NOTICE OF HEARING

APPLICATION NO. 1323509

SUNDANCE FIELD

PEYTO EXPLORATION AND DEVELOPMENT CORP.

Take Notice that an examiner appointed by the Alberta Energy and Utilities Board (EUB) will hold a public hearing of Application No. 1323509 at the offices of the Board, 640 5th Avenue SW, Calgary, Alberta, on Wednesday, February 11, 2004, at 9:00 a.m.  All interveners to this proceeding must be present at the commencement of the hearing to register their appearance.

Nature of the Application

Peyto Exploration and Development Corp. applied pursuant to the Oil and Gas Conservation Act (the Act) for an order prescribing that all tracts within the drilling spacing unit comprising Section 18 of Township 54, Range 21, West of the 5th Meridian, be operated as a unit for the production of gas from all zones from the base of the Belly River Group to the base of the Cardium Formation, through a well to be drilled in Legal Subdivision 11 of the section.

The applicant is requesting, among other things, that costs and revenues under the pooling order be allocated on a tract area basis, and that it be named the operator of the well to be produced under the order.  In addition, the applicant requested that the maximum penalty allowed under the Act be applied to a tract's share of the costs of drilling the well to, and completing it in, the formation named in the order, if the tract owner does not pay its share of such costs within 30 days of the later of the pooling order being issued, the tract owner being notified in writing of its share of the actual costs, or the well commencing production.

Additional Information

To obtain additional information or a copy of the application contact the applicant's agent:

Western Land Services Co. Ltd.

210, 603 7th Avenue SW

Calgary, Alberta, T2P 2T5

Attention: G. Weiler

Telephone: (403) 266-3076

For information about EUB procedures contact:

Applications Branch, Resources Applications Group

Attention: K. Fisher

Telephone: (403) 297-8490

To File A Submission

Any person intending to make a submission with respect to the hearing of Application

No. 1323509 shall file on or before February 2, 2004.  Send two copies of your submission to the applicant at the name and address above, and twelve copies of the submission to:

K. Fisher, Application Coordinator

Applications Branch, Resources Applications, EUB

640 5th Avenue SW

Calgary AB  T2P 3G4      

Notes

Any submission filed shall contain information detailing:

(i)      the desired disposition of the application,

(ii)     the facts substantiating the position of the submitter, and

(iii)     the reasons why the submitter believes that the EUB should decide in the manner advocated.

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

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

Issued at Calgary, Alberta on December 29, 2004.

ALBERTA ENERGY AND UTILITIES BOARD

Douglas A. Larder, Associate General Counsel