NOTICE OF APPLICATION
BOW ISLAND AND MEDICINE HAT AREAS
APPLICATION NO. 1278148
PIPER ENERGY INC.

TAKE NOTICE that the Alberta Energy and Utilities Board (EUB) may continue to process this application without further notice if no objections are received on or before November 8, 2002.

Nature of the Application

Fekete Associates Inc., on behalf of Piper Energy Inc., has applied under the Oil and Gas Conservation Regulations and the Oil and Gas Conservation Act to:

         Establish drilling spacing units of one quarter section with the target areas being legal subdivisions 6, 8, 14, 16 for the production of gas from the Milk River, Medicine Hat and Second White Speckled Shale Formations in the following areas:

IN TOWNSHIP 10, RANGE 8, WEST OF THE 4^TH MERIDIAN:

Sections 26, 27, 28, 35 and 36          

IN TOWNSHIP 10, RANGE 9, WEST OF THE 4^TH MERIDIAN:

Section 25

IN TOWNSHIP 11, RANGE 9, WEST OF THE 4^TH MERIDIAN:

Sections 2 to 5 inclusive, 7 to 11 inclusive, 15 to 21 inclusive, 27 to 32 inclusive

IN TOWNSHIP 12, RANGE 9, WEST OF THE 4^TH MERIDIAN:

Sections 4 to 7 inclusive, 9, 16, 17, and 20

         Establish Holdings for the production of gas from the Milk River, Medicine Hat and Second White Speckled Shale Formations in the following areas:

IN TOWNSHIP 10, RANGE 8, WEST OF THE 4^TH MERIDIAN:

Section 26 (Holding No. 1)

Sections 27 and 28 (Holding No. 2)

Section 35 and the North half of Section 36 (Holding No. 3)

IN TOWNSHIP 10, RANGE 9, WEST OF THE 4^TH MERIDIAN:

Section 25 (Holding No. 4)

IN TOWNSHIP 11, RANGE 9, WEST OF THE 4^TH MERIDIAN:

Sections 2 to 5 inclusive, 7, 9, 10, 11, 15 to 19 inclusive (Holding No. 5)

Section 8 (Holding No.6)

Sections 20, 21, 27 to 32 inclusive (Holding No.7)

IN TOWNSHIP 12, RANGE 9, WEST OF THE 4^TH MERIDIAN:

Section 6 (Holding No.7)

Sections 4, 5, 9, 16, 17 and 20 (Holding No.8)

Section 7 (Holding No.9)

The applicant proposes that within the holdings:

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

         a producing well shall be at least 300 metres from the South and West boundaries of the holdings,

         only four wells may be produced per section from the same pool.

Additional Information

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

Fekete Associates Inc.

2000, 540 5th Avenue SW

Calgary, Alberta  T2P 0M2

Attention: Jason Wilhelm

Telephone: (403) 213-4257

For information about EUB procedures contact:

Applications Branch, Resources Applications

Attention: C. Lochhead

Telephone: (403) 297-8559

To File An Objection

Please state in writing your reasons for objecting to or supporting this application. Send one copy of your objection to the applicant at the name and address above and one copy to the EUB attention:

Carol Lochhead, Resources Applications

640 5th 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 October 8, 2002.

ALBERTA ENERGY AND UTILITIES BOARD

Michael J. Bruni, Q. C., General Counsel