Document:

Participation Agreement - Smokey Area, Alberta

PARTICIPATION
AGREEMENT 

SMOKY AREA,
ALBERTA

THIS
AGREEMENT made as of the 21st day of November, 2001.

AMONG:

OLYMPIA
ENERGY INC., a body corporate having an office in the City of Calgary, in
the Province of Alberta,

(hereinafter referred
to as "Olympia")

OF
THE FIRST PART

- and -

NATION
ENERGY INC., a body corporate having an office in the City of Vancouver, in
the Province of British Columbia,

(hereinafter
referred to as "Nation" or "Participant")

OF
THE SECOND PART

WHEREAS
Olympia Energy Inc. entered into a Farmin Agreement with AEC Oil & Gas
("AEC") dated the 4th day of October, 2001 a Farmin Agreement with Renata
Resources Inc. ("Renata") dated the 10th day of October,
2001, and a Pooling and Participation Agreement with Birchill Resource Limited
and Norglen Energy Corporation dated the 22nd day of October 2001 copies
of which are attached hereto as Schedule "A" (hereinafter called the
"Farmin Agreement") wherein AEC and Renata, (collectively "Farmor")
gave Olympia the right to earn an interest in certain lands; and

WHEREAS
Participant has agreed to participate with Olympia in the Farmin Agreement
as if it were a party thereto and to earn an interest in the Farmout Lands pursuant
to the earning terms provided hereunder; and

WHEREAS
the parties desire to provide for a manner in which participation and operations
will be conducted on the lands to be earned under the Farmin Agreement.

NOW
THEREFORE this Agreement witnesseth that in consideration of the mutual covenants
and agreements herein contained and subject to the terms and conditions hereinafter
set out, the parties hereto agree as follows:

1.        
DEFINITIONS

In
this Agreement, including the recitals, unless the context otherwise requires,
the definitions contained in the Farmin Agreement shall apply hereto. In addition
to such definitions in the Farmin Agreement, the following expressions shall have
the respective meanings herein assigned to them, namely:

(a)   
"the Farmout Lands", means the lands defined in the Farmin Agreement.

(b)   
"the Title Documents", means those document(s) of title more
particularly set forth and described in Schedule "A" of the Farmin Agreement
attached hereto.

(c)  
 "Operator", means Olympia Energy Inc.

-2-

(d)   
"Operating Procedure", means the 1997 Farmout & Royalty Procedure
which elections are attached to the Farmin Agreement.

(e)   
"Party", means a person, firm or corporation which is bound by this
Agreement or the Farmin Agreement.

2.        
INTERPRETATION

Whenever
the singular or masculine or neuter is used herein, the same shall be construed
as meaning plural or feminine or body politic or corporate and vice versa as the
context requires.

3.        
WARRANTY OF TITLE

Olympia
warrants no better title to the Farmout Lands than has been conveyed to it pursuant
to the terms of the Farmin Agreement.

If
the interests of any party in the Farmout Lands is now or hereafter shall become
encumbered by any royalty, production payment or other charges of a similar nature,
other than the encumbrances set out in Schedule "A" hereto, such additional
royalty, production payment or other charges shall be charged to and paid entirely
by the party whose interest is or becomes thus encumbered.

4.        
HELD IN TRUST

Olympia
agrees that it shall hold and stand possessed of the interest of the Participant
("Participating Interests") in and to the Farmout Lands and the Title
Documents, and Olympia shall hold such Participating Interests in trust for and
on behalf of the Participant.

Olympia
covenants and agrees that it will not sell, assign, transfer, convey, encumber
or surrender the Title Documents or Farmout Lands insofar as affects or relates
to the Participating Interests held in trust hereunder for Participant, except
upon written instructions of Participant.

Olympia
agrees that it will use its best efforts to transfer to Participant the Participating
Interests that it is entitled to hereunder, to the extent legally possible, when
requested to do so in writing and Olympia further agrees to execute any additional
documents required to effect such transfer.

5.        
COMMITMENT

Participant
acknowledges that it has reviewed and is familiar with the Farmin Agreement attached
hereto and agrees to abide by all the terms, conditions and obligations contained
therein as though it were a party thereto. Participant shall assume the following
share of earning obligations with respect to all terms and conditions of the Farmin
Agreement:

Nation
- an undivided 25.0% working interest

6.        
EARNING

S:\Land\Smoky\112101 Nation Energy Participation
Agr.doc

-3-

6.        
EARNING

Providing
Participant has participated with Olympia pursuant to the terms of the Farmin
Agreement and has fulfilled its obligations with respect to Clause 5 hereof, then
Participant shall have earned the following interest in the Farmout Lands: 

In the Test Well Spacing Unit:

	Before Payout of Drill & Completion Costs              25%

	After Payout of Drill & Completion Costs               15%

In the balance of the Farmout Lands:                           15%
 

 

7.        
AREA OF MUTUAL INTEREST

An
area of mutual interest (AMI) shall be established to comprise all lands within
one mile of the Farmout Lands and shall terminate one year after rig release of
the Test Well drilled hereunder or one year from termination of this Agreement,
whichever is the shorter. The interest of the Parties hereto in the AMI shall
be:

	
Olympia et al

	
85.00%

	
Nation

	
15.00%

8.        
ASSIGNMENT

Participant
shall not, prior to earning its interests hereunder, assign this Agreement in
whole or in part without the written consent of Olympia, consent not to be unreasonably
withheld. Notwithstanding any such assignment by Participant, Olympia may look
to Participant for full performance of any duties and obligations required to
be carried out by Participant under this Agreement.

Upon
and after earning under this Agreement the Participant shall be entitled to transfer,
sell, assign, convey or set over unto any person, firm or corporation all or any
part of its interests in the Farmout Lands and/or the Title Documents, but no
such transfer, sale, assignment, conveyance or setting over shall operate to relieve
such Participant from any of its obligations hereunder unless the party to which
such interest is conveyed shall, to the extent of the interest conveyed, assume
and agree with Olympia to perform and be bound by all the terms of this Agreement
and upon doing so the Participant shall thereupon be released from all obligations
thereafter accruing hereunder with respect to the interest so conveyed.

9.        
ENCUMBRANCES

The
Lands are currently unencumbered save for Crown Lessor Royalties and the gross
overriding royalty provided for in the Farmin Agreement, and Olympia warrants
and represents no better title to the Lands than as provided for in the Farmin
Agreement.

S:\Land\Smoky\112101 Nation Energy Participation Agn.doc

-4-

10.      
FARMOUT AND PARTICIPATION ACKNOWLEDGEMENT

The
Participant agrees to be bound by all of the terms of the Farmin Agreement, mutatis
mutandis, as to their Participating Interest.

Upon
the parties having earned their interests, all subsequent operations on the Farmout
Lands shall be governed pursuant to the terms of the Farmin Agreement.

11.      
OPERATIONS

All
operations as between Olympia and Participant during the interest earning phase
of the Farmin Agreement and all subsequent joint operations shall be governed
by the terms of this Agreement, the Farmin Agreement, and the Farmout & Royalty
Procedure attached thereto. Whenever there is a conflict between this Agreement
and any Title Document, the terms and provisions of the Title Document shall prevail.

Notwithstanding
any notice provisions in the Farmin Agreement and/or the Farmout & Royalty
Procedure attached thereto, failure by Participant to fulfil its obligations during
the interest earning phase of this Agreement, including, but not limited to, the
advancement of funds under Cash Call provisions in the manner and schedule requested
by the Operator shall constitute a default under this Agreement, with Participant
being deemed to have failed to earn the interest provided hereunder and its right
to earn such interest shall thereafter be at an end.

12.      
ABANDONMENT

Olympia
shall give immediate notice to Participant when the Earning Well has reached contract
depth and the logs and tests preliminary to casing have been run. If Olympia elects
to plug or abandon the well, Participant shall have a period of twenty-four (24)
hours after receipt of notice of such election where there is a drilling rig on
location, or in all other cases, 15 days following receipt of said notice to elect
to takeover and complete the well and in the event Participant fails to reply
to said notice in the time period provided herein Participant will have deemed
to make the same election as Olympia. It shall be understood that if any Party
elects to abandon the well, the Party wishing to complete the well shall proceed
with such attempt and shall be entitled to acquire the interest of the non-participating
Party in the well and associated spacing unit subject to the terms of this Agreement
and the Farmin Agreement. The completing Party shall be responsible to the non-participating
Party for the reimbursement for the estimated salvageable material and equipment
placed in the well prior to the completion attempt. If the well is successfully
completed for the production of petroleum substances, the non-participating Party
shall assign to the completing Party all of its right, title and interest in and
to the zone(s) so completed in the Test Well spacing unit. If the completion of
the well as a producer is unsuccessful it shall be abandoned for the joint account
but the non-participating Party shall not be liable for any extra costs of the
abandonment incurred by reason of the completion attempt.

S:\Land\Smoky\112101 Nation Energy Participation
Agr..doc

-5-

13.  
    INDEMNIFICATION

The
Participant shall indemnify and save harmless Olympia from and against all actions,
suits, costs, claims and demands whatsoever by any third party arising out of
or resulting from any act or omission of the Participant, or its agents or employees,
in respect to the operations proposed hereunder.

14.      
LIABILITY

The
Participant shall be liable for its Participating Interest share, as set forth
in clause 5 hereof, of any costs arising from damages, suits, demands, claims,
etc. made against Olympia and resulting from operations hereunder except where
such damages, suits or claims are the direct result of gross negligence and wilful
misconduct by Olympia in which case Olympia shall be solely liable for such action.

15.      
CONFIDENTIAL INFORMATION

All
information acquired by the Parties hereto as a result of any operations on the
Farmout Lands shall be considered confidential and for their sole and exclusive
use and benefit. Such information shall not be divulged to any party not a party
hereto unless the Parties first agree in writing to the dissemination of such
data and information.

16.      
INSURANCE

In
respect of the operations conducted hereunder the Participant shall pay for its
proportionate share of any Insurance Provisions.

17.      
NOTICES

Addresses for Notices shall be as follows:

Olympia Energy Inc.

2100, 500 - 4th Avenue S.W.

Calgary, Alberta T2P 2V6

Fax: (403)265-2726

Nation Energy Inc.

1320, 925 W. Georgia Street

Vancouver, British Columbia V6C 3L2

Fax: (604) 682-5564

S:\Land\Smoky\112101 Nation Energy Participation
Agr.doc

-6-

18.      
EFFECTIVE DATE

The
effective date of this Agreement shall be deemed to be as of the effective date
of the Farmin Agreement.

19.      
MISCELLANEOUS

(a)  
Each of the Parties hereto shall, from time to time and at all times hereafter,
do such further acts and things and execute and deliver all such further deeds
and documents as shall be reasonably required in order to fully perform and carry
out the terms of this Agreement.

(b)  
This Agreement shall enure to the benefit of and shall bind the Parties hereto
and their respective successors and assigns.

(c)  
The Parties hereto agree that this Agreement shall be for all purposes construed
and interpreted according to the laws of the Province of Alberta and that the
courts having jurisdiction with respect to matters relating to this Agreement
shall be the courts of said Province, to the jurisdiction of which courts the
Parties by their execution of this Agreement do hereby submit.

(d)  
This Agreement supersedes all other agreements, documents, writings and verbal
understandings amount the Parties relating to the Farmout Lands.

(e)  
The liability of the Parties hereto shall be separate and not joint or collective,
and each party shall be responsible only for its obligations as set out herein.
It is not the purpose of this Agreement to create any partnership or joint venture
relationship and neither this Agreement nor the operations hereunder shall be
construed or considered as creating any such relationship.

(f)    
Time shall be of the essence of this Agreement.

IN
WITNESS WHEREOF the parties hereto have executed and delivered these presents
as of the day and year first above written.

	
OLYMPIA ENERGY INC.                                   
    

 

	
NATION ENERGY INC.

 

	
Per:

	
"Andy Kirby"         	
Per:

	
"Donald A. Sharpe"    
	
 

 

	
A.T. (Andy) Kirby

Land Manager 

 

	
 

	
D. Sharpe

President

 

S:\Land\Smoky\112101
Nation Energy Participation Agr..doc

 

OLYMPIA

ENERGY INC.

SCHEDULE "A" TO A PARTICIPATION
AGREEMENT DATED NOVEMBER 21, 2001

BETWEEN OLYMPIA ENERGY INC. AND NATION ENERGY INC.

DELIVERED

October
4, 2001

AEC
Oil & Gas

3900,421 - 7th Avenue S.W.

Calgary, Alberta T2P 4K9

Attn:    
Mr. Craig McClelland

Re:     
Farmin Agreement 

Twp 59 Rge 2 W6M 

Smoky Area, Alberta

Further
to our recent discussion, Olympia Energy Inc. ("Olympia") is prepared
to commit to an earning test well based on the following terms and conditions:

In
this Agreement, unless the context otherwise requires the definitions contained
in Clause 1 of the 1997 Farmout and Royalty Procedure ("Farmout and Royalty
Procedure") shall apply. In addition, the following terms shall have the
meanings ascribed to them:

1.        
Farmout Lands as described on Schedule "A" attached hereto
and forming part of this proposal

2.        
Farmor              
AEC Oil & Gas

Farmee             
Olympia Energy Inc.

3.        
Effective Date  October 4, 2001

4.        
Title and Encumbrances

Farmor
does not warrant title to the Block A or Block B Farmout Lands (collectively "Farmout
Lands") or agree to convey to Farmee any better title thereto than Farmor
has as of the Effective Date. Farmor covenants only that it has complied with
terms of the Title Documents to the extent necessary to keep them in force and
has not, on or before the date of execution and delivery of this Agreement, received
any notice of offset or default for the Farmout Lands which has not been remedied.
Farmor also covenants that the Farmout Lands are unencumbered, except for the
lessor royalty and the encumbrances as set forth in Schedule "A" and
that Farmor has not made any agreement whereby anyone other than Farmee may acquire
an interest in the Farmout Lands.

P.O.
BOX 20059, CALGARY PLACE POSTAL OUTLET, CALGARY. ALBERTA T2P 4J2 

2100, 500 - 4TH AVENUE S.W., CALGARY, ALBERTA T2P 2V6 TEL. (403) 265-2723 FAX
(403) 265-2726

AEC
Oil & Gas

October 4,2001 

page 2

5.        
Pooling

(a)  
Subject to the approval of the other working interest owners in the Block A &
Block B Farmout Lands and the Block C Lands, set forth in Schedule "A",
Farmor agrees to pool its working interests in its P&NG rights underlying
the Block A & Block B Farmout Lands with the P&NG rights underlying the
Block C Lands. In the event the other working interest owners of the Block A and
Block B Farmout Lands and the Block C Lands are agreeable to such pooling, the
resultant Pooled Working Interests of all working interest owners in the Pooled
Lands shall be:

	
AEC Oil & Gas

	
-

	
48.75%

	
Rio Alto Exploration Ltd.

	
-

	
26.25%

	
Birchill Resources Limited

	
-

	
12.50%

	
Rosetta Exploration Inc.

	
-

	
12.50%

 

(b)  
In the event that the other working interest owners in the Block A & Block
B Farmout Lands and the Block C Lands are not agreeable to the Pooling as contemplated
in subclause 5(a) herein, then the Test Well to be drilled pursuant to Clause
7 herein shall be located upon the Block A Farmout Lands.

6.        
Contract Depth

Contract
Depth shall mean a depth sufficient to evaluate the Leduc formation or to a total
depth of four thousand eight hundred (4800) metres subsurface, whichever first
occurs.

7.        
Commitment

Farmee
shall, on or before November 13, 2001, at its sole cost, risk and expense and
subject to surface access, rig availability and regulatory approval, spud a well
("Test Well") at a location of its choice on nine (9) contiguous sections
pre-selected from the Farmout Lands ("Earning Block") for the recovery
of petroleum substances. Farmee shall diligently and continuously drill the Test
Well to Contract Depth and thereafter log and test, if applicable, any and all
zones within the Farmout Lands or Pooled Lands, as the case may be, reasonably
prospective of containing petroleum substances and thereafter, complete, cap or
abandon the Test Well.

8.       
Grouping and Validation of P&NG Licenses

Farmee
shall, prior to spudding the Test Well, make application pursuant to Clause 10
of the Petroleum and Natural Gas Tenure Regulation to have the Test Well declared
a "grouping well" for the validation of the P&NG Licences comprising
the Block A & Block B Farmout Lands and the Block C Lands, in the event that
the pooling as per Clause 5 is in effect, or for the validation of the P&NG
Licences comprising the Block A & Block B Farmout Lands, if no such pooling
is agreed to, into their intermediate terms.

S:\Land\Smokey\100301 AEC Letter.doc

AEC
Oil & Gas

October 4, 2001

page 3

9.        
Earning

Upon
drilling the Test Well to Contract Depth, and upon testing, completing, capping
or abandoning the Test Well in accordance with the Farmout and Royalty Procedure
which is incorporated herein, with the elections and amendments as specified in
Schedule "B" attached hereto, and provided Farmee is not in default
hereunder, Farmee shall earn the following interest in the Earning Block of the
Farmout Lands:

a)       
100% of Farmor's pre-farmout working interest (or Pooled Working Interest in the
event the pooling pursuant to Clause 5 is in effect) in the Earning Block of the
Farmout Lands and Title Documents related thereto, subject to the reservation
of the Lessor's royalty and a non-convertible gross overriding royalty of 10%
on petroleum, natural gas and other leased substances calculated on 100% of production
and paid on Farmor's pre-farmout working interest or Pooled Working Interest,
as the case may be, (the "GOR"). The parties confirm that the royalty
shall be subject to those deductions as allowed by the Crown and that all other
terms of the Farmout and Royalty Procedure shall apply in respect of the GOR.

10.      
Drilling of Substitute Well

(a)  
If in the drilling of the Test Well, Farmee encounters operating difficulties
(which shall not include lack of finances) or impenetrable formations that in
Farmee's reasonable opinion make further drilling of the Test Well inadvisable,
Farmee shall promptly notify Farmor of the problems so encountered and Farmee's
intention to abandon the well.

Within
thirty (30) days of receipt by Farmor of notification that the Test Well has been
abandoned, Farmee may, subject to surface access, rig availability and regulatory
approval, spud a substitute well at a location of its choice on the Farmout Lands.
The substitute well shall be deemed to be the Test Well and all provisions of
this Agreement which apply to the Test Well shall apply, mutatis mutandis, with
the same force and effect to the substitute well.

(b)  
Notwithstanding anything to the contrary contained herein, in the event Farmee
has drilled the Test Well to at least 3000 metres of measured depth and encounters
operating difficulties as set out above, whether or not Farmee elects to spud
a substitute well, Farmee shall be deemed to have earned the interest as provided
in Clause 9 herein to the base of the deepest formation fully penetrated, logged
and tested by the drilling of the Test Well. In such an instance, the parties
agree that all grouping/validation rights shall be applied to the Block A and
Block B Farmout Lands.

Within
one hundred and eighty (180) days of receipt by Farmor of notification that the
drilling of the Test Well has been discontinued pursuant to this Clause 10(b),
Farmee may, subject to surface access, rig availability and regulatory approval,
elect to spud an additional well ("Second Test Well") at a location
of its choice on the Farmout Lands and all provisions of this Agreement which
apply to the Test Well as to earning in the rights below the base of the deepest
formation fully penetrated by the Test Well shall apply, mutatis mutandis, with
the same force and effect to the Second Test Well.  If Farmee does not elect
to spud an additional well

S:\Land\Smokey\100301 AEC Letter.doc

AEC
Oil & Gas 

October 4, 2001 

page 4

within
the time frame, Farmee shall relinquish any further right to earn additional interests
pursuant to this agreement.

11.      
Indemnification by Farmee

Farmee
shall indemnify Farmor against all actions, claims, costs, and demands, loss,
damages and expenses which may be brought against or suffered by Farmor or which
it may sustain, pay or incur by reason of any matter or thing arising out of or
in any way attributable to the operations carried on by Farmee, its servants,
agents or employees pursuant to this Agreement, except any actions, suits, claims,
costs and demands, loss, damages and expenses sustained, paid or incurred or as
a result of any act or omission of Farmor, its servant or its employees.

12.      
Participants

Farmor
acknowledges and agrees that Farmee has the right to bring other participants
and partners into this agreement and the parties hereto further acknowledge and
agree that Farmee may assign a portion of its earnable interests herein to such
participants, provided however that Farmor need only look to Farmee for performance
during the interest earning phase of this agreement. Farmee may release information
to the participants on a confidential basis.

13.      
Limitations Act

The
two-year period for seeking a remedial order under section 3(1 )(a) of the Limitations
Act, S.A. 1996 c. L-15.1, as amended, for any claim (as defined in that Act)
arising in connection with this Agreement is extended to:

(a)  
for claims disclosed by an audit, two years after the time this Agreement permitted
that audit to be performed; or

(b)  
for all other claims, four years.

14.     
Seismic Data

With
5 business days of the Test Well penetrating the rights below the base of the
Cardium formation, Olympia shall provide to Farmor, on a confidential basis, a
copy of Olympia's proprietary seismic data associated with the Farmout Lands,
for Farmor's use and benefit. Olympia shall retain all trading rights to all such
seismic data provided herunder.

S:\Land\Smokey\100301 AEC Letter.doc

AEC Oil & Gas

October 4, 2001

page 5

 

These are the basic terms under which Olympia would pursue the acquisition
of an interest in the Farmout Lands. If the foregoing meets with your acceptance,
please so indicate by signing in the space provided and returning an executed
copy to the attention of the undersigned. This offer is open for acceptance until
4:00 p.m. on October 5, 2001.

Yours
truly,

OLYMPIA
ENERGY INC.

"Andy Kirby"
'AT'
(Andy) Kirby 

Land Manger 

ATK/Imb

Accepted
and Agreed to this 5th

day of   October , 2001

AEC OIL & GAS

Per: "Craig McClelland"

Title: Landman

 

 

S:\Land\Smokey\100301 AEC Letter.doc 

SCHEDULE
"A" attached to and forming part of a Farmin Proposal dated October
4, 2001 among OLYMPIA ENERGY INC., as Farmee and AEC Oil & Gas, as Farmor

	
Alberta P&NG 

License #

 

	
Lands

 

	
Rights

 

	
AEC Working Interest

 

	
BLOCK A 

FARMOUT LANDS

 

5497110012

 

	
 

Twp 59 Rge 2 W6M 

Sections 2, 3, 10, 11, 14&15

 

	
 

All P&NG Rights 

Below base Cardium

 

	
Rio Alto - 35% 

AEC - 65%

	
BLOCK B 

FARMOUT LANDS

 

Ptn. 5498010029

 

	
 

 

Twp 59 Rge 2 W6M 

Sections 4, 5, 8, 9, 16 & 17

 

	
 

All P&NG Rights 

Below base Cardium to base Winterburn

 

	
Rio Alto - 35% 

AEC - 65%

	
BLOCK C 

LANDS

 

Ptn. 5498010029

	
 

Twp 59 Rge 2 W6M 

Sections 4, 5, 8, 9, 16 & 17

 

	
 

All P&NG Rights below base Winterburn

 

	
Birchill - 50% 

Rosetta - 50%

SCHEDULE "B" attached to and forming part of a Farmin Proposal
dated October 4, 2001 among OLYMPIA ENERGY INC., as Farmee and AEC Oil & Gas,
as Farmor

Farmout
and Royalty Procedure Elections and Amendments

1.       Effective
Date (Subclause 1.01 (f):      October 4, 2001

2.        Payout
(Subclause 1.01 )(t):               
Alternate     N/A   

3.       
Incorporation of Clauses from 1990 CAPL Operating Procedure (Clause 1.02):

i.           Insurance (311):        
Alternate A ___     Alternate B      X

4.        Article
4.00 (Option Wells) will __/ will not _X__ apply:

5.        Article
5.00 (Overriding Royalty) will     X   
/ will not __ apply:

6.       
Quantification of Overriding Royalty (Subclause 5.01 A):

i.         
Crude Oil (a)   Alternate 1     10%

ii.          Other (b)        
Alternate 1     10%

7.       
Permitted Deductions (Subclause 5.04B, if applicable):      
Alternate 1

8.        Article
6.00 (Conversion to Overriding Royalty will __/ will     X   
 not apply:

9.        Article
8.00 (Area of Mutual Interest) will __/ will     X  
  not apply:

10.     Reimbursement of Land
Maintenance Cost (Clause 11.02) will __/ will not     X  
apply:

OLYMPIA

ENERGY INC.

DELIVERED

October
10, 2001

Renata
Resources Inc. 

2500, 205 - 5th Avenue S.W. Calgary, Alberta T2P 2V7

Attn:   
Mr. Bruce Tumbach

Re:     
Farmin Agreement 

Twp 59 Rge 2 W6M 

Smoky Area, Alberta

Further
to our recent discussion, Olympia Energy Inc. ("Olympia") is prepared
to commit to an earning test well based on the following terms and conditions:

In
this Agreement, unless the context otherwise requires the definitions contained
in Clause 1 of the 1997 Farmout and Royalty Procedure ("Farmout and Royalty
Procedure") shall apply. In addition, the following terms shall have the
meanings ascribed to them:

1.        
Farmout Lands as described on Schedule "A" attached hereto
and forming part of this proposal

2.        
Farmor              
Renata Resources Inc.

Farmee             
Olympia Energy Inc.

3.        
Effective Date  October 10, 2001

4.        
Title and Encumbrances

Farmor
does not warrant title to the Block A or Block B Farmout Lands (collectively "Farmout
Lands") or agree to convey to Farmee any better title thereto than Farmor
has as of the Effective Date. Farmor covenants only that it has complied with
terms of the Title Documents to the extent necessary to keep them in force and
has not, on or before the date of execution and delivery of this Agreement, received
any notice of offset or default for the Farmout Lands which has not been remedied.
Farmor also covenants that the Farmout Lands are unencumbered, except for the
lessor royalty and the encumbrances as set forth in Schedule "A" and
that Farmor has not made any agreement whereby anyone other than Farmee may acquire
an interest in the Farmout Lands.

P.O. BOX 20059, CALGARY PLACE POSTAL OUTLET, CALGARY,
ALBERTA T2P 4J2 

2100, 500 - 4TH AVENUE S.W., CALGARY, ALBERTA T2P 2V6 TEL. (403) 265-2723 FAX
(403) 265-2726

Renata
Resources Inc. 

October 4, 2001

page 2

5.        
Pooling

(a) 
Subject to the approval of the other working interest owners in the Block A &
Block B Farmout Lands and the Block C Lands as set forth in Schedule "A",
Farmor agrees to pool its working interests in the P&NG rights below the base
of the Cardium formation underlying the Block A & Block B Farmout Lands with
the P&NG rights underlying the Block C Lands. In the event the other working
interest owners of the Block A and Block B Farmout Lands and the Block C Lands
are agreeable to such pooling, the resultant Pooled Working Interests of all working
interest owners in the Pooled Lands shall be:

	
AEC Oil & Gas

	
-

	
48.75%

	
Renata Resources Inc.

	
-

	
26.25%

	
Birchill Resources Limited

	
-

	
12.50%

	
Rosetta Exploration Inc.

	
-

	
12.50%

 

(b) 
In the event that the other working interest owners in the Block A & Block
B Farmout Lands and the Block C Lands are not agreeable to the Pooling as contemplated
in subclause 5(a) herein, then the Test Well to be drilled pursuant to Clause
7 herein shall be located upon the Block A Farmout Lands.

6.        
Contract Depth

Contract
Depth shall mean a depth sufficient to evaluate the Leduc formation or to a total
depth of four thousand eight hundred (4800) metres subsurface, whichever first
occurs.

7.        
Commitment

Farmee
shall, on or before November 13, 2001, at its sole cost, risk and expense and
subject to surface access, rig availability and regulatory approval, spud a well
("Test Well") at a location of its choice on nine (9) contiguous sections
pre-selected from the Farmout Lands ("Earning Block") for the recovery
of petroleum substances. Farmee shall diligently and continuously drill the Test
Well to Contract Depth and thereafter log and test, if applicable, any and all
zones within the Farmout Lands or Pooled Lands, as the case may be, reasonably
prospective of containing petroleum substances and thereafter, complete, cap or
abandon the Test Well.

8.       
Grouping and Validation of P&NG Licenses

Farmee
shall, prior to spudding the Test Well, make application pursuant to Clause 10
of the Petroleum and Natural Gas Tenure Regulation to have the Test Well declared
a "grouping well" for the validation of the P&NG Licences comprising
the Block A & Block B Farmout Lands and the Block C Lands, in the event that
the pooling as per Clause 5 is in effect, or for the validation of the P&NG
Licences comprising the Block A & Block B Farmout Lands, if no such pooling
is agreed to, into their intermediate terms.

S:\Land\Smoky\100401 Rio Alto Letter-2.doc

Renata
Resources Inc.

October 4, 2001 

page 3

9.        
Earning

Upon
drilling the Test Well to Contract Depth, and upon testing, completing, capping
or abandoning the Test Well in accordance with the Farmout and Royalty Procedure
which is incorporated herein, with the elections and amendments as specified in
Schedule "B" attached hereto, and provided Farmee is not in default
hereunder, Farmee shall earn the following interest in the Earning Block of the
Farmout Lands:

a)       
100% of Farmor's pre-farmout working interest (or Pooled Working Interest in the
event the pooling pursuant to Clause 5 is in effect) in the Earning Block of the
Farmout Lands and Title Documents related thereto, subject to the reservation
of the Lessor's royalty and a non-convertible gross overriding royalty of 10%
on petroleum, natural gas and other leased substances calculated on 100% of production
and paid on Farmor's pre-farmout working interest or Pooled Working Interest,
as the case may be, (the "GOR"). The parties confirm that the royalty
shall be subject to those deductions as allowed by the Crown and that all other
terms of the Farmout and Royalty Procedure shall apply in respect of the GOR.

10.      
Drilling of Substitute Well

(a)  
If in the drilling of the Test Well, Farmee encounters operating difficulties
(which shall not include lack of finances) or impenetrable formations that in
Farmee's reasonable opinion make further drilling of the Test Well inadvisable,
Farmee shall promptly notify Farmor of the problems so encountered and Farmee's
intention to abandon the well.

Within
thirty (30) days of receipt by Farmor of notification that the Test Well has been
abandoned, Farmee may, subject to surface access, rig availability and regulatory
approval, spud a substitute well at a location of its choice on the Farmout Lands.
The substitute well shall be deemed to be the Test Well and all provisions of
this Agreement which apply to the Test Well shall apply, mutatis mutandis, with
the same force and effect to the substitute well.

(b)  
Notwithstanding anything to the contrary contained herein, in the event Farmee
has drilled the Test Well to at least 3000 metres of measured depth and encounters
operating difficulties as set out above, whether or not Farmee elects to spud
a substitute well, Farmee shall be deemed to have earned the interest as provided
in Clause 9 herein to the base of the deepest formation fully penetrated, logged
and tested by the drilling of the Test Well. In such an instance, the parties
agree that all grouping/validation rights shall be applied to the Block A and
Block B Farmout Lands.

Within
one hundred and eighty (180) days of receipt by Farmor of notification that the
drilling of the Test Well has been discontinued pursuant to this Clause 10(b),
Farmee may, subject to surface access, rig availability and regulatory approval,
elect to spud an additional well ("Second Test Well") at a location
of its choice on the Farmout Lands and all provisions of this Agreement which
apply to the Test Well as to earning in the rights below the base of the deepest
formation fully penetrated by the Test Well shall apply, mutatis mutandis, with
the same force and effect to the Second Test Well. If Farmee does not elect to
spud an additional well

S:\Land\Smoky\100401 Rio Alto Letter-2.doc

Renata
Resources Inc.

October 4, 2001 

page 4

within the time frame, Farmee shall relinquish any
further right to earn additional interests pursuant to this agreement.

11.      
Indemnification by Farmee

Farmee
shall indemnify Farmor against all actions, claims, costs, and demands, loss,
damages and expenses which may be brought against or suffered by Farmor or which
it may sustain, pay or incur by reason of any matter or thing arising out of or
in any way attributable to the operations carried on by Farmee, its servants,
agents or employees pursuant to this Agreement, except any actions, suits, claims,
costs and demands, loss, damages and expenses sustained, paid or incurred or as
a result of any act or omission of Farmor, its servant or its employees.

12.      
Participants

Farmor
acknowledges and agrees that Farmee has the right to bring other participants
and partners into this agreement and the parties hereto further acknowledge and
agree that Farmee may assign a portion of its earnable interests herein to such
participants, provided however that Farmor need only look to Farmee for performance
during the interest earning phase of this agreement. Farmee may release information
to the participants on a confidential basis.

13.      
Limitations Act

The
two-year period for seeking a remedial order under section 3(1 )(a) of the Limitations
Act, S.A. 1996 c. L-15.1, as amended, for any claim (as defined in that Act)
arising in connection with this Agreement is extended to:

(a)  
for claims disclosed by an audit, two years after the time this Agreement permitted
that audit to be performed; or

(b)  
for all other claims, four years.

S:\Land\Smoky\100401 Rio Alto Letter-2.doc

Renata Resources Inc.

October 4, 2001

page 5

 

These are the basic terms under which Olympia would pursue the acquisition
of an interest in the Farmout Lands. If the foregoing meets with your acceptance,
please so indicate by signing in the space provided and returning an executed
copy to the attention of the undersigned.   This offer is open for acceptance
until 4:00 p.m. on October 12, 2001.

Yours truly,

OLYMPIA
ENERGY INC.

"Andy Kirby"
AT.
(Andy) Kirby 

Land Manger 

ATK/Imb

Accepted
and Agreed to this   12th

day
of   October , 2001

Rio
Alto Exploration Ltd., as acting agent for RENATA RESOURCES INC.

 

Per:
"Bruce Tumbach"

Title:
Landman

S:\Land\Smoky\100401
Rio Alto Letter-2.doc

SCHEDULE
"A" attached to and forming part of a Farmin Proposal dated October
10, 2001 among OLYMPIA ENERGY INC., as Farmee and RENATA RESOURCES INC., as Farmor

	
Alberta P&NG 

License #

 

	
Lands

 

	
Rights

 

	
Working Interest

 

	
BLOCK A 

FARMOUT LANDS

 

5497110012

 

	
 

 

Twp 59 Rge 2 W6M 

Sections 2, 3, 10, 11, 14 & 15

 

	
 

 

All P&NG Rights Below Base Cardium

 

	
 

 

Renata - 35% 

AEC - 65%

 

	
BLOCK B 

FARMOUT LANDS

 

Ptn. 5498010029

 

	
 

 

Twp 59 Rge 2 W6M 

Sections 4, 5, 8, 9, 16 & 17

 

	
 

 

All P&NG Rights Below base Cardium
to base Winterburn

 

	
 

 

Renata - 35% 

AEC - 65%

	
BLOCK C

LANDS

 

Ptn. 5498010030

 

	
 

 

Twp 59 Rge 2 W6M 

Sections 4, 5, 8, 9, 16 & 17

 

	
 

 

All P&NG Rights below base Winterburn

 

	
 

 

Birchill - 50% 

Rosetta - 50%

 

SCHEDULE "B" attached to and forming
part of a Farmin Proposal dated October 10, 2001 among OLYMPIA ENERGY INC., as
Farmee and RENATA RESOURCES INC., as Farmor

Farmout
and Royalty Procedure Elections and Amendments

1.      
Effective Date (Subclause 1.01 (f):     October 10, 2001

2.       
Payout (Subclause 1.01 )(t):               
Alternate     N/A   

3.       
Incorporation of Clauses from 1990 CAPL Operating Procedure (Clause 1.02):

i.           Insurance (311):        
Alternate A ___     Alternate B     X

4.        Article
4.00 (Option Wells) will __/ will not __X__ apply:

5.        Article
5.00 (Overriding Royalty) will     X   /
will not __ apply:

6.       
Quantification of Overriding Royalty (Subclause 5.01A):

i.         
Crude Oil (a)  Alternate 1        10%

ii.          Other (b)       
Alternate 1        10%

7.       
Permitted Deductions (Subclause 5.04B, if applicable):      
Alternate 1

8.       
Article 6.00 (Conversion to Overriding Royalty will __/ will     X  
  not apply:

9.        Article
8.00 (Area of Mutual Interest) will __/ will     X  
  not apply:

10.     
Reimbursement of Land Maintenance Cost (Clause 11.02) will __/ will not 
   X   apply:

 

 

OLYMPIA

ENERGY INC.

FAXED

October 22, 2001

 

	
Birchill Resources Limited

1200, 510-5th Street S.W. 

Calgary, Alberta T2P 3S2

Attention: Mr. James A. Carriere

	
Norglen Energy Corporation 

30, 633 - 6th Ave. SW Calgary, 

Alberta T2P 2Y5

Attention: Mr. Gary Kirkpatrick

Dear
Sirs:

RE:      Pooling and
Participation Agreement (the "Agreement")

            Twp. 59 Rge
2 W6M 

            Smoky Area,
Alberta____

Further to our numerous discussions, Olympia Energy
Inc. ("Olympia") has reached the following agreement with Birchill Resources
Ltd. ("Birchill") and Norglen Energy Corporation ("Norglen"),
successor in interest to Rosetta Exploration Inc.

1.        
Pooling

Olympia
has obtained the agreement of both AEC Oil & Gas ("AEC") and Rio
Alto Exploration Ltd. ("RAX") for the pooling of their working interests
in the P&NG rights below the base of the Cardium formation underlying the
Block A and Block B Lands with the P&NG rights owned by Birchill and Norglen
underlying the Block C Lands, all as detailed in Schedule "A" attached
hereto. The resultant working interests of all working interest owners in the
Pooled Lands (12 Sections, all P&NG rights below base of Cardium formation)
shall be:

	
AEC

	
48.75%

	
RAX

	
26.25%

	
Birchill

	
12.50%

	
Norglen

	
12.50%

 

P
0 BOX 20059. CALGARY PLACE POSTAL OUTLET, CALGARY, ALBERTA T2P 4J2 

2100, 500 - 4TH AVENUE S.W., CALGARY, ALBERTA T2P 2V6 TEL. (403) 265-2723 FAX
(403) 265-2726

Birchill
Resources Limited

Norglen Energy Corporation

October 22, 2001 

Page 2

2.        
Pool & Participate in Test Well

By
their execution hereof, Birchiil and Norglen agree to the pooling described in
Clause 1 herein and each agrees to participate as to its undivided 12.5% Pooled
Working Interest in the Test Well, as further described in Clause 4 herein.

Pursuant
to Agreements dated October 4, 2001 between Olympia and AEC and October 10, 2001
between Olympia and RAX, Olympia shall be responsible for its Pooled Working Interest
share of the costs associated with the Test Well attributed to AEC and RAX. (75%)

In
the event that the spudding of the Test Well is delayed such that the Block A
Lands expire by their own terms, then the pooling effected in Clause 1 shall be
dissolved and, subject to the Agreement of AEC & RAX, shall be replaced by
a pooling among the mineral interests owners of the Block B and Block C Lands
such that the Pooled Working Interests shall then be:

	
AEC

	
32.5%

	
RAX

	
17.5%,

	
Birch

	
25.0%,

	
Norglen

	
25.0%,

and
the Block A Lands shall become subject to the terms of Clause 6 herein (Area Of
Mutual Interest.)

3.        
Title

Birchill
and Norglen (collectively "Participant") do not warrant title to the
Block C Lands or agree to convey for the pooling described in Clause 1 any better
title thereto than Participant has as of the date hereof. Participant covenants
only that it has complied with the terms of the Title Documents related to the
Block C Lands to the extent necessary to keep them in full force and effect and
has not, on or before the date of execution and delivery of this Agreement, received
any notice of offset or default for the Block C Lands which has not been remedied.
Participant also covenants that the Block C Lands are unencumbered, except for
the lessor royalty and the encumbrance as set forth in Schedule "A"
and that Participant shall continue to be responsible for the encumbrances on
the Block C Lands, notwithstanding the pooling described in Clause 1.

4.        
Test Well

Olympia
on behalf of itself and Participant, shall spud the Test Well on or before November
13, 2001 (expiry date of Alberta P&NG Licence comprising the Block A Lands),
subject to surface access, rig availability and regulatory approval, at a location
of its choice on nine (9) contiguous sections pre-selected from the Pooled Lands
(9-9-59-2W6M) and drill such well to a depth sufficient to evaluate the Leduc
formation or to a

\\NTSERVER\SHARED\Christine\102201 Birchill-Norglen
Letter.doc

Birchill
Resources Limited

Norglen Energy Corporation

October 22, 2001 

Page 3

total
depth of four thousand eight hundred (4800) metres subsurface, whichever first
occurs (estimated D&A costs $10.5MM).

Cost
of the Test Well shall be borne as to:

	
Olympia

	
75.0%

	
Birchill

	
12.5%

	
Norglen

	
12.5%

 

The
relationship between Olympia and Participant in the Test Well operations shall
be governed by the 1990 CAPL Operating Procedure and 1988 PASC Accounting Procedure
(revised February 1991) with rates and elections as specified in Schedule "B"
attached hereto with Olympia being appointed as Operator thereunder and Olympia
hereby accepting such appointment.

5.       
Grouping and Validation of P&NG Licenses

Olympia
shall, prior to spudding the Test Well, make application pursuant to Clause 10
of the Petroleum and Natural Gas Tenure Regulation to have the Test Well declared
a "grouping well" for the validation of the P&NG Licences comprising
the Block A & Block B and the Block C Lands.

6.        
Area of Mutual Interest

a)    
The Parties hereby agree to establish an Area of Mutual Interest to include all
P&NG rights, 50% or more of which falls within one (1) mile of the Pooled
Lands, and which, for certainty, shall include the Pooled Lands in the event that
all, or a portion thereof, expires and is returned to the Crown for disposition
at a future Crown Sale.

b)    
The provisions of this Clause 6 shall be binding upon the Parties for the period
commencing on the date hereof and ending on the expiration of one (1) year therefrom
(such period hereinafter called the "AMI Term").

c)     
The Parties shall have the right to participate in the acquisition of New Lands
as to the interest which each bears in relation to the Test Well operations.

d)     
If any New Lands become available for acquisition at a Crown Sale and one of the
Parties desires to acquire an interest therein, the Parties shall endeavour to
consult prior to the sale date for the purpose of submitting a bid therefore,
and shall attempt to agree upon a bid price for such lands at least forty-eight
(48) hours prior to the sale. If after consultation between

S:\Christine\102201 Birchill-Norglen Letter.doc

Birchill
Resources Limited

Norglen Energy Corporation

October 22, 2001 

Page 4

the
Parties, an agreement is reached as to the bid price, Olympia shall submit the
bid on behalf of all Parties and if acquired, such New Lands shall be owned by
the Parties in accordance with the interests set out in Clause 6c) herein.

e)     
If, after consultation in the manner hereinbefore provided, the Parties are unable
to agree upon a bid price, each Party shall be free to bid for its sole account
and, if acquired, such New Lands shall be owned by the acquiring Party free and
clear of any obligation to the other Party. Notwithstanding the foregoing provisions
of this sub-clause 6 e), if such New Lands are purchased by the acquiring Party
for a price which differs by more than five percent (5%) from the price such Party
last represented to the other Party it was prepared to pay, the acquiring Party
shall, within seven (7) days of acquisition, notify the other Party in writing
setting forth the consideration paid. The non-acquiring Party shall have the right
for a period of fifteen (15) days from receipt of such notification to elect in
writing to acquire its working interest in such New Lands by paying to the acquiring
Party, within the said fifteen (15) day period, its working interest share, as
set out in Clause 6 c) hereof, of such acquisition costs.

f)     
If the Parties do not consult or fail to disclose to each other the price they
are prepared to pay for the acquisition of New Lands at a Crown Sale and a Party
acquires New Lands, then the acquiring Party shall, within seven (7) days of acquisition,
notify the other Party in writing setting forth the consideration paid and all
other pertinent terms applicable thereto. A non-acquiring Party shall have the
right for a period of fifteen (15) days from receipt of such notification to elect
in writing to acquire its working interest in such New Lands by paying to the
acquiring Party within the said fifteen (15) day period its working interest share,
as set out in Clause 6 c) hereof, of such acquisition costs.

g)    
If a Party acquires any New Lands which become available for acquisition other
than by Crown Sales including, but not limited to, purchase, option, farmin or
otherwise during the AMI Term the acquiring Party, upon reaching agreement, shall
forthwith give written notice to the non-acquiring Party setting forth the consideration
paid or other terms and conditions under which such Party is entitled to acquire
such New Lands. A non-acquiring Party shall have the right for a period of fifteen
(15) days from receipt of the notice to elect in writing to acquire by paying
to the acquiring Party or assuming its proportionate share of all costs and obligations
in such agreement. If this right is exercised, the acquiring Party shall exercise
reasonable diligence in having the Parties electing to so acquire novated into
any third party agreement and until such time as such Parties are fully recognized,
the acquiring Party shall hold, in proportion to each Party's respective working
interest share, the interest so acquired. The acquiring Party shall, until such
other Parties are novated in such said third party agreement, consult with and
obtain approval from such other participating

S:\Christine\102201 Birchill-Norglen Letter.doc

Birchill
Resources Limited

Norglen Energy Corporation

October 22, 2001 

Page 5

Parties
prior to conducting operations or giving any written notice under such third party
agreement.

h)    
In the event that less than all Parties elect to participate in any acquisition
pursuant to this Clause 6, the Parties that do elect shall be entitled to do so
in the proportions that their AMI Interests bear to one another.

i)      
Failure to make payment as set out in this Clause 6 shall void an electing Party's
notice of election or intent to acquire.

7.       
Participants

The
parties hereto acknowledge and agree that each has the right to bring other participants
and partners into this agreement and the parties hereto further acknowledge and
agree that each may assign a portion of its interests herein to such participants,
provided however that the provisions of Article XVIII (Confidential Information)
and Article XXIV (Disposition of Interests - Clause 2401 "A") of the
Operating Procedure shall apply.

8.       
Limitations Act

The
two-year period for seeking a remedial order under section 3(1)(a) of the Limiations
Ace, S.A. 1996 c. L-15.1, as amended, for any claim (as defined in that Act) arising
in connection with this Agreement is extended to four years.

9.

Subject to the terms hereof, this
Agreement shall enure to the benefit of and be binding upon the parties hereto,
their successors and assigns.

10.

This Agreement supersedes all
other Agreements, documents, writings and other verbal or written understandings
among the parties hereto relative to the Pooled Lands, except for reference to
seismic ownership and confidentiality in Clause 1 of the Seismic Option and Farmin
Agreement dated April 6, 2001 between Olympia, Birchill and Rosetta (predecessor
in interest to Norglen.)

If
the foregoing accurately describes the Agreement which Olympia, Birchill and Norglen
have reached in this matter, please so indicate by signing in the space provided
and returning one executed copy to the attention of the undersigned. This Agreement
may be executed in counterpart with the same effect as if each signature had appeared
on the same execution page.

\\NTSERVER\SHARED\Christine\102201 Birchill-Norglen Letter.doc

Birchill
Resources Limited 

Norglen Energy Corporation 

October 22, 2001 

Page 6

Please feel free to call me at 260-5257 (direct
line) regarding any comments or questions which may arise in this regard.

Yours truly,

OLYMPIA ENERGY INC.

"Andy Kirby"

AT. (Andy) Kirby 

Land Manger 

ATK/Imb

Accepted and Agreed to 

this  5th day of   October , 2001

BIRCHILL RESOURCES LIMITED

	
 

	
 

	
 

	
 

	
Per:

	
"Cheré Reilly"

	
"Leonard D. Arcovio"

	
"James A. Carriere"

	
Title:

	
Landman

	
Vice President, Finance

	
 

  

Accepted and Agreed 

this   24th day  of October, 2001.

 

NORGLEN ENERGY CORPORATION

 Per:    "Gary Kirkpatrick"

Title:    President      

 

\\NTSERVER\SHARED\Christine\102201 Birchill-Norglen Letter.doc

SCHEDULE
"A" attached to and forming part of a Pooling and Participation
Agreement dated October 22, 2001 among OLYMPIA ENERGY INC., BIRCHILL RESOURCES
LIMITED and NORGLEN ENERGY CORPORATION.

	
Alberta P&NG 

License #

 

	
Lands

 

	
Rights

 

	
AEC Working Interest

 

	
BLOCK A

LANDS

 

5497110012

 

	
Twp 59 Rge 2 W6M 

Sections 2, 3, 10, 11, 14&15

 

	
All P&NG Rights 

Below base Cardium

 

	
Rio Alto - 35% 

AEC - 65%

 

	
BLOCK B

LANDS

 

Ptn. 5498010029

 

	
Twp 59 Rge 2 W6M 

Sections 4, 5, 8, 9, 16 &17

 

	
All P&NG Rights 

Below base Cardium to base Winterburn

 

	
Rio Alto - 35% 

AEC - 65%

 

	
BLOCK C

LANDS

 

Ptn. 5498010030

 

	
Twp 59 Rge 2 W6M 

Sections 4, 5, 8, 9, 16 &17

 

	
All P&NG Rights below base Winterburn

 

	
Birchill - 50%* 

Norglen - 50%*

 

	*encumbrances       	2% overriding royalty payable to Dinard Resources.

1% overriding royalty payably to Martex Ltd. et al.

Birchill
Resources Limited

Norglen Energy Corporation

October 22, 2001 

Page 8

SCHEDULE
"B" attached to and forming part of a Pooling and Participation
Agreement dated October 22, 2001 between Olympia Energy Inc., Birchill Resources
Limited and Norglen Energy Corporation.

C.A.P.L.
- 1990 OPERATING PROCEDURE

1.   Article II, Clause 201:            Operator: Olympia Energy Inc.

2.   Article III, Paragraph 311:        Insurance - Alternate B

3.   Article VI, Clause 604:            Alternate A

4.   Article IX, Clause 903:            Casing Point Election - Alternate A

5.   Article X, Clause 1007(a)(iv):     Independent Operations Penalty
                                          (a)  Development Wells 400%
                                          (b)  Exploratory Wells 500%

6.    Article X, Clause 1010(a)(iv):    Title Preserving Well -365 Days

7.    Article XXII. Clause 2201:

	Norglen Energy Corporation
	830, 633 - 6 Ave. SW
	Calgary, Alberta T2P 2Y5

	Attention: Land Manager
	Facsimile: (403) 269-7935

	Olympia Energy Inc.
	2100. 500-4th  Ave. SW.
	Calgary, Alberta T2P 2V6

	Attention: Land Manager
	Facsimile: (403) 265-2726

	Birchill Resources Limited
	1200, 510-5th St. SW.
	Calgary, Alberta T2P 3S2

	Attention: Land Manager
	Facsimile: (403) 261-2034

7.   Article XXIV, Clause 2401:   Disposition of Interests-Alternate A

8.   Article XXIV. Clause 2404:   Recognition Upon Assignment - Deleted
                                  Replaced with Assignment Procedure

\\NTSERVER\SHARED\Christine\102201 Birchill-Norglen Letter.doc

Birchill
Resources Limited

Norglen Energy Corporation

October 22, 2001 

Page 9

PASC-
1988 ACCOUNTING PROCEDURE (Revised February 1991 Version)

1.    Clause 101 (a):                    Exhibit "I"

2.    Operating Advances (Clause 105):  10%

3.    Approvals (Clause 110):           2 or more parties totalling 60.0%

4.    (a)   Clause 202(b)(l) shall ___ shall not _X_
      (b)   Clause 202(b)(2) shall ___ shall not _X_

5.   Employee Benefits - Non-compulsory (Clause 203(b)): 25%

6.   Warehouse Handling (Clause 217):
7.   Overhead (Clause 302)

     (a)    For each Exploration Project:
            1)   5% of the first $50,000.00 of Cost plus
            2)   3% of the next $100,000.00 of Cost plus
            3)   1% of Cost exceeding the sum of (1) and (2)

     (b)    For each Drilling Well:
            1)   3% of the first S50.000.00 of Cost plus
            2)   2% of the next SI 00,000.00 of Cost plus
            3)   1% of Cost exceeding the sum of (1) and (2)

     (c)    For each Construction Project:
            1)   5% of the first $50,000.00 of Cost plus
            2)   3% of the next $100,00.00 of Cost plus
            3)   1% of Cost exceeding the sum of (1) and (2)

     (d)    For operation and Maintenance:
            1)   $250.00 per producing well/month

      Rates for subclause d(2) and d(3):  will___   will not_X_

10.   Pricing of Joint Materials, etc. (Article IV): $25,000.00

11.   Periodic Inventory: Clause 501: 5 year.

 

 

 

\\NTSERVER\SHARED\Christine\102201 Birchill-Norglen Letter.docEX-10.6

                               CONSULTING AGREEMENT

Agreement made as of October 25, 2001 by and between Freestar
Technologies, a Nevada corporation, 16130 Ventura Blvd., Encino, CA
91436 ("Contractor") and America Fermin, 35 Andres Julio Ayban,
Edifico Rosa Elena Apto 102 Santo Domingo , Dominican Republic
("Contractee").

                                    WITNESSETH

Whereas, Contractor requires expertise in the area of public corporate
marketing  consulting to support it's business and growth; and

Whereas, Contractee has substantial contacts among the members of the
investment community , media , distribution channels , wholesale and
retail outlets , the leisure and entertainment industry , to act as a
consultant to provide sales and marketing  consulting services.

Now, therefore, In consideration of the premises and the mutual
promises and covenants contained herein and subject specifically
thereby, the parties agree as follows:

1.  Certain Definitions.  When used in this Agreement,
the following terms shall have the meanings set forth below:

    1.1  Affiliate-any person or entities controlled by a party.

    1.2  Contractor-the Contractor who uses the services of Contractee.

    1.3  Contractor Clients-the Contractor's clients who use the services of
    Contractee through the Contractor.

    1.4  Contact Person-the person who shall be primarily responsible for
    carrying out the duties of the parties hereunder.
    Contractor and Contractee shall each appoint a Contact Person to
    be responsible for their respective duties.  In the event that
    one party gives notice to the other party in writing that in
    their reasonable opinion, the other party's Contact Person is not
    able to fulfill their duties and responsibilities hereunder, both
    parties shall mutually agree upon a replacement Contact Person
    within ten (10) days of said notice.

    1.5  Extraordinary Expenses-expenses that are beyond
    those expenses that are usual, regular, or customary in the
    conduct of the in-house activities in fulfillment of the scope of
    the Agreement.

    1.6  Equity-cash, securities or liquid assets, specifically excluding real
    property.

    1.7  Payment or Payable of Kind-distribution of the proceeds of a
    transaction in the same type and form as was given
    as valuable consideration for the transaction.

2.  Contact Persons.  The Contact Person for Contractor is Paul
    Egan. The Contact Person for Contractee is America Fermin

3.  Services to be Rendered by Contractee.  Services to be
    rendered by Contractee are as follows:

    3.1  Performance.  The parties agree that performance of Contractee shall
    not be based on the price of the stock and not to affect the price of the
    stock.  Contractor understands that Contractee has no control with regard
    to the price of these securities.

    3.2  Advice and Counsel.  Contractee will provide advice and counsel
    regarding Contractor's strategic business and marketing   plans, strategy
    and negotiations with potential, clients/distributors ,  users\endusers,
    candidates, joint ventures, corporate partners and others involving sales
    and marketing  related transactions.

    3.3  Introduction to the wholesale/retail Community.
    Contractee has a close association with wholesale/retailers and
    investment professionals across the country and will enable
    contact between Contractor and\or Contractor Clients to
    facilitate business transactions among them.  Contractee shall
    use their contacts in the wholesale/retail community to assist
    Contractor in establishing relationships with sales and
    distribution channels  and to provide the most recent corporate
    information to interested purchasers of the product on a  regular
    and continuous basis.  Contractee understands that this is in
    keeping with Contractor's business objective to establish a
    nationwide network of sales and distribution  dealers who have an
    interest in Contractors product..

    3.4  Market Intelligence.  Contractee knows market
    conditions and has access through it's network and Contractee
    will monitor and react to sensitive market information on a
    timely basis and provide advice, counsel and proprietary
    intelligence (including but not limited to information on price
    and volume) to Contractor in a timely fashion. .Contractor
    understands that this information is available from other sources
    but acknowledges that Contractee can provide it in a more timely
    fashion and with substantial value-added interpretation of such
    information.  The foregoing notwithstanding, no information will
    be provided to Contractor with respect to the activities of any
    other Contractee customer's accounts without such customer's
    prior consent.

    3.5  Contractor and/or Contract Client Transaction
    Due Diligence. Contractee will undertake due diligence on all
    proposed financial transactions affecting the Contractor,
    including investigation and advice on the financial, valuation
    and  price implications thereof.

    3.6  Additional Duties.  Contractor and Contractee
    shall mutually agree upon any additional duties, which Contractee
    may provide for compensation paid or payable by Contractor under
    this Agreement. Such additional agreement(s) may, although there
    is no requirement to do so, be attached hereto and made a part
    hereof as Exhibits beginning with Exhibit "A".

    3.7  Best Efforts.  Contractee shall devote such time
    and best efforts as may be reasonably necessary to perform its
    services.  Contractee is not responsible for the performance of
    any services, which may be rendered hereunder without Contractor
    providing the necessary information prior thereto.  Contractee
    cannot guarantee results on behalf of Contractor but shall pursue
    all avenues available through its network of financial contacts.
    At such time as an interest is expressed in Contractor's needs,
    Contractee shall notify Contractor and advise it as to the source
    of such interest and any terms and conditions of such interest.
    The acceptance and consummation of any transaction is subject to
    acceptance of the terms and conditions by Contractor.   It is
    understood that a portion of the compensation to be paid
    hereunder is being paid by Contractor to have Contractee remain
    available to assist it with transactions on an as-needed basis.

4.  Compensation to Contractee.

    4.1  Initial Fee.  Contractor does agree to pay
    Contractee an initial fee of five hundred thousand (500,000) free
    trading shares of Freestar Technologies  upon execution hereof
    for Contractee's initial setup activities which are necessary for
    Contractee to provide the services herein. Contractor and
    Contractee, agree the aforementioned shares will be issued to
    Contractee. Contractor and Contractee agree that the
    aforementioned shares shall be issued to Contractee and the
    underlying stock may be sold without any restrictions in order to
    provide Contractee with the necessary capital to initiate its
    program on behalf of Contractor.

    4.2  Additional Fees.  Contractor and Contractee
    shall mutually agree upon any additional fees, which Contractor
    may pay in the future for services rendered by Contractee under
    this Agreement.  Such additional agreement(s) may, although there
    is no requirement to do so, be attached hereto and made a part
    hereof as Exhibits beginning with Exhibit "A".

    4.3  Extraordinary Expenses.  Extraordinary expenses
    of Contractee shall be submitted to Contractor for approval prior
    to expenditure and shall be paid by Contractor within ten (10)
    business days of receipt of Contractee's request for payment.

    4.4  Finder Fees.

         4.4.1    In the event Contractee introduces Contractor or a
         Contractor affiliate to any third party funding source(s),
         underwriter(s), or merger partner(s) which arrive at a
         mutual funding, underwriting or merger agreement, Contractor
         hereby agrees to pay Contractee an advisory fee of five
         percent (5%) of the gross proceeds derived from such
         funding, payable upon the consummation of such funding of
         underwriting, even though the term of this Agreement may
         have expired.

         4.4.2  Contractor hereby directs and authorizes funding
         source(s) or underwriter(s) to pay said advisory fee
         directly, or to direct a third party escrow, if applicable,
         to make payment directly to Contractee.

         4.4.3  Contractee may, at its sole option, elect to
         receive all or a portion of said advisory fee as payment in
         kind, i.e., pro-rata in the same form and type of
         securities, equity, or financing instruments issued to the
         funding source or underwriter by Contractor.  In the event
         the exercise of this option results in additional expense
         over and above the expenses of the funding and/or
         underwriting then the additional expenses shall be borne by
         Contractor.  In addition, the exercise of this option by
         Contractee shall not impede or otherwise have a negative
         effect on the funding or underwriting.

    4.5  Interest of Funds Due.  Contractor shall pay
    interest on all payments in arrears due Contractee at the rate of
    ten percent (10%) per annum.

5.  Indemnification.  Each party shall hold the other party
    harmless from and against, and shall indemnify the other party
    for, any liability, loss and costs, and expenses or damages
    however caused by reason of any injury (whether to body,
    property, personal or business character, or reputation)
    sustained by any person or to any person or property by reason of
    any act of neglect, default or omission of it or any of its
    agents, employees, or other representatives arising out of or in
    relation to this Agreement. Nothing herein is intended to nor
    shall it relieve either party from liability for its own act,
    omission or negligence.  All remedies provided by law or in
    equity shall be cumulative and not in the alternative.

6.  Contractor Representations.  Contractor hereby represents,
    covenants and warrants to Contractee as follows:

    6.1  Authorization.  Contractor and its signatories
    herein have full power and authority to enter into this Agreement
    and to carry out the transactions contemplated hereby.

    6.2  No Violation.  Neither the execution and
    delivery of this Agreement nor the consummation of the
    transactions contemplated hereby will violate any provision of
    the charter or by-laws of Contractor or violate, or be in
    conflict with, or constitute a default under, any agreement or
    commitment to which Contractor is a party, or violate any statute
    or law or any judgment, decree, order, regulation or rule of any
    court or government authority.

    6.3  Agreement in Full Force and Effect.  All
    contracts, agreements, plans, leases, policies and licenses
    referenced herein to which Contractor is a party are valid and in
    full force and effect.

    6.4  Litigation.  Except as set forth below, there is
    no action, suit, inquiry, proceeding or investigation by or
    before any court of governmental or other regulatory or
    administrative agency or commission pending or to the best
    knowledge of Contractor threatened against or involving
    Contractor, or which questions or challenges the validity of this
    Agreement and its subject matter; and Contractor does not know or
    have any reason to know if any valid basis for any such action,
    proceeding or investigation exists.

    6.5  Consents.  No consent of any person, other than
    the signatories hereto, is necessary to the consummation of the
    transactions contemplated hereby including, without limitation,
    consents from parties to loans, contracts, leases or other
    agreements and consents from government agencies, whether
    federal, state or local.

    6.6  Contractee's Reliance.  Contractee has and will
    rely upon the documents, instruments and written information
    furnished to Contractee by the Contractor's officers or
    designated employees and:

         6.6.1  Contractor Material.  All representations and
         statements provided about Contractor are true, complete and
         accurate. Contractor agrees to indemnify, hold harmless, and
         defend Contractee, its officers, directors, agents,
         consultants and employees at Contractor's expense for any
         proceeding or suit which may arise out of any inaccuracy or
         incompleteness of any such material or written information
         supplied to Contractee; and

         6.6.2  Contractor Client and Other Material.  All
         representations and statements provided, other than about
         Contractor, are to the best of its knowledge true, complete
         and accurate.

7.  Confidentiality.  Contractee and Contractor each agree to
    provide reasonable security measures to keep information
    confidential whose release may be detrimental to the business.
    Contractee and Contractor shall each require their employees,
    agents, affiliates, subcontractors, other licenses, and others
    who will properly have access to the information through
    Contractee and Contractor respectively, to first enter into
    appropriate non-disclosure agreements requiring the
    confidentiality contemplated by this Agreement in perpetuity.

8.  Miscellaneous Provisions.

    8.1  Amendment and Modification.  Subject to applicable law, this Agreement
    may be amended, modified and supplemented by written agreement of
    Contractee and Contractor or by their duly authorized respective officers.

    8.2  Waiver of Compliance.  Any failure of Contractee
    on the one hand, or Contractor on the other, to comply with any
    obligation, agreement or condition herein may be expressly waived
    in writing, but such waiver of failure to insist upon strict
    compliance with such obligation, covenant, agreement or condition
    shall not operate as a waiver of, or estoppel with respect to,
    any subsequent or other failure.

    8.3  Expenses: Transfer Taxes, Etc.  Whether or not
    the transaction contemplated by this Agreement shall be
    consummated, Contractor agrees that all fees and expenses
    incurred by Contractee in connection with this Agreement, shall
    be borne by Contractor and Contractor agrees that all fees and
    expenses incurred by Contractor in connection with this Agreement
    shall be borne by Contractor, including, without limitation as to
    Contractee or Contractor, all fees of counsel and accountants.

    8.4  Other Business Opportunities.  Except as expressly provided in this
    Agreement, each party hereto shall have the right independently to engage
    in and receive full benefits from business activities.

    8.5  Compliance with Regulatory Agencies.  Each party represents to the
    other party that all actions, direct or indirect, taken by it and its
    respective agents, employees and affiliates in connection with this
    Agreement and any financing or underwriting hereunder shall conform to all
    applicable Federal and State securities laws.

    8.6  Notices.  Any notices to be given hereunder by
    any party to the other may be effected by personal delivery in
    writing or by mail, registered or certified, postage prepaid with
    return receipt requested.  Mailed notices shall be addressed to
    the parties at the addresses appearing in the introductory
    paragraph of this Agreement, but any party may change their
    address by written notice in accordance with this subsection.
    Notices delivered personally shall be deemed communicated as of
    actual receipt; mailed notices shall be deemed communicated as of
    three (3) days after mailing.

    8.7  Assignment.  This Agreement and all of the
    provisions hereof shall be binding upon and inure to the benefit
    of the parties hereto and their respective successors and
    permitted assigns, but neither this Agreement nor any of the
    rights, interests or obligations hereunder shall be assigned by
    Contractor without the prior written consent of Contractee,
    except by operation of law.

    8.8  Delegation.  Neither party shall delegate the
    performance of its duties under this Agreement without prior
    written consent of the other party.

    8.9  Publicity.  Neither Contractee nor Contractor
    shall make or issue, or cause to be made or issued, any
    announcement or written statement concerning this Agreement or
    the transactions contemplated hereby for dissemination to the
    general public without the prior consent of the other party.
    This provision shall not apply, however, to any announcement or
    written statement required to be made by law or the regulations
    of any Federal or State governmental agency, except that the
    party required to make such announcement shall, whenever
    practicable, consult with the other party concerning the timing
    and consent of such announcement before such announcement is made.

    8.10  Governing Law.  This Agreement and the legal
    relations among the parties hereto shall be governed and
    construed in accordance with the laws of the State of California,
    without regard to its conflict of law doctrine.  Contractor and
    Contractee agree that if action is instituted to enforce or
    interpret any provision of this Agreement then jurisdiction and
    venue shall be Los Angeles County, California.

    8.11  Counterparts.  This Agreement may be executed
    simultaneously in two or more counterparts, each of which shall
    be deemed an original, but of which together shall constitute one
    and the same instrument.

    8.12  Headings.  The headings of the Sections of this
    Agreement are inserted for convenience only and shall not
    constitute a part hereto or affect in any way the meaning or
    interpretation of this Agreement.

    8.13  Entire Agreement.  This Agreement, including any
    Exhibits hereto, and any other documents and certificates
    delivered pursuant to the terms hereof, set forth the entire
    agreement and understanding of the parties hereto in respect to
    the subject matter contained herein, and supersedes all prior
    agreements, promises, covenants, arrangements, communications,
    representations or warranties, whether oral or written, by any
    officer, employee or representative of any party hereto.

    8.14  Third Parties.  Except as specifically set forth or
    referenced to herein, nothing herein expressed or implied is
    intended or shall be construed to confer upon or give to any
    person or corporation other than the parties hereto and their
    successors or assigns, any rights or remedies under or by reason
    of this Agreement.

    8.15  Attorney's Fees and Costs.  If any action is
    necessary to enforce and collect upon the terms of this
    Agreement, the prevailing party shall be entitled to reasonable
    attorney's fees and costs, in addition to any other relief to
    which that party may be entitled.  This provision shall be
    construed as applicable to the entire agreement.

    8.16  Survivability.  If any part of this Agreement is
    found, or deemed by a court of competent jurisdiction, to be
    invalid or unenforceable, that part shall be severable from the
    remainder of this Agreement.

    8.17  Further Assurance.  Each of the parties agrees that
    it shall from time to time take such actions and execute such
    additional instruments as may be reasonably necessary or
    convenient to implement and carry out the intent and purpose of
    this Agreement.

    8.18  Right to Data After Termination.  After termination
    of this Agreement each party shall be entitled to copies of all
    information acquired hereunder as of the date of termination and
    not previously furnished to it.

    8.19  Relationships of the Parties.  Nothing contained in
    this Agreement shall be deemed to constitute either party the
    partner of the other, nor, except as otherwise herein expressly
    provided, to constitute either party the agent or legal
    representative of the other, nor to create any fiduciary
    relationship between them.  It is not the intention of the
    parties to create, nor shall this Agreement be construed to
    create, any commercial nor other partnership.  Neither party
    shall have any authority to act for or to assume any obligation
    or responsibility on behalf of the other party, except as
    otherwise expressly provided herein.  The rights, duties,
    obligations and liabilities of the parties shall be severable and
    not joint or collective. Each party hereto shall be responsible
    only for its obligations as herein set out and shall be liable
    only for its share of the costs and expenses as provided herein.
    Each party shall indemnify, defend and hold harmless the other
    party, its directors, officers, and employees, from and against
    any and all losses, claims, damages and liabilities arising out
    of any act or any assumption of liability by the indemnifying
    party, or any of its directors, officers or employees, done or
    undertaken, or apparently done or undertaken, on behalf of the
    other party, except pursuant to the authority expressly granted
    herein or otherwise agreed in writing between the parties.  Each
    party shall be responsible for the acts of its agents,
    consultants and affiliates.

9.  Terms of Agreement and Termination.  This Agreement shall be
    effective upon execution, and shall continue for one (1) year
    unless terminated sooner, by either party, upon giving to the
    other party thirty (30) days written notice, after which time
    this Agreement is terminated.  Contractee shall be entitled to
    any fees stipulated in Exhibit "A", finders fees for funding or
    underwriting commitments entered onto within two (2) years after
    the termination of this Agreement if said fees for services,
    funding or underwriting was the result of Contractee's efforts
    prior to the termination of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed, all as of the day and year first above written.

Contractor:  Freestar Technologies

Signature: /s/  Paul Egan
Paul Egan-President

Contractee: America Fermin

Signature: /s/  America Fermin
America Fermin

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]