Document:

Exhibit 10.4

 

[Form of Amendment for VP Severance Agreement]

 

AMENDMENT
TO SEVERANCE AGREEMENT

 

THIS AMENDMENT TO SEVERANCE AGREEMENT (“Amendment”), dated effective
as of June 8, 2005 (the “Effective Date”), is made by and between Forest
Oil Corporation, a New York corporation (the “Company”), and                              
(“Executive”).

 

WHEREAS, the Company and Executive have
heretofore entered into that certain Severance Agreement dated                      ,
            (the “Severance
Agreement”);

 

WHEREAS, the Company has elected,
subject to the amendments stated below, to extend the term of the Severance
Agreement for an additional 30-month period past June 14, 2005, so
that the Company will again have the opportunity to review and determine whether
to extend the Severance Agreement during the 30-day period starting on December 14,
2007; and

 

WHEREAS, the Company and Executive
desire to amend the Severance Agreement in certain respects;

 

NOW, THEREFORE, in consideration of the
premises set forth above and the mutual agreements set forth herein, the
Company and Executive hereby agree, effective as of the Effective Date, that
the Severance Agreement shall be amended as hereafter provided:

 

1.                                       The “Witnesseth” section of
the Severance Agreement shall be amended by adding the following new “whereas”
provisions at the end of the existing “whereas” provisions:

 

“WHEREAS, Executive will receive and/or
has received proprietary and confidential trade secret information of the
Company; and

 

WHEREAS, Executive will serve and/or
has served as an executive, management personnel, or officer of the Company;”

 

2.                                       The first sentence of Paragraph 3
of the Severance Agreement shall be amended by adding the following phrase at
the beginning of the sentence: “Subject to the provisions of Paragraph 6(i) hereof,”; with the remainder of the sentence remaining the same.

 

3.                                       Paragraph 3(a) shall be
amended by striking the phrase “last day of Executive’s employment with the
Company” and in its place inserting the phrase “effective date of the release
described in Paragraph 6(i) hereof.”

 

4.                                       Paragraph 4 shall be amended by
inserting immediately after the words “New York” the phrase “on a
non-compounded basis.”

 

5.                                       Paragraph 6(b) shall be
amended by inserting immediately after the words “New York” the phrase “on a
non-compounded basis.”

 

6.                                       A new Paragraph 6(i), with
following language, shall be inserted:

 

 

“(i)                               Release. 
As a condition to the receipt of any benefit under Paragraph 3 hereof,
Executive shall first execute a release, in the form established by the Company,
releasing the Company, its shareholders, partners, officers, directors,
employees and agents from any and all claims and from any and all causes of
action of any kind or character, including but not limited to all claims or
causes of action arising out of Executive’s employment with the Company or the
termination of such employment.”

 

7.                                       Paragraphs 6(i) through
6(m) shall be renumbered 6(j) through 6(n), respectively.

 

8.                                       This Amendment (a) shall
supersede any prior agreement between the Company and Executive relating to the
subject matter of this Amendment and (b) shall be binding upon and inure
to the benefit of the parties hereto and any successors to the Company and all
persons lawfully claiming under Executive.

 

9.                                       As amended hereby, the Severance
Agreement is specifically ratified and reaffirmed.

 

IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Amendment, effective as of the Effective Date.

 

	
   

  	
  FOREST OIL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  

 

2Ex. 10.1  Agreement with Geoffrey Halverson

E-LOAN, INC. 

6230 Stoneridge Mall
Road
Pleasanton, CA 94588  

June 8, 2005 

Mr. Geoffrey Halverson
 6230
Stoneridge Mall Road 
Pleasanton, CA 94588 

	 	
Re:      Employment
Status  

Dear Geoff: 

          This confirms our agreement
regarding your retirement as an officer of E-LOAN, Inc. ("Company") and other
modifications to your employment with E-LOAN, Inc. 

          1.      You have submitted and the
Company has accepted your retirement as an officer, effective as of June 30, 2005.  You
have also submitted and the Company has also accepted your retirement as an employee,
effective September 30, 2005.  At that time, we may agree but are not obligated to extend
your employment for an additional period thereafter, up to December 31, 2005. 

          2.
      If we agree to extend your employment beyond September 30, 2005, as of October 1, 2005, you
will be paid on hourly basis at a rate of $84.13 per hour worked, less necessary
withholdings and authorized deductions, payable pursuant to the Company's regular payroll
practices at the time.  As of that date, your duties will be to provide limited
assistance to the Company as may be reasonably requested to enable a smooth and
professional transition of your duties an employee of the Company to a successor.  We understand that any requested assistance will relate to areas where
you can provide unique assistance. 

 

          3.
         During all periods of your
employment, you will continue to be covered by the Company's personnel, financial and
governance policies as they may be modified from time to time.  Further, on and after
June 30, 2005 you will have no authority to represent or otherwise to bind the Company on
any matter, except as specifically authorized by me in writing.  Continued employment is
conditional upon your compliance with these provisions. 

			Very truly yours,

/s/ Mark E. Lefanowicz
—————————————
Mark E. Lefanowicz

President and Chief Executive Officer

CONFIRMED AND AGREED this 8th day
of June, 2005. 

/s/  Geoffrey Halverson
—————————————————————

                                                     Geoffrey HalversonExhibit 10.4

PARTICIPATION AGREEMENT RELATING TO THE KARAKILISE
LICENSES, TURKEY

DATED

ALADDIN MIDDLE EAST LTD

ERSAN PETROL SANAYII A.S.

TRANSMEDITERRANEAN OIL COMPANY LTD

GUNEY YILDIZI PETROL URETIM SONDAJ MUTEAHHITLIK ve
TICARET A.S.

AVENUE ENERGY INC.

AVENUE GROUP INC.

MIDDLE EAST PETROLEUM SERVICES LIMITED

JKX TURKEY LIMITED

                                       1
<PAGE>

PARTICIPATION AGREEMENT

This Agreement made and entered into as a deed the            day of 2005.

                                    BETWEEN:

(1) ALADDIN MIDDLE EAST LTD, a corporation organized and existing under the laws
of the state of Delaware in the  U.S.A.,  having  offices in the city of Ankara,
the Republic of Turkey at Sogutozu  Caddesi No. 23, 06520 Balgat,  Ankara and in
the city of Wichita, Kansas (hereinafter referred to as "AME");

(2) ERSAN PETROL  SANAYII  A.S.; a  corporation  existing  under the laws of the
Republic of Turkey, having its head office in Ankara (hereinafter referred to as
"Ersan");

(3) TRANSMEDITERRANEAN OIL COMPANY LTD, a corporation existing under the laws of
British  Colombia,   Canada,  having  its  head  office  in  Vancouver,   Canada
(hereinafter referred to as "TMO");

(4)  GUNEY  YILDIZI  PETROL  URETIM  SONDAJ  MUTEAHHITLIK  ve  TICARET  A.S.,  a
corporation  existing under the laws of the Republic of Turkey,  having its head
office in Adiyaman (hereinafter referred to as "GYP");

(5) AVENUE ENERGY INC., a corporation  organized and existing  under the laws of
the State of Delaware,  USA, having offices at Encino,  CA, USA and in Australia
at 34-36 Punt Road, Windsor,  Melbourne,  Australia  (hereinafter referred to as
"Avenue");

(6) AVENUE GROUP INC. (formerly IT Technology Inc.), a corporation organized and
existing under the laws of the State of Delaware,  USA having offices at Encino,
CA,  USA and in  Australia  at 34-36 Punt Road,  Windsor,  Melbourne,  Australia
(hereinafter referred to as "Avenue Group");

(7) MIDDLE EAST PETROLEUM SERVICES LIMITED, a corporation organized and existing
under the laws of the Isle of Man,  United Kingdom having its registered  office
at Norton House,  Farrants Way, Castletown,  Isle of Man, IM9 1NR, British Isles
(hereinafter referred to as "MEPS"); and

(8) JKX TURKEY LIMITED,  a corporation  organized and existing under the laws of
England,  having its  principal  office at 6 Cavendish  Square,  London W1G 0PD,
England (hereinafter referred to as "JKX").

Each  party  may  hereinafter  be  referred  to  individually  as a  "Party"  or
collectively as "Parties". Parties (1), (2), (3) and (4) hereinafter referred to
collectively  as the  "Sayer  Group  Consortium"  or "SGC".  Parties  (1) to (7)
inclusive hereinafter referred to collectively as the "Subordinating Parties".

                                       2
<PAGE>

                                WITNESSETH THAT:

      WHEREAS, AME and Avenue respectively own an 80% and 15% undivided interest
in Exploration Licenses AR/AME-EPS-AVE/2674, 2677 and 2678 in Petroleum District
XI,  Diyarbakir,  in the Republic of Turkey  comprising  122,943  hectares which
licenses  were  granted  on an initial 4 year term on 30  November  2002 and the
Karakilise-1  Well which was drilled and put on test  production on 15 September
2003 and in any other  "License"  (as  "License"  is defined in Article 1 of the
Current JOA (as hereinafter defined)  (hereinafter  collectively  referred to as
the "Exploration Licenses"); and

      WHEREAS,  Ersan  owns an  undivided  five  percent  (5%)  interest  in the
Karakilise  Licenses and is the  registered  holder under GDPA Decision No. 4900
dated 1 June 2004 of a seven  point five  percent  (7.5%)  royalty  interest  in
Petroleum  (as  defined  in  Article 1 of the  Current  JOA)  produced  from the
Karakilise  Licenses.  Ersan holds two point five percent (2.5%) of such royalty
interest  for itself and the  remaining  five  percent  (5%) as trustee for MEPS
pursuant to Clause 2.4(c) of the  Participation  Agreement dated 22 January 2004
between SGC, Avenue and MEPS.  Ersan has agreed to relinquish its two point five
percent  (2.5%)  royalty  interest and shall from the Effective Date hold only a
five  percent  (5%)  royalty  interest  on trust  for MEPS (the  "ERSAN  Royalty
Interest")  which royalty is  calculated  in  accordance  with the existing GDPA
Decision No. 4900 dated 1 June 2004; and

      WHEREAS, JKX has agreed to participate in the drilling of the Karakilise-2
Appraisal Well on the terms of this Agreement; and

      WHEREAS, in exchange for such  participation,  AME has offered to transfer
an  undivided  twenty  five  point  five  percent  (25.5%)  interest  (the  "AME
Interest")  and Avenue has  offered to  transfer  an  undivided  four point five
percent (4.5%)  interest (the "Avenue  Interest") in the Karakilise  Licenses to
JKX including the  Karakilise-1  Well,  the Karakilise -2 Appraisal Well and the
present and future rights to any production lease(s) in the Exploration Licenses
(hereinafter collectively referred to as the "Karakilise Licenses");  and secure
that any parties who have any future or present  rights,  asserted or unasserted
claims or causes of action in the  Karakilise  Licenses  shall  subordinate  and
waive, as appropriate,  such rights, claims or interests to the aggregate thirty
per cent (30%) undivided  interest in the Karakilise  Licenses to be transferred
to JKX; and

      WHEREAS,   the  Subordinating   Parties  agree  in  consideration  of  JKX
participating  in the  Karakilise-2  Appraisal  Well and taking the  Transferred
Interest  (as  defined  below) to  subordinate  and waive,  as  provided in this
Agreement,  any  present or future  rights,  asserted  or  unasserted  claims or
interests affecting said Transferred Interest;

      WHEREAS,  JKX desires to acquire the AME Interest from AME and acquire the
Avenue Interest from Avenue on the terms of this Agreement; and

                                       3
<PAGE>

      WHEREAS,  AME, Ersan and Avenue are the only  participants  and parties to
the current Joint Operating  Agreement dated 22 October 2004 which regulates the
operations under the Karakilise  Licenses  attached as Exhibit A ("Current JOA")
and which shall be terminated  and replaced by a new Joint  Operating  Agreement
attached  as  Exhibit B (the "New  JOA") on the  Transfer  Date (as  defined  in
Article 1.2 below); and

      WHEREAS, AME, Avenue, Ersan and JKX agree to become parties to the New JOA
on the Transfer Date; and

      WHEREAS,  AME,  Ersan  and  Avenue  are the only  parties  to the  Turnkey
Drilling  Contract  dated 22 January 2004 for the  drilling of the  Karakilise-2
Appraisal Well between AME, Ersan and Avenue ("Turnkey  Drilling  Contract") and
which shall be terminated on or before the Transfer Date;

      NOW,  THEREFORE,  for and in  consideration  of the terms,  conditions and
covenants hereinafter set forth, it is agreed as follows:

1. ASSIGNMENTS

1.1 As from the date of this Agreement (the  "Effective  Date") and subject only
to fulfillment of the conditions set out in Article 5 and receipt of the payment
required in Article 2.4.1, AME and Avenue hereby respectively transfer,  assign,
convey and set over unto JKX good and clear  title to the AME  Interest  and the
Avenue Interest in the Karakilise  Licenses (the aggregate  undivided thirty per
cent (30%) interest,  the  "Transferred  Interest") free and clear of any claim,
mortgage,  charge, pledge,  hypothecation,  lien, assignment by way of security,
title  retention,  option,  right  to  acquire,  right of  preemption,  right of
set-off,  counterclaim,  trust arrangement, or any other security,  preferential
right,  equity or  restriction  or overriding  royalty  obligations  of any type
whatsoever   and  any   agreement  to  give  or  create  any  of  the  foregoing
("Encumbrances")  as at the  Effective  Date except for:  (i) the ERSAN  Royalty
Interest;  (ii)  Government  royalties  accruing from the Effective  Date to the
Republic of Turkey (both (i) and (ii) being the "Royalty Interests");  and (iii)
the  claims  set out at  Exhibit  D. JKX shall  hold the  Transferred  Interest,
together  with all  rights,  benefits  and  advantage  to be derived  therefrom,
absolutely.  AME and Avenue  severally  covenant,  represent and declare (AME in
respect of the AME Interest and Avenue in respect of the Avenue  Interest) that,
except for the  Royalty  Interests  and the claims set out in Exhibit D, the AME
Interest and Avenue Interest shall not be burdened by any Encumbrance  affecting
the AME  Interest or Avenue  Interest or any right to  ownership or any claim to
current  or  future  production  from  the  Karakilise   Licenses  of  any  type
whatsoever.

1.2 The date upon which the conditions  stated in Article 5 are fulfilled  shall
be the "Transfer  Date".  The period of time between the Effective  Date and the
Transfer Date shall be the "Interim  Period".  During the Interim Period AME and
Avenue  shall  consult  and  agree  in  advance  with  JKX all  matters  due for
consideration or vote under the Current JOA in the "Operating  Committee" and on
all  matters  affecting  or  likely  to  affect  the  "Joint  Account",   "Joint
Operations", "Joint Petroleum" and "Joint Property" as such terms are defined in
Article 1 of the Current  JOA;  and AME and Avenue  shall (AME in respect of the
AME Interest and Avenue in respect of the Avenue  Interest)  treat JKX as if JKX
were in fact the holder of the AME Interest and the Avenue  Interest as from the
Effective Date, save that no liability shall accrue to JKX under the Current JOA
or otherwise  in  connection  with the  Karakilise  Licenses  during the Interim
Period (other than as expressly provided in this Agreement).

                                       4
<PAGE>

2. CONSIDERATION

2.1 Karakilise-2 Appraisal Well

2.1.1 AME spudded  the  Karakilise-2  Appraisal  Well on 27  September  2004 and
drilling  commenced on 3 November 2004. AME is the drilling  contractor for such
operations  and is drilling the well on a turnkey basis  pursuant to the Turnkey
Drilling  Contract and in accordance with the Spudding  Statement,  (attached as
Exhibit C).

2.1.2 The Dry Hole Turnkey Price for the operations  relating to the drilling of
the Karakilise-2  Appraisal Well includes  drilling to any section within Mardin
group formation(s) in which  commercially  viable oil is tested or the bottom of
the Mardin group  formations if no commercially  viable oil is tested  ("Turnkey
Depth").

The  cost  of  completing  the  Karakilise-2   Appraisal  Well,   including  the
installation  of a suitable down hole pump, is US$644,767 (six hundred and forty
four thousand seven hundred and sixty seven US dollars) in aggregate.

Upon  execution of this  Agreement,  JKX agrees to pay its share of the Dry Hole
Turnkey  Price,  being the sum of  US$894,156  (eight  hundred  and ninety  four
thousand  one hundred and fifty six US  dollars) in  aggregate;  of such sum the
amount of  US$760,033  (seven  hundred and sixty  thousand  and thirty  three US
dollars)  shall be payable to AME and the amount of US$134,123  (one hundred and
thirty four  thousand one hundred and twenty three US dollars)  shall be payable
to Avenue.

JKX will be responsible  for the payment of its share of the  completion  costs,
amounting to US$193,430  (one hundred and ninety three thousand four hundred and
thirty US dollars) in aggregate, within three (3) days following commencement of
completion   activities  only  if  there  is  "commercial  oil"  tested  in  the
Karakilise-2  Appraisal  Well,  and this  entire  sum shall be  payable  to AME.
Whether the oil shall be qualified as  "commercial  oil" shall be  determined by
agreement of JKX, Avenue and AME.

2.2 Backcosts - Karakilise Field

To date, AME, as operator under the JOA of the Karakilise Licenses, has incurred
infrastructure costs with regard to the License Area (as defined in Article 1 of
the  Current  JOA),   including  but  not  limited  to:  road  construction  and
reinforcement,  camp facilities, crude oil storage tanks and electrification.  A
detailed  list of  such  infrastructure  costs  is  attached  as  Exhibit  L and
comprises  the Joint  Property  of the  Current  JOA.  The  total  cost for such
infrastructure amounted to US$882,233 (eight hundred and eighty two thousand two
hundred  and thirty  three US dollars)  in  aggregate.  JKX agrees to pay thirty
percent (30%) of such infrastructure costs, amounting to US$264,669 (two hundred
and sixty four thousand six hundred and sixty nine US dollars) in aggregate upon
execution  of  this  Agreement  in  accordance  with  Article  2.4,  and of such
aggregate  sum JXK shall pay the amount of  US$224,969  (two  hundred and twenty
four  thousand  nine hundred and sixty nine US dollars) to AME and the amount of
US$39,700 (thirty nine thousand seven hundred US dollars) to Avenue.

                                       5
<PAGE>

2.3 Backcosts - Karakilise-1 Exploration Well

JKX shall be  responsible  for 30% (thirty  percent) of the cost of drilling and
completion of the  Karakilise-1  Exploration  Well  ("Karakilise-1  backcosts"),
being the sum of US$759,998  (seven hundred and fifty nine thousand nine hundred
and ninety eight US dollars) in aggregate.  Of this aggregate sum, JKX shall pay
the amount of US$379,999  (three  hundred and seventy nine thousand nine hundred
and ninety nine US dollars) to AME and the amount of US$379,999  (three  hundred
and seventy  nine  thousand  nine hundred and ninety nine US dollars) to Avenue.
Payment of this amount shall be made in  accordance  with  Article  2.4.3 and in
installments  equal to the Net Revenues (as defined and  specified in Article 3)
received by JKX from the  Karakilise-1  Well from the Effective  Date as well as
from  any  other  producing  wells in the area  the  subject  of the  Karakilise
Licenses after the Effective Date.

2.4 Payment & Election

2.4.1 Upon execution of this  Agreement,  JKX shall pay its thirty percent (30%)
share of (i) the Turnkey  Price in the amount of US$894,156  (eight  hundred and
ninety four thousand one hundred and fifty six US dollars) in aggregate, of such
sum the amounts  payable to AME and Avenue shall be as set out in Article 2.1.2;
and (ii)  US$264,669  (two hundred and sixty four thousand six hundred and sixty
nine US dollars) in aggregate in respect of  infrastructure  costs,  of such sum
the amounts payable to AME and Avenue shall be as set out in Article 2.1.2.

2.4.2 JKX shall pay its  thirty  percent  (30%)  share of the  completion  costs
referred  to in Article  2.1.2,  in the amount of  US$193,430  (one  hundred and
ninety three thousand four hundred and thirty US dollars) in aggregate,  of such
sum the entire  amount is payable  to AME as set out in  Article  2.1.2,  within
three (3) Days following  commencement of completion activities only if there is
"commercial  oil" tested in the  Karakilise-2  Appraisal  Well.  Whether the oil
shall be qualified as "commercial  oil" shall be determined by agreement of JKX,
AME and Avenue.

                                       6
<PAGE>

2.4.3 JKX shall pay its thirty percent (30%) share of the Karakilise-1 backcosts
referred to in Article 2.3 in the amount of US$759,998  (seven hundred and fifty
nine thousand  nine hundred and ninety eight US dollars) in  aggregate,  of such
sum the amounts  payable to AME and Avenue  shall be as set out in Article  2.3.
JKX shall pay this amount in installments  equal to the Net Revenues (as defined
in Article 3) received by JKX from the  Karakilise-1  Exploration  Well from the
Effective  Date as well as from any  other  producing  wells  in the  Karakilise
Licenses  after the Effective  Date and payments  shall begin after the Transfer
Date on the date three (3) Days after the monies  from the  Revenue  Account (as
hereinafter defined) have been transferred for value to the account nominated by
JKX in accordance with Article 3.3.

3. REVENUES

3.1 AME shall open a new Turkish Lira ("YTL") bank account within seven (7) Days
after the Effective Date with the account name of "JKX" (the "Revenue Account").
AME and JKX shall each  nominate an officer to be the two joint  signatories  of
the Revenue Account. JKX shall be the sole beneficiary of the monies standing to
the credit of the Revenue  Account.  No withdrawals  shall be permitted from the
Revenue Account unless both the AME and JKX representative  signatory give their
prior written consent to such withdrawal.  AME shall provide JKX and Avenue each
month with a bank statement setting out the Revenue Account balance.

3.2 Subject to Article 2 above,  and during the Interim  Period,  AME and Avenue
shall ensure that the "Net Revenues"  attributable to the  Transferred  Interest
shall be paid to the Revenue Account.  For the purposes of this Agreement,  "Net
Revenues" means the aggregate of gross revenues  attributable to the Transferred
Interest from: (i) production from the Karakilise Licenses  (including,  but not
limited to, receipts under the Crude Oil Sale Agreement dated 15 February 2002);
(ii) Joint Operations under the Current JOA during the Interim Period; and (iii)
Joint  Operations  under the New JOA,  less the  Royalty  Interests.  During the
Interim Period,  Royalty  Interests shall be paid promptly by AME as Operator of
the Karakilise  Licenses on behalf of the Interest Owners.  For the avoidance of
doubt,  in  calculating  Net Revenues no  deduction  shall be made in respect of
cash-calls,  AFEs or for any capital  expenses  under the Current JOA or New JOA
and there shall be no set-off in respect of any  obligations or  indebtedness of
JKX against the Revenue Account.  JKX's  entitlement to the proceeds of the sale
of crude oil produced in the areas subject to the  Karakilise  Licenses shall be
calculated in accordance  with the worked example  attached as Exhibit K and AME
shall provide JKX with  reasonable  supporting data regarding its entitlement to
proceeds during the Interim Period.

3.3 AME shall wire transfer for value on the Transfer  Date the monies  standing
to the  credit of the  Revenue  Account  to a YTL  account  nominated  by JKX in
writing.  From the Transfer Date, AME and Avenue shall procure that all revenues
attributable  to the  Transferred  Interest  (including,  but  not  limited  to,
receipts under the Crude Oil Sales  Agreement dated 15 February 2002) during the
Interim Period shall be paid into such nominated account.

                                       7
<PAGE>

3.4 Within five (5) Days after completion of the transfer of monies contemplated
by Article 3.3, AME and JKX shall close the Revenue Account.

4. JOINT OPERATING AGREEMENT

4.1 JKX, AME, Ersan and Avenue agree to execute the New JOA on the Transfer Date
in identical form to that attached as Exhibit B.

4.2 Until JKX  becomes a  Petroleum  Rights  Holder,  AME,  as  Operator  of the
Karakilise Licenses,  shall provide JKX with all financial information regarding
any joint operations on a monthly basis.

5. COMPLETION

5.1 AME,  Avenue and JKX acknowledge and agree that completion of the respective
official  transfers and assignments by AME and Avenue to JKX of the AME Interest
and Avenue Interest are subject to the following conditions being fulfilled. AME
and Avenue  (or AME if such  condition  relates  only to AME) shall use its best
endeavours to satisfy the  conditions in (ii),  (iii),  (iv) (vi) and (ix).  JKX
shall give AME and Avenue  reasonable  assistance in satisfying  such conditions
and shall use its best endeavours to satisfy the conditions (i) and (vii).  AME,
Avenue and JKX shall use their  reasonable  endeavours  to jointly  satisfy  the
conditions in (v). AME and JKX shall use their reasonable  endeavours to satisfy
the condition in (viii).

      (i) Within 45 days following signature of this Agreement, JKX, or a wholly
      owned subsidiary of JKX, shall submit an application to the GDPA to become
      a Petroleum  Right  Holder in the  Karakilise  Licenses in the Republic of
      Turkey  under  the  Petroleum  Law.  JKX  shall  provide  notice  of  such
      application to AME and Avenue pursuant to Article 17.1 within 2 days after
      it has  submitted  such  application.  Within 2 days after receipt of such
      notice,  AME and  Avenue  shall  submit  applications  to the GDPA for the
      transfer and assignment of the AME Interest and Avenue  Interest to JKX so
      that JKX, or its wholly  owned  subsidiary  will become a Petroleum  Right
      Holder in the Karakilise Licenses;

      (ii) The delivery by AME and Avenue to JKX of the  written,  unconditional
      consent and approval of the GDPA to:

            (a) the transfer and assignment to JKX of the Transferred Interest;

            (b)  Ersan's  relinquishment  of its two point five  percent  (2.5%)
            royalty interest in Petroleum produced from the Karakilise  Licenses
            and registration of Ersan as a holder of a five percent (5%) royalty
            interest in Petroleum  produced  from the  Karakilise  Licenses with
            confirmation that the Ersan Royalty Interest is at five percent (5%)
            and is  calculated on the same basis as set out in GDPA Decision No.
            4900 dated 1 June 2004 and the worked  example  attached  as Exhibit
            K);

                                       8
<PAGE>

      (iii) The delivery by AME and Avenue of an original  executed deed (in the
      form attached as Exhibit E) pursuant to which Ersan  relinquishes  its two
      point five per cent (2.5%) royalty interest in Petroleum produced from the
      Karakilise Licenses.

      (iv)  Termination of the Current JOA and delivery of an original  executed
      deed of termination and waiver (in the form attached as Exhibit F).

      (v)  Execution by AME,  Avenue,  Ersan and JKX of the New JOA in identical
      form to that set out in Exhibit B.

      (vi) Delivery of an original  deed  executed by AME,  Avenue and Ersan (in
      the form attached as Exhibit G) under which they waive any rights  arising
      or capable of  arising  under the  Turnkey  Drilling  Contract  that could
      affect the Transferred  Interest  (including any right that JKX has or may
      have to production  from the Karakilise  Licenses and any rights under the
      New JOA including the Joint Account thereunder).

      (vii)  Evidence  that  JKX,  or a  wholly  owned  subsidiary  of JKX,  has
      registered  a branch  office  in the  Republic  of  Turkey  with the GDPA,
      Ministry of Trade and Industry and the relevant Trade Registry Office.

      (viii)  Delivery  of an  original  executed  crude oil sale  agreement  in
      respect of the Karakilise Licenses (in the form attached as Exhibit H).

      (ix)  Delivery by AME to JKX of evidence  satisfactory  to JKX that Mehmet
      Bal's claims as plaintiff in case 2003/498 (as  particularized  in Exhibit
      D) and any other claim that Mehmet Bal may have in relation to the subject
      matter of case 2003/498 have been fully and finally waived or settled.

Within  two (2)  business  days  following  receipt  of the  last  documentation
evidencing fulfillment of the conditions set out above AME and Avenue shall sign
and deliver  separate  interest  assignment  agreements  in the form attached as
Exhibit I evidencing the assignment of the AME Interest and the Avenue  Interest
with effect from the Effective Date.

5.2 AME and Avenue  shall each use its best  efforts to procure  the consent and
approval of the GDPA of all the transfers and assignments to JKX hereunder on or
before 150 (one  hundred  and  fifty)  days from  submission  to the GDPA of the
relevant  applications  for  transfer  and  assignment.  If  such  consents  and
approvals  have  not  been  secured  by this  date or have  been  given on terms
unacceptable  to JKX, JKX may terminate this Agreement  without any liability to
AME, Avenue or the Subordinating Parties whatsoever and without prejudice to its
accrued  rights  hereunder by giving a written  notice of termination to AME and
Avenue and AME and Avenue shall repay to JKX within fourteen (14) days following
such notice any and all sums paid by JKX under this Agreement from the Effective
Date and this Agreement shall terminate. JKX shall provide reasonable assistance
to AME and Avenue in their  applications  to the GDPA  pursuant to this  Article
5.2.

                                       9
<PAGE>

5.3 AME  shall  use its best  efforts  in the  Interim  Period to carry out such
operations in good faith and in the best interests of JKX and the holders of the
Karakilise  Licenses  and by doing  so shall  act as a  Reasonable  and  Prudent
Operator, as defined in Article 1 of the Current JOA.

5.4 After the Transfer Date AME, Avenue, Ersan and JXK's participating interests
in the Karakilise  Licenses shall be in accordance with Part B of Exhibit J. JKX
shall share,  together with the other New JOA  participants,  in accordance with
their  respective  participating  interests  (expressed as a percentage)  in the
liabilities and expenses properly incurred by the New JOA Operator under the New
JOA and in credits  to the Joint  Account.  JKX's  liability  and Joint  Account
balance  shall be nil on the Transfer  Date.  Each party to the New JOA shall be
responsible  for filing its own corporate tax returns,  and payment of corporate
tax,  withholding taxes, and third party liabilities (as stated in Article 68 of
the Petroleum Regulations of the Republic of Turkey). Royalty Interests shall be
paid  promptly by AME as Operator  of the  Karakilise  Licenses on behalf of the
parties to the New JOA.

5.5 Oyman Sayer is the joint representative of the Karakilise Licenses and shall
be appointed as the joint  representative by JKX and the  Subordinating  Parties
for the Karakilise  Licenses with the GDPA and any other agency or department of
the  Government  of the Republic of Turkey as required  under the  Petroleum Law
once JKX is registered as a Petroleum  Right Holder in the Karakilise  Licenses.
From the  Effective  Date,  AME shall  procure  that Oyman Sayer  reports to JKX
regularly,  as  required  by JKX,  on the  conduct of all  discussions  with and
documents  submitted  to the GDPA and any  other  agency  or  department  of the
Government of the Republic of Turkey.

5.6 JKX agrees to  execute an agreed  Turkish  text  translation  of the New JOA
within 21 days following the Transfer Date. The English text versions of the New
JOA shall from the date consent is received to the  transfer of the  Transferred
Interest,  govern  the  operations  in respect of the  Karakilise  Licenses  and
establish the rights and  obligations  between AME,  Avenue,  Ersan and JKX. The
Turkish  translation will although signed by JKX not become effective as between
AME,  Avenue,  Ersan and JKX in any dispute under this  Agreement or the JOA but
the  Turkish  translation  will  be  submitted  to the  General  Directorate  of
Petroleum Affairs of Turkey ("GDPA") and other Governmental agencies as required
as part of the registration process.

6. INTERIM PERIOD

6.1 During the Interim Period, each of AME and/or Avenue shall respectively:

                                       10
<PAGE>

      (i) hold the AME Interest or Avenue  Interest and all  proceeds,  benefits
      and  interests  accruing to the AME  Interest or Avenue  Interest on trust
      (including all sales proceeds  received and Net Revenues  attributable  to
      the AME  Interest  and Avenue  Interest)  for the  benefit of JKX  without
      entitlement of AME on Avenue at any time to co-mingle any monies or assets
      attributable  to the same with  their own or any  other  assets  except as
      provided  under  Article  3  of  this  Agreement.   If  any  Net  Revenues
      attributable  to, or proceeds,  benefits and advantages  accruing to or in
      respect of, the AME  Interest or Avenue  Interest  are  received by AME or
      Avenue, such sums shall be paid to the Revenue Account within two (2) days
      following receipt;

      (ii) as between itself and JKX and as between each other,  recognize JKX's
      right, title and interest in and to the Karakilise  Licenses and deal with
      JKX as if it were an owner thereof;

      (iii) not assign,  encumber or otherwise  affect title to the AME Interest
      or Avenue Interest in the Karakilise Licenses;

      (iv) agree with JKX in advance on all matters to be discussed,  voted upon
      or considered by the Operating Committee;

      (v) not,  without JKX's prior written  consent,  agree to any amendment or
      alteration of the Current JOA or any other  agreement  relating to the AME
      Interest or Avenue  Interest or otherwise  commit or agree to make or give
      any  undertaking,  under any  expenditures  or enter into any  arrangement
      affecting  the AME  Interest  or  Avenue  Interest  in any way  except  as
      provided for in this Agreement;

      (vi)  exercise its rights under the Current JOA in such a way as to ensure
      and take all action  necessary to ensure that no Exclusive  Operation  (as
      defined in the  Current  JOA) is  conducted  in respect of the  Karakilise
      Licenses,  except  in the  event  that  JKX does  not  participate  in the
      completion  of  the  Karakilise-2  Appraisal  Well  and  the  Karakilise-2
      Appraisal  Well  is  completed  by  AME  and  Avenue,  in  such  case  the
      Karakilise-2 Appraisal Well shall, from the Transfer Date, be deemed to be
      an Exclusive Operation of AME and/or Avenue under the New JOA; and

      (vii) secure that:  JKX's interest in the Karakilise  Licenses is noted on
      related insurance  policies,  JKX is named as a co-insured on such polices
      and JKX's rights  under such  policies are not  subrogated  without  JKX's
      prior written consent.

6.2 During the Interim  Period,  expenditure on the Joint  Operations  shall not
exceed  the   expenditure   related  to  the  drilling  and  completion  of  the
Karakilise-2  Appraisal Well as detailed in this  Participation  Agreement.  The
current  routine  operating  costs for the Karakilise  Licenses shall not exceed
US$40,000 (forty thousand US dollars) per calendar month or such pro rata amount
for periods less than one month.

                                       11
<PAGE>

6.3 In respect of all payments made under Article 6.2 during the Interim  Period
AME shall provide JKX with monthly statements no later than the 25th day of each
month giving full  particulars of each item of such  expenditure  and reasonable
supporting data and calculations. In no event shall JKX's liabilities in respect
of the routine operating costs exceed the amount attributable to the Transferred
Interest  nor the  threshold  amount in Article  6.2. JKX shall pay its share of
accrued  routine  operating  costs on the Transfer Date. In the event VAT and/or
Withholding  Tax is due on such invoices JKX will be responsible  for payment of
any such tax. All prices in this Agreement are in net terms.

6.4 If the application of JKX to be registered as a Petroleum Right Holder or as
the owner of the  Transferred  Interest  with the GDPA is: (a)  rejected  or (b)
granted on terms  unacceptable  to JKX,  then AME and Avenue  shall pay back the
amount  corresponding to all payments made during the Interim Period,  within 14
(fourteen) days following receipt of JKX's notice demanding the same.

7. REPRESENTATIONS AND WARRANTIES OF AME, AVENUE AND THE SUBORDINATING PARTIES

7.1 AME and Avenue each  severally  represent and warrant to JKX that, as of the
Effective Date:

      (i) the  Karakilise  Licenses  are in good  standing and in full force and
      effect  and were  entered  into and  granted in full  compliance  with all
      applicable laws and regulations of the Republic of Turkey;

      (ii) it has the right and  authority  to transfer and assign the legal and
      beneficial   ownership  of  the  AME  Interest  or  Avenue   Interest  (as
      applicable) to JKX under the terms and conditions contained herein;

      (iii) it has done no act or permitted  any  omission  which would or could
      give  rise  to,  cause  or be the  basis or  revocation,  invalidation  or
      termination of the Karakilise Licenses;

      (iv) there are no unasserted or pending, threatened or outstanding claims,
      lawsuits,   judgments  of  a  court  of  law,   arbitration   criminal  or
      administrative  proceedings  threatened or pending and there are no events
      or   circumstances   (including  the  signature  or  performance  of  this
      Agreement)  likely  to give  rise to the same,  affecting  the  Karakilise
      Licenses,  the  Transferred  Interest or any rights of production that may
      arise  from the area  subject  to the  Karakilise  License  other than the
      lawsuits described in Exhibit D;

                                       12
<PAGE>

      (v)  all  obligations  contained  in  the  Karakilise  Licenses  requiring
      performance  on or  before  the  date  of  giving  or  repetition  of this
      representation have been fully performed;

      (vi) it has the right and  authority  to  create  valid  trusts of the AME
      Interest or Avenue Interest (as applicable) and all proceeds, benefits and
      interests  accruing  thereto  prior to the transfer and  assignment of the
      legal and beneficial  ownership of the AME Interest and Avenue Interest to
      JKX on the Transfer Date;

      (vii) it has at all times  complied  with the  Karakilise  Licenses and no
      event has occurred or  circumstances  exist which would or could give rise
      to cause or be the basis of revocation, invalidation or termination of any
      of the Karakilise Licenses;

      (viii) save as  disclosed  herein in relation to the Royalty  Interests it
      has not transferred or assigned to any Person,  or granted or permitted or
      suffered to subsist any  Encumbrance  of any kind and in any manner on any
      of the rights held by it under the  Karakilise  Licenses,  or agreed to do
      so, and the Karakilise Licenses are free and clear of all Encumbrances;

      (ix) its  execution,  delivery and  performance of this Agreement does not
      and will not:

            (a) conflict with;

            (b) result in a breach of;

            (c) constitute a default under;

            (d)  accelerate  or  permit  the  acceleration  of  the  performance
            required by;

            (e)  permit  the  exercise  of or  give  rise to the  giving  of any
            required  notice  with  respect  to  any  right  of  consent  or any
            preferential  purchase right,  option or right of first refusal with
            respect to;

            (f) (except as referred to in Article 5.1 (i) and (ii))  require any
            consent, authorization or approval under;

            (g) give rise to a right of termination under or materially  modify;
            or

            (h) (except as referred to in Article 6.1) result in the creation or
            imposition of any Encumbrance upon,

                                       13
<PAGE>

            the Karakilise  Licenses or any other material  agreement,  license,
            permit,  consent or instrument to which it is a party or is subject,
            or under the Petroleum Law;

      (x) it has  delivered  a  true,  correct  and  complete  copy  of (i)  the
      interests held in the  Karakilise  Licenses (as set out in Exhibit J) (ii)
      all  material  correspondence  between  it,  on  the  one  hand,  and  the
      Government  of the  Republic  of  Turkey  or  any  department,  agency  or
      authority  thereof   (including  any  local  or  regional   government  or
      governmental  agency or  authority),  on the other  hand,  relating to the
      Karakilise  Licenses (iii) all agreements between it and all or any of the
      other  Parties  relating  in any way to or that may in any way  affect the
      Karakilise Licenses or the arrangements contemplated in this Agreement and
      (iv) all  material  technical,  accounting,  geological,  geophysical  and
      geotechnical  data in its  possession or control  regarding the Karakilise
      Licenses and the areas covered thereby;

      (xi) in conducting operations with respect to the areas the subject of the
      Karakilise Licenses and in relation to the Karakilise Drilling Program, it
      has:

            (i) complied in all respects  with the terms and  conditions  of the
            Karakilise  Licenses and all applicable  laws and regulations of the
            Republic of Turkey;

            (ii)  obtained  and  (to  the  extent  such   operations  have  been
            undertaken)  complied  with  all  requisite  permits,  licenses  and
            authorizations (including as extended, if applicable) required under
            such laws and regulations; and

            (iii) incurred no obligations or liabilities  (whether liquidated or
            unliquidated,  fixed or contingent, known or unknown) related to the
            area the subject of the Karakilise  Licenses except as expressly set
            forth in the terms of the  Karakilise  Licenses  and as disclosed in
            Exhibit L in respect of the Karakilise 2 Appraisal Well;

      (xii)  the  information  contained  in  Exhibit  J is true,  accurate  and
      complete in all respects;

      (xiii) any trust  created of an overriding  royalty  interest in favour of
      MEPS  in  the   Karakalise   Licenses   pursuant  to  Clause   2.4(c)  the
      Participation  Agreement  dated 22 January  2004  between  AME,  Ersan and
      Avenue is validly  constituted  and shall be calculated in accordance with
      the worked example attached as Exhibit K; and

      (xiv) it is able to declare the trusts  contemplated in Article 6 and such
      trusts  shall be  recognized  and  validly  constituted  under the laws of
      Turkey.

                                       14
<PAGE>

7.2 AME,  Avenue and the  Subordinating  Parties,  each severally  represent and
warrant to JKX that:

      (i) Part A of Exhibit J is a true, correct and complete  representation of
      the interests held in the  Karakilise  Licenses  immediately  prior to the
      Effective Date;

      (ii) as of the Effective Date, part B of Exhibit J is a true,  correct and
      complete representation of the interests in the Karakilise Licenses;

      (iii)  it  is  the  presently  held  intention  of  AME,  Avenue  and  the
      Subordinating  Parties that on the  occurrence of the Transfer Date part C
      of  Exhibit  J is a  true,  correct  and  complete  representation  of the
      interests held in the Karakilise Licenses; and

      (iv) neither it, nor any of its directors,  company officials or employees
      is a beneficiary  of, and shall not assert any claim to, the ERSAN Royalty
      Interest.

7.3 On the  Transfer  Date,  AME,  Avenue  and the  Subordinating  Parties  each
severally  represent  and  warrant  to JKX that  Part C of  Exhibit J is a true,
correct and complete  representation of the interests in the Karakilise Licenses
as of the Transfer Date.

8. MUTUAL REPRESENTATIONS AND WARRANTIES

8.1 Each of the Parties hereby represents and covenants to the other that:

      (i) it is duly  organized  and  validly  existing  under  the  laws of the
      jurisdiction of its incorporation  and in those  jurisdictions in which it
      owns assets;

      (ii) it has full corporate  power,  authority and right to enter into this
      Agreement  and to execute  the  transactions  contemplated  herein and the
      execution,  delivery  and  performance  of the  Agreement  have  been duly
      authorized by all necessary corporate action;

      (iii) the  performance of this Agreement will not violate any agreement or
      instrument to which such Party is bound, or any judgment,  decree,  order,
      statute, rule or regulation applicable to such Party;

      (iv) it has the financial  capability to participate  in the  exploration,
      appraisal and development projects in the Karakilise Licenses; and

      (v) this Agreement  constitutes a legal,  valid and binding  obligation of
      such Party.

8.2 AME,  Avenue and the  Subordinating  Parties  shall be deemed to restate the
representations  and  warranties  set out in Article 7 and this Article 8 to JKX
immediately  prior  to the  Transfer  Date  by  reference  to the  circumstances
subsisting  at that time and shall not merge in the  completion  on the Transfer
Date.

                                       15
<PAGE>

8.3 JKX and the  Subordinating  Parties  acknowledge  and accept that each other
party is entering into this Agreement in reliance upon the  representations  and
warranties made by each of them hereunder.

8.4  Subject  as  specifically   provided  otherwise  in  this  Agreement,   the
representations  and warranties  shall remain in full force and effect after the
Transfer Date.

9. SUBORDINATION, WAIVER AND RELINQUISHMENT

9.1 Save for in accordance  with Article 9.2, 9.3 and 9.4,  AME,  Avenue and the
Subordinating  Parties agree that any rights or claims that each has or may have
in the future arising out of, or in connection with, the Karakilise  Licenses or
Licenses (as defined in Article 1 of the Current JOA)  pursuant to any agreement
(oral  or  written),   trust  (actual,   constructive  or  otherwise)  or  other
arrangement including, but not limited to:

      (i) the  assignment  and release  agreement  effective as of 10 March 1995
      between Hunt International Petroleum Corporation and AME;

      (ii) the farm in and  participation  agreement  dated 14 November  2002 in
      relation  to 31  exploration  licenses  and 2  production  leases  held by
      members of the Sayer Group  Consortium  in the Republic of Turkey  between
      AME, Ersan, TMO, GYP, Avenue, Avenue Group and MEPS (as such agreement has
      been amended,  including, but not limited to the amending agreements dated
      20 December 2002 and 31 July 2003);

      (iii) the Memorandum of Understanding  dated 22 May 2003 between the Sayer
      Group Consortium, Avenue and MEPS;

      (iv) the joint operating  agreement in respect of the Karakilise  Licenses
      dated 22 January 2004 between AME, Ersan and Avenue;

      (v) the  participation  agreement dated 22 January 2004 relating to Avenue
      Kahta Wells and new exploration  license and production lease applications
      between the Sayer Group Consortium, Avenue and MEPS;

      (vi) the revised and  restated  participation  agreement  dated 22 October
      2004  between  the Sayer  Group  Consortium  and Avenue  relating to Kahta
      Production Lease and various exploration licenses; and

      (vii) the Current JOA,

((i) to (vii),  the  "Subordinated  Agreements"),  shall be  subordinate  to the
Transferred   Interest  assigned  and  transferred  to  JKX  by  this  Agreement
(including  any  rights  that  JKX has or may have to  production  from the area
subject to the  Karakilise  Licenses  and the New JOA to be entered into by AME,
Avenue,  Ersan  and  JKX on or  prior  to the  Transfer  Date  pursuant  to this
agreement) and AME,  Avenue and the  Subordinating  Parties waive to the fullest
extent permissible by law any right, claim or cause of action existing now or in
the future against or affecting the Transferred  Interest  (including any rights
that JKX has or may have to production  from the area subject to the  Karakilise
Licenses  or the New  JOA),  save for any  accrued  rights  Avenue  and AME have
against JKX under, or relating to the performance of, this Agreement.

                                       16
<PAGE>

9.2  Termination  of the Current JOA on or prior to the  Transfer  Date shall be
without  prejudice to the accrued  rights of the parties  thereto but AME, Ersan
and Avenue irrevocably waive any future or present right, asserted or unasserted
claims or cause of action  that has arisen or may arise out of the  Subordinated
Agreements  and the Current JOA against or affecting  the  Transferred  Interest
(including  any  rights  that  JKX has or may have to  production  from the area
subject to the Karakalise Licenses or the New JOA).

9.3 Ersan  relinquishes  its two point five per cent (2.5%) royalty  interest in
Petroleum produced from the Karakilise License and irrevocably waives any future
or present  right,  asserted  or  unasserted  claim or cause of action  that has
arisen  or may  arise  out of such  royalty  interest  in  consideration  of JKX
participating in the  Karakilise-2  Appraisal Well and accepting the Transferred
Interest and transfer of the AME Interest and Avenue  Interest by AME and Avenue
respectively  to JKX.  MEPS  agrees  that it has no  rights  in  respect  of the
Karakilise  Licenses (including any rights to production) or future applications
for licenses other than its right to enforce as sole  beneficiary  against Ersan
as sole trustee the proper  administration  by Ersan of the trust  created under
Clause 2.4(c) of the participation  agreement dated 22 January 2004 between SGC,
Avenue and MEPS.  MEPS agrees  that the basis for  calculating  its  entitlement
under such trust is as set out in the GDPA  Decision  No.4900  dated 1 June 2004
relating to the ERSAN Royalty  Interest and shown in the worked  example set out
in Exhibit K. MEPS shall not assign the benefit of such trust  without the prior
written  approval  of AME,  Avenue and JKX.  MEPS agrees that it will only claim
against  Ersan for  payments due under such trust and will not make any claim or
demand  against JKX,  Avenue or AME in respect  thereof.  Ersan and MEPS further
agree not to claim against JKX or the  Transferred  Interest for any outstanding
or unpaid royalty payments.

10. DATA AND INFORMATION

AME  and  Avenue  shall  make  available  to JKX  all  geological,  geophysical,
production,  reservoir  engineering and other data and information obtained from
or related to the  Karakilise  Licenses in their  possession or known to it. JKX
may request copies of all such data and  information  which may be reproduced at
JKX's expense.  Notwithstanding  the foregoing,  the terms and conditions of the
Confidentiality Agreement dated 11 October 2004 executed by JKX remain valid and
in effect until the Transfer Date.

                                       17
<PAGE>

11. TAXES, LEVIES AND COSTS

Each Party shall be liable for its own application fees and license registration
fees with respect to the transfer of the AME Interest and Avenue Interest to JKX
with the GDPA.  Each Party shall be responsible for their  respective  taxes and
duties (including stamp tax). For the avoidance of doubt, in the event stamp tax
arises in the Republic of Turkey due to the transfer and  assignment  of the AME
Interest  or  Avenue  Interest  in the  Karakilise  Licenses  to JKX,  the Party
responsible  for the assessment of such stamp tax shall be liable for payment of
the entire amount of such stamp tax.

12. CRUDE OIL SALES

On the Transfer Date, JKX and AME shall enter into a crude oil sale agreement in
the form  attached  as Exhibit H relating to the sale by JKX to AME of crude oil
attributable to the Transferred Interest.

13. CO-OPERATION

13.1 Co-Operation

13.1.1 AME and JKX agree to work together in determining well costs and creating
AFE's  and  budgets  with  regard  to the  Karakilise  Licenses  with the aim of
reducing materials and service costs. JKX shall provide AME with any information
from its own operations that may assist in the  determination  of such costs and
preparation  of AFE's and  budgets.  Any AFE's and budgets must be approved in a
duly held Joint Operating Committee meeting as provided in the New JOA.

13.2 Drilling and Workover Services

If the parties to the New JOA agree that drilling services may be carried out by
AME on a turnkey  basis.  AME's dry hole  turnkey  quotes  for the  drilling  of
Karakilise-3  and   Karakilise-4  to  Cretaceous   reservoir  shall  not  exceed
$2,000,000 per well.

14. DEFAULT

14.1 Default by JKX

In the event that JKX  defaults by failing to make  payment for its share of the
Dry Hole Turnkey Price in respect of the Karakilise-2 Appraisal Well and for its
share of Karakilise Field infrastructure  backcosts in accordance with Article 2
above,  JKX shall forfeit and reassign all of its rights,  title and interest in
and to any and all property acquired hereunder.

                                       18
<PAGE>

14.2 Default by AME or Avenue

      14.2.1 In the event AME or Avenue  fails to transfer and assign to JKX any
      part of the AME Interest or Avenue Interest,  free and clear of all liens,
      burdens, charges and encumbrances of any nature except as provided in this
      Agreement or as required by any  applicable  law or AME fails to carry out
      any of its  obligations  hereunder  as operator or AME or Avenue  fails to
      carry out any of its  obligations as trustee as contemplated in Article 6,
      then JKX shall have the right, at its sole discretion,  without  prejudice
      to its accrued  rights to terminate this Agreement and to receive a refund
      of all its funds paid under this Agreement;  provided,  however, that such
      right of  termination  shall not  arise  unless  JKX gives AME and  Avenue
      written  notice of such failure and they have failed to remedy same within
      thirty (30) days after their receipt of such notice.

      14.2.2  For the  avoidance  of  doubt,  in the  event  AME or Avenue is in
      default,  and  regardless  of whether JKX has given AME or Avenue  written
      notice of default,  JKX shall have the right to enforce the  provisions of
      this Agreement.

15. INDEMNITIES AND LIABILITIES

15.1 Each Party agrees that it shall  severally  indemnify and hold harmless the
other  Parties from and against any and all losses,  costs,  demands and damages
sustained by a Party as a result of any breach by the indemnifying  Party of any
of its representations or warranties in this Agreement.

15.2 AME, Avenue and the  Subordinating  Parties shall  severally  indemnify and
hold harmless JKX from and against any and all claims, demands, losses, damages,
expenses,  costs,  obligations,  duties,  commitments,  liabilities,  judgments,
orders,  decrees,  actions and proceedings  (including the payment of reasonable
attorneys' fees) arising out of or connected with (1) the Karakilise Licenses or
activities  relating  thereto which arose or occurred  prior to the date of this
Agreement,  during the Interim Period or prior to the Transfer  Date,  except as
incurred  with the  prior  written  consent  of JKX and (2) any  failure  of the
subordination of the Subordinating  Agreements and any rights, claims or actions
whatsoever arising thereunder.

15.3 AME and Avenue shall  severally  indemnify  and hold  harmless JKX from and
against any and all losses, costs, demands and damages (including the payment of
reasonable  attorneys'  fees)  sustained by JKX in excess of  US$80,000  (eighty
thousand US Dollars)  in relation to the  disputes  set out in Exhibit D and any
other claims in respect of the Karakilise  Licenses relating to the period prior
to the Transfer Date (whenever such claims are brought).

15.4 No Party  shall be  liable  for any  consequential,  incidental,  indirect,
special,  exemplary  or  punitive  damages  in any  action  arising  out of this
Agreement.

                                       19
<PAGE>

16. TERMS AND MANNER OF PAYMENT

16.1 All payments by JKX to AME required hereunder shall be made in U.S. Dollars
by wire transfer and deposited to the account with:

         Citibank N.A.
         Ankara Branch
         Ataturk Bulvari No. 71/49
         06250 Kizilay, Ankara, Turkey,
         US$ Account No. 310 030 031
         SWIFT Code: CITITRIX
         Beneficiary: Aladdin Middle East Ltd.

16.2 All  payments  by JKX to Avenue  required  hereunder  shall be made in U.S.
Dollars by wire transfer and deposited to the account with:

         Avenue Energy, Inc.
         c/o Avenue Group, Inc.
         Comerica Bank, California
         Routing Number:  121-137-522
         Acct Nr.   1891154120
         Beneficiary: Avenue.

16.3 All payments by AME and Avenue to JKX required  hereunder  shall be made in
U.S. Dollars by wire transfer and deposited to the Account with:

         Bank of Scotland
         Princes House
         50 West Campbell Street
         Glasgow G2 6YJ
         Account number:   04517USD01
         Beneficiary: JKX Oil & Gas Plc

17. NOTICES

17.1 Any notices or other  communication to be given  hereunder,  other than the
notices  specified  in Article 17.2 of this  Agreement,  shall be deemed to have
been properly given when  delivered,  if delivery by hand, or when received,  if
sent  by  facsimile  (provided  the  sender  receives  written  confirmation  of
completed  delivery),  or when delivered by registered mail as well as e-mail to
the Parties at the following address:

           To:   AME
           To:   Ersan
           To:   TMO
           To:   GYP
                 Attn: Oyman Sayer & Cem Sayer
                 Sogutozu Caddesi No:23
                 Balgat-Ankara
                 06520 Turkey
                 Tel: +90 312 287 1915 or 287 1988
                 Fax: +90 312 287 3357 or 287 5768
                 E-mail: cemsayer@sayergroup.com

                                       20
<PAGE>

           To:   Avenue
           To:   Avenue Group
                 Attn:  Norman J. Singer
                 17547 Ventura Blvd, Suite 305
                 Encino, CA 91316 USA
                 Tel: +818 465 1200
                 Fax: +818 301 2708
                 E-mail: avenueenergy@aol.com

                 Copied to:

                 Norman J. Singer
                 885 S. Garfield St.
                 Denver, CO  80209, USA
                 Tel:  +1 303 744 6550
                 E-mail: avenueenergy@aol.com

           To:   MEPS
                 Attn: Ken Fellowes
                 Level 1, 107 Murray Street, Hobart
                 Tasmania 7000, Australia
                 Tel: +61 3 6231 1118
                 Fax: +61 3 6231 5020
                 E-mail: kjf@mepsltd.com

           To:   JKX Turkey Limited
                 Attn: Robert N. Dall
                 6 Cavendish Square,
                 London W1G 0PD, England
                 Tel: +44 207 323 4464
                 Fax: +44 207 323 5258
                 E-mail: bob.dall@dial.pipex.com

17.2  Notices  or  communications  described  in Article  20/III of the  Turkish
Commercial Code  (consisting  principally of notices of default,  termination or
rescission) shall be sufficiently  given only if delivered via a Turkish notary,
by telegram,  or by registered  mail,  return  receipt  requested,  and shall be
deemed to have been given as of the date of proper  service in  accordance  with
Turkish law.

17.3 A Party may change its address for notices upon giving  notice to the other
Party as provided above.

                                       21
<PAGE>

18. GENERAL

18.1 In the event of any discrepancy between the terms of this Agreement and the
Exhibits hereto, the terms of this Agreement shall prevail.

18.2 This  Agreement  shall set forth the  entire  agreement  and  understanding
between the Parties as to the subject matter  thereof,  and supersede and cancel
all   prior   negotiations,   discussions,   representations,   agreements   and
understandings  whether  written  or oral  pertaining  to such  subject  matter,
notwithstanding  the  Confidentiality  Agreement  executed  by JKX on 11 October
2004. The Confidentiality Agreement shall terminate on the Transfer Date.

18.3 Each of the Parties shall do all such acts and execute and deliver all such
documents  as may be required in order to fully  perform and carry out the terms
of this  Agreement,  including,  but not  limited  to, any  actions  that may be
required to perfect the subordination of the Subordinating  Agreements  pursuant
to Article 9.

18.4 This  Agreement  shall be governed by and construed in accordance  with the
Laws of England  excluding  any  provisions  thereof  which  would  require  the
application of the laws of any other  jurisdiction.  All disputes arising out of
or in  connection  with the  present  contract  shall in the first  instance  be
discussed  by the  relevant  Parties'  chairmen  or  chief  executives  or their
nominees (such nominees to be senior management  executives)  within thirty (30)
days  following  a  Party   notifying  the  other  Parties  of  reasonably  full
particulars of the dispute;  and if such  representatives  are unable to resolve
the  matter it may then be  referred  by any Party to  arbitration  and shall be
finally  settled  under  the  Rules  of  Arbitration  of  the  London  Court  of
International  Arbitration  ("Rules")  by one or more  arbitrators  appointed in
accordance with the said Rules. The place of arbitration shall be London and the
language  shall be English.  Any arbitral  award shall be final and binding upon
the Parties.

18.5 This Agreement shall be binding upon and shall inure to the benefit of each
of the Parties and their respective successors and assignees.

18.6 Any  reference  to JKX  shall  also  include  reference  to its  designated
affiliate or assignee, where applicable.

18.7 JKX may assign the  benefits of this  Agreement  without the consent of the
Parties and such rights as are  assigned  shall be  enforceable  by the assignee
against the Parties. Except as specifically provided for in this Agreement,  the
Parties do not intend to create any other rights  enforceable  by third  parties
under the Contract (Rights of Third Parties) Act 1998.

18.8 If any of the trusts  envisaged by this Agreement fail for whatever  reason
JKX shall be entitled to the return of all monies paid under this Agreement.

                                       22
<PAGE>

18.9 Time shall be of the essence in the performance of AME,  Avenue,  Ersan and
JKX's obligations under this Agreement.

18.10 Save for in accordance  with Article 6, nothing herein  contained shall be
construed as creating a partnership of any kind, an  association or a trust,  or
as  imposing  upon  any or  all  of  the  Parties  hereto  any  fiduciary  duty,
partnership duty, obligation or liability.

19.  AMENDMENT  The terms set forth in this  Agreement  may only be  modified by
agreement in writing by the Parties.

Executed as a deed and delivered on the date  appearing at the beginning of this
Agreement.

ALADDIN MIDDLE EAST LTD                     JKX TURKEY LIMITED

By Director: _________________              By Director: ____________________

By Director/Secretary:____________          By Director/Secretary: ____________

MIDDLE EAST PETROLEUM
SERVICES LIMITED                            ERSAN PETROL SANAYII A.S.

By Director: ____________________           By Director: ____________________

By Director/Secretary: ____________         By Director/Secretary: ____________

TRANSMEDITERRANEAN OIL                      GUNEY YILDIZI PETROL URETIM
COMPANY LTD                                 SONDAJ MUTEAHHITLIK ve
                                            TICARET A.S.

By Director: _________________              By Director: ____________________

By Director/Secretary:____________          By Director/Secretary: ____________

AVENUE ENERGY INC.                          AVENUE GROUP INC.

By Director: _________________              By Director: ____________________

By Director/Secretary:____________          By Director/Secretary: ____________

                                       23
<PAGE>

                             Exhibit A - Current JOA
<PAGE>

                           Exhibit B - Form of New JOA
<PAGE>

         Exhibit C -Spudding Statement for Karakalise - 2 Appraisal Well
<PAGE>

                             Exhibit D - Litigation
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
PLAINTIFF(S)              DEFENDANT(S)                           FILE NO.     COURT           SUBJECT
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>                                    <C>          <C>             <C>
Republic of Turkey,       Mehmet Can, Medine YavuzHacy           2004/571     Diyarbakir      Determination of value of land
Treasury                  Karatas, Mehmet Karatas, Veli                       1st Civil       expropriated and registration of
                          Karatas, Adem Karatas, Mehmet Bal                   Court           expropriation with the Registry of
                          (a)ehmus Bartan, Lutfiye Temiz                                      Deeds.
                          (a)ehnaz Temiz, Ay(0)e Sevinc
                          Mehmet Temiz, Ne(0)e temiz                                          The land the subject of the lawsuit
                          Remziye Temiz, Hatice Kubra Ate(0)                                  was expropriated by the GDPA in
                          Nezmiye Boz, (a)eref Temiz                                          decision no. 373 published in the
                          (a)ahin Temiz, Gulsen Goru                                          Official Gazette dated 17.8.2003 and
                          Mehmet Ali Temiz, Sava(0) Temiz                                     numbered 25202 for use for
                          Seval Temiz                                                         Karakilise-1.
------------------------------------------------------------------------------------------------------------------------------------
Mehmet Bal                Ersan Petrol Sanayii A.S.              2003/498     Diyarbakir      Wrongful possession, damages.
                          Aladdin Middle East Ltd.                            3rd Civil       Plaintiff claims that the defendants
                          Guney Yildizi Petrol, Uretim Sondaj                 Court           companies wrongfully possessed his
                          ve Muteahhitlik A.S.                                                land (the subject of Karakilise-1).The
                                                                                              case relates to 4 land portions. One
                                                                                              of those land portions has been
                                                                                              expropriated. But the expropriation
                                                                                              has not been finalized so far. The
                                                                                              lawsuit to determine the value of this
                                                                                              land portion is ongoing (2004/571).

                                                                                              The Plaintiff  is requesting (1) the
                                                                                              prevention of the unlawful possession;
                                                                                              (2) the dismantling of the buildings
                                                                                              on the land; and (3)  damages for his
                                                                                              land that allegedly lost its capacity
                                                                                              for agriculture and cotton crops based
                                                                                              on an expert determination valued at
                                                                                              105,065.50 YTL. The plaintiff did not
                                                                                              reserve his rights to request further
                                                                                              damage but as the damages are ongoing,
                                                                                              the Plaintiff may still request
                                                                                              damages relating to the period after
                                                                                              the filing of the case.  The Plaintiff
                                                                                              also requested precautionary measures
                                                                                              and the Court has granted them with
                                                                                              its decision dated 21.12.2004 to
                                                                                              ensure that the lands which are the
                                                                                              subject matter of the case are not
                                                                                              transferred or assigned to a third
                                                                                              party.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

---------------------------------------------------------------
PLAINTIFF(S)              Dispute
---------------------------------------------------------------
Republic of Turkey,       To be determined by the court. The
Treasury                  issue is the value of the land that
                          has been expropriated.
                          The lawsuit for the expropriation
                          of Karakilise-2 ruled that the land
                          was valued at 62,916.05 YTL and it
                          is expected that the value of
                          Karakilise-1 will be valued very
                          similar to this amount.

---------------------------------------------------------------
Mehmet Bal                The Court will decide on the
                          following:

                          (1) the prevention of Defendants'
                          unlawful possession;(2) the
                          dismantling of the buildings on the
                          land; and

                          (3) the payment of an
                          indemnification  at the amount of
                          105,065,500,000 TL
                          (105,065.50 YTL) by the Defendants.

---------------------------------------------------------------
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>                                    <C>          <C>             <C>
Mehmet Can                Ersan Petrol Sanayii A.S.              2003/811     Diyarbakir      Damages based on the wrongful
                          Aladdin Middle East Ltd.                            2nd Civil       possession (without expropriation).
                          Guney Yildizi Petrol, Uretim Sondaj                 Court           Plaintiff claims that the defendants,
                          ve Muteahhitlik A.S.                                                due to the drilling of their well in
                                                                                              2003 (Karakilise-1) that his melon and
                                                                                              watermelon crops suffered and is
                                                                                              requesting damages.

------------------------------------------------------------------------------------------------------------------------------------
Ahmet Yakar, Sefik        Aladdin Middle East Ltd.               2003/894     Diyarbakir      Wrongful possession, damages.
Yakar, Fatma Yakar,       Guney Yildizi Petrol, Uretim Sondaj                 3rd Civil       Plaintiffs claim that the defendants
Orhan Yakar,              ve Muteahhitlik A.S.                                Court           built a road on their land and damaged
Abdurrahman Seyithan                                                                          their crops. The Plaintiffs are
yakar, Azize Yakar,                                                                           requesting (1) the prevention of the
Emine Aydyn, Yusuf                                                                            unlawful possession; and (2) an
Ates, Mehmet Ali Ates,                                                                        indemnification.
Sahabettin Ates, Esref
Ates                                                                                          The Plaintiffs also requested
                                                                                              provisory injunction regarding the
                                                                                              unlawful possession.

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

---------------------------------------------------------------
Mehmet Can                The payment of an indemnification
                          at the amount of 120,000,000,000 TL
                          (120,000 YTL) plus the interest at
                          the higher bank deposit interest
                          rate starting from the date of the
                          wrongful possession.

                          The Plaintiff has reserved its rights
                          in relation to further monetary
                          demands.

---------------------------------------------------------------
Ahmet Yakar, Sefik        The Court will decide on the
Yakar, Fatma Yakar,       following:
Orhan Yakar,
Abdurrahman Seyithan      (1) the prevention of Defendants'
yakar, Azize Yakar,       unlawful possession;
Emine Aydyn, Yusuf        (2) the payment of an
Ates, Mehmet Ali Ates,    indemnification  at the amount of
Sahabettin Ates, Esref    50,000,000,000 TL (50,000 YTL).
Ates
                          The Plaintiff has reserved its
                          rights in relation to further
                          monetary demands.

                          An expert opinion has been issued in
                          support of the plaintiff's claim. The
                          expert's value of the claim is
                          56,771,558,000 Turkish liras. The expert
                          has also stated in his report that the
                          roads are unlawfully used by AME. AME
                          has objected to this expert opinion. The
                          Court ordered that a new expert opinion
                          be issued. This second report is still
                          outstanding.

                          The Court also requested information
                          from the State Water works in relation
                          to the ownership of the roads and
                          whether AME has been permitted to use
                          them. This information is still
                          outstanding as well.

---------------------------------------------------------------
<PAGE>

                  Exhibit E - Form of Deed of Relinquishment of
                            Ersan's royalty interest
<PAGE>

--------------------------------------------------------------------------------
                        DEED OF RELINQUISHMENT AND WAIVER
--------------------------------------------------------------------------------

                             (1) ERSAN SANAYII A.S.

                         (2) ALADDIN MIDDLE EAST LIMITED

                             (3) AVENUE ENERGY INC.

                             (4) JKX TURKEY LIMITED

                                 DATED [ ] 2005
<PAGE>

THIS DEED OF RELINQUISHMENT AND WAIVER is made on the [    ] day of
[               ] 2005

BETWEEN:

(1) ALADDIN MIDDLE EAST LTD, a corporation organized and existing under the laws
of the state of Delaware in the U.S.A., having offices in the city of Ankara,
the Republic of Turkey at Sogutozu Caddesi No. 23, 06520 Balgat, Ankara and in
the city of Wichita, Kansas (hereinafter referred to as "AME");

(2) ERSAN PETROL SANAYII A.S.; a corporation existing under the laws of the
Republic of Turkey, having its head office in Ankara (hereinafter referred to as
"Ersan");

(3) AVENUE ENERGY INC., a corporation organized and existing under the laws of
the State of Delaware, USA, having offices at Encino, CA, USA and in Australia
at 34-36 Punt Road, Windsor, Melbourne, Australia (hereinafter referred to as
"Avenue");

(4) JKX TURKEY LIMITED, a corporation organized and existing under the laws of
England, having its principal office at 6 Cavendish Square, London W1G 0PD,
England (hereinafter referred to as "JKX"),

being referred to collectively as the "Parties" and individually as a "Party".

WHEREAS:

(A) Ersan is the registered holder of under General Directorate of Petroleum
Affairs of Turkey ("GDPA") Decision No. 4900 dated 1 June 2004 of a seven point
five percent (7.5%) royalty interest in Petroleum (as defined in the
Participation Agreement) produced from the Karakilise Licenses. Ersan holds two
point five percent (2.5%) of such royalty interest for itself (the "Relinquished
Interest") and the remaining five percent (5%) royalty interest on trust for
Middle East Petroleum Services Limited.

(B) The Parties entered into a participation agreement dated [ ] (the
"Participation Agreement"), under which, inter alia, Ersan agreed to relinquish
the Relinquished Interest.

IT IS HEREBY AGREED as follows:

1. RELINQUISHMENT AND WAIVER

Ersan relinquishes the Relinquished Interest and waives any present or future
rights, asserted or unasserted claims or interests arising or capable of arising
under the Relinquished Interest.
<PAGE>

2. FURTHER ASSURANCE

Ersan shall, at its own expense, do all such acts and execute and deliver all
such documents as may be required in order to fully relinquish and waive its
Relinquished Interest, including (but not limited to) seeking a new decision
from the GDPA or its successor confirming that it no longer has the Relinquished
Interest.

Executed as a deed and delivered on the date first shown above.

ALADDIN MIDDLE EAST LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

ERSAN PETROLEUM SANAYII A.S.

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

AVENUE ENERGY INC.

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

JKX TURKEY LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------
<PAGE>

                   Exhibit F - Form of Deed of Termination of
                                   Current JOA
<PAGE>

--------------------------------------------------------------------------------
                     DEED OF WAIVER AND TERMINATION RELATING
              TO A JOINT OPERATING AGREEMENT DATED 22 OCTOBER 2004
                       IN RESPECT OF EXPLORATION LICENSES
                       AR/AME-EPS-AVE 2674, 2677 AND 2678
                      IN PETROLEUM DISTRICT XI, DIYARBAKIR,
                               REPUBLIC OF TURKEY
--------------------------------------------------------------------------------

                         (1) ALADDIN MIDDLE EAST LIMITED

                        (2) ERSAN PETROLEUM SANAYII A.S.

                             (3) AVENUE ENERGY INC.

                             (4) JKX TURKEY LIMITED

                                  DATED [ ]2005
<PAGE>

THIS DEED OF TERMINATION AND WAIVER is made on the [    ] day of
[               ] 2005

BETWEEN:

(1) ALADDIN MIDDLE EAST LTD, a corporation organized and existing under the laws
of the state of Delaware in the U.S.A., having offices in the city of Ankara,
the Republic of Turkey at Sogutozu Caddesi No. 23, 06520 Balgat, Ankara and in
the city of Wichita, Kansas (hereinafter referred to as "AME");

(2) ERSAN PETROL SANAYII A.S.; a corporation existing under the laws of the
Republic of Turkey, having its head office in Ankara (hereinafter referred to as
"Ersan");

(3) AVENUE ENERGY INC., a corporation organized and existing under the laws of
the State of Delaware, USA, having offices at Encino, CA, USA and in Australia
at 34-36 Punt Road, Windsor, Melbourne, Australia (hereinafter referred to as
"Avenue");

(4) JKX TURKEY LIMITED, a corporation organized and existing under the laws of
England, having its principal office at 6 Cavendish Square, London W1G 0PD,
England (hereinafter referred to as "JKX"),

being referred to collectively as "Parties" and individually as a "Party".

WHEREAS:

(A) Under a participation agreement dated [ ] (the "Participation Agreement")
entered into, inter alios, by the Parties, AME and Avenue agreed to transfer the
Transferred Interest (as defined in the Participation Agreement) and AME,
Avenue, Ersan and the Subordinating Parties (as defined in the Participation
Agreement) agreed to waive and subordinate any present or future rights,
asserted or unasserted claims or interests affecting the Transferred Interests
and in particular arising or capable of arising under the Subordinated
Agreements in consideration of JKX participating in the Karakilise-2 Appraisal
Well and taking the Transferred Interest.

(B) The joint operating agreement dated 22 October 2004 in respect of
Exploration Licenses AR/AME-EPS-AVE 2674, 2677 and 2678 (the "Current JOA") is
one of the Subordinated Agreements.

(C) AME, Avenue and Ersan (the "Continuing Parties") wish to waive and
subordinate any present or future rights, asserted or unassociated claims or
interests arising or capable of arising under the Current JOA to the Transferred
Interest but wish, as between themselves, to maintain any accrued rights and
liabilities arising under or capable of arising under the Current JOA.
<PAGE>

(D) JKX are a party to this Deed so that it can take the benefit of the
covenants hereunder.

IT IS HEREBY AGREED as follows:

1. TERMINATION, WAIVER AND SUBORDINATION BY CONTINUING PARTIES

1.1 The Continuing Parties terminate the Current JOA, such termination to be
effective as of the Transfer Date.

1.2 The Continuing Parties waive and subordinate any present or future rights,
asserted or unasserted claims or interests arising or capable of arising under
the Current JOA to the Transferred Interest.

1.3 The Continuing Parties acknowledge that they have entered into this Deed for
the benefit of JKX.

2. CONTINUING PARTIES' RIGHTS INTER SE

Nothing in this Deed shall prejudice the Continuing Parties' rights of action
against one another in respect of any accrued rights or liabilities under the
Current JOA.

3. TRANSFER OF JOINT ACCOUNT

3.1 The proceeds of the Joint Account (as defined in the Current JOA) shall be
transferred to a new bank account which shall be the Parties' joint account (the
"New Joint Account") for the purposes of the operating agreement to be entered
into on the Transfer Date in respect of the Karakilise Licenses (the "New JOA").

3.2 On the Transfer Date, JKX's liabilities in respect of the New Joint Account
shall be nil.

4. FURTHER ASSURANCE

The Continuing Parties shall, at their own expense, do all such acts and execute
and deliver all such documents as may be required in order to implement the
waiver and subordination contemplated by this Deed, including (but not limited
to) securing appropriate resolutions and ratifications of the Operating
Committee under the Current JOA.

5. GOVERNING LAW AND DISPUTE RESOLUTION

This Deed shall be governed by and construed in accordance with the laws of
England excluding any provisions thereof which would require the application of
the laws of any other jurisdiction. In the event of any dispute, the provisions
of Article 18.4 of the Participation Agreement shall apply.
<PAGE>

Executed as a deed and delivered on the date appearing at the beginning of this
Agreement.

ALADDIN MIDDLE EAST LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

ERSAN PETROLEUM SANAYII A.S.

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

AVENUE ENERGY INC.

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

JKX TURKEY LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------
<PAGE>

                     Exhibit G - Form of Deed of Termination
                          of Turnkey Drilling Contract
<PAGE>

--------------------------------------------------------------------------------
                     DEED OF WAIVER AND TERMINATION RELATING
                        TO THE TURNKEY DRILLING CONTRACT
                              DATED 22 JANUARY 2004
              FOR THE DRILLING OF THE KARAKILISE - 2 APPRAISAL WELL
--------------------------------------------------------------------------------

                         (1) ALADDIN MIDDLE EAST LIMITED

                        (2) ERSAN PETROLEUM SANAYII A.S.

                             (3) AVENUE ENERGY INC.

                              (4)JKX TURKEY LIMITED

                                 DATED [ ] 2005
<PAGE>

THIS DEED OF TERMINATION AND WAIVER is made on the [    ] day of
[            ] 2005

BETWEEN:

(1) ALADDIN MIDDLE EAST LTD, a corporation organized and existing under the laws
of the state of Delaware in the U.S.A., having offices in the city of Ankara,
the Republic of Turkey at Sogutozu Caddesi No. 23, 06520 Balgat, Ankara and in
the city of Wichita, Kansas (hereinafter referred to as "AME");

(2) ERSAN PETROL SANAYII A.S.; a corporation existing under the laws of the
Republic of Turkey, having its head office in Ankara (hereinafter referred to as
"Ersan");

(3) AVENUE ENERGY INC., a corporation organized and existing under the laws of
the State of Delaware, USA, having offices at Encino, CA, USA and in Australia
at 34-36 Punt Road, Windsor, Melbourne, Australia (hereinafter referred to as
"Avenue");

(4) JKX TURKEY LIMITED, a corporation organized and existing under the laws of
England, having its principal office at 6 Cavendish Square, London W1G 0PD,
England (hereinafter referred to as "JKX"),

being referred to collectively as "Parties" and individually as a "Party".

WHEREAS:

(A) The Parties, inter alios, entered into a participation agreement dated [ ]
(the "Participation Agreement"), under which AME and Avenue agreed to transfer
the Transferred Interest (as defined in the Participation Agreement) and AME,
Avenue and Ersan agreed to waive and subordinate any present or future rights,
asserted or unasserted claims or interests affecting the Transferred Interests
and in particular arising or capable of arising under the turnkey drilling
contract dated 22 January 2004 for the drilling of the Karakilise-2 Appraisal
Well between AME, Ersan and Avenue (the "Turnkey Drilling Contract").

(B) AME, Avenue and Ersan (the " Turnkey Parties") wish to waive and subordinate
any present or future rights, asserted or unasserted claims or interests arising
or capable of arising under the Turnkey Drilling Contract to the Transferred
Interest but wish, as between themselves, to maintain any accrued rights and
liabilities arising under or capable of arising under the Turnkey Drilling
Contract.

(C) JKX are a party to this Deed so that it can take the benefit of the
covenants hereunder.

IT IS HEREBY AGREED as follows:
<PAGE>

1. WAIVER AND SUBORDINATION BY CONTINUING PARTIES

1.1 The Turnkey Parties agree to terminate the Turnkey Drilling Contract as at
the date of this Agreement and waive and subordinate any accrued rights,
asserted or unasserted claims or interests arising or capable of arising under
the Turnkey Drilling Contract to the Transferred Interest.

1.2 The Turnkey Parties acknowledge that they have entered into this Deed for
the benefit of JKX.

2. CONTINUING PARTIES' RIGHTS INTER SE

Nothing in this Deed shall prejudice the Turnkey Parties' rights of action
against one another in respect of any accrued rights or liabilities under the
Turnkey Drilling Contract.

3. FURTHER ASSURANCE

The Turnkey Parties shall, at their own expense, do all such acts and execute
and deliver all such documents as may be required in order to implement the
waiver and subordination contemplated by this Deed.

4. GOVERNING LAW AND DISPUTE RESOLUTION

This Deed shall be governed by and construed in accordance with the laws of
England excluding any provisions thereof which would require the application of
the laws of any other jurisdiction. In the event of any dispute, the provisions
of Article 18.4 of the Participation Agreement shall apply.

Executed as a deed and delivered on the date appearing at the beginning of this
Agreement.

ALADDIN MIDDLE EAST LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------
<PAGE>

ERSAN PETROLEUM SANAYII A.S.

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

AVENUE ENERGY INC

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

JKX TURKEY LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------
<PAGE>

                  Exhibit H - Form of crude oil sale agreement
<PAGE>

                         OIL SALES / PURCHASE AGREEMENT

This Agreement is entered into on the __ day of _____ 2005 ("Effective Date"),
by and between;

ALADDIN MIDDLE EAST LTD., a corporation organized and existing under the laws of
the State of Delaware in the U.S.A., having offices in the city of Ankara,
Republic of Turkey and the city of Wichita, Kansas, USA with the registered
number 1361985, whose registered office is 123 S. Market, Wichita, 67202 U.S.A.
(hereinafter referred to as "AME")

and

JKX TURKEY LIMITED, a public limited company organized and existing under the
laws of England with the registered number 5404183, having its registered office
at 6 Cavendish Square, London W1G 0PD, England (hereinafter referred to as
"JKX").

Each party may hereinafter be referred to individually as a "Party" or
collectively as "Parties".

WHEREAS, AME, Avenue Energy Inc. and JKX have entered into a Participation
Agreement dated _______ 2005, together with several other parties defined as
Subordinating Parties therein ("Participation Agreement"), whereby AME and
Avenue Energy Inc. have agreed to transfer collectively a 30% (thirty percent)
interest in Exploration Licenses AR/AME-EPS-AVE/2674, 2677 and 2678 in Petroleum
District XI, Diyarbakir, the Republic of Turkey (hereinafter referred to as the
"Karakilise Licenses"); and

WHEREAS, JKX has agreed to acquire from AME and Avenue Energy Inc. a total of a
30% interest in the Karakilise Licenses; and

WHEREAS, the Parties have agreed that JKX shall have the right to production
from producing wells in the area the subject of the Karakilise Licenses; and

WHEREAS, JKX desires to sell its production from producing wells in the area the
subject of the Karakilise Licenses to AME; and

WHEREAS, AME agrees to purchase from JKX its production from producing wells in
the area the subject of the Karakilise Licenses;

NOW, THEREFORE, for and in consideration of the terms and conditions and
covenants hereinafter set forth, it is agreed as follows:

1. Definitions

As used in this Agreement (including the recitals), the following terms shall
have the meanings ascribed to them below:

API Gravity means a function of specific gravity at 60(degree)F as shown with
the following formula: API Gravity (60(degree)F) = (141.5/specific gravity at
60(degree)F) - 131.5.

ASTM means the American Society for Testing and Materials.

Barrel Factor means the number of barrels contained in one ton of crude oil, at
the given API (60(degree)F).

Domestic Crude Oil Sale / Purchase Agreement means the agreement for the sale by
AME and purchase by TUPRAS (Turkish Petroleum Refineries Corporation) dated
13.2.2002 for domestic crude oil delivered to the Batman Refinery, a copy of
which is attached as exhibit A hereto.
<PAGE>

Karakilise Crude Oil means the crude oil produced in the area the subject of the
Karakilise Licenses (including any production lease(s) granted from the
Karakilise Licenses subject area where JKX is a party).

Karakilise Licenses means Exploration Licenses AR/AME-EPS-AVE/2674, 2677 and
2678 in Petroleum District XI, Diyarbakir, the Republic of Turkey, comprising
122,943 hectares.

Net Barrels means the net barrels of crude oil after deducting the bottom
sediment, free water, suspended water and sediment (S + W).

Royalty Interests means total of the Government Royalty, as set forth in the
Petroleum Law No. 6326 and the ERSAN Royalty Interest, as defined in the
Participation Agreement.

S + W means suspended water and sediment in crude oil as per ASTM 1796.

2. Effective Date and Term

This Agreement shall have effect from the Effective Date (as defined in the
preamble to this Agreement) and shall continue in effect so long as JKX has the
right to production from producing wells in the area the subject of the
Karakilise Licenses (including any production lease(s) granted in the areas
subject to the Karakilise Licenses to which JKX is a party) and for so long as
the Domestic Crude Oil Sale / Purchase Agreement remains in effect, or until
terminated in accordance with Clause 15 of this Agreement.

3. Scope

The purpose of this Agreement is to establish the respective rights and
obligations of the Parties with respect to the sale of JKX's share of Karakilise
Crude Oil to AME.

4. Specifications of Crude Oil

Pursuant to the terms of the Domestic Crude Oil Sale/Purchase Agreement, the
Karakilise Crude Oil shall be settled and free of any scum and/or gas. As
Operator under a joint operating agreement between, inter alios, the Parties of
the area the subject of the Karakilise Licenses, AME shall ensure that the
Karakilise Crude Oil shall have the following properties: The quantity of (S +
W) shall not be more than 2%; the API Gravity shall not be less than 32(degree)
API; and the salt content shall not be more than 100 lb/1000 barrels.

5. Place of Delivery

The Karakilise Crude Oil shall be delivered to AME's tanks, No. 10007 and No.
10008 located at the Batman Refinery (hereinafter referred to as the "Batman
Refinery").

6. Measurement

The amount of the Karakilise Crude Oil delivered to the Batman Refinery shall be
determined for each delivery as follows:

      1)    The tankers used to transport the Karakilise Crude Oil from the
            Karakilise field to the Batman Refinery shall wait a reasonable
            period of time so that the water content may settle;

      2)    A sample shall be taken of the Karakilise Crude Oil to determine API
            Gravity and S + W%;

      3)    Each tanker shall first be weighed once full, using the Batman
            Refinery's weighbridge, and once again after unloading its entire
            crude oil load. Loaded weight (MTon) - Unloaded weight (MTon) = a
            (MTon) a = gross weight of the crude oil delivered.
<PAGE>

      4)    Net weight (b) of the crude oil delivered shall be calculated using
            the following formula: a/100*[100 - S + W%].

      5)    The (b) value shall be multiplied by the Barrel Factor which
            corresponds to the API value of the sample to determine the
            Karakilise net barrel quantity (c) delivered (c = Net Barrels).

7. Notification of JKX's Share of Karakilise Crude Oil and Price

7.1 AME shall notify JKX of the gross amount of Karakilise Crude Oil production
along with the total Net Barrels by sending a notice in the form attached as
exhibit B hereto (the "Karakilise Monthly Production Report") within the first
10 (ten) days of the month in respect of production amounts in the previous
month. AME shall also submit the Karakilise Monthly Production Report to the
General Directorate of Petroleum Affairs for the calculation of the Government
Royalty on Karakilise Crude Oil.

7.2 The price of Karakilise Crude Oil shall be determined according to its API
Gravity multiplied by the market price calculated as per Article 10 of the
Petroleum Market Law No. 5015, as may be amended from time to time and as
notified to AME by Turkiye Petrolleri Anonim Ortakligi (Turkish Petroleum
Corp.). AME shall send to JKX any and all notices that it receives from the
Turkish Petroleum Corp. regarding the price of Karakilise Crude Oil. AME shall
notify JKX of the price of JKX's Net Barrels for production within the first 10
(ten) days of the immediately following month.

8. Invoicing and Payment

8.1 JKX shall prepare and submit to AME an invoice for oil sales by the 14th
(fourteenth) day of the month. AME shall wire transfer for value to JKX the
amount stated on the invoice by the 16th (sixteenth) day of the month. In the
event the 16th (sixteenth) day falls on a weekend, bank or religious holiday (in
either Turkey or the United Kingdom), the wire transfer for value shall be made
on the first business day thereafter. AME shall not set-off any amounts due
under the New JOA (as defined in the Participation Agreement) against any sums
due under the invoice. Without prejudice to its rights to resolve any dispute in
accordance with Article 11 hereof, AME shall make payments of any disputed
invoice in full and continue to make payments in respect of invoices submitted
by JKX until such time as the dispute is resolved and thereafter in accordance
with the settlement of the dispute.

8.2 AME shall make payments to the bank account nominated by JKX from time to
time on the invoice.

8.3 Invoiced amounts not paid by the due date shall be subject to interest at
the London Inter Bank Offered Rate for 3 (three) month US$ deposits (as
published in the Financial Times, London edition) plus 3 (three) per cent from
the due date until receipt of payment.

9. Handling Fees and Insurance

9.1 TUPRAS currently charges AME US $ 2.00 per ton as a handling fee for the
crude oil delivered to the Batman Refinery. JKX shall be charged monthly for its
proportionate share of the TUPRAS handling fee, along with the routine operating
costs for the Karakilise Field, as set forth in the Participation Agreement. In
the event there is a change in the amount of the handling fee charged by TUPRAS
to AME, this shall be notified to JKX and shall be reflected in the charge made
to JKX.

9.2 AME shall bear the risk of the oil from the Karakilise field to the Batman
Refinery and shall be responsible for obtaining insurance against fire and other
perils and submitting a copy of the policy to TUPRAS. AME shall charge JKX its
proportionate share of such insurance on a yearly basis. AME shall also name JKX
as a co-insured on such insurance policy for its share of Karakilise Crude Oil
and provide JKX with copies of all relevant policies and evidence that the
premiums are paid up.
<PAGE>

10. Force Majeure

No Party shall be deemed liable towards the other Party for its failure in
fulfilling its liabilities arising from this Agreement as a result of an event
of force majeure. For the purpose of this Agreement, force majeure shall mean
acts of God, war, insurrections and other force majeure circumstances which are
beyond the reasonable control of the Parties and which could not have been
avoided or mitigated by such Party acting reasonably and prudently. For the
avoidance of doubt, governmental acts, lack of credit, lack of funds, lack of
financing, economical crises, inflation, deflation, exchange rate accrual and
currency fluctuations (including devaluations) shall not be deemed force
majeure. The Party affected by such a force majeure event is obliged to notify
the other Party about the occurrence and reason(s) of force majeure and also
estimate the period of time required to remedy the force majeure event. The
affected Party shall use reasonable diligence to remedy the force majeure event
as soon as possible.

11. Governing law and disputes

11.1 This Agreement shall be governed by the laws of England.

11.2 All disputes arising out of or in connection with this Agreement shall in
the first instance be discussed by the Party's chairman or chief executive or
their nominee (such nominee to be a senior management executive) within thirty
(30) days following a Party notifying the other Party of reasonably full
particulars of the dispute; and if such representatives are unable to resolve
the matter it may then be referred by any Party to arbitration in accordance
with Articles 11.3 and 11.4.

11.3 Any disputes relating to the specification and quantity of oil delivered
under this Agreement (including measurement of the same) and not resolved in
accordance with Article 11.2 shall be finally settled by one arbitrator under
the Expedited Rules of the Arbitration Institute of the Stockholm Chamber of
Commerce. The place of arbitration shall be London and the language shall be
English. Any arbitral award shall be final and binding upon the Parties.

11.4 Any disputes not relating to the matters specified in Article 11.3 and not
resolved in accordance with Article 11.2 shall be finally settled under the
Rules of Arbitration of the London Court of International Arbitration ("Rules")
by one or more arbitrators appointed in accordance with the said Rules. The
place of arbitration shall be London and the language shall be English. Any
arbitral award shall be final and binding upon the Parties.

12. Taxes and Duties

Any tax, charge, stamp duty and/or notary fees that arise from or in connection
with execution of this Agreement shall be borne by JKX.

13. Modifications

Any modification to this Agreement shall be made in writing and agreed to by all
Parties to this Agreement.

14. Notices

14.1 Any notice or communication to be given hereunder, other than the notices
specified in Article 14.2 of this Agreement, shall be deemed to have been
properly given when delivered, if delivered by hand, or when received, if sent
by facsimile (provided the sender receives written confirmation of completed
delivery), or when delivered by registered mail as well as e-mail to the Parties
at the following address:
<PAGE>

ALADDIN MIDDLE EAST LTD.
Sogutozu Caddesi No. 23
06520 Balgat, Ankara
Turkey
Attn: Oyman Sayer & Cem Sayer
Tel: 90 312 287 2064
Fax: 90 312 287 5768
E-mail: cemsayer@sayergroup.com

JKX TURKEY LIMITED
6 Cavendish Square
London W1G 0PD, United Kingdom
Attn: Robert N. Dall
Tel: +44 207 323 4464
Fax: +44 207 323 5258
E-mail: bob.dall@dial.pipex.com

14.2 Notices or communications described in Article 20/III of the Turkish
Commercial Code (consisting principally of notices of default, termination or
rescission) shall be sufficiently given only if delivered via a Turkish notary,
by telegram, or by registered mail, return receipt requested, and shall be
deemed to have been given as of the date of proper service in accordance with
Turkish law.

14.3 A Party may change its address for notices upon giving notice to the other
Party as provided above in Article 14.1

15. Termination

Notwithstanding anything herein contained, JKX may terminate this Agreement,
without prejudice to its accrued rights, by giving at least 30 days written
notice to AME.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their duly authorized representatives as of the date first written above.

JKX TURKEY LIMITED                            ALADDIN MIDDLE EAST LTD.
By its duly authorized                        By its duly authorized
representative                                representative

--------------------------                    --------------------------
(Signature)                                   (Signature)

NAME:                                         NAME: Cem Sayer
TITLE:                                        TITLE: General Coordinator
<PAGE>

                     "Exhibit A to Crude Oil Sale Agreement"

                Exhibit A - Domestic Oil Sale Purchase Agreement
<PAGE>

                     "Exhibit B to Crude Oil Sale Agreement"

                Exhibit B - Karakalise Monthly Production Report
<PAGE>

               Exhibit I - Form of interest assignment agreements
<PAGE>

--------------------------------------------------------------------------------
                     DEED OF INTEREST ASSIGNMENT RELATING TO
                    EXPLORATION LICENSES AR/AME-EPS-AVE 2674,
               2677 AND 2678 IN PETROLEUM DISTRICT XI, DIYARBAKIR,
                               REPUBLIC OF TURKEY
--------------------------------------------------------------------------------

                         (1) ALADDIN MIDDLE EAST LIMITED

                             (2) JKX TURKEY LIMITED

                                 DATED [ ] 2005
<PAGE>

THIS DEED OF ASSIGNMENT is made on the      day of                     2005

BETWEEN:

(1) ALADDIN MIDDLE EAST LIMITED, a corporation incorporated under the laws of
the State of Delaware in the USA (hereinafter "AME"); and

(2) JKX TURKEY LIMITED, incorporated under the laws of England (hereinafter
referred to as "JKX"),

being referred to collectively as "Parties" and individually as a "Party".

WHEREAS:

(A) Under a participation agreement dated [ ] in respect of the Exploration
Licenses AR/AME-EPS-AVE 2674, 2677 and 2678 (as therein defined) dated [ ] (the
"Participation Agreement") and entered into, inter alios, between the Parties,
AME has agreed to assign and transfer to JKX a twenty five point five percent
(25.5%) undivided interest in the Karakilise Licenses (as defined in the
Participation Agreement) (the "AME Interest") and Avenue Energy Inc. has agreed
to assign and transfer to JKX a four point five percent (4.5%) undivided
interest in the Karakilise Licenses (the "Avenue Interest") with effect from the
Effective Date (as therein defined).

(B) The GDPA has issued [a] letter[s] of approval to the assignment of the AME
Interest and the Avenue Interest reference numbers [ ] dated [ ] advising that
the GDPA has authorised such assignments.

(C) The Parties agree to hereby effect by this deed of assignment the transfer
and assignment of the AME Interest contemplated in the Participation Agreement
(the transfer and assignment of the Avenue Interest will take place
contemporaneously by a separate deed of assignment).

IT IS HEREBY AGREED as follows:

1. Words and expressions defined in the Participation Agreement shall have the
same meanings when used in this Deed of Assignment.

2. AME hereby assigns, transfers and conveys, as legal and beneficial owner, the
AME Interest to JKX, with all and any benefits and other rights accruing or
attaching thereto and JKX hereby accepts the same. Therefore the undivided
interests in the Karakilise Licenses after the transfer of the AME Interest and
the Avenue Interest shall be:

         JKX                        30%
         AME                        54.5%
         Ersan                      5%
         Avenue                     10.5%
<PAGE>

3. AME and JKX hereby expressly state that JKX as assignee of the AME Interest,
is bound by all the terms and provisions contained in the Karakilise Licenses,
and any modifications or additions thereto.

4. JKX hereby agrees to hold harmless and indemnify AME in respect of matters
relating to the AME Interest which occur and relate to the period on or after
the Transfer Date.

5. AME shall, at its own expense, do all such acts and execute and deliver all
such documents as may be required in order to fully assign and transfer the AME
Interest.

6. The construction, validity and performance of this Deed of Assignment shall
be governed by English law.

Executed as a deed and delivered on the date appearing at the beginning of this
deed.

ALADDIN MIDDLE EAST LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

JKX TURKEY LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------
<PAGE>

--------------------------------------------------------------------------------
                     DEED OF INTEREST ASSIGNMENT RELATING TO
                    EXPLORATION LICENSES AR/AME-EPS-AVE 2674,
               2677 AND 2678 IN PETROLEUM DISTRICT XI, DIYARBAKIR,
                               REPUBLIC OF TURKEY
--------------------------------------------------------------------------------

                             (1) AVENUE ENERGY INC.

                             (2) JKX TURKEY LIMITED

                                  DATED [ ]2005
<PAGE>

THIS DEED OF ASSIGNMENT is made on the      day of                     2005

BETWEEN:

(1) AVENUE ENERGY INC., a corporation incorporated under the laws of the State
of Delaware in the USA (hereinafter "Avenue"); and

(2) JKX TURKEY LIMITED, incorporated under the laws of England (hereinafter
referred to as "JKX"),

being referred to collectively as "Parties" and individually as a "Party".

WHEREAS:

(A) Under a participation agreement dated [ ] in respect of the Exploration
Licenses AR/AME-EPS-AVE 2674, 2677 and 2678 (as therein defined) dated [ ] (the
"Participation Agreement") and entered into, inter alio, between the Parties,
Aladdin Middle East Limited has agreed to assign and transfer to JKX a twenty
five point five percent (25.5%) undivided interest in the Karakilise Licenses
(as defined in the Participation Agreement) (the "AME Interest") and Avenue has
agreed to assign and transfer to JKX a four point five percent (4.5%) undivided
interest in the Karakilise Licenses (as defined in the Participation Agreement)
(the "Avenue Interest") with effect from the Effective Date (as therein
defined).

(B) The GDPA has issued [a] letter[s] of approval to the assignment of the AME
Interest and the Avenue Interest reference numbers [ ] dated [ ] advising that
the GDPA has authorised such assignments.

(C) The Parties agree to hereby effect by this deed of assignment the transfer
and assignment of the Avenue Interest contemplated in the Participation
Agreement (transfer and assignment of the AME Interest will take place
contemporaneously with this transfer by a separate deed of assignment).

IT IS HEREBY AGREED as follows:

1. Words and expressions defined in the Participation Agreement shall have the
same meanings when used in this Deed of Assignment.

2. Avenue hereby assigns, transfers and conveys, as legal and beneficial owner,
the Avenue Interest to JKX, with all and any benefits and other rights accruing
or attaching thereto and JKX hereby accepts the same. Therefore the undivided
interests in the Karakilise Licenses after the transfer of the Avenue Interest
and the AME Interest shall be:

         JKX                        30%
         AME                        54.5%
         Ersan                      5%
         Avenue                     10.5%
<PAGE>

3. Avenue and JKX hereby expressly state that JKX as assignee of the Avenue
Interest, is bound by all the terms and provisions contained in the Karakilise
Licenses, and any modifications or additions thereto.

4. JKX hereby agrees to hold harmless and indemnify Avenue in respect of matters
relating to the Avenue Interest which occur and relate to the period on or after
the Transfer Date.

5. Avenue shall, at its own expense, do all such acts and execute and deliver
all such documents as may be required in order to fully assign and transfer the
Avenue Interest.

6. The construction, validity and performance of this Deed of Assignment shall
be governed by English law.

Executed as a deed and delivered on the date appearing at the beginning of this
deed.

AVENUE ENERGY INC.

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------

JKX TURKEY LIMITED

By Director:
             ------------------------------------------

By Director/Secretary:
                       --------------------------------
<PAGE>

     Exhibit J - Summary of Interests and Production Rights as at Effective
                          Date and as at Transfer Date

--------------------------------------------------------------------------------
Participation            License Ownership & JOA Participating Interest
Agreement                (expressed as a percentage of the total 100% interests)

PART A
Event                    Party                                       Interest
--------------------------------------------------------------------------------
Immediately prior to     Aladdin Middle East LTD                     80%
Effective Date           Ersan Petrol Sanayii A.S.                   5%
                         Avenue Energy INC.                          15%

--------------------------------------------------------------------------------
PART B
Event                    Party                                       Interest
--------------------------------------------------------------------------------
Effective Date           Aladdin Middle East LTD                     54.5%
                         Ersan Petrol Sanayii A.S.                   5%
                         Avenue Energy INC.                          10.5%
                         JKX Turkey Limited                          30%

--------------------------------------------------------------------------------
PART C
Event                    Party                                       Interest
--------------------------------------------------------------------------------
Closing                  Aladdin Middle East LTD                     54.5%
                         Ersan Petrol Sanayii A.S.                   5%
                         Avenue Energy INC.                          10.5%
                         JKX Turkey Limited                          30%
<PAGE>

        Exhibit K - Worked example of revenue entitlement from production

                          Karakilise Field

             Example Calculation Of Revenue Distribution

<TABLE>
<CAPTION>
<S>                <C>              <C>         <C>            <C>       <C>
Input Data
                                                 $           YTL         Comments
Volume of Oil
Delivered Directly
to Batman Refinery
or To AME Blending                                                       Measured at delivery point to AME Blending Facility or to
Facility            Bbls               2000                              Batman Refinery if delivered directly
Gravity of                                                               Measured at delivery point to AME Blending Facility or to
Karakilise Oil      API               32.58                              Batman Refinery if delivered directly
Market Price of
32.58 API
Karakilise Oil
determined under
Petroleum Market
Law (Determined by
TPAO)               $/bo            30.7234      30.7234      43.0158    Determined by TPAO According To Petroleum Market Law
Exchange Rate       YTL/US$          1.4001                              Determined by TPAO According To Petroleum Market Law
                                                                         Internal transportation from Mediterranean port to Batman
                                                                         Refinery
Official             /bo                                                 determined by Petrol Offisi. Different from the actual cost
Transportation Cost $                6.8142       6.8142       9.5406    of transporting Karakilise oil to Batman.
Well Head Price                                  23.9092      33.4753    Subtract official transportation price from Market Price
VAT                 %                    18

Working Interests
AME                 %                  54.5
Ersan               %                     5
Avenue              %                  10.5
JKX                 %                    30
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
<S>                <C>              <C>         <C>            <C>       <C>
Royalty
State               %                  12.5
Ersan Royalty       %                     5

Calculation of
Revenue Entitlement
Gross Revenue                                  61,446.80    86,031.66     Market Price times Oil Volume Delivered

Well Head Revenue                              47,818.40    66,950.54     Wellhead Price times Oil Volume Delivered

State Royalty                                   5,977.30     8,368.82     Well Head Revenue times State Royalty %

Well Head Revenue
After State Royalty                            41,841.10    58,581.72

Ersan Royalty                                   2,092.06     2,929.09     Well Head Revenue After State Royalty times Ersan Royalty

Net Revenue After
Royalty                                        53,377.45    74,733.76     Gross Revenue less State and Ersan Royalties

Revenue Entitlement
Excluding VAT
AME                                            29,090.71    40,729.90     Working Interest Share of Gross Revenue After Royalty
Ersan                                           2,668.87     3,736.69
Avenue                                          5,604.63     7,847.04
JKX                                            16,013.23    22,420.13

Revenue Entitlement
Including VAT
AME                                            34,327.03    48,061.28
Ersan                                           3,149.27     4,409.29
Avenue                                          6,613.47     9,259.51
JKX                                            18,895.62    26,455.75
</TABLE>
<PAGE>

                    Exhibit L - Itemized Infrastructure Costs

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]