Document:

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EXHIBIT 10.11

                     FIRST AMENDMENT TO CONSULTING AGREEMENT
                     ---------------------------------------

         This First Amendment to the Consulting Agreement ("Second Amendment")
is made and entered into as of December 10, 2007 to amend that certain
Consulting Agreement dated February 23, 2007, and Addendum thereto ,
(collectively the "Agreement") entered into by Pacific Energy Resources Ltd., a
Delaware corporation ("Company") and Jerett Creed ("Employee").

         WHEREAS, the parties wish to amend the Agreement to clarify the terms
of the Share Option Grants contained in the Agreement.

         WHEREAS, the parties wish to amend the Agreement in the following
respects only:

         1. Section 1.5 (Grant of Share Options) is hereby amended in its
entirety to read as follows:

                  "1.5 Grant of Share Options. With the prior approval of the
         Company's Compensation Committee, the Employee shall be granted under
         and pursuant to the terms of the Company's 2006 Share Option Plan,
         options to purchase in the aggregate 200,000 shares of stock of the
         Company and subject to the following vesting schedule contained in the
         Company's Stock Option Agreement:

         (a)      Options to purchase 100,000 shares shall be vested upon grant
                  shortly after the signing of this Agreement, and

         (b)      Options to purchase 100,000 shares shall be vested to the
                  Employee upon the one year anniversary of this Agreement."

         Except as otherwise provided herein the Agreement remains in full force
and effect.

         IN WITNESS WHEREOF, the parties have executed this First Amendment as
of the date indicated above.

COMPANY:                                    Pacific Energy Resources Ltd.,
                                            a Delaware Corporation

                                            By: /S/ DARREN KATIC
                                                --------------------------------
                                                Darren Katic
                                                President
EMPLOYEE:
                                                /S/ JERETT CREED
                                                --------------------------------
                                                Jerett Creed<PAGE>

EXHIBIT 10.12

                             PARTICIPATION AGREEMENT
                             PACIFIC CREEK PROSPECT
                           GREEN RIVER BASIN, WYOMING

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                                TABLE OF CONTENTS

ARTICLE 1 - DEFINITIONS, EXHIBITS, AND REPRESENTATIONS AND WARRANTIES.........1
ARTICLE 2 - TITLE REVIEW......................................................5
     2.1 Title Data...........................................................5
     2.2 Notification.........................................................6
     2.3 Defects..............................................................6
     2.4 Defect Adjustment....................................................7
     2.5 Lease Files..........................................................7
ARTICLE 3 - AREA OF MUTUAL INTEREST...........................................7
     3.1 Establishment and Term...............................................7
ARTICLE 4 - 3D SEISMIC DATA SURVEY............................................10
     4.1 Funding..............................................................10
     4.2 Licenses.............................................................10
ARTICLE 5 - TEST WELLS........................................................10
     5.1 Funding..............................................................10
     5.2 Selection of Well Design, Rig Contractor and Drillsite Location......10
     5.3 Operations...........................................................10
     5.4 Test Wells. .........................................................11
     5.5 Substitute Well. ....................................................11
     5.6 Payments. ...........................................................11
     5.7 HSE/Business Principles..............................................11
     5.8 Well Take Over.......................................................12
ARTICLE 6 - EARNING PROVISIONS................................................12
     6.1 Interests to be Earned...............................................12
ARTICLE 7 - ASSIGNMENTS.......................................................13
     7.1 Shell/Wolverine Assignments to Pacific...............................13
     7.2 Assignment Form......................................................13
ARTICLE 8 - FORCE MAJEURE.....................................................13
     8.1 Force Majeure........................................................13
ARTICLE 9 - WELL INFORMATION AND TECHNICAL DATA...............................14
     9.1 Shell and Wolverine Data.............................................14
     9.2 Future Data Acquisitions. ...........................................14
     9.3 Well Information.....................................................14
ARTICLE 10 - CONFIDENTIALITY..................................................14
     10.1 Defined.............................................................14
     10.2 Confidentiality Agreement...........................................15
     10.3 No Disclosure.......................................................15
     10.4 Unauthorized Access. ...............................................15
     10.5 Compulsory Disclosure. .............................................15
     10.6 Announcements.......................................................15
ARTICLE 11 - MARKETING, GATHERING, PROCESSING AND TREATING FACILITIES.........16
     11.1 Exclusive Rights....................................................16
ARTICLE 12 - NOTICES..........................................................16
     12.1 Notices. ...........................................................16
ARTICLE 13 - MISCELLANEOUS....................................................17

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     13.1 Relationship........................................................17
     13.2 Indemnity...........................................................17
     13.3 Taxes...............................................................17
     13.4 Governing Law.......................................................17
     13.5 Arbitration.........................................................17
     13.6 Term................................................................17
     13.7 Further Assurances..................................................18
     13.8 Integration. .......................................................18
     13.9 Amendments..........................................................18
     13.10 Binding Effect.....................................................18
     13.11 Covenants..........................................................18
     13.12 Third Parties......................................................18
     13.13 Assignment.........................................................18
     13.14 Severability.......................................................18

Exhibit A      Project Area
Exhibit B      Schedule of Leases
Exhibit C      Arbitration Procedure
Exhibit D      Ratification of Pacific Creek Joint Operating Agreement
Exhibit E      Assignment of Leases
Exhibit F      Tax Partnership

                                      -ii-

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                             PARTICIPATION AGREEMENT
                             PACIFIC CREEK PROSPECT
                           GREEN RIVER BASIN, WYOMING

         This Participation Agreement (the "AGREEMENT"), entered into as of the
30th day of August, 2005 effective as of June 1, 2005, is by and between SWEPI
LP, whose address is P. 0. Box 576, Houston, TX 77001 ("SHELL"), WOLVERINE GAS
AND OIL CORPORATION, a Michigan corporation whose address is One Riverfront
Plaza, 55 Campau NW, Grand Rapids, MI 49503-2616 ("WOLVERINE"), and PACIFIC
ENERGY RESOURCES LIMITED, a Delaware corporation whose address is 1065 West Pier
E Street, Long Beach, CA 90802 ("PACIFIC"). Shell, Wolverine and Pacific may be
referred to individually as a "PARTY," and collectively as the "PARTIES."

                                    RECITALS
                                    --------

Shell and Wolverine own and Pacific desires to acquire certain interests in
various oil and gas leases comprising ninety nine thousand three hundred eighty
nine (99,389) net acres in the Green River Basin, more particularly located in
Fremont, Sweetwater, and Sublette Counties, State of Wyoming. This Agreement
sets forth the terms and conditions whereby Pacific may earn such interests. In
consideration of the covenants set forth below, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties agree as follows:

         ARTICLE 1 - DEFINITIONS, EXHIBITS, AND REPRESENTATIONS AND WARRANTIES

         1.1      As used in this Agreement, the following terms shall have
                  these respective meanings:

              o   "ACQUISITION" shall have the meaning set forth in Section
                  3.1(b).

              o   "AFFILIATE" shall mean any company or legal entity, whether
                  private or public, which controls, or is controlled by, or
                  which is controlled by an entity which controls, a Party. In
                  the case of Shell, "Affiliate" shall mean its parent companies
                  ("Parent Companies"), N.V. Koninklijke Nederlandsche Petroleum
                  Maatschappij, The "Shell" Transport and Trading Company Plc,
                  or either of them and means only Royal Dutch Shell plc when
                  that company controls both of the two previously stated
                  companies, and any company or legal entity (except Shell)
                  directly or indirectly controlled by such Parent Companies or
                  either of them. "Control" means the ownership directly or
                  indirectly of fifty (50) percent or more of the voting rights
                  in a company or other legal entity.

              o   "AMI" shall have the meaning set forth in Section 3.1.

              o   "CONFIDENTIAL INFORMATION" shall have the meaning set forth in
                  Section 10.1.

              o   "DEFECT ADJUSTMENT" shall have the meaning set forth in
                  Section 2.4.

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              o   "EARNING DEPTH" shall mean a minimum true vertical depth of
                  sixteen thousand (16,000) feet beneath the surface, or a
                  depth sufficient to test the base of the Ericson Formation or
                  the stratigraphic equivalent as defined by the logs for the
                  Pacific Creek B3-33 Well at a measured depth of thirteen
                  thousand (13,000) feet, whichever is the lesser.

              o   "EFFECTIVE DATE" shall mean June 1, 2005.

              o   "FORCE MAJEURE" shall have the meaning as set forth in Section
                  8.1.

              o   "JOA" shall mean that certain Pacific Creek Operating
                  Agreement dated May 1, 2001 by and between SWEPI as Operator
                  and Wolverine as Non-Operator.

              o   "LAND" shall mean Leases and Acquisitions.

              o   "LEASE" or "LEASES" shall mean certain interests and mineral
                  rights owned by Shell and Wolverine in oil and gas leases
                  comprising ninety nine thousand three hundred eighty nine
                  (99,389) net acres in the Green River Basin, more particularly
                  located in Fremont, Sweetwater, and Sublette Counties, State
                  of Wyoming. Specific descriptions of the Leases are set forth
                  in Exhibit B.

              o   "MARKETABLE" shall have the meaning as set forth in Section
                  2.3.

              o   "PERFORMANCE," "PERFORMING," or "PERFORMED" shall mean Pacific
                  shall have, pursuant to the terms and conditions of the JOA
                  and this Agreement: (i) made the Seismic Payment upon
                  execution of this Agreement; and (ii) funded the drilling,
                  testing and completion of the Test Wells.

              o   "PROJECT AREA" shall mean the area described as "Pacific Creek
                  Prospect Area of Mutual Interest" on Exhibit A hereto,
                  provided that the Lands to be earned by Pacific in T26N-R105W
                  only, shall be limited to the rights below the base of the
                  Fort Union Formation.

              o   "SEISMIC PAYMENT" shall have the meaning set forth in Section
                  4.1.

              o   "SEISMIC SURVEY" shall have the meaning set forth in Section
                  4.1.

              o   "TEST WELL(S)" shall mean the two exploration wells to be
                  drilled by Pacific within the Project Area as further set
                  forth in Article 5.

              o   "TITLE DATA" shall have the meaning set forth in Section 2.1.

              o   "TITLE DEFECT" shall have the meaning set forth in Section
                  2.3.

                                      -2-

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         1.2      The following exhibits, as indicated below and attached
                  hereto, are incorporated in and made a part hereof:

                  Exhibit A         Project Area
                  Exhibit B         Schedule of Leases
                  Exhibit C         Arbitration Procedure
                  Exhibit D         Ratification of Pacific Creek Joint
                                    Operating Agreement
                  Exhibit E         Assignment of Leases
                  Exhibit F         Tax Partnership

         1.3      Shell represents and warrants to Pacific;

                  a.       Shell is a limited partnership duly organized,
                           validly existing in good standing under the laws of
                           the State of Delaware and is in good standing in all
                           jurisdictions where the nature of its properties or
                           business requires it.

                  b.       Shell has the power and authority to execute, deliver
                           and perform its obligations under this Agreement, and
                           the JOA. The execution, delivery, and performance of
                           this Agreement and of the JOA by Shell

                           (i)      have been duly authorized by requisite
                                    company action; and

                           (ii)     do not conflict or result in a violation or
                                    breach of or result in the acceleration of
                                    rights, benefits or payments under the
                                    corporate documents of Shell.

                                    This Agreement and the JOA constitute a
                                    legal, valid and binding obligation of
                                    Shell, enforceable against Shell, except as
                                    the enforceability thereof may be limited by
                                    bankruptcy, insolvency, reorganization,
                                    moratorium or other similar laws affecting
                                    creditors' rights generally and general
                                    principles of equity (regardless of whether
                                    enforceability is considered in a proceeding
                                    at law or in equity).

                  c.       No consent, waiver, approval, order, authorization or
                           other action by or filings with any governmental
                           authority or other person is required in connection
                           with the execution, delivery and performance by Shell
                           of this Agreement. Neither the execution and delivery
                           of this Agreement by Shell is, nor the consummation
                           of the transactions contemplated hereby or thereby
                           will violate or conflict with or result in the
                           acceleration of rights, or benefits or payments under
                           any agreement, instrument, statute, regulation, rule,
                           order, writ, judgment or decree to which Shell is
                           subject.

                  d.       There are no lawsuits or other proceedings pending or
                           to the knowledge of Shell threatened against or
                           affecting Shell or the Lands by or before any
                           governmental authority.

                                      -3-

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                  e.       Exhibit B contains a list of the Leases within the
                           Project Area as of the Effective Date.

         1.4      Wolverine represents and warrants to Pacific:

                  a.       Wolverine is a corporation, duly formed and is
                           validly existing, in good standing under the laws of
                           the State of Michigan and is in good standing as a
                           corporation in all jurisdictions where the nature of
                           its properties or business requires it.

                  b.       Wolverine has the power and authority to execute,
                           deliver and perform its obligations under this
                           Agreement and the JOA. The execution, delivery, and
                           performance of this Agreement and of the JOA by
                           Wolverine

                           (i)      have been duly authorized by requisite
                                    company action; and

                           (ii)     do not conflict or result in a violation or
                                    breach of or result in the acceleration of
                                    rights, benefits or payments under the
                                    corporate documents of Wolverine.

                                    This Agreement and the JOA constitute a
                                    legal, valid and binding obligation of
                                    Wolverine, enforceable against Wolverine,
                                    except as the enforceability thereof may be
                                    limited by bankruptcy, insolvency,
                                    reorganization, moratorium or other similar
                                    laws affecting creditors' rights generally
                                    and general principles of equity (regardless
                                    of whether enforceability is considered in a
                                    proceeding at law or in equity).

                  c.       No consent, waiver, approval, order, authorization or
                           other action by or filings with any governmental
                           authority or other person is required in connection
                           with the execution, delivery and performance by
                           Wolverine of this Agreement. Neither the execution
                           and delivery of this Agreement by Wolverine is, nor
                           the consummation of the transactions contemplated
                           hereby or thereby will violate or conflict with or
                           result in the acceleration of rights, or benefits or
                           payments under any agreement, instrument, statute,
                           regulation, rule, order, writ, judgment or decree to
                           which Wolverine is subject.

                  d.       There are no lawsuits or other proceedings pending or
                           to the knowledge of Wolverine threatened against or
                           affecting Wolverine or the Lands by or before any
                           governmental authority.

                  e.       Exhibit B contains a list of the Leases within the
                           Project Area as of the Effective Date.

                                      -4-

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         1.5      Pacific represents and warrants to Shell and Wolverine:

                  a.       Pacific is a corporation, duly formed and is validly
                           existing, in good standing under the laws of the
                           State of Delaware and is in good standing as a
                           corporation in all jurisdictions where the nature of
                           its properties or business requires it.

                  b.       Pacific has the power and authority to execute,
                           deliver and perform its obligations under this
                           Agreement and the JOA. The execution, delivery, and
                           performance of this Agreement and of the JOA by
                           Pacific

                           (i)      have been duly authorized by requisite
                                    company action; and

                           (ii)     do not conflict or result in a violation or
                                    breach of or result in the acceleration of
                                    rights, benefits or payments under the
                                    organization documents of Pacific.

                           This Agreement and the JOA constitute a legal, valid
                           and binding obligation of Pacific, enforceable
                           against Pacific, except as the enforceability thereof
                           may be limited by bankruptcy, insolvency,
                           reorganization, moratorium or other similar laws
                           affecting creditors' rights generally and general
                           principles of equity (regardless of whether
                           enforceability is considered in proceeding at law or
                           in equity).

                  c.       No consent, waiver, approval, order, authorization or
                           other action by or filings with any governmental
                           authority or other person is required in connection
                           with the execution, delivery and performance by
                           Pacific of this Agreement. Neither the execution and
                           delivery of this Agreement by Pacific is, nor the
                           consummation of the transactions contemplated hereby
                           or thereby will violate or conflict with or result in
                           the acceleration of rights, or benefits or payments
                           under any agreement, instrument, statute, regulation,
                           rule, order, writ, judgment or decree to which
                           Pacific is subject.

                            ARTICLE 2 - TITLE REVIEW

         2.1      TITLE DATA. Shell represents, but does not warrant, except by,
                  through and under Shell, that Shell's undivided working
                  interest in the Leases described in Exhibit "B" cover an
                  interest in ninety nine thousand three hundred eighty nine
                  (99,389) net acres. Wolverine represents, but does not
                  warrant, except by, through and under Wolverine, that
                  Wolverine's undivided working interest in the Leases described
                  in Exhibit "B" cover an interest in ninety nine thousand three
                  hundred eighty nine (99,389) net acres. Shell shall make
                  available to Pacific copies of all oil and gas leases, proof
                  of payment, affidavits of heirship, title opinions, title
                  abstracts, rental receipts, correspondence and other title
                  material in Shell's possession or control relating to the
                  Leases (collectively, the "TITLE DATA"). The Title Data shall
                  be provided by Shell to Pacific hereunder, without
                  representation or warranty as to the accuracy, completeness or
                  correctness thereof. Pacific's review of the Title Data shall
                  be subject to the confidentiality provisions contained in
                  Article 10.

                                      -5-

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         2.2      NOTIFICATION. If Pacific determines that any of the Leases are
                  subject to any Title Defects, Pacific shall deliver to Shell
                  and Wolverine written notice of such defects on or before
                  September 30, 2005, along with written documentation in
                  reasonable detail describing such Title Defects. Any Title
                  Defect that is not contained in such notice to Shell and
                  Wolverine shall be deemed waived as to such Lease(s). Shell
                  and Wolverine shall use reasonable efforts in good faith to
                  cure, at Shell and Wolverine's cost and expense, the Title
                  Defects to Pacific's reasonable satisfaction on or before
                  October 30, 2005.

         2.3      DEFECTS. For the purposes of this Agreement, a "TITLE DEFECT"
                  shall mean any lien, encumbrance or defect which renders Shell
                  and/or Wolverine's title to a Lease less than Marketable. For
                  purposes of this Agreement, "MARKETABLE" shall mean title to
                  the Leases (on a Lease by Lease basis) which in accordance
                  with the custom and practice in the oil and gas industry:

                  a.       entitles Shell and Wolverine to one hundred percent
                           (100%) of the oil and gas operating rights in the net
                           acres set forth in Exhibit "B";

                  b.       obligates Shell and Wolverine to bear not more than
                           that share of costs and expenses relating to
                           development of and operations on the land covered by
                           each Lease equal to Shell and Wolverine's net mineral
                           acres covered by such Lease divided by the gross
                           mineral acres in the land covered by such Lease;

                  c.       is free and clear of all mortgages, liens and
                           encumbrances, except liens for taxes not delinquent,
                           excluding any and all mortgages, deeds of trust,
                           financing statements or security agreements covering
                           a lassoes fee estate in and under the Leases to the
                           extent placed of record after the recording of the
                           applicable Lease; and,

                  d.       is deducible from public record and is free from
                           reasonable doubt to the end that a prudent person
                           engaged in the business of ownership, development and
                           operation of oil and gas leases with knowledge of all
                           the facts would be willing to accept the same.

         2.4      DEFECT ADJUSTMENT. If any Title Defects are not cured or
                  removed to the reasonable satisfaction of Pacific on or before
                  October 30, 2005, and Pacific does not waive such Title
                  Defects, Shell and Wolverine shall each refund to Pacific,
                  their proportionate share, of an amount equal to twenty five
                  dollars ($25.00) per net acre affected by each such uncured
                  and unwaived Title Defects (the "DEFECT ADJUSTMENT") within a
                  reasonable time following Pacific's Performance. The Leases
                  affected by such Title Defects shall not be included in the
                  Project Area and shall be free and clear of this Agreement.

                                      -6-

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         2.5      LEASE FILES. After Performance has occurred and upon written
                  request by Pacific, Shell shall provide Pacific with copies of
                  all lease files and records. Copying costs shall be divided
                  proportionately between the Parties.

                       ARTICLE 3 - AREA OF MUTUAL INTEREST

         3.1      ESTABLISHMENT AND TERM. The Parties hereby acknowledge and
                  agree to be bound by an area of mutual interest for the
                  Project Area ("AMI"), commencing on the Effective Date and
                  continuing until May 1, 2008, as set forth in Exhibit H to the
                  JOA subject to the following modifications:

                  a.       EXCLUSION. The South Pass Prospect Area portion of
                           the AMI set forth in the JOA is specifically excluded
                           for the purposes of this Agreement and the JOA as
                           related to Pacific.

                  b.       ACQUISITION INTERESTS. For purposes of this
                           Agreement, an "ACQUISITION" shall mean any oil and
                           gas leasehold interest covering land within the
                           Project Area acquired by the Parties, or their
                           respective Affiliates, directly), or indirectly,
                           during the term of the AMI including, without
                           limitation, oil and gas leases, mineral interest,
                           overriding royalty interest, options to lease,
                           farm-ins, options to farm-in, acreage contributions,
                           bottom hole agreements or exploratory agreements.
                           Subject to Article VIIIB of the JOA, where the
                           Parties interest may be proportionately reduced:

                           (i)      if Pacific has Performed and all Parties
                                    elect to participate in an interest acquired
                                    pursuant to the AMI, the proportionate
                                    interests of the Parties shall be:
                                            Shell        forty two percent (42%)
                                            Pacific      forty percent (40%)
                                            Wolverine    eighteen percent (18%)

                           (ii)     if Pacific has Performed and Pacific and
                                    Shell elect to participate in art interest
                                    acquired and Wolverine elects not to
                                    participate pursuant to the AMI the
                                    proportionate interests of the Parties shall
                                    be:

                                            Shell        sixty percent (60%)
                                            Pacific      forty percent (40%)
                                            Wolverine    zero percent (0%)

                           (iii)    if Pacific has Performed and Pacific and
                                    Wolverine elect to participate in an
                                    interest acquired and Shell elects not to
                                    participate pursuant to the AMI the
                                    proportionate interests of the Parties shall
                                    be:

                                            Shell        zero percent (0%)
                                            Pacific      forty percent (40%)
                                            Wolverine    sixty percent (60%)

                                      -7-

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                           (iv)     if Pacific has Performed and Shell and
                                    Wolverine elect to participate in an
                                    interest acquired and Pacific elects not to
                                    participate pursuant to the AMI the
                                    proportionate interests of the Parties shall
                                    be:

                                            Shell        seventy percent (70%)
                                            Pacific      zero percent (0%)
                                            Wolverine    thirty percent (30%)

                  c.       ADDITIONAL EXCLUSION. An Acquisition shall
                           specifically exclude any assets acquired pursuant to
                           a merger, consolidation or acquisition of
                           substantially all of the assets of another person or
                           entity.

                  d.       OVERLAPPING LEASE. If an Acquisition includes lands
                           located within the Project Area and lands located
                           outside the boundaries of the Project Area, the
                           Acquisition shall be deemed to include only the lands
                           located inside the Project Area, unless the Parties
                           agree otherwise.

                  e.       RESTRICTIONS ON ACQUISITIONS. Shell and Wolverine may
                           make Acquisitions in the Project Area at their
                           discretion. In the event that Pacific, prior to
                           Performing, desires to make an Acquisition within the
                           Project Area, such Acquisition may only be made with
                           Shell and Wolverine's prior approval in writing, such
                           approval shall not be unreasonably withheld. In the
                           event that Pacific does not Perform, Shell and
                           Wolverine shall have the option to purchase, at
                           Pacific's actual cost, any Acquisitions made by
                           Pacific within the Project Area.

                  f.       NOTIFICATION. All Acquisitions made prior to
                           Performance, must be reported by the acquiring
                           Parties to the non-acquiring Party within sixty (60)
                           days after the completion of Performance. Such
                           notification shall include, but not be limited to, a
                           description of the interest acquired, the area
                           covered, the terms of the Acquisition and the cost
                           (including brokerage fees), and a copy of the
                           proposed agreement for the Acquisition. After the
                           completion of the Performance, all Acquisitions must
                           be reported by the acquiring Parties to the
                           non-acquiring Party within thirty (30) days of the
                           effective date of such Acquisition.

                  g.       OPTION TO ACQUIRE. For a period of thirty (30) days
                           from receipt of such notification, the non-acquiring
                           Party shall have the option of acquiring its
                           proportionate interest, as set forth above, in the
                           Acquisitions, by notifying the acquiring Party of its
                           desire to do so, said notification to be accompanied
                           by check or other payment for the cost of its
                           proportionate share of the costs and expenses
                           specified in the notification. Upon receipt of said
                           notification and payment, the acquiring Party shall
                           promptly assign the interests covered by the
                           notification. Failure by the non-acquiring Party to
                           respond within the period herein above provided,
                           shall be deemed an election not to acquire such
                           interest.

                                      -8-

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                  h.       ACQUISITION COSTS. Any Party making an Acquisition
                           shall be financially responsible for such Acquisition
                           until Performance takes place. The acquiring Party
                           shall not burden the Acquisition in any fashion, and
                           shall be entitled to reimbursement of its actual
                           costs, including bonus, brokerage fees, title costs
                           and rentals of said Acquisition.

                  i.       DELAY RENTALS AND RENEWAL BONUSES FOR LEASES. Shell
                           and Wolverine shall use their reasonable efforts to
                           administer the payment of all rentals and renewal
                           bonuses for the Leases and Acquisitions in the
                           Project Area. If Shell and Wolverine used reasonable
                           efforts to make such payments, then neither Shell nor
                           Wolverine shall have any liability whatsoever to
                           Pacific for failure to timely make a rental or
                           renewal bonus payment. After completion of
                           Performance, Pacific shall reimburse Shell and
                           Wolverine for their proportionate interests of the
                           rentals and renewal bonuses paid by Shell and
                           Wolverine for the Leases and Acquisitions from the
                           Effective Date until the Performance is completed.

                           After the completion of the Performance, all jointly
                           owned Leases and Acquisitions will continue to be
                           maintained by the acquiring Party, and the
                           non-acquiring Parties shall be billed for their
                           proportionate share on a monthly basis.

                       ARTICLE 4 - 3D SEISMIC DATA SURVEY

         4.1      FUNDING. Upon execution of this Agreement, Pacific shall fund
                  one hundred percent (100%) of the cost of two licenses for a
                  non-exclusive, approximately one hundred thirty point five
                  (130.5) square mile 3D Seismic Data Survey to image the
                  Project Area ("SEISMIC SURVEY"). The total cost for the
                  Seismic Survey is Four Million Dollars ($4,000,000.00)
                  ("SEISMIC PAYMENT"). The Seismic Payment shall be paid by
                  Pacific to Shell within seven (7) business days of August 30,
                  2005.

         4.2      LICENSES. Shell and Wolverine shall each receive one of the
                  two licenses, acquired in Section 4.1. Subject to Section
                  10.3, Pacific and its Affiliates and their respective
                  consultants shall, at no further cost than the Seismic
                  Payment, have the right to access the data and a seismic work
                  station at Shell's office during normal business hours by
                  giving reasonable notice.

                             ARTICLE 5 - TEST WELLS

         5.1      FUNDING. Based on the results of the Seismic Survey, Pacific
                  may elect, at its sole option, to fund one hundred percent
                  (100%) of all cost and expense incurred and actually paid to
                  third parties in the drilling, reasonable testing and
                  completing of the Test Wells including, without limitation,
                  all costs to locate, permit, drill, re-enter, re-drill,
                  re-work, directionally drill, operationally sidetrack,
                  re-complete, plug back, kick, fish, perforate, hydraulically
                  fracture, stimulate, test and complete as a well capable of
                  producing oil and/or gas, or plugging and abandonment as a dry
                  hole, as the case may be, each Test Well. If a substitute well

                                      -9-

<page>

                  is drilled under Section 5.5, the costs and expenses incurred
                  in the drilling, testing and completing of both the original
                  well and the substitute well shall be paid by Pacific. Prior
                  to commencement of drilling each Test Well, Pacific shall post
                  for each Test Well an abandonment site restoration bond in
                  compliance with applicable laws and regulations.

                  The non-operating Parties shall have the right to have their
                  personnel at the well site location at all times. Such access
                  shall be at the sole risk and expense of the non-operating
                  Parties.

         5.2      SELECTION OF WELL DESIGN, RIG CONTRACTOR AND DRILLSITE
                  LOCATION. Prior to the drilling of each Test Well, the Parties
                  shall mutually agree on (i) the well design; (ii) the rig
                  contractor, and (iii) the drillsite location of the Test Well
                  based on the results of the Seismic Survey.

         5.3      OPERATIONS. During the term of this Agreement, the JOA shall
                  govern as to the Parties regardless of who is operator. If
                  there are any conflicts between this Agreement and the JOA,
                  this Agreement shall prevail. If there are any conflicts
                  between this Agreement and the Purchase and Sale and
                  Exploration Agreement between Shell and Wolverine dated April
                  30, 2001 this Agreement shall prevail. Shell, as Operator of
                  the JOA, shall designate Pacific as operator for the sole
                  purpose of drilling the Test Wells. Pacific's designation as
                  operator shall be limited to the field operations performed
                  while drilling, testing and completing the Test Wells. The
                  Test Wells shall be drilled, tested, and completed as a well
                  capable of producing oil and/or gas or as a dry hole, in
                  accordance with all applicable laws, rules and regulations of
                  the appropriate governmental and regulatory authorities. Upon
                  Performance, Pacific shall relinquish operations of such Test
                  Well in favor of Shell.

         5.4      TEST WELLS. Operations for the drilling of the Test Wells
                  shall be commenced on or before December 31, 2006 and be
                  located in the Project Area. The Test Wells shall be drilled
                  with due diligence and reasonable dispatch to the Earning
                  Depth.

         5.5      SUBSTITUTE WELL. Should Pacific, as operator during the
                  drilling of any of the Test Wells, encounter impenetrable
                  substances or other conditions which make the further drilling
                  of such Test Well impracticable prior to reaching the
                  objective depth as set forth above, Pacific may elect, at its
                  sole option, within ninety (90) days of the discontinuance of
                  such Test Well, to commence drilling operations for a
                  substitute Test Well. In such event, the substitute Test Well
                  shall be located as near as practicable to the discontinued
                  Test Well and shall be drilled to the stratigraphic equivalent
                  of the Earning Depth. If Pacific drills a substitute Test Well
                  as above provided, then such substitute Test Well shall be
                  deemed to constitute the Test Well for which it is a
                  substitute for purposes of clause (ii) of the definition of
                  "Performance" herein.

                                      -10-

<page>

         5.6      PAYMENTS. Pacific shall pay all invoices for the drilling,
                  testing, and completing of any Test Well.

         5.7      HSE BUSINESS PRINCIPLES. With respect to the conduct of
                  operations in the Project Area, the Parties to this Agreement
                  state that they share a commitment to the protection of the
                  health and safety of the people working in the Project Area
                  and to the protection of the environment. In accordance with
                  this commitment, Pacific shall, with the support and
                  cooperation of Shell and Wolverine, work to develop a Health
                  Safety and Environmental ("HSE") Management System and
                  Policies that will effectively implement the following
                  elements in the conduct of operations hereunder:

                  a.       A systematic approach to HSE management designed to
                           ensure compliance with the law and to achieve
                           continuous performance improvement;
                  b.       Set targets for improvement; measure, appraise and
                           report performance;
                  c.       Require contractors to manage HSE in line with this
                           policy;
                  d.       Ensure that HSE is the responsibility of all
                           managers, teams and individuals;
                  e.       Permit any individual to stop any work, or prevent
                           any work from starting, where adequate controls of
                           HSE risks are found not to be in place; and
                  f.       Include HSE performance in the appraisal of operating
                           staff and contractors and reward them accordingly.

                  In addition to the foregoing responsibilities of Pacific,
                  Pacific, Shell, and Wolverine shall meet annually to: 1)
                  review the HSE performance of joint operations in the Project
                  Area during the previous year relative to previous mutually
                  agreed performance measures; and 2) to set new mutually agreed
                  performance measures for the following year. Pacific shall be
                  responsible for conducting joint operations in compliance with
                  these measures. Pacific shall permit Shell and Wolverine to
                  jointly conduct such auditing activities as may be reasonably
                  necessary to verify operator's reported HSE performance,
                  including review of any relevant records and inspection of
                  facilities or other operational sites to the extent they are
                  directly related to Project Area operations. Shell and
                  Wolverine's right to conduct such audits shall be limited to
                  one audit per calendar year unless otherwise agreed by Pacific
                  as operator. Audit activities shall only be conducted during
                  normal business hours and in a manner that minimizes undue
                  disruption of Pacific's activities.

         5.8      WELL TAKE OVER. Shell shall have the right to take-over the
                  drilling of any Test Well that Pacific intends to abandon
                  pursuant to Article VI(e) of the JOA. If Shell takes over a
                  Test Well, Shell and Wolverine (if Wolverine elects to
                  participate for its proportionate interest) shall be
                  responsible for all drilling, testing, producing, completion,
                  plugging and site restoration costs incurred from the date of
                  take-over.

                                      -11-

<page>

                         ARTICLE 6 - EARNING PROVISIONS

         6.1      INTERESTS TO BE EARNED. Upon Performance, Pacific shall earn
                  an undivided working interest of Shell and Wolverine's right,
                  title and interest in the Project Area subject to all existing
                  lease burdens, royalties and overriding royalties as of the
                  Effective Date as follows:

                  a.       In the Project Area where Shell as of the Effective
                           Date, owns seventy percent (70%) and Wolverine owns
                           thirty percent (30%) of an one hundred percent (100%)
                           undivided working interest, Pacific shall receive a
                           forty percent (40%) undivided working interest as
                           follows:
                           o      twenty eight percent (28%) from Shell;
                           o      twelve percent (12%) from Wolverine;
                           resulting in the following undivided working
                           interests:
                           o      Shell forty two percent (42%)
                           o      Pacific forty percent (40%)
                           o      Wolverine eighteen percent (18%)

                  b.       In the Project Area where Shell, as of the Effective
                           Date, owns forty percent (40%) and Wolverine owns
                           thirty percent (30%) out of a total seventy percent
                           (70%) undivided working interest, Pacific shall
                           receive a twenty eight percent (28%) undivided
                           working interest as follows:
                           o      sixteen percent (16%) from Shell;
                           o      twelve percent (12%) from Wolverine.
                           resulting in the following undivided working
                           interests:
                           o      Shell twenty four percent (24%)
                           o      Pacific twenty eight percent (28%)
                           o      Wolverine eighteen percent (18%)

                  c.       if Pacific fails to make the Seismic Payment or
                           elects, not to fund one hundred percent (100%) or
                           fails to, drill, complete and test both Test Wells as
                           set forth in Section 5.1 (Performance), Pacific shall
                           not earn any undivided working interest in the
                           Project Area.

                             ARTICLE 7 - ASSIGNMENTS

         7.1      SHELL/WOLVERINE ASSIGNMENTS TO PACIFIC. Within thirty (30)
                  days following the completion of Performance, Shell and
                  Wolverine shall execute and deliver unto Pacific proper
                  assignments of the Leases. Pacific shall concurrently
                  reimburse both Shell and Wolverine for their proportionate
                  share of the cost as set forth in Sections 3.1(i).

         7.2      ASSIGNMENT FORM. All assignments made under this Agreement
                  shall be substantially in the form attached hereto as Exhibit
                  "E" or the standard forms of assignment for Leases acquired
                  from the State of Wyoming and the United States of America and
                  shall be properly executed and notarized for recording
                  purposes.

                                      -12-

<page>

                            ARTICLE 8 - FORCE MAJEURE

         8.1      FORCE MAJEURE. If any Party is rendered unable, in whole or in
                  part, by an event of "FORCE MAJEURE" to carry out its
                  obligations under this Agreement, other than an obligation to
                  make money payments or to provide an indemnity, such Party
                  shall give to the other Parties prompt written notice of the
                  event of Force Majeure accompanied by reasonably detailed
                  information concerning such event; thereupon, the obligations
                  of the Party giving such notice, so far as they are affected
                  by the event of Force Majeure, shall be suspended during, but
                  no longer than, the continuance of the event of Force Majeure.
                  As used herein, the term "EVENT OF FORCE MAJEURE" shall mean
                  an act of God, strike, lockout or other industrial
                  disturbance, act of a public enemy, war, blockade, riot,
                  lightning, storm, fire, flood or other act of nature,
                  governmental action, governmental delay, governmental delays
                  regarding environmental or permitting requirements,
                  governmental restraint or governmental inaction,
                  unavailability of equipment or transportation of same, and any
                  other cause, whether of the kind specifically enumerated above
                  or otherwise, which is not reasonably within the control of
                  the Party claiming Force Majeure. The affected Party shall use
                  reasonable diligence to remove the event of Force Majeure, or
                  mitigate the effects thereof, as promptly as reasonably
                  practicable.

                 ARTICLE 9 - WELL INFORMATION AND TECHNICAL DATA

         9.1      SHELL AND WOLVERINE DATA. Pacific shall have access to the
                  Confidential Information for its own and its Affiliates use
                  during the life of the Agreement and must hold such data
                  strictly confidential as required in Article 10.

         9.2      FUTURE DATA ACQUISITIONS. Costs for all future geological and
                  geophysical data (seismic, magnetotelluric, etc.) that the
                  Parties agree to mutually pursue in the Project Area, shall be
                  acquired on a proportionate share basis and shall be subject
                  to the confidentiality provisions set forth in Article 10.
                  Whenever one Party desires to pursue the acquisition of
                  additional data in the Project Area that the other Parties
                  elect not to participate in, the non-participating Part(ies)
                  agrees to provide reasonable access to its acreage to the
                  acquiring Party. The non-participating Part(ies) shall have no
                  rights to such data.

         9.3      WELL INFORMATION. Each Party shall have the right to receive
                  the data from the Test Wells drilled within the Project Area,
                  subject to the confidentiality provisions set forth in Article
                  10.

                          ARTICLE 10 - CONFIDENTIALITY

         10.1     DEFINED. Confidential and proprietary data shall include, but
                  not be limited to Shell's and Wolverine's geological,
                  geophysical, land, engineering, environmental, well
                  information, technical information, including interpretations
                  and models covering the AMI, together with ail legal
                  information, terms, negotiations or any other information
                  regarding the potential business transaction between the
                  Parties, or information regarding an aspect of participation

                                      -13-

<page>

                  in the Agreement itself (collectively referred to herein as
                  "CONFIDENTIAL INFORMATION"). The term Confidential information
                  shall not include information that (a) is in a Party's or its
                  Affiliate's possession prior to disclosure, (b) is or becomes
                  known to the public other than as a result of a breach of this
                  Agreement, (c) becomes available to a Party on a
                  non-confidential basis from a source other than the other
                  Parties) or (d) is developed by a Party without the use of
                  Confidential Information.

         10.2     CONFIDENTIALITY AGREEMENT. Upon execution of this Agreement,
                  the Confidentiality Agreement by and between Shell and Pacific
                  dated February 23, 2005 shall terminate and Article 10 of the
                  Agreement shall govern.

         10.3     NO DISCLOSURE. Unless required by law, no Party shall disclose
                  the Confidential Information to any person or entity,
                  including current leaseholders and mineral owners in the
                  Project Area, except to its own and its Affiliates, and its
                  and their officers, directors, employees and outside
                  attorneys, accountants and financial, engineering and
                  geological advisors, agents, consultants, representatives, to
                  carry out the purpose of this Agreement and each Party agrees
                  to direct such persons to not disclose to any other person or
                  persons the Confidential Information, and accepts full
                  responsibility should they disclose such.

         10.4     UNAUTHORIZED ACCESS. The Parties shall use reasonable efforts
                  to prevent access by unauthorized persons to the Confidential
                  Information, such efforts to reflect at least the same general
                  degree of security that each Party accords its own
                  Confidential Information, including, without limitation,
                  ensuring that each outside attorney, accountant and any other
                  advisor to whom it discloses the Confidential Information has
                  a written obligation to hold it confidential.

         10.5     COMPULSORY DISCLOSURE. In the event a Party is requested or
                  required under compulsion of legal process to disclose
                  Confidential Information, such Party shall not, unless
                  required by law, disclose the Confidential Information until
                  the other Parties have first (a) received prompt written
                  notice of such request or requirement to disclose, and (b) had
                  an adequate opportunity to obtain a protective order or other
                  reliable assurance that confidential treatment will be
                  accorded to its Confidential Information. The Party so
                  requested shall not oppose actions by the other Part(ies) to
                  assure such confidential treatment.

         10.6     ANNOUNCEMENTS. Except to the extent permitted above or as
                  required to be disclosed under stock exchange regulations, no
                  Party shall issue any press release or make any public
                  announcement related to this Agreement or the activities
                  hereunder without the prior written consent of the other
                  Parties, which consent shall not be unreasonably withheld.
                  Copies of any permitted press release or announcement shall be
                  sent to the other Parties for approval in advance of its
                  publication, so that the other Parties may make comments
                  and/or modifications.

                                      -14-

<page>

      ARTICLE 11 - MARKETING, GATHERING, PROCESSING AND TREATING FACILITIES

         11.1     EXCLUSIVE RIGHTS. Each Party shall have the exclusive right to
                  provide gathering, processing, treating and related services
                  for its own equity production. Notwithstanding, the Parties
                  shall meet and work together to consider the development of
                  joint gathering, processing and treating facilities, including
                  but not limited to consideration of appropriate third party
                  provider proposals, if any. The Parties shall share land
                  access and right of way where reasonably possible.

         11.2     The Parties shall mutually agree to outline all required
                  wellhead delivery conditions and pertinent sales redelivery
                  conditions in the Project Area.

         11.3     Each Party shall have the right to market their own gas
                  arising out of the Project Area.

                              ARTICLE 12 - NOTICES

         12.1     NOTICES. Any notice to be provided hereunder, shall be deemed
                  received by the addressee upon the earliest of: (a) actual
                  receipt; (b) five (5) days after deposit with the United
                  States Postal Service, by certified mail, postage prepaid,
                  return receipt requested; or (c) four (4) days after deposit
                  with Federal Express. Each Party shall have the right to
                  change its address for notice purposes by so notifying the
                  other Parties in writing. Facsimile notices shall be deemed
                  received upon confirmation of receipt by the Party notified.
                  The address of each Party for notice purposes is:

                                    SWEPT LP
                             200 North Dairy Ashford
                                Houston, TX 77079
                         Attention: Onshore Land Manager
                             Facsimile: 281-544-4006
                             Telephone: 281-544-3473

                           Wolverine Gas and Oil Corp.
                              One Riverfront Plaza
                                  55 Campau NW
                           Grand Rapids, MI 49503-2616
                            Attention: Richard Moritz
                             Facsimile: 616-458-0869
                             Telephone: 616-458-1150

                          Pacific Energy Resource Ltd.
                             1065 West Pier E Street
                              Long Beach, CA 90802
                            Attention: Vladimir Katic
                             Facsimile: 562-436-8474
                             Telephone: 562-436-6566

                                      -15-

<page>

                            ARTICLE 13 MISCELLANEOUS

         13.1     RELATIONSHIP. it is not the intention of the Parties hereto to
                  create a partnership, joint venture, mining partnership or
                  association taxable as a corporation; and neither this
                  Agreement nor the operations hereunder shall be construed as
                  creating such a relationship. The liability of the Parties
                  hereto shall be several and not joint or collective, and each
                  Party shall be responsible only for its obligations. Nothing
                  contained herein shall be construed to constitute any Party to
                  be the partner of the other Part(ies).

         13.2     INDEMNITY. Prior to Performance, Pacific shall be one hundred
                  percent (100%) liable for and agrees to hold harmless Shell
                  and Wolverine for any and all liability to or claims by third
                  parties arising out of or in connection with the shooting of
                  the Seismic Survey or the drilling of the Test Wells as set
                  forth in Article 5, except that Pacific shall have no
                  liability for any claims arising out of or in connection with
                  Shell or Wolverine's gross negligence or willful misconduct.

         13.3     TAXES. During the term of this Agreement, the Parties shall
                  enter into a tax partnership as set forth in Exhibit F.

         13.4     GOVERNING LAW. This Agreement and the legal relations between
                  the Parties shall be governed by and construed in accordance
                  with the laws of the State of Texas, without regard to
                  principles of conflicts of laws otherwise applicable to such
                  determinations.

         13.5     ARBITRATION. Any disputes between the Parties arising out of
                  or in connection with this Agreement shall be referred to and
                  determined by binding arbitration in accordance with the
                  procedures set forth in Exhibit C.

         13.6     TERM. The term of this Agreement shall be until the later of
                  May 1, 2008 or for so long as there is any production from the
                  Lands. The JOA, as applicable shall continue in accordance
                  with its terms. No termination of this Agreement or the JOA,
                  as applicable shall operate to relieve any Party of its
                  obligations that shall have arisen or accrued at the time of
                  termination.

         13.7     FURTHER ASSURANCES. The Parties agree to execute, acknowledge
                  and deliver all instruments, agreements or other documents,
                  and to take all action which may be necessary or advisable to
                  consummate the transactions contemplated by this Agreement.

         13.8     INTEGRATION. This Agreement and the documents to be executed
                  hereunder and the Exhibits attached hereto constitute the
                  entire agreement between the Parties pertaining to the subject
                  matter hereof, and supersede all prior agreements,
                  understandings, negotiations and discussions, whether oral or
                  written, of the Parties pertaining to the subject matter
                  hereof.

                                      -16-

<page>

         13.9     AMENDMENTS. This Agreement may not be altered, or amended, nor
                  any rights hereunder waived, except by an instrument in
                  writing executed by the Party or Parties to be charged with
                  such amendment or waiver.

         13.10    BINDING EFFECT. This Agreement shall be binding upon and shall
                  inure to the benefit of the Parties hereto, and their
                  respective successors and assigns.

         13.11    COVENANTS. This Agreement and the terms, conditions and
                  covenants herein shall be deemed to be covenants running with
                  the land, and a burden upon each of the Party's interest in
                  the Leases, for the benefit of the other Parties interest in
                  the Lands.

         13.12    THIRD PARTIES. Nothing in this Agreement, express or implied,
                  is intended to confer upon any third party any benefits,
                  rights or remedies.

         13.13    ASSIGNMENT. No Party shall assign this Agreement nor shall the
                  obligations and benefits herein be assigned to any third party
                  without the written consent of the other Parties. Such consent
                  however, will not be unreasonably withheld. Notwithstanding
                  anything to the contrary in this Agreement, a Party may assign
                  its rights and interests under this Agreement to an Affiliate
                  without the prior written consent of the other Parties.

         13.14    SEVERABILITY. Each provision hereof is intended to be
                  severable. If any term, clause or provision of this Agreement
                  is or becomes unenforceable in any jurisdiction, such
                  invalidity, illegality or unenforceability shall not affect
                  the validity, legality, or enforceability of any other term,
                  clause or provision and such invalid, illegal or unenforceable
                  term, clause or provision shall be, as to such jurisdiction,
                  severable from this Agreement to the maximum extent possible.

                                END OF AGREEMENT

                                      -17-

<page>

         EXECUTED in multiple counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same agreement, effective
for all purposes as of the Effective Date, June 1, 2005.

Pacific Energy Resources Limited              SWEPI LP

By: /S/ VLADIMIR KATIC                        By: /S/ B. D. GRIFFIN
    ------------------------------                ------------------------------

Name: Vladimir Katic                          Name: B. D. Griffin

Title: Chairman & CEO                         Title: Attorney-In-Fact

Wolverine Gas and Oil Corporation

By: /S/ RICHARD D. MORITZ
    ------------------------------

Name: Richard Moritz

Title: Vice President of Land

                                      -18-

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