American Natural Energy Corporation
5727 South Lewis, Suite 700
Tulsa, Oklahoma 74105

Dear

          The corporate records of American Natural Energy
Corporation ("American") reflect that you hold an option dated    
             , exercisable into       shares of American common
stock at an exercise price of $       per share, or $       in the
aggregate (the "American Option").  The American board of directors
has approved, subject to shareholder approval at a special meeting
of shareholders on July 19, 1994, a merger agreement (the
"Agreement") whereby American will be merged (the "Merger") with
and into Alexander Acquisition Company, a wholly owned subsidiary
of Alexander Energy Corporation ("Alexander").  A copy of the
Agreement is attached as an Addendum to American's Proxy Statement
mailed to you on or about June 20, 1994. 

          You may exercise your American Option on or before 10:00
a.m. Central Standard Time on July 19, 1994, the effective date of
the Merger, by following the instructions set forth in the American
Option. If not exercised on or before that time, Alexander will
grant you an option to purchase Alexander common stock (the
"Alexander Option") upon consummation of the Merger on the same
terms as are contained in your American Option, subject to the
following exception.  The Alexander Option shall be exercisable
into     shares of Alexander Common Stock in accordance with the
conversion ratio set forth in the Agreement (1.62 multiplied by the
number of American shares presently subject to your American
Option).  The exercise price for each share of Alexander Common
Stock shall be $       per share, or $         in the aggregate.  

          The terms of the Alexander Option will require that you
exercise the Alexander Option during your employment with 
Alexander, or within thirty days after termination of your
employment.  Therefore, if you do not become an employee of
Alexander following the Merger, you must exercise the Alexander
Option on or before August 18, 1994.

          If you have any questions with respect to the matters
discussed herein, please contact the undersigned at (405) 478-8686.

                                Very truly yours,



                                Sue Barnard, Secretary