CAUSEY DEMGEN & MOORE INC.
                         1801 CALIFORNIA ST., STE. 4650
                             DENVER, COLORADO 80202


March 29, 2000



Securities and Exchange Commission
450 - 5th Street, N.W.
Washington, D.C. 20549

Gentlemen:

We were  retained by Arete  Industries,  Inc.  on March 14, 2000 as  independent
certified public accountants to report on their financial statements at December
31,  1999  and for the  year  then  ended.  We have  endeavored,  with  the full
cooperation  of the Company,  to obtain the  necessary  information  to meet the
filing requirements for Form 10-KSB, both as to form and timeliness.  Due to the
late date at which we were retained and the extensive  amount of time  necessary
to gather data for permanent audit files,  review the working papers and reports
of  the  predecessor  auditors,  review  the  accounting  records  and  internal
controls,  plan the appropriate audit procedures and scope thereof,  and perform
the  appropriate  audit tests,  we will not have sufficient time to complete our
examination  by March  30,  2000,  which  is the  required  filing  date for the
Company's annual report.

Very truly yours,

CAUSEY DEMGEN & MOORE INC.