Proposed Expansion of Area of Mutual Interest Development

December 19, 2003


American Natural Energy Corporation 7030 South Yale Avenue Suite 404 Tulsa, OK 74136


Attention: Bennett Shelton, Land Manager


RE: PROPOSED EXPANSION OF AREA OF MUTUAL INTEREST DEVELOPMENT
AGREEMENT EFFECTIVE NOVEMBER 22, 2002
BAYOU COUBA FIELD
ST. CHARLES PARISH, LA


Gentlemen:


This will respond to your letter of September 15, 2003 proposing to expand the captioned AMI as set forth therein. In response, ExxonMobil proposes the following:


o American Natural Energy Corporation ("ANEC") shall, at its sole risk
and expense, commence actual drilling operations, within ninety (90)
days of ANEC's execution of this agreement, on a well in the West Half
of Section 14, TI5S-R21E to a depth of approximately 8,000 feet MD as
indicated on the attached plat ("Proposed Well"). ANEC shall carry
ExxonMobil to casing point on the well, at which point ExxonMobil shall
have the election to participate with a 50% working interest in the
well and expenses incurred after casing point or alternatively to
reserve a 25% royalty interest in production therefrom.


o As consideration for ANEC carrying ExxonMobil to casing point in the
Proposed Well, the parties agree to amend the captioned AMI to include
an additional 1280 acres comprised of all of Section 15 and the East
Half of Sections 10 and 22, T15S-R21E. This additional area shall be
depth limited from ...