APPENDIX "A"
RESOLUTION NO.1
It is acknowledged by all parties that exploration activities must be
conducted as cost effectively as possible with particular regard to the
risk/reward aspects of each and every expenditure.
It was agreed that the earning provisions of the Farmout Agreements between
Dublin International Petroleum (Egypt) Limited ("Dublin") (Farmor) and GHP
Exploration (Egypt) Ltd. ("GHP") (Farmee) and Drucker Petroleum
Inc.("Drucker") (Farmee) did not necessarily represent the most efficient use
of funds by requiring a deep test, regardless of technical merit.
It was therefore unanimously agreed that the Farmout Agreement between Dublin
and GHP dated April 27, 1998 be amended as follows:
- - The corporate name of the Farmee be changed "to "GHP Exploration (West
Gharib) Ltd.
- - "Clause I :0 1 -"Contract Depth" means a depth sufficient to adequately
evaluate the full potential of the Rudeis Sand but to a depth of no less than
200 feet below the top of the uppermost sand in the Rudeis Formation."
- - "Clause 2.03- GHP shall be obligated to bear and pay sixty percent (60%) of
the costs and expenses associated with the drilling of one or more
exploratory wells to Contract Depth including casing to total depth and
subsequent testing approved by the Parties or abandonment of the said well(s)
in the Initial Exploration Period. When total cumulative costs incurred in
drilling and completing or abandoning the said well(s) equal to one million
two hundred and fifty thousand United States Dollars (US$1,250,000), or a
maximum cost to GHP of seven hundred and fifty thousand United States Dollars
(US$750,OOO); GHP thereafter shall pay thirty percent (30%) of all costs and
expenses with any further activity related to the well(s)."
APPROVED AND ACCEPTED
DUBLIN INTERNATIONAL PETROLEUM (EGYPT) LIMITED
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EDWARD L. MOLNAR, PRESIDENT
GHP EXPLORATION (WEST GHARIB) LTD.
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BARRY D. LASKER, PRESIDENT
Resolution 1 Amend. WG FO
20F