Notice of ApplicationS

ApplicationS No. 1276521 AND 1276489
for a license TO DRILL A SOUR NATURAL GAS WELL,
COMPULSoRY POOLING AND SPECIAL well SPACING orders
LIVINGSTONE FIELD

POLARIS RESOURCES LTD.

Application No. 1276521

Polaris Resources Ltd. (Polaris) has submitted an application to the Alberta Energy and Utilities Board (EUB) pursuant to Section 2.020 of the Oil and Gas Conservation Regulations (the Regulations) for a licence to drill a vertical level-3 critical sour gas well from a surface location in Legal Subdivision (LSD) 11 of Section 32, Township 10, Range 2, West of the 5th Meridian. The maximum hydrogen sulphide (H₂S) content would be approximately 287.6 moles per kilomole (28.76 per cent), the cumulative drilling H₂S release rate would be 11.30 cubic metres per second (m³/s), the producing release rate would be 3.06 m³/s, and the corresponding emergency planning zone would be 13.54 kilometres (km). The purpose of the well is to obtain gas production from the Palliser formation. The proposed well would be located approximately 32 km north of the Hamlet of Lundbreck.

Application No. 1276489

Polaris has also applied to the EUB pursuant to Section 4.040 of the Regulations for an order to establish a special drilling spacing unit (DSU) comprised of Sections 32 and 33 of Township 10, Range 2, West of the 5th Meridian, with the target area being within the DSU and having sides 300 metres from and parallel to the sides of the DSU, for the production of gas from all zones below the top of the Mississippian System.

Polaris has also applied pursuant to Section 80 of the Oil and Gas Conservation Act (the Act) for an order prescribing that all tracts within the special drilling spacing unit comprising Sections 32 and 33 of Township 10, Range 2, West of the 5th Meridian, be operated as a unit for the production of gas from all zones below the top of the Mississippian System, through a well to be drilled in LSD 11-32-10-2 W5M.

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 subject well. The applicant has also requested that the maximum penalty allowed under the Act be applied to a tract's share of the costs of drilling and completing the well if the tract owner does not pay its share of those costs within 30 days of the later of the pooling order being issued, the tract owner being given written notice of its share of costs, and the well in question being placed on production.

This Notice of Applications is being distributed to advise interested persons that the applications are available and that the EUB is now undertaking a review of the applications. Once the review and the applications are considered complete, further notices will be provided to the public as to the course of disposition of the applications.

In addition, the progress of the applications may be monitored on the EUB's Integrated Application Registry (IAR) system on the EUB's website at www.ercb.ca.

Additional Information

To obtain additional information or a copy of the applications contact:

Polaris Resources Ltd.
c/o Fire Creek Resources Ltd.
514 10th Street NW
Calgary Alberta  T2N 1W3
Attention: Orville Cole
Telephone: 1-866-654-0505
Fax: (403) 234-9195

Copies of these applications are also available for public viewing at the following location:

Alberta Energy and Utilities Board
Information Services
640 5th Avenue SW, Main Floor
Calgary Alberta  T2P 3G4

For information about EUB procedures contact:

Attention: Paul Forbes, Application Coordinator
Applications Branch, Facilities Applications
Alberta Energy and Utilities Board
640 5th Avenue SW, Main Floor
Calgary Alberta  T2P 3G4
Fax: (403) 297-4117
Telephone: (403) 297-3199
E-mail: paul.forbes@gov.ab.ca

No Submission Required at Present

The EUB does not require that statements of concern be filed at this time. Once the EUB has completed its review and the applications are considered complete, further notices will be provided to the public and an opportunity to file statements of concern will be provided at that time. To provide for a more efficient process, the EUB encourages parties to group together when similar concerns have been identified. If you were not directly sent this notice and wish to be included in future direct mailings or, you are part of a group and wish to establish a contact person for the group you represent, please contact Paul Forbes by any of the above methods.

Note: Any statements filed regarding these applications are public records, which are accessible by the public.

Issued at Calgary, Alberta, on October 23, 2002.

ALBERTA ENERGY AND UTILITIES BOARD
Michael J. Bruni, Q.C., General Counsel