Take Notice that the Alberta Energy and Utilities Board (EUB) had scheduled a public hearing of Application No. 1379164 at the Spruce View Community Hall, Main Street, Spruce View, Alberta, commencing on Tuesday, July 5, 2005 at the hour of 9:00 a.m. The Board received a request from interested parties to reschedule the hearing and it agreed to grant the request.

Prospex Resources Ltd. (Prospex) submitted an application in accordance with Section 2.020 of the Oil and Gas Conservation Regulations (OGCR) for a licence to drill a directional Level 4 sour well from a surface location in Legal Subdivision (LSD) 12 of Section 4, Township 36, Range 4, West of the 5th Meridian to a bottomhole location of LSD 6-4-36-4W5M. The maximum hydrogen sulphide (H₂S) content would be approximately 403.4 moles per kilomole (40.3 per cent) and the cumulative drilling H₂S release rate would be 8.28 cubic metres per second (m³/s). During the completion and servicing of the proposed well the release rate would be 7.89 m³/s, and the suspended producing release rate would be 7.89 m³/s. The corresponding calculated emergency planning zones (EPZ) is 9.68 kilometres (km) for the drilling release rate, and 9.37 km for both the completion/servicing and suspended/producing release rates. Prospex has received an interim approval from the EUB for a reduced EPZ of 4.0 km. The purpose of the well is to obtain gas production from the Swan Hill Member. The proposed well would be located approximately 15.3 km east of Caroline.

To obtain additional information or a copy of the application, contact:

Prospex Resources Ltd.

700, 606 – 4th Street SW

Calgary, Alberta T2P 1T1

Attention: Pat Connors

Telephone: (403) 213-3723

Fax: (403) 213-3699

E-mail: prospexops@psx.ca

Copies of the application are available for viewing at the following EUB offices:

EUB Information Services EUB        Red Deer Field Centre

Main Floor, 640 - 5th Avenue SW   202, 4909 - 49 Street

Calgary, Alberta T2P 3G4              Red Deer, Alberta T4N 1V1

Telephone: (403) 297-8190         Telephone: (403) 340-5454

For information about EUB procedures, contact:

Greg McLean, Application Coordinator

Applications Branch, Facilities Applications Group

Alberta Energy and Utilities Board

640 – 5th Avenue SW

Calgary, Alberta T2P 3G4

Telephone: (403) 297-3232

Fax: (403) 297-4117

E-mail: Greg.mclean@gov.ab.ca

Any person intending to make a submission with respect to the hearing of Application No. 1379164 shall file on or before 4:00pm Wednesday, September 7, 2005. Send one copy of your submission to the applicant at the name and address above and ten copies to:

Greg McLean, Applications Coordinator

Applications Branch, Facilities Applications Group

Alberta Energy and Utilities Board

640 - 5th Avenue SW

Calgary, Alberta T2P 3G4

Any submission filed shall contain the following:

(a) a concise statement indicating

(i) the manner in which the intervener's rights may be directly and adversely affected by a decision of the Board on the proceeding,

(ii) the nature and scope of the intervener's intended participation,

(iii) the disposition of the proceeding that the intervener advocates, if any,

(iv) the facts the intervener proposes to show in evidence,

(v) the reasons why the intervener believes the Board should decide in the manner that the intervener advocates, and

(vi) the intervener's efforts, if any, to resolve issues associated with the proceeding directly with the applicant;

(b) the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the intervener;

(c) if the intervener is represented by a representative, the name, address in Alberta, telephone number, fax number and, if available, e-mail address of the representative;

(d) if the intervener is an unincorporated organization, the nature of the intervener's membership.

If you have an interest in this matter, you are required to make a submission with respect to this application even if you have previously filed a submission with the Board or with Prospex Resources Ltd. on this application.

If there are no submissions received, this hearing may be cancelled and the EUB will continue to process the application without further notice or without a hearing.

In accordance with Section 38 of the Alberta Energy and Utilities Board Rules of Practice, witnesses must give evidence under oath or affirmation.

Submissions relating exclusively to compensation for land usage are not dealt with by the EUB but may be referred to the Alberta Surface Rights Board.

Note: Any statements filed regarding this application become part of the public record and are accessible by the public.

Issued at Calgary, Alberta, on June 28, 2005.

ALBERTA ENERGY AND UTILITIES BOARD

Douglas A. Larder, General Counsel