APPLICATION FOR PIPELINE GATHERING SYSTEM
APPLICATION NO. 1270601

APPLICATION FOR WELL SITE SURFACE FACILITIES
APPLICATIONS NO. 1279696, 1279698, and 1279699

APPLICATION FOR AN AMENDMENT TO EXISTING FACILITY
APPLICATION NO. 1280291

Manhattan Resources Ltd. (Manhattan) has applied to the Alberta Energy and Utilities Board (EUB) for approval to drill six wells, construct and operate a pipeline gathering system, well surface facilities, and modify its existing facility at the locations shown on the attached figure. A descriptive summary of the applications is attached.

The EUB has determined that there are a number of concerns respecting the applications, which have not yet been resolved, and is prepared to consider the applications and the related issues and concerns at a public hearing to be scheduled at a later date.

Therefore Take Notice that the EUB will hold a Pre-hearing Meeting in relation to the applications at the Best Western Sherwood Hotel & Conference Centre, 2100 Premier Way, Sherwood Park, Alberta, on Tuesday, November 19, 2002, commencing at 9:00 a.m. The matters to be considered include, but would not be limited to:

         establishing the scope and purpose of the hearing,

         establishing the timing of the public hearing,

         identifying the procedures to be used in the hearing,

         identifying the participants and their roles in the hearing,

         discussing the funding of the participants, and

         any other matters as necessary.

Further, Take Notice that this Pre-hearing Meeting is not to hear evidence, submissions or arguments pertaining to the merits of these applications or objections. Parties will be given an opportunity to present evidence, cross-examine witnesses and make arguments regarding the merits of the applications at the public hearing of these applications.

Additional Information
To obtain additional information or copies of the applications, please contact:

Manhattan Resources Ltd.
1000, 736 6 Avenue SW
Calgary, Alberta, T2P 3T7
Attention: D Cymbalisty, Telephone (403) 216-1800, Fax (403) 2l6-1810

For information about EUB procedures, contact:

Applications Branch, Facilities Applications Group
Attention: Phyllis Derbyshire, Telephone (403) 297-8305, Fax (403) 297-4117
E-mail: <phyllis.derbyshire@gov.ab.ca>.

Filing of Submissions Respecting the Pre-Hearing Meeting
It is not necessary to file any written submissions prior to the pre-hearing meeting. Submissions may be made verbally at the pre-hearing meeting. However, if any person wishes to file a written submission at the pre-hearing meeting, please provide a minimum of 15 copies of the complete submission to EUB staff and one copy to Manhattan.

Further, any party wishing to file a written submission prior to the pre-hearing meeting should do so prior to November 8, 2002. One copy of the submission to be sent to Manhattan at the address noted above and one copy to:

P.V. Derbyshire, Application Coordinator
Applications Branch, Facilities Application Group
640 5 Avenue SW, Calgary, Alberta  T2P 3G4

Issued at Calgary, Alberta on October 17, 2002.

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

Summary of Applications Submitted by

Manhattan Resources Ltd.

Wells

Applications:  No. 1250463 LSD 07-16-53-21 W4M
                   No. 1250462 LSD 07-20-53-21 W4M
                   No. 1260253 LSD 10-21-53-21 W4M
                   No. 1260250 LSD 07-22-53-21 W4M
                   No. 1269744 LSD 06-06-53-21 W4M
                   No. 1260257 LSD 07-30-52-21 W4M

Manhattan is proposing to drill vertical wells at each of the six locations above for the purpose of obtaining natural gas production from the Glauconitic and Ellerslie formations. According to the applications, the Ellerslie zone may potentially contain small amounts of hydrogen sulphide (H₂S) 0.1 mol/kmol or 0.01% H₂S. Drilling operations are expected to take approximately 10 days per well site.

Pipelines

Manhattan is proposing to construct and operate a 19.50 kilometre pipeline gathering system (H₂S content of 0.1 mol/kmol) to connect the six proposed wells to an existing Manhattan pipeline located at LSD 7-29-53-21 W4M.

Facilities

Manhattan has also applied for production and surface facilities at all six well sites comprised of a wellhead, two chemical tanks, a small separator building, and a small flare stack. The flare stack would be used only if the well or pipeline needs to be depressurized.

Manhattan is also proposing to expand a current facility at location LSD 07-29-53-21 W4M. The expansion would include:

• Installation of a larger inlet separator to handle increased volumes of gas.
• Replacement of the 50 bbl produced water tank with a 400 bbl tank.
• Replacement of the desiccant drying system with a glycol dehydrator.
• Replacement of the gas sweetening tower with a larger tower(s) to handle increased flow rates.
• Installation of the applicable control systems and shut downs to ensure the safe operation of the facility.