NOTICE OF APPLICATION

MINNEHIK-BUCK LAKE AND PEMBINA AREAS

APPLICATION NO. 1308807

BONTERRA ENERGY CORP.

Take Notice that the Alberta Energy and Utilities Board (EUB) may continue to process this application without further notice if no submissions for or against are received with respect to Application No. 1308807 on or before December 23, 2003 .

Nature of the Application

Fekete Associates Inc., on behalf of Bonterra Energy Corp., has applied under the Oil and Gas Conservation Regulations and the Oil and Gas Conservation Act to establish drilling spacing units of one half section, being either the east or west half of the section, with target areas being the southwest or northeast quarter of the section, in accordance with Section 4.030 1(b), for the production of gas from the Edmonton Coals in the following areas:

IN TOWNSHIP 46, RANGE 7, WEST OF THE 5th MERIDIAN:

Sections 19 and 30

IN TOWNSHIP 46, RANGE 8, WEST OF THE 5th MERIDIAN:

Sections 25 and 26

IN TOWNSHIP 47, RANGE 7, WEST OF THE 5thM ERIDIAN:

Sections 1, 12, and 36

IN TOWNSHIP 47, RANGE 8, WEST OF THE 5th MERIDIAN:

Sections 6 and 7

IN TOWNSHIP 48, RANGE 7, WEST OF THE 5th MERIDIAN:

Sections 10, 24, and 25

IN TOWNSHIP 49, RANGE 7, WEST OF THE 5th MERIDIAN:

Section 12

The applicant has further applied to establish drilling spacing units of one half section, being either the north or south half of the section, with target areas being the southwest or northeast quarter of the section, in accordance with Section 4.030 1(b), for the production of gas from the Edmonton Coals in the following areas:

IN TOWNSHIP 46, RANGE 7, WEST OF THE 5th MERIDIAN:

Sections 33, 34, and 35

IN TOWNSHIP 46, RANGE 8, WEST OF THE 5th MERIDIAN:

Sections 13, 34, and 35

IN TOWNSHIP 46, RANGE 9, WEST OF THE 5th MERIDIAN:

Section 35

IN TOWNSHIP 47, RANGE 7, WEST OF THE 5th MERIDIAN:

Sections 5, 19, and 22

IN TOWNSHIP 47, RANGE 8, WEST OF THE 5th MERIDIAN:

Sections 1 and 2

IN TOWNSHIP 47, RANGE 9, WEST OF THE 5th MERIDIAN:

Sections 1 and 2

IN TOWNSHIP 48, RANGE 5, WEST OF THE 5th MERIDIAN:

Section 4

IN TOWNSHIP 49, RANGE 6, WEST OF THE 5th MERIDIAN:

Section 8

The applicant has further applied to establish holdings for the production of gas from the Edmonton Coals in the areas shown on the following Appendix.

The applicant proposes that within all holdings shown on the Appendix:

         a producing well shall be at least 200 metres from each other well producing from the
same pool, and

         a producing well shall be at least 150 metres from the boundary of the holding.

Additional Information

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

Fekete Associates Inc.

2000, 540 5 Avenue SW

Calgary, Alberta  T2P 0M2

Attention: Robyn Swanson

Telephone: (403) 213-4250

A copy of the application is available for viewing at the following location:

Alberta Energy and Utilities Board

Information Services

1st Floor, 640 5 Avenue SW

Calgary, Alberta  T2P 3G4

For information regarding EUB procedures, contact:

Applications Branch, Resources Applications

Natalie Griffiths, Telephone: (403) 297-3554

natalie.griffiths@gov.ab.ca

To File A Submission

Any person intending to make a submission with respect to Application No. 1308807 shall file on or before December 23, 2003 . Send one copy of your submission to the applicant at the name and address above and three copies of the submission to:

Natalie Griffiths

Alberta Energy and Utilities Board

Applications Branch, Resources Applications

640 - 5 Avenue SW

Calgary, Alberta  T2P 3G4

Notes

The application applies to the subsurface placement of wellbores where they enter the productive part of the pool. It does not include the approval of or imply approval of wellsite locations or access. These are matters to be negotiated between the applicant and the surface rights owner.

Issued at Calgary, Alberta, on November 28, 2003.

ALBERTA ENERGY AND UTILITIES BOARD