EQUIVA
                                               TRADING COMPANY

August 9, 2002

DEREK RESOURCES CORP
WIRE PAYMENT
335 BURRARD ST STE 1730
VANCOUVER BC CANADA V6C2G8, 1-0

Dear Sir or Madam:

Re: Change In Posted Price

You  were  recently  sent  a Contract Assignment  from  Equiva
Trading  Company (ETCO) to Shell Trading (US) Company (STUSCO)
effective September 1, 2002. August 31, 2002 will be the  last
day  Equiva  Trading  Company will post  for  crude  oil,  and
effective September 1, 2002, STUSCO will commence posting  for
crude oil.

Accordingly, we would appreciate your acknowledgement  of  the
change   of  posted  prices  on  crude  contracts  (listing[s]
enclosed)  from  ETCO to Shell Trading (US) Company  effective
September 1, 2002.

We  would  appreciate receiving your response by  returning  a
signed copy of this letter, either by mail or fax to (713) 246-
8674  within ten days from the date of this letter. If  we  do
not receive your response within ten days, we will assume your
consent to the change of posted prices.

Thank you for your cooperation.

Sincerely,


/s/ Matt McComiskey
    ---------------
    Matt McComiskey
    Vice President


Attachments

     Crude Contract Numbers:             98679R01

     This will acknowledge the change of posted prices on our
contracts that were assigned from Equiva Trading Company to
Shell Trading (US) Company:


     By:       /s/ Frank Hallam

     Title:        CFO

     Date:         August 29/02