any line
item  of an approved Work Program and Budget, or if Section 6.6(C) applies, then
for any AFE, up to ten percent (10%) of the authorized amount for such line item
or  AFE  item;  provided that the cumulative total of all overexpenditures for a
Calendar  Year  shall not exceed five percent (5%) of the total Work Program and
Budget  in  question.

     (B)     At  such time that Operator is certain that the limits of Section
6.7(A) will  be  exceeded,  Operator shall furnish a supplemental AFE for the
estimated overexpenditures  to  the Operating Committee for its approval, such
approval to be rendered in accordance with the procedures in Section 5.12, and
shall provide the  Parties with full details of such overexpenditures.  If
Operating Committee does  not approve such supplemental AFE, Operator shall not
incur the additional expense covered by such supplemental AFE and the Operation
carried thereby shall immediately cease, unless otherwise agreed by the
Operating Committee.  Operator shall  promptly  give  notice  of  the amounts
ofoverexpenditures when actually incurred.

(C)     The  restrictions  contained  in  Article  5 and this Article 6 shall be
without  prejudice  to  Operator's  rights  to  make  expenditures as set out in
Section  4.2(B)(11)  and  Section  12.5.

                                    ARTICLE 7
                                    ---------
                                     DEFAULT

7.1     Default  and  Notice.  Any Working Interest Party that fails to pay when
        ---------------------
due  its  Participating  Interest  or  Carried  Cost share of any Joint Accounts
expenses,  including  Cash  Calls,  billings  and  accrued interest, shall be in
default  under  this  Agreement  (a  "Defaulting  Party").  Operator,  or  any
non-defaulting  Working  Interest  Party  in the case Operator is the Defaulting
Party,  shall  promptly  give  written  notice of such default to the Defaulting
Party  and  each  of  the  non-defaulting Working Interest Parties (the "Default
Notice").  The  amount not paid by the Defaulting Party shall bear interest from
the  date  due  until  paid  in  full  at  the  Agreed  Interest  Rate.

7.2     Operating Committee Meetings and Data.  Beginning five (5) Business Days
        --------------------------------------
from  the date of the Default Notice, the Defaulting Party shall not be entitled
to attend Operating Committee, project team and subcommittee meetings or to vote
on  any  matter  coming before the Operating Committee or any subcommittee until
all  of its defaults have been remedied (including payment of accrued interest).
Unless  agreed  otherwise  by  the  non-defaulting Working Interest Parties, the
voting interest of each non-defaulting Working Interest Party during this period
shall  be  its  percentage  of  the  total  Participating  Interests  of  the
non-defaulting Working Interest Parties.  Any matters requiring a unanimous vote
of the Parties shall not require the vote of the Defaulting Party.  In addition,
beginning  five  (5)  Business  Days  from  the  date of the Default Notice, and
thereafter  while  the Defaulting Party remains in default, the Defaulting Party
shall  not  have access to any data or information relating to Joint Operations.
During  this  period,  the  non-defaulting  Working  Interest  Parties  shall be
entitled  to  trade  data  without  such  Defaulting  Party's  consent,  and the
Defaulting Party shall have no right to any data received in such a trade unless
and until its default is remedied in full.  The Defaulting Party shall be deemed
to  have  elected not to participate in any Joint Operations that are voted upon
at  least five (5) Business Days after the date of the Default Notice but before
all  of  its defaults have been remedied to the extent such an election would be
permitted  by  Section 5.13(B) of this Agreement.  The Defaulting Party shall be
deemed  to  have  approved,  and  shall  join with the non-defaulting Parties in
taking  any  other  actions  voted  on  during  that  period.

7.3          Allocation  of  Defaulted  Accounts.
             ------------------------------------

     (A)     The  Party  providing  the  Default  Notice pursuant to Section 7.1
shall  include  in  the  Default  Notice to each non-defaulting Working Interest
Party  a  statement of the sum of money that the non-defaulting Working Interest
Party  is  to  pay  as  its  portion  (such portion being in the ratio that each
non-defaulting  Working  Interest  Party's  Participating Interests bears to the
Participating  Interests  of all non-defaulting Working Interest Parties) of the
amount  in  default  (excluding  interest), subject to the terms of this Section
7.3.  If  the  Defaulting  Party  remedies  its  default in full within five (5)
Business  Days  from  the  date of the Default Notice, the notifying Party shall
promptly  notify  each  non-defaulting  Working  Interest Party by telephone and
facsimile, and the non-defaulting Working Interest  Parties shall be relieved of
their  obligation  to  pay  a  share  of the amounts in default. Otherwise, each
non-defaulting  Working  Interest  Party  shall  pay  Operator,  within five (5)
Business Days after receipt of the Default Notice, its share of the amount which
the  Defaulting  Party  failed  to  pay.  If any non-defaulting Working Interest
Party  fails  to pay its share of the amount in default as aforesaid, such Party
shall  thereupon be a Defaulting Party subject to the provisions of this Article
7.  The non-defaulting Working Interest Parties which pay the amount owed by any
Defaulting  Party  shall  be  entitled to receive their respective shares of the
principal and interest payable by such Defaulting Party pursuant to this Article
7.

     (B)     If  Operator  is  a  Defaulting  Party, then all payments otherwise
payable  to Operator for Joint Account costs pursuant to this Agreement shall be
made  to the notifying Working Interest Party instead until the default is cured
or  a  successor Operator appointed.  The notifying Working Interest Party shall
maintain  such  funds  in  a  segregated account separate from its own funds and
shall  apply  such  funds  to  third party claims due and payable from the Joint
Account  of  which  it has notice, to the extent Operator would be authorized to
make such payments under the terms of this Agreement.  The notifying Party shall
be  entitled  to  bill  or  Cash  Call  the other Parties in accordance with the
Accounting  Procedure for proper third party charges that become due and payable
during  such  period  to  the  extent  sufficient funds are not available.  When
Operator  has  cured  its  default  or  a  successor  Operator is appointed, the
notifying  Party  shall turn over all remaining funds in the account to Operator
and  shall  provide Operator and the other Parties with a detailed accounting of
the  funds  received  and  expended  during  this  period.

     (C)     The notifying Party shall not be liable for damages, losses, costs,
expenses or liabilities arising as a result of its actions under Section 7.3(B),
except  to  the  extent  Operator  would  be  liable  under  Section  4.6.

7.4          Remedies.
             ---------

     (A)     During the continuance of a default, the Defaulting Party shall not
have  a right to its Entitlement, which shall vest in and be the property of the
non-defaulting  Working  Interest  Parties.  Operator (or the notifying Party if
Operator  is a Defaulting Party) shall be authorized to sell such Entitlement in
an  arm's-length  sale  on  terms  that  are  commercially  reasonable under the
circumstances  and,  after deducting all costs, charges and expenses incurred in
connection  with  such  sale, pay the net proceeds to the non-defaulting Working
Interest  Parties  in  proportion to the amounts they are owed by the Defaulting
Party  hereunder  (and  apply  such  net  proceeds toward the establishment of a
reserve  fund  under  Section  7.4(C), if applicable) until all such amounts are
recovered  and such reserve fund is established.  Any surplus remaining shall be
paid  to  the  Defaulting Party, and any deficiency shall remain a debt due from
the  Defaulting  Party  to  the  non-defaulting  Working Interest Parties.  When
making  sales  under  this  Section  7.4(A)  the non-defaulting Working Interest
Parties  shall have no obligation to share any existing market or obtain a price
equal  to  the  price  at  which  their  own  production  is  sold.

     (B)     If  Operator  disposes of any Joint Property or any other credit or
adjustment  is  made to any Joint Account, while a Party is in default, Operator
(or  the  notifying  Party if Operator is Defaulting Party) shall be entitled to
apply  the  Defaulting  Party's  Participating Interest share of the proceeds of
such  disposal, credit or adjustment against all amounts owing by the Defaulting
Party  to  the  non-defaulting  Working Interest Party hereunder (and toward the
establishment  of  a  reserve  fund  under  Section 7.4(C), if applicable).  Any
surplus  remaining  shall  be  paid  to the Defaulting Party, and any deficiency
shall  remain a debt due from the Defaulting Party to the non-defaulting Working
Interest  Parties.

     (C)     The  non-defaulting  Working  Interest Parties shall be entitled to
apply  proceeds received under Sections 7.4(A) and 7.4(B) toward the creation of
a  reserve  fund  in  an  amount  equal  to the Defaulting Party's Participating
Interest share of (i) the estimated cost to abandon any wells and other property
in which the Defaulting Party participated, (ii) the estimated cost of severance
benefits  for  local  employees upon cessation of Operations and (iii) any other
identifiable  costs  that the non-defaulting Parties anticipate will be incurred
in  connection  with the cessation of Operations and as otherwise required under
the  Contract.

     (D)     If  a  Defaulting Party fails to remedy its default by the sixtieth
(60th)  Day following the date of the Default Notice, then, without prejudice to
any  other  rights  available  to the non-defaulting Working Interest Parties to
recover  amounts  owing  to them under this Agreement, each non-defaulting Party
shall  have  the  option, exercisable at anytime thereafter until the Defaulting
Party  has  completely  cured its defaults, to require that the Defaulting Party
completely  withdraw  from  the  Contract Area, this Agreement and the Contract.
Such  option  shall  be  exercised  by  notice  to the Defaulting Party and each
non-defaulting  Working  Interest  Party.  If  such  option  is  exercised,  the
Defaulting  Party shall be deemed to have transferred, pursuant to Section 12.6,
effective on the date of the non-defaulting Working Interest Party's notice, all
of  its  right,  title  and beneficial interest in and under this Agreement, the
Contract  Area, and the Contract to the non-defaulting Working Interest Parties.
The  Defaulting  Party  shall,  without  delay  following  any  request from the
non-defaulting Working Interest Parties, do any and all acts required to be done
by  Applicable Law or regulation in order to render such transfer legally valid,
including,  without limitation, obtaining all Government consents and approvals,
and  shall  execute  any  and all documents and take such other action as may be
necessary  in  order  to  effect  a  prompt  and valid transfer of the interests
described above.  The Defaulting Party shall be obligated to promptly remove any
liens  and  encumbrances  which  may  exist  on such transferred interests.  For
purposes  of this Section 7.4(D), each Party constitutes and appoints each other
Party  its  true  and  lawful attorney to execute such instruments and make such
filings  and  applications  as  may  be  necessary to make such transfer legally
effective and to obtain any necessary consents of the Government.  Actions under
this  power  of  attorney  may  be  taken  by any Party individually without the
joinder  of  the  others.  This power of attorney is irrevocable for the term of
this  Agreement and is coupled with an interest.  If requested, each Party shall
execute a form prescribed by the Operating Committee setting forth this power of
attorney  in  more detail.  In the event all Government approvals are not timely
obtained,  the  Defaulting  Party shall hold its Participating Interest in trust
for  the non-defaulting Working Interest Parties who are entitled to receive the
Defaulting Party's Participating Interest.  Notwithstanding the terms of Article
7,  in  the  absence  of  an agreement among the non-defaulting Working Interest
Parties  to  the  contrary,  any transfer to the non-defaulting Working Interest
Parties  following  a  withdrawal  pursuant  to  this Section 7.4(D) shall be in
proportion to the Participating Interests of the non-defaulting Working Interest
Parties.  The  acceptance  by  a  non-defaulting  Working  Interest Party of any
portion  of  a  Defaulting  Party's  Participating  Interest shall not limit any
rights or remedies that the non-defaulting Working Interest Party has to recover
all  amounts  (including  interest) owing under this Agreement by the Defaulting
Party.

     (E)     The  non-defaulting  Working  Interest  Party  shall be entitled to
recover  from  the Defaulting Party all reasonable attorneys' fees and all other
reasonable  costs sustained in the collection of amounts owing by the Defaulting
Party.

     (F)     The  rights  and  remedies  granted  to  the non-defaulting Working
Interest Parties in this Agreement shall be cumulative, not exclusive, and shall
be  in  addition  to  any other rights and remedies that may be available to the
non-defaulting Working Interest Parties, whether at law, in equity or otherwise.
Each  right  and remedy available to the non-defaulting Working Interest Parties
may  be  exercised  from  time  to time and so often and in such order as may be
considered  expedient  by  the  non-defaulting Working Interest Parties in their
sole  discretion.

7.5     Survival.  The obligations of the Defaulting Party and the rights of the
        ---------
non-defaulting  Parties shall survive the surrender of the Contract, abandonment
and/or  Decommissioning  of  Joint Operations and termination of this Agreement.

7.6     No  Right  of  Set  Off.  Subject to the terms of the Assignment and the
        ------------------------
Contract,  each  Party  acknowledges and accepts that a fundamental principle of
this  Agreement  is  that  each  Party pays its Participating Interest share and
Carried Cost share of all amounts due under this Agreement as and when required.
Accordingly,  any  Party  which  becomes  a Defaulting Party undertakes that, in
respect of either any exercise by the non-defaulting Working Interest Parties of
any  rights  under or the application of any of the provisions of this Article7,
such  Defaulting  Party  hereby  waives  any right to raise by way of set off or
invoke as a defense, whether in law or equity, any failure by any other Party to
pay  amounts  due  and owing under this Agreement or any alleged claim that such
Party  may  have against Operator or any Non-Operator, whether such claim arises
under  this  Agreement  or otherwise.  Each Party further agrees that the nature
and  the  amount of the remedies granted to the non-defaulting Parties hereunder
are  reasonable  and  appropriate  in  the  circumstances.

7.7     Cross-Default.  Non-Defaulting  Parties  shall  have  the  rights  and
        --------------
remedies  against  a  Defaulting  Party under this Article 7 and similar default
provision  under  any  other joint operating agreement covering the Contract and
Contract  Area  to which the Defaulting Party is a party for any default arising
under  any  one or more such agreements.  The creation of more than one Field in
the  Contract Area shall in no event affect the scope or efficacy of such rights
and remedies, which scope and effect shall remain unchanged as if separate joint
operating  agreements  for  each  Field  had  not  been  established.

                                    ARTICLE 8
                                    ---------
                            DISPOSITION OF PRODUCTION

8.1     Right  and  Obligation to Take in Kind.  Except as otherwise provided in
        ---------------------------------------
this  Article  8 or in Article 7, each Party shall have the right and obligation
to  take  in  kind  and  separately  dispose  of  the  share of total production
available  to  it  from any Field pursuant to the Contract and this Agreement in
such  quantities  and  in accordance with such procedures as may be set forth in
the  offtake agreement referred to in Section 7.2 or in the special arrangements
for  Natural  Gas  referred  to  in  Section  8.3.

8.2     Offtake  Agreement for Crude Oil.  If Crude Oil is to be produced from a
        ---------------------------------
Field, the Parties shall in good faith, and not less than three (3) months prior
to first delivery of Crude Oil, negotiate and conclude the terms of an agreement
to  cover  the  offtake  of Crude Oil produced under the Contract.  This offtake
agreement  shall, to the extent consistent with the Contract and, in particular,
the  interest  of  the  Carried  Party under the Assignment, make provision for:

     (A)     The  Delivery  Point,  at  which  title  and  risk  of  loss  of
Participating Interest shares of Crude Oil shall pass to the Parties with rights
to  such  Crude  Oil  (or  as  the  Parties  may  otherwise  agree);

     (B)     Operator's  regular  periodic advice to the Parties of estimates of
total  available  Crude  Oil produced for succeeding periods, quantities of each
grade  of  Crude Oil and each Party's share for as far ahead as is necessary for
Operator  and  the Parties to plan offtake arrangements.  Such advice shall also
cover  for  each  grade  of  Crude  Oil  total  available Crude Oil produced and
deliveries  for  the  preceding  period, inventory and overlifts and underlifts;

     (C)     Nomination by the Parties to Operator of acceptance of their shares
of total available production for the succeeding period.  Such nominations shall
in  any  one  period  be  for  each Party's entire share of available production
during that period subject to operational tolerances and agreed minimum economic
cargo  sizes  or  as  the  Parties  may  otherwise  agree;

     (D)          Elimination  of  overlifts  and  underlifts;

     (E)     If  offshore  loading  or  a  shore  terminal for vessel loading is
involved,  risks  regarding  acceptability  of  tankers,  demurrage  and  (if
applicable)  availability  of  berths;

     (F)     Distribution  to  the  Parties  of  available grades, gravities and
qualities  of  Hydrocarbons  to  ensure,  to the extent Parties take delivery of
their  Entitlements as they accrue, that each Party shall receive in each period
Entitlements  of grades, gravities and qualities of Hydrocarbons from each Field
in  which  it  participates  similar  to  the grades, gravities and qualities of
Hydrocarbons  received  by  each other Party from participating in such Field in
that  period;

     (G)     To  the  extent  that distribution of Entitlements on such basis is
impracticable  due  to  availability  of  facilities  and minimum cargo sizes, a
method  of  making  periodic  adjustments;

     (H)     The  option  and  the  right of the other Parties to sell an
Entitlement which a Party fails to nominate for acceptance pursuant to Section
8.2 (C) above or of which a Party fails to take delivery, in accordance with
applicable agreed procedures, provided that such failure either constitutes a
breach of Operator's or  Parties' obligations under the terms of the Contract,
or is likely to result in  the  curtailment or shut-in of production.  Such
sales shall be made only to the  limited extent necessary to avoid disruption in
Joint Operations.  Operator shall  give  all  Parties as much notice as is
practicable of such situation and that  a  sale  option  has  arisen.  Any
sale  shall  be  of the unnominated or undelivered Entitlement as the case may
be and for reasonable periods of time as are  consistent with the minimum needs
of the industry and in no event to exceed twelve (12) months.  The right of sale
shall be revocable at will subject to any prior  contractual  commitments.
Payment  terms  for production sold under this option  shall  be  established in
the  offtake  agreement;  and

   (I)     Carried  Party's  Participating Interest share of Net Crude Oil shall
be treated  separate  from and not commingled with the State's share of Royalty
and Net  Crude  Oil  under  the  Contract.

     If  an  offtake  agreement  has  not been entered into by the date of first
delivery of Crude Oil, the Parties shall be bound by the principles set forth in
this  Section  8.2  until an offtake agreement has been entered into.  All Crude
Oil  which  is attributable to the recovery of Petroleum Operations Expenditures
pursuant to the Contract, shall be lifted only by those Working Interest Parties
who  contributed  to  the  payment  of  such  Petroleum Operations Expenditures,
including  the  payment  of  the  Carried  Party's share of such Expenditures as
provided  under  the  Assignment.

8.3     Separate  Agreement  for  Natural  Gas.  The  Parties  recognize that if
        ---------------------------------------
Natural  Gas  is  discovered  it  may be necessary for the Parties to enter into
special  arrangements  for the disposal of the Natural Gas, which are consistent
with  the  terms  of  the  Contract.

                                    ARTICLE 9
                                    ---------
                         ABANDONMENT AND DECOMMISSIONING

9.1          Joint  Operations  Abandonment  and  Decommissioning.
             -----------------------------------------------------

     (A)     A  decision to plug and abandon any well which has been drilled and
to  Decommission any installations and facilities which have been constructed as
a  Joint  Operation  shall  require  the  approval  of  the Operating Committee.

     (B)     Should  any  such  Party  fail  to  reply  within  the applicable
period prescribed in Section 5.12(A)(1) or Section 5.12(A)(2), whichever is
applicable, after  delivery  of  notice  of the Operator's proposal to plug and
abandon such well,  such Party shall be deemed to have consented to the proposed
abandonment.

     (C)     Any well plugged and abandoned under this Agreement shall be
plugged and abandoned in accordance with Applicable Law and at the cost, risk
and expense of the  Parties  who  participated  in  the  cost  of  drilling
such well.

                                   ARTICLE 10
                                   ----------
                       SURRENDER, EXTENSIONS AND RENEWALS

10.1          Surrender.
              ----------

     (A)     If  the  Contract  requires the Parties to surrender any portion of
the  Contract  Area,  Operator  shall  advise  the  Operating  Committee of such
requirement at least one hundred and twenty (120) Days in advance of the earlier
of  the date for filing irrevocable notice of such surrender or the date of such
surrender.  Prior  to  the  end  of  such  period, the Operating Committee shall
determine  pursuant  to  Article  5  the size and shape of the surrendered area,
consistent  with  the requirements of the Contract.  If a sufficient vote of the
Operating  Committee cannot be attained, then the proposal supported by a simple
majority  of  the  Participating  Interests  shall  be  adopted.  If no proposal
attains  the  support  of a simple majority of the Participating Interests, then
the  proposal  receiving the largest aggregate Participating Interest vote shall
be  adopted.  In  the  event  of  a  tie,  the  Operator  shall choose among the
proposals  receiving  the  largest  aggregate  Participating Interest vote.  The
Parties  shall  execute any and all documents and take such other actions as may
be  necessary  to  effect  the  surrender.  Each  Party renounces all claims and
causes  of  action against Operator and any other Parties on account of any area
surrendered  in  accordance with the foregoing but against its recommendation if
Hydrocarbons  are  subsequently  discovered  under  the  surrendered  area.

     (B)     A  surrender of all or any part of a Field which is not required by
the  Contract  shall  require  the  unanimous  consent  of  the Working Interest
Parties.

10.2          Extension  of  the  Term.
              -------------------------

     (A)     With  regard  to  a Field, a proposal by any Party to enter into or
extend  the  term  of  any  Contract  Period  or  Exploitation  Period under the
Contract,  or  a  proposal  to extend the term of the Contract, shall be brought
before  the  Operating  Committee  pursuant  to  Article 5.  A proposal for such
extension  that  impacts  the  whole Contract Area, will entail agreement of the
parties  to  the  other  joint  operating  agreement  covering  the Contract and
Contract  Area

     (B)     With  regard  to a Field, any Working Interest Party shall have the
right  to  enter  into or extend the term of any Contract Period or Exploitation
Period  under  the Contract or to extend the term of the Contract, regardless of
the  vote  taken  by the Operating Committee.  If any such Party or Parties take
such  action,  any  Party not electing to enter into or to extend shall withdraw
from  this  Agreement  to  the  extent  that  such election relates to the whole
Contract  Area, to the Retained Area, or to a Field, as the case may be, subject
always  to  the  requirements  of  Article  12.

                                   ARTICLE 11
                                   ----------
                         TRANSFER OF INTEREST OR RIGHTS

11.1          Obligations.
              ------------

     (A)     Subject always to the requirements of the Contract, the transfer of
all  or  part  of a Party's Participating Interest, except transfers pursuant to
Article  7  or Article 12, shall be effective only if it satisfies the terms and
conditions  of  this  Article  11.

     (B)     Except  as  provided  in  the  Assignment or in the case of a Party
transferring all of its Participating Interest, no transfer shall be made by any
Party  which results in the transferor or the transferee holding a Participating
Interest  of  less  than ten percent (10%), except where otherwise agreed by all
Parties,  or  holding any interest other than a uniform, undivided Participating
Interest  in  the  Field  and  this  Agreement.

     (C)     The  transferring  Party  shall,  notwithstanding  the transfer, be
liable  to  the other Parties for any obligations, financial or otherwise, which
have  vested,  matured,  or  accrued under the provision of the Contract or this
Agreement  prior  to such transfer.  Such obligations shall include any proposed
expenditure  approved by the Operating Committee prior to the transferring Party
notifying  the  other Parties of its proposed transfer (whether such expenditure
is  actually  expended  before  or  after  the  transfer  date).

     (D)     The  transferee  shall have no right in and under the Contract, the
Field,  or  this  Agreement unless and until it obtains any necessary Government
approval  and  expressly  undertakes  in an instrument satisfactory to the other
Parties to perform the obligations of the transferor under the Contract and this
Agreement  in  respect  of  the  Participating  Interest  being  transferred and
furnishes  any  guarantees  required  by  the  Government  or  the  Contract.

     (E)     A  transferee (other than an Affiliate) shall have no rights in and
under the Contract, the Field, or this Agreement unless each Party has consented
in  writing  to  such  transfer,  which  consent  shall  be  denied only if such
transferee  fails to establish to the reasonable satisfaction of each such Party
its capability to perform its obligations under the Contract and this Agreement.

     (F)     Nothing  contained  in  this  Article 11 shall prevent a Party from
mortgaging,  pledging,  charging  or  otherwise  encumbering  all or part of its
interest  in  the  Field  and  in  and  under  this Agreement for the purpose of
security  relating  to  finance  provided  that:

     (1)     Such Party shall remain liable for all obligations relating to such
interest;

     (2)     the  encumbrance  shall be subject to any necessary approval of the
Government  and  be  expressly  subordinated  to the rights of the other Parties
under  this  Agreement;

     (3)     such  Party  shall ensure that any such mortgage, pledge, charge or
encumbrance shall be expressed to be without prejudice to the provisions of this
Agreement;

     (4)     the Parties agree that the mortgagee or pledgee of all or part of a
Party's  interest  in  the  Field,  may, but shall not be obliged to, perform or
cause  to  perform  such  act or take such action or pay such money, or cure any
default  hereunder  and under the Contract of such Party, if such Party fails to
perform  any  act  hereunder  or  is otherwise in default hereunder or under the
Contract;  and

     (5)     the  foreclosure  or other realization of collateral interest under
any  such  mortgage  or  pledge  shall  not  be  considered  a  transfer  of  a
Participating  Interest  under  Section  11.1(F).

11.2     Consent.  The Parties shall promptly join in such reasonable actions as
         --------
may  be  necessary  or  desirable  to  obtain  any  consent of the Government in
accordance  with  Section 12.1(F) of the Contract and shall execute and deliver,
any  and  all  documents  reasonably  necessary  to effect, any such assignment.

11.3     Rights.  Each  Party shall have the right, subject to the provisions of
         -------
Section  11.1 and 11.2, to freely transfer its Participating Interest; provided,
however,  that  the  Carried  Party  shall  only have the right to sell, assign,
transfer,  convey  or  otherwise  dispose  of  any part or all of its rights and
interests and obligations under the Contract and/or in any Field in the Contract
Area  to  the national oil company of the Republic of Equatorial Guinea or other
wholly  owned  Government  entity exclusively responsible for the development of
Hydrocarbon  deposits  in  the  Contract  Area.

                                   ARTICLE 12
                                   ----------
                            WITHDRAWAL FROM AGREEMENT

12.1          Right  of  Withdrawal.
              ----------------------

     (A)     Subject  to  the  provisions  of this Article 12, any Party may
withdraw from  this  Agreement,  the Contract, and a Field in the Contract Area
by giving notice  to all other Parties stating its decision to withdraw. Such
notice shall be  unconditional  and  irrevocable  when  given,  except  as may
be provided in Section  12.7.

     (B)     Notwithstanding  Section 12.1(A), during the Exploration Period,
a Party shall  not have the right to withdraw from this Agreement and the
Contract until the  Minimum  Work  Obligations  for  the  current  Contract
Period  have  been fulfilled.

     (C)     The  effective  date  of withdrawal for a withdrawing Party shall
be the end  of  the  calendar month following the calendar month in which the
notice of withdrawal  is  given,  provided  that  if  all  Parties  elect to
withdraw, the effective  date  of  withdrawal  for  each Party shall be the
date determined bySection  12.9.

12.2          Complete  Withdrawal.
              ---------------------

     (A)     Within  thirty  (30)  Days  of  receipt of each withdrawing Party's
notification,  each of the other Parties may also give notice that it desires to
withdraw  from  this  Agreement  and  the Contract.  Should all Working Interest
Parties  give  notice  of  withdrawal,  the Parties shall proceed to abandon the
Field  and  terminate  the  Contract insofar as it relates to the Field and this
Agreement.  If less than all of the Working Interest Parties give such notice of
withdrawal,  then  the withdrawing Parties shall take all steps to withdraw from
the  Contract,  this  Agreement,  and  any  Fields  in  the Contract Area on the
earliest  possible  date  and  execute and deliver all necessary instruments and
documents to assign their Participating Interest to the Working Interest Parties
which  are  not  withdrawing, without any compensation whatsoever, in accordance
with  the  provisions  of  Section  12.6.

     (B)     Any  Party withdrawing under Section 10.2 or this Article 12, shall
withdraw  from  the entirety of the Field, and thus abandon to the other Parties
not  joining in its withdrawal all its rights to Hydrocarbons produced after the
effective  date  of  such  withdrawal  and  all  rights in such associated Joint
Property.

12.3     Rights  of  a  Withdrawing  Party.  A  withdrawing Party shall have the
         ----------------------------------
right  to receive its Entitlement of Hydrocarbons produced through the effective
date  of  its  withdrawal and shall retain the right to (and responsibility for)
its  Participating  Interest  share  of  subsequent audit adjustment relating to
periods  prior  to such effective date.  The withdrawing Party shall be entitled
to  receive all information to which such Party is otherwise entitled under this
Agreement  until  the  effective  date  of  its  withdrawal.  After  giving  its
notification of withdrawal, a Party shall not be entitled to vote on any matters
coming  before  the Operating Committee, other than matters for which such Party
has  financial  responsibility.

12.4          Obligations  and  Liabilities  of  a  Withdrawing  Party.
              ---------------------------------------------------------

     (A)     A  withdrawing  Party,  prior  to its withdrawal, shall satisfy all
obligations  and liabilities it has incurred or attributable to it prior to such
withdrawal  regardless  of  when  they  are actually incurred, including (i) any
expenditures  budgeted  and/or  approved by the Operating Committee prior to its
written  notification  of  withdrawal  (development  projects  included),  (ii)
emergency  expenditures  as  described in Sections 4.2(B)(11) and 12.5 and (iii)
all  other  obligations and liabilities of the Parties or Consenting Parties, as
applicable,  with respect to acts or omissions under this Agreement prior to its
withdrawal  for  which  such  Party would have been liable, had it not withdrawn
from  this  Agreement and the Contract.  If such obligations and liabilities are
not  identified  or identifiable at the time of withdrawal the withdrawing Party
shall  nonetheless  remain liable therefor.  Furthermore, any liens, charges and
other  encumbrances  which  the  withdrawing  Party  placed  on  such  Party's
Participating  Interest  prior  to  its  withdrawal  shall be fully satisfied or
released,  at  the  withdrawing  Party's  expense,  prior  to  its  withdrawal.

     (B)     Notwithstanding  the  foregoing,  a  withdrawing Party shall not be
liable  for any operations or expenditures (participation in which, or liability
therefor, is not mandatory hereunder except as a sole consequence of the binding
effect  of  a  Operating  Committee  decision)  it  voted  against in a properly
constituted  Operating  Committee  vote  if  it  delivers  notification  of  its
withdrawal  within  five  (5)  Days  (or  within  twenty-four  (24) hours if the
drilling  rig  to be used in such operation is standing by on the Contract Area)
of  the  Operating  Committee  vote  approving such operation or expenditure.  A
Party  voting  against  voluntary  entering  or  extending  a  Contract  Period,
Exploration  Period  or  Exploitation Period shall not be liable for the Minimum
Work Obligations associated therewith provided that it sends notification of its
withdrawal  within  thirty  (30)  Days  of  such  vote pursuant to Section 10.2.

     (C)     The  obligations  and  liabilities  for  which  a withdrawing Party
remains  liable  shall  specifically  include  its  share  of  any  costs  of
Decommissioning  wells,  or  portion  of  wells,  field  flowlines,  pipelines,
structures  and  facilities  in which it participated (or was required to bear a
share  of  the  costs  pursuant to Section 12.4(A)), to the extent such costs of
Decommissioning  are  payable  by  the  Parties  under  the  Contract.

12.5     Emergency.  If a well goes out of control or a fire, blow out, sabotage
         ----------
or  other  emergency occurs prior to the effective date of a Party's withdrawal,
the  notification  of withdrawal shall become effective only after the emergency
has been contained and the withdrawing Party has paid, or has provided, security
satisfactory to the Parties for its Participating Interest share of the costs of
such  emergency.

12.6     Assignment.  A  withdrawing  Party  shall  assign  its  Participating
         -----------
Interest free of cost to each of the non-withdrawing Working Interest Parties in
the  proportion  which  each  of  their  Participating  Interests  (prior to the
withdrawal)  bears  to  the  total  Participating  Interests  of  all  the
non-withdrawing  Working  Interest Parties (prior to the withdrawal), unless the
non-withdrawing  Working  Interest  Parties  agree  otherwise.  The  expenses
associated with the withdrawal and assignments shall be borne by the withdrawing
Party.

12.7     Approvals.  A  withdrawing Party shall promptly join in such actions as
         ----------
may  be  necessary or desirable  to  obtain  any  Government  approvals required
in connection with the withdrawal and assignments, and any penalties or expenses
incurred by the Parties in connection with such withdrawal shall be borne by the
withdrawing  Party.  If the Government does not approve a Party's withdrawal and
assignment  to the other Parties, then the withdrawing Party shall at its option
either  (1)  retract its notice of withdrawal by notice to the other Parties and
remain  a  Party as if such notice of withdrawal had never been sent or (2) hold
its  Participating  Interest  in trust for the sole and exclusive benefit of the
non-withdrawing  Working Interest Parties with the right to be reimbursed by the
non-withdrawing  Working  Interest  Parties  for  any  subsequent  costs  and
liabilities  incurred  by  it  for  which  it would not have been liable, had it
successfully  withdrawn.

12.8          Abandonment  Security.
              ----------------------

     (A)     As  a  condition  to  the  effectiveness  of  its  withdrawal,  a
withdrawing  Party  shall  provide Security reasonably satisfactory to the other
Parties  to  satisfy  any such obligations or liabilities which were approved or
accrued  prior  to  notice  of  withdrawal,  but  which  become  due  after  its
withdrawal,  including  Security  to  cover  the  costs  of  any abandonment and
Decommissioning  and  the  special  reserve  account  under  the  Contract,  if
applicable.

     (B)     Failure  to  provide  Security  shall  constitute  default  under
this Agreement.

     (C)     "Security"  means  a  standby letter of credit issued by a bank or
an on demand  bond  issued  by a corporation, such bank or corporation having a
credit rating  indicating  it  has  sufficient  worth  to  pay  its  obligations
in all reasonably  foreseeable  circumstances,  or,  failing the provision of
either of those,  cash  deposited  in  an escrow account with withdrawal rights
granted to Operator.

12.9     Withdrawal or Decommissioning by all Parties.  In the event all Parties
         ---------------------------------------------
decide  to withdraw, the Parties agree that they shall be bound by the terms and
conditions  of  this  Agreement  for  so long as may be necessary to wind up the
affairs  of  the  Parties  with  the  Government, to satisfy any requirements of
Applicable Law and to facilitate the sale, disposition or Decommissioning of the
Joint  Property.

                                   ARTICLE 13
                                   ----------
                         RELATIONSHIP OF PARTIES AND TAX

13.1     Relationship  of  Parties.  The  rights,  duties,  obligations,  and
         --------------------------
liabilities  of  the Parties under this Agreement shall be individual, not joint
or collective.  It is not the intention of the Parties to create, nor shall this
Agreement  be deemed or construed to create a mining or other partnership, joint
venture,  association or trust.  This Agreement shall not be deemed or construed
to  authorize  any  Party  to act as an agent, servant or employee for any other
Party  for  any  purpose  whatsoever  except  as  explicitly  set  forth in this
Agreement.  In their relations with each other under this Agreement, the Parties
shall  not  be  considered fiduciaries, except as expressly provided in Sections
7.4(D)  and  12.7.

13.2     Tax.  Each Party shall be responsible for reporting and discharging its
         ----
own tax measured by the income of the Party and the satisfaction of such Party's
share  of  all contract obligations under the Contract and under this Agreement.
Each Party shall protect, defend and indemnify each other Party from any and all
loss,  cost or liability arising from the indemnifying Party's failure to report
and  discharge  such taxes or satisfy such obligations.  The Parties intend that
all  income  and  all  tax  benefits (including, but not limited to, deductions,
depreciation,  credits and capitalization) with respect to the expenditures made
by  the Parties hereunder will be allocated by the Government tax authorities to
the  Parties  based  on the share of each tax item actually received or borne by
each  Party.  If  such  allocation is not accomplished due to the application of
the  laws  and  regulations  of  the  Government or other Government action, the
Parties  shall  attempt to adopt mutually agreeable arrangements that will allow
the  Parties  to achieve the financial results intended.  Operator shall provide
each  Party,  in  a  timely  manner, with such information with respect to Joint
Operations  as  such  Party  may  reasonably  request for preparation of its tax
returns  or  responding  to  any  audit  or  other  tax  proceeding.

13.3          United  States  Tax  Election.
              ------------------------------

     (A)     If  for  United  States federal income tax purposes, this Agreement
and  the  operations  under this Agreement are regarded as a partnership (and if
the  Parties have not agreed to form a tax partnership), the Parties elect to be
excluded  from  the  application  of  all  of  the provisions of Subchapter "K",
Chapter  1,  Subtitle "A" of the United States Internal Revenue Code of 1986, as
amended  (the  "Code") as permitted and authorized by Section 761(a) of the Code
and  the regulations promulgated under the Code. There being no U.S Party at the
time  of  the  execution  of  this  Agreement, no Party is designated as the tax
matters  party.  Should  any person become a Party to this agreement at a future
date  and should that person be a U.S. Party (or should any current Party become
a  U.S.  Party),  such  person  may  elect,  to  the  extent required by Section
6231(a)(7)  of  the  Code,  to  be designated as the tax matters party by giving
written  notice to the other Parties to the Agreement.  Such person shall remain
the  tax  matters  party  as  long  as  it  is  a  Party to the agreement and is
authorized and directed to execute and file for each U.S. Party such evidence of
this  election  as  may  be  required by the Internal Revenue Service, including
specifically,  but not by way of limitation, all of the returns, statements, and
the  data  required  by  United  States Treasury Regulations Section 1.761-2 and
1.6031-1(d)(2),  and  shall  provide  a copy thereof to each U.S. Party.  Should
there  be  any  requirement  that  any  U.S. Party give further evidence of this
election,  each  U.S.  Party shall execute such documents and furnish such other
evidence  as  may  be  required  by  the  Internal  Revenue Service or as may be
necessary  to  evidence  this  election.

     (B)     No  U.S.  Party  shall  give  any  notice  or take any other action
inconsistent  with the election made above.  If any income tax laws of any state
or  other  political  subdivision  of the United States or any future income tax
laws  of  the United States or any such political subdivision contain provisions
similar to those in Subchapter "K," Chapter 1, Subtitle "A" of the United States
Internal  Revenue Code of 1986, under which an election similar to that provided
by Section 761 of the Code is permitted, the Parties shall make such election as
may  be  permitted  or required by such laws.  In making the foregoing election,
each  U.S. Party states that the income derived by it from operations under this
Agreement  can  be  adequately determined without the computation of partnership
taxable  income.

     (C)     For  the  purposes  of this Article 13, "U.S. Party" shall mean any
Party, which is subject to the income tax law of the United States of America in
respect  of  operations  under  this  Agreement.

     (D)     No  activity  shall  be  conducted  under this Agreement that would
cause  any  Party  that  is  not  a  U.S.  Person (within the meaning of Section
7701(a)(30)  of  the  Code)  to  be  deemed to be engaged in a trade or business
within  the  United States of America under applicable tax laws and regulations.

     (E)     A  Party  which is not a U.S. Party shall not be required to do any
act  or  execute  any  instrument  which  might  subject  it  to  the  taxation
jurisdiction  of  the  United  States  of  America.

                                   ARTICLE 14
                                   ----------
                           CONFIDENTIAL INFORMATION -
                             PROPRIETARY TECHNOLOGY

14.1          Confidential  Information.
              --------------------------

     (A)     Subject  to  the provisions of the Contract, the Parties agree that
all  information  and data acquired or obtained by any Party in respect of Joint
Operations  shall  be considered confidential and shall be kept confidential and
not  be  disclosed during the term of the Contract to any person or entity not a
Party  to  this  Agreement,  except:

     (1)  To an Affiliate, provided such Affiliate maintains confidentiality as
provided in this Article 14;

     (2)  To a Government agency or other entity when required by the Contract;

     (3)     To the extent such data and information is required to be furnished
in  compliance with any Applicable Laws, or pursuant to any legal proceedings or
because  of  any  order  of  any  court  binding  upon  a  Party;

     (4)     Subject  to  Section  14.1(B),  to potential contractors, insurers,
consultants and attorneys employed by any Party where disclosure of such data or
information  is  essential  to  such  contractor's, insurer's or consultant's or
attorney's  work;

     (5)     Subject  to  Section 14.1(B), to a bona fide prospective transferee
of  a  Party's  Participating Interest (including an entity with whom a Party or
its  Affiliates  is  conducting bona fide negotiations directed toward a merger,
consolidation  or  the  sale  of  a  majority  of its or an Affiliate's shares);

     (6)     Subject  to  Section  14.1(B),  to  a  bank  or  other  financial
institution  to  the  extent  appropriate  to  a  Party  arranging  for funding;

     (7)     To  the extent such data and information must be disclosed pursuant
to  any  rules  or  requirements  of  any  government  or  stock exchange having
jurisdiction  over  such  Party,  or  its  Affiliates;

     (8)     To its respective employees and attorneys for the purposes of Joint
Operations,  subject  to  each Party taking customary precautions to ensure such
data  and  information  is  kept  confidential;  and

     (9)     Any data or information which, through no fault of a Party, becomes
a  part  of  the  public  domain.

     (B)     Disclosure  as  pursuant to Sections 14.1(A)(4), (5), and (6) shall
not  be made unless prior to such disclosure the disclosing Party has obtained a
written  undertaking  from  the recipient party to keep the data and information
strictly confidential and not to use or disclose the data and information except
for  the  express  purpose  for  which  disclosure  is  to  be  made.

14.2     Continuing  Obligations.  Any  Party  ceasing  to  own  a Participating
         ------------------------
Interest during the term of this Agreement shall nonetheless remain bound by the
obligations  of  confidentiality  in  Section  14.1  and  any  disputes shall be
resolved  in  accordance  with  Article  17.

14.3     Proprietary  Technology.  Nothing  in  this  Agreement  shall require a
         ------------------------
Party  to  divulge  proprietary  technology  to the other Parties; provided that
where  the cost of development of proprietary technology has been charged to the
Joint  Account,  such  proprietary  technology shall be disclosed to all Parties
bearing  a  portion of such cost and may be used by such Party or its Affiliates
in  other  operations.

14.4     Trades.  Notwithstanding  the  foregoing provisions of this Article 14,
         -------
Operator  may,  with  approval  of the Operating Committee, make well trades and
data  trades  for the benefit of the Parties who participated in the cost of the
data  that  was  traded.  Operator  shall cause any third party to such trade to
enter  into  an  undertaking  to  keep  the  traded  data  confidential.

                                   ARTICLE 15
                                   ----------
                                  FORCE MAJEURE

15.1     Obligations.  If  as  a  result  of Force Majeure any Party is rendered
         ------------
unable,  wholly  or  in part, to carry out its obligations under this Agreement,
other  than  the  obligation to pay any amounts due or to furnish security, then
the  obligations  of  the  Party giving such notice, so far as and to the extent
that  the  obligations  are  affected  by such Force Majeure, shall be suspended
during the continuance of any inability so caused and for such reasonable period
thereafter  as may be necessary for the Party to put itself in the same position
that it occupied prior to the Force Majeure, but for no longer period. The Party
claiming  Force  Majeure  shall  notify  the  other Parties of the Force Majeure
within  a  reasonable time after the occurrence of the facts relied on and shall
keep  all  Parties  informed of all significant developments.  Such notice shall
give  reasonably  full  particulars  of the Force Majeure, and also estimate the
period  of  time  which  the  Party  will  probably  require to remedy the Force
Majeure.  The  affected  Party  shall  use all reasonable diligence to remove or
overcome  the  Force  Majeure  situation  as  quickly as possible in an economic
manner,  but  shall not be obligated to settle any labor dispute except on terms
acceptable  to  it  and  all  such  disputes  shall  be  handled within the sole
discretion  of  the  affected  Party.

15.2     Definition  of  Force  Majeure.  For  the  purposes  of this Agreement,
         -------------------------------
"Force  Majeure"  shall  mean circumstances beyond the reasonable control of the
Party  concerned,  including  those  circumstances  and  limitations  to  such
circumstances  described  in  Section  17.1  of    the  Contract.

                                   ARTICLE 16
                                   ----------
                                     NOTICES

Except  as  otherwise  specifically provided, all notices authorized or required
between  the  Parties  by  any  of the provisions of this Agreement, shall be in
writing,  in  English  and  delivered  in person or by courier service or by any
electronic  means  of transmitting written communications which provides written
confirmation  of  complete  transmission,  and  addressed  to  such  Parties  as
designated below.  Oral communication does not constitute notice for purposes of
this  Agreement,  and  telephone  numbers  for the Parties are listed below as a
matter  of convenience only and for purposes of Section 7.3(A).  The originating
notice  given  under  any  provision of this Agreement shall be deemed delivered
only  when  received  by the Party to whom such notice is directed, and the time
for  such  Party  to  deliver  any notice in response to such originating notice
shall  run  from the date the originating notice is received.  The second or any
responsive  notice  shall  be  deemed  delivered  when received.  "Received" for
purposes  of  this  Article  16  shall mean actual delivery of the notice to the
address  of  the  Party to be notified specified in accordance with this Article
16.  Each  Party  shall  have the right to change its address at any time and/or
designate  that  copies  of  all  such  notices be directed to another person at
another  address,  by  giving  written  notice  thereof  to  all  other Parties.

   Triton Equatorial Guinea, Inc.
   c/o Triton Energy
   6688 North Central Expressway, Suite 1400
   Dallas, Texas 75206
   United States
   Attention:  Mr. Brian Maxted
   Telecopy:  1-(214) 365-9011
   Telephone: 1-(214) 696-7554

   Energy Africa Equatorial Guinea Limited
   5  Parliament Square
   Castletown
   Isle of Man  IM9 1LA
   Attention:  Company Secretary
   Telecopy:  011-44-1624827301
   Telephone:  011-44-1624827310

   with copy to:

   Energy Africa Equatorial Guinea Limited
   c/o Energy Africa Limited
   21st Floor, Metlife Centre
   7 Coen Steytler Avenue
   P. O. Box 5544
   Cape Town 8001
   Republic of South Africa
   Attention:  Mr. Adrian Nel
   Telecopy:   011-27-21-400-7660
   Telephone:  011-27-21-400-7600

   Republic of Equatorial Guinea
   c/o Ministry of Mines & Energy
   Malabo Bioko Norte
   Republic of Equatorial Guinea
   Attention:  Minister
   Telecopy:   011-(240)-9-3353
   Telephone: 011-(240)-9-3567, -3405, - 2086

                                   ARTICLE 17
                                   ----------
                      GOVERNING LAW AND DISPUTE RESOLUTION

17.1     Governing  Law.  THIS  AGREEMENT  SHALL  BE  GOVERNED  BY,  CONSTRUED,
         ---------------
INTERPRETED  AND APPLIED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, USA,
EXCLUDING  ANY  CHOICE  OF  LAW RULES WHICH WOULD REQUIRE THE APPLICATION OF THE
LAWS  OF  ANOTHER  JURISDICTION.

17.2          Dispute  Resolution.
              --------------------

     (A)     Any  dispute,  controversy  or claim of any and every kind or type,
whether based on contract, tort, statute, regulation or otherwise arising out of
or  in relation to or in connection with this Agreement, the relationship of the
Parties,  the  obligations  of  the Parties, or the operations carried out under
this  Agreement,  including  without limitation any dispute as to the existence,
construction,  validity,  interpretation,  negotiation,  performance,
non-performance,  enforceability  or  breach  of  this Agreement, that cannot be
settled  within  thirty  (30)  Days  after  written notice from one Party to the
others,  shall  be  exclusively  and  finally settled by binding arbitration, it
being  the  intention  of  the  Parties that this is a broad form of arbitration
agreement designed to encompass all possible disputes among the Parties relating
to  the  project  that  is  the  subject  of  the  Parties'  agreement.

     (B)     The  arbitration  shall be conducted and finally settled by a three
(3)  person  arbitration tribunal.  Each side shall appoint an arbitrator of its
choice within thirty (30) Days of the end of the period in Section 17.2(A).  The
Party-appointed  arbitrators shall in turn appoint a presiding arbitrator of the
tribunal,  who  is  an  attorney (at the time is admitted to practice law in the
State  of  Texas) and is familiar with the international petroleum practices and
agreements,  within  thirty  (30)  Days  following  appointment  of  both
Party-appointed  arbitrators.  If  the  Party-appointed arbitrators cannot reach
agreement  on a presiding arbitrator of the tribunal and/or one Party refuses to
appoint  its  Party-appointed arbitrator within said thirty (30) Day period, the
appointing  authority for the implementation of such procedure shall be the Vice
President  or  the  President  of  the London Court of International Arbitration
("LCIA")  who  shall  appoint  an  independent  arbitrator who does not have any
financial  interest in the dispute, controversy or claim and who meets the legal
qualifications  above.  All  decisions  and  awards  by the arbitration tribunal
shall  be  made by majority vote.  The Arbitration Rules of LCIA as amended from
time  to  time  (the "LCIA Rules") shall govern the arbitration in all respects.

     (C)     If  there  are  only two (2) parties to a dispute or if the parties
can  be  conveniently  grouped  together into two (2) groups based upon a common
interest  and  common  position  in  the dispute, then each party or group shall
appoint  one  arbitrator,  within  thirty  (30) Days of receipt of notice of the
commencement  of  the  arbitration, or within thirty (30) Days of the receipt of
notice  from the LCIA of its grouping of the parties to the dispute, and the two
(2)  arbitrators  so  selected shall select the third, and presiding, arbitrator
within  thirty (30) Days after the later of the two (2) arbitrators is appointed
by  the  parties.

          If  there  are  three  (3)  Parties to a dispute who cannot be grouped
together  based  on  a common interest and common position in the dispute, or if
there  are  three  groups of Parties, then each Party or group shall appoint one
arbitrator  within  thirty (30) Days of receipt of notice of the commencement of
the  arbitration,  or  within thirty (30) Days of the receipt of notice from the
LCIA  of  its  grouping  of  the  Parties  to  said dispute, and these three (3)
arbitrators shall constitute the arbitral tribunal and shall select one of their
members  to  be  the  presiding  arbitrator.

          If  there  are four (4) or more Parties who cannot be grouped together
based  on  a common interest and common position in the dispute, or if there are
four  (4)  groups  of Parties or more, then the LCIA shall appoint all three (3)
arbitrators  taking  into  account  the  qualifications agreed herein, and these
three  (3)  arbitrators  shall  select  one of their members to be the presiding
arbitrator.

          If  the  Parties  cannot  agree  within  thirty  (30)  Days  after the
commencement  of the arbitration that they will be grouped together, or how they
will  be  grouped,  for  purposes  of the appointment of an arbitrator, then any
Party  may  request  that the LCIA decide whether, and how, to group the Parties
for  the purposes of appointing an arbitrator, and such decision will be binding
on  the  Parties.

     (D)  Unless otherwise expressly agreed in writing by the Parties to the
arbitration proceedings:

     (1)  The arbitration proceedings shall be held in London, England, and
shall be administered by the LCIA;

     (2)  The arbitration proceedings shall be conducted in the English language
and the arbitrator(s) shall  be  fluent  in  the  English  language;

     (3)  The arbitrator or arbitral tribunal, as the case may be, shall be and
remain at all times wholly independent and impartial;

     (4)  The arbitration proceedings shall be conducted under LCIA Rules, as
amended from time to time;

     (5)     Any  procedural  issues  not  determined  under the arbitral rules
selected pursuant to Section 17.2(C) shall be determined  by  the  law  of  the
place  of  arbitration;

     (6)     The costs of the arbitration proceedings (including attorneys' fees
and  costs)  shall  be  borne in the manner determined by the arbitral tribunal;

     (7)     The decision of the majority of the arbitrators shall be reduced to
writing;  final  and binding without the right of appeal; the sole and exclusive
remedy  regarding  any claims, counterclaims, issues or accountings presented to
the arbitrators; made and promptly paid in U.S. dollars free of any deduction or
offset;  and  any  costs  or  fees incident to enforcing the award, shall to the
maximum  extent  permitted  by  law, be charged against the Party resisting such
enforcement;

     (8)     Special  Damages shall not be allowed except those payable to third
parties  that  are  allocated  by  the  arbitral  award;

     (9)     The  award  shall  include  interest from the date of any breach or
violation  of  this Agreement, as determined by the arbitral award, and from the
date  of  the  award  until  paid  in  full,  at  the  Agreed  Interest  Rate;

     (10)     Judgment  upon  the  award  may  be  entered  in  any court having
jurisdiction  over  the  person or the assets of the party owing the judgment or
application may be made to such court for a judicial acceptance of the award and
an  order  of  enforcement,  as  the  case  may  be;

     (11)     If  the  Parties to this Agreement or others who are bound to this
or  another  similar  arbitration  agreement  initiate  multiple  arbitration
proceedings, the subject matters of which are related by common questions of law
or  fact  and  which could result in conflicting awards or obligations, then the
Parties hereby agree that all such proceedings may be consolidated into a single
arbitral  proceeding;

     (12)     For  purposes of allowing the arbitration provided in this Article
17, the enforcement and execution of any arbitration decision and award, and the
issuance  of  any  attachment  or other interim remedy, any governmental body or
agency which is a Party to this Agreement agrees to waive all sovereign immunity
by  whatever  name  or  title  with respect to disputes, controversies or claims
arising  out  of  or  in relation to or in connection with this Agreement or the
operations  carried  out  under  this  Agreement;  and

     (13)     The arbitration shall proceed in the absence of a party who, after
due notice, fails to answer or appear.  An award shall not be made solely on the
default of a party, but the arbitrator(s) shall require the party who is present
to  submit  such  evidence  as  the  arbitrator(s)  may  determine is reasonably
required  to  make  an  award.

                                   ARTICLE 18
                                   ----------
                               GENERAL PROVISIONS

18.1          Conflicts  of  Interest.
              ------------------------

     (A)     Each  Party undertakes that it shall avoid any conflict of interest
between  its  own  interests  (including  the  interests  of Affiliates) and the
interests  of  the  other  Parties  in dealing with suppliers, customers and all
other  organizations  or  individuals  doing  or seeking to do business with the
Parties  in  connection  with  activities  contemplated  under  this  Agreement.

     (B)     The provisions of the preceding paragraph shall not apply to:

         (1)  A Party's performance which is in accordance with the local
preference laws or policies of the Government; or

         (2)  A Party's acquisition of products or services from an Affiliate,
or the  sale  thereof to an Affiliate, made in accordance with rules and
procedures established  by  the  Operating  Committee.

18.2     Warranties  As  To  No  Payments, Gifts and Loans.  Each of the Parties
         --------------------------------------------------
warrants  that  neither it nor its Affiliates has made or will make with respect
to  the  matters  provided  for hereunder, any offer, payment, promise to pay or
authorization  of  the payment of any money, or any offer, gift, promise to give
or  authorization of the giving of anything of value, directly or indirectly, to
or for the use of benefit of any official or employee of the Government or to or
for  the  use  of benefit of any political party, official, or candidate for the
purpose  of  (i)  influencing  an  official  act or decision of the person; (ii)
inducing  that  person  to  do  or omit to do any act in violation of his or her
lawful  duty; or (iii) inducing that person to use his or her influence with the
Government  to  affect any Government decision unless such offer, payment, gift,
promise or authorization is authorized by the written laws or regulations of the
Republic  of  Equatorial  Guinea.  Each  of  the  Parties  further warrants that
neither  it  nor  its  Affiliates has made or will make any such offer, payment,
gift,  promise or authorization to or for the use or benefit of any other person
if  the  Party  knows,  has  a  firm  belief,  or  is aware that there is a high
probability  that  the other person would use such offer, payment, gift, promise
or  authorization  for  any of the purposes described in the preceding sentence.
The  foregoing warranties do not apply to any facilitating or expediting payment
to  secure  the  performance  of  routine Government action.  Routine Government
action,  for  purposes  of  this  Section  18.2,  shall not include, among other
things, Government action regarding the terms, assignment, award or continuation
of the Contract.  Each Party shall respond promptly and in reasonable detail, to
any  notice  from any other Party or its auditors pertaining to the above stated
warranty  and  representation  and  shall  furnish  documentary support for such
response  upon  request  for  such  other  Party.

18.3          Public  Announcements.
              ----------------------

     (A)     Operator  shall  be  responsible for the preparation and release of
all  public  announcements  and statements regarding this Agreement or the Joint
Operations;  provided  that, no public announcement or statement shall be issued
or  made  unless prior to its release all the Parties have been furnished with a
copy  of  such  statement  or  announcement and the approval of at least two (2)
non-affiliated  Parties  holding  fifty  percent  (50%),  or  more,  of  the
Participating  Interests  has  been  obtained.  Where  a  public announcement or
statement  becomes  necessary or desirable because of danger to or loss of life,
damage  to  property  or  pollution as a result of activities arising under this
Agreement,  Operator  is  authorized  to  issue  and  make  such announcement or
statement  without prior approval of the Parties, but shall promptly furnish all
the  Parties  with  a  copy  of  such  announcement  or  statement.

     (B)     If  a  Party  wishes  to  issue  or make any public announcement or
statement  regarding  this Agreement or the Joint Operations, it shall not do so
unless prior to its release, such Party furnishes all the Parties with a copy of
such  announcement  or  statement,  and obtains the approval of at least two (2)
non-affiliated  Parties holding fifty percent (50%) or more of the Participating
Interests;  provided  that, notwithstanding any failure to obtain such approval,
no Party shall be prohibited from issuing or making any such public announcement
or  statement if it is necessary to do so in order to comply with the applicable
laws,  rules  or  regulations  of  any  government,  legal  proceedings or stock
exchange having jurisdiction over such Party as set forth in Sections 14.1(A)(3)
and  (7).

     (C)     Notwithstanding  Section  18.3(A)  and  Section 18.3(B), any public
announcement or statement regarding this Agreement or the Joint Operations shall
be  in  accordance  with  the  terms  of  the  Contract.

18.4     Successors  and  Assigns.  Subject  to  the  limitations  on  transfer
         -------------------------
contained  in  Article  11 and the Assignment, this Agreement shall inure to the
benefit  of  and  be  binding  upon  the permitted successors and assigns of the
Parties.

18.5     Waiver.  No  waiver by any Party of any one or more defaults by another
         -------
Party  in  the  performance of this Agreement shall operate or be construed as a
waiver of any future default or defaults by the same Party, whether of a like or
of  a  different  character.  Except  as expressly provided in this Agreement no
Party  shall  be  deemed  to have waived, released or modified any of its rights
under this Agreement unless such Party has expressly stated, in writing, that it
does  waive,  release  or  modify  such  right.

18.6     Severance  of  Invalid Provisions.  If and for so long as any provision
         ----------------------------------
of  this  Agreement  shall  be  deemed  to  be  judged  invalid  for  any reason
whatsoever,  such  invalidity  shall not affect the validity or operation of any
other  provision  of  this Agreement except only so far as shall be necessary to
give  effect  to  the  construction  of  such  invalidity,  and any such invalid
provision  shall  be  deemed  severed  from this Agreement without affecting the
validity  of  the  balance  of  this  Agreement.

18.7     Contract  Translation.  The  Parties  agree that the English version of
         ----------------------
the  Contract  attached  hereto as Exhibit B shall be, as among the Parties, the
official  version  of  the  Contract  for  purposes  of applying this Agreement.

18.8          Construction.    In  construing  this  Agreement:
              -------------

     (A)     No  consideration  shall  be given to the captions of the Articles,
Sections,  or  Subsections  which  are  inserted for convenience in locating the
provisions  of  this  Agreement  and  not  as  an  aid  in  its  construction;

     (B)     No consideration shall be given to the fact or presumption that one
Party  had  a  greater  or  lesser  hand  in  drafting  this  Agreement;

     (C)     Examples shall not be construed to limit, expressly or by
implication, the matter they illustrate;

     (D)     The word  "includes" and its derivatives means "includes, but is
not limited to" and corresponding derivative expressions;

     (E)     A  defined  term  has its defined meaning throughout this Agreement
and  each  exhibit,  attachment,  and  schedule to this Agreement, regardless of
whether  it  appears  before  or  after  the  place  where  it  is  defined;

     (F)     The plural shall be deemed to include the singular, and vice versa;

     (G)     Each gender shall be deemed to include the other genders;

     (H)     Each  exhibit,  attachment,  and schedule to this Agreement is a
part of this  Agreement,  but if there is any conflict or inconsistency between
the main body  of this Agreement and any exhibit, attachment, or schedule, the
provisions of  the  main  body  of  this  Agreement  shall  prevail;

     (I)     The  terms  "herein," "hereunder," "hereof," "hereby," and similar
terms refer  to this Agreement as a whole and not to an article, section or
subsection unless  expressly  otherwise  limited;  and

     (J)     Each  reference  to  an Article, Section or Subsection refers to an
Article,  Section  or  Subsection  of  this Agreement unless expressly otherwise
provided.

18.9     Execution by Facsimile. The Parties agree that the signature of a Party
         -----------------------
to  this  Agreement  transmitted  by  facsimile  machine shall be accepted as an
original  signature.  A  Party shall promptly furnish an original signature page
of  this  Agreement  if  requested  by  another  Party.

18.10     Entirety.  This  Agreement  is the entire agreement of the Parties and
          ---------
supersedes  all prior understandings and negotiations of the Parties. Each Party
hereto  does  hereby  expressly  warrant  and  represent  that  no  promise  nor
agreement,  which is not herein expressed has been made to it in connection with
this  Agreement  and  that  neither  Party  is  relying  upon  any statement nor
representation  of  any  employee  or  agent  of the other Parties other than as
provided  herein.  Each  party  is  relying  upon  its own judgment and has been
represented  by  its  own  legal  counsel  in  connection with the execution and
understanding  of  the  legal  consequences  hereof.

18.11     Modification.  Except  as provided in Sections 10.2(B) and 18.6, there
          -------------
shall  be  no  modification  of this Agreement or the Contract except by written
consent  of  all  Parties.

IN  WITNESS  of  their  agreement  Triton and Energy Africa have caused its duly
authorized  representative  to  sign  this  instrument to be effective as of the
Effective  Date.

                                  TRITON  EQUATORIAL  GUINEA,  INC.

                                  By:  ______________________________________
                                       Name:
                                       Title:

                                  ENERGY  AFRICA  EQUATORIAL  GUINEA  LIMITED

                                  By: ______________________________________
                                      Name:
                                      Title:

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