. . . Dynamic Strategic Partner 1 = NRG Associates, Inc.

INTRODUCTION

NRG Associates was founded in 1983 to provide strategic information services to the upstream petroleum industry in North America and top public and private organizations related to it. Despite the great importance of the petroleum industry to the national economy, analyses of the industry and its accomplishments have suffered from a lack of relevant, complete, coherent, and consistent data.

NRG Associates provides these services through our Significant Oil and Gas Fields databases and their associated products, including our play description book (a comprehensive summary of the petroleum geology of the United States). The databases and their associated products are described in our Database descriptions and Producing Play folders.

Our product and marketing strategy emphasizes continuous innovation to increase the usefulness of the databases and thereby expand our potential users. Since the initial release of the Significant Oil and Gas Fields of the United States Database and the first edition of our play description book in 1985, our key product developments have been as follows:

1986-Initial release of the New Fields table (our annual review of exploration and development results).
1986 to 1988-Development of the reservoir supplement to the database, adding reservoir discovery well, production, and reserves data.
1988 to 1989-Development of the second edition of the play description book, incorporating this additional reservoir data, and creation of Field and reservoir master tables.
1988 to 1989-Major reduction in the lag time of reporting by combining two updates into one.
1989-Major expansion of Reservoir Characteristics table.
1990-Initial issue of Exploration Insight (our discussion of exploration results in the United States) and addition of the Play Location table.
1991-Addition of Field and Reservoir Oil-in-Place tables.
1991 to 1992-Development of the third edition of the play description book, adding basic geologic data to each play description.
1993-Addition of Post-Primary Recovery Methods table and Tight Formation Indicator.
1994-Addition of 2850 small fields (those with a known recovery between 0.5 and 1.0 million BOE) to the database.
1994 to 1995-Creation of the Significant Oil and Gas Pools of Canada Database.
1996-Addition of horizontal well counts to the Canada database.
1996-Creation of the Significant Oil and Gas Fields of the Gulf of Mexico Database.
1996 to 1998-Development of the U.S. Oil and Gas Resource System - Gulf of Mexico, an ArcView GIS system for the Gulf of Mexico database, by Earth Science Associates.
1996 to 1998-Development of the fourth edition of the U.S. play description book and creation of the accompanying digitized Play Characteristics Table.
1997-Creation of a digitized help system for the databases.
1997-Modernization and expansion of U.S. database structure and creation of national master tables.
1998-Development of KnowNow, a retrieval system for the Significant Oil and Gas Fields of the United States Database.
1998-Addition of reservoir production and reserve histories for Gulf of Mexico Fields (OCS).
1998 to 2000-Creation of a GIS system for the database covering the entire U.S. with Earth Science Associates and continuing upgrade of our two U.S. databases.

The Significant Oil and Gas Fields of the United States Database provides information on all fields with 0.5 million BOE or more known recovery in the United States, excluding the Appalachian region. The national version available as of June 1998 contains fields discovered through 1996 and recognized as significant by 1997. More than 11,300 primary significant fields (all fields AAPG/CSD Class D or larger) with more than 18,000 major reservoirs and another 3400 small fields (those between 0.5 and 1.0 million BOE) with 3600 major reservoirs are included in the database. Together these fields contain more than 99% of the known recoverable petroleum resources of the United States (excluding the Appalachian region). Each major reservoir within these fields is assigned to one of the 635 plays defined for the database.

DATABASE COMPONENTS

The Significant Oil and Gas Fields of the United States database consists of four parts:

  1. field data records;
  2. major reservoir data records;
  3. play description and location data; and
  4. the New Fields table.

FIELD DATA

The field data consist of four basic types of information:

  1. general field information;
  2. field discovery well;
  3. field production, reserves, and wells; and
  4. field original oil-in-place.

The general field information (field identification, location, and characteristics) variables are the following:

INDUSTRY PACESETTER

Since the initial release of the Significant OIl and Gas Fields of the United States Database in 1985, NRG Associates has been the industry pacesetter in the design and development of field, reservoir, and play databases. Our leadership has emerged from our unique database design philosophy, which empasizes database development to meet the stratgic information nees of our customers for upstream evaluation. This tradition of innovation has continued with the recent release of our Significant Oil and Gas Fields of the Gulf of Mexico Database.

This database provides the most complete field, reservoir, and play information ever developed for the U.S. offshore Gulf of Mexico Basin. Its unique features are summarized as follows:

  1. The Significant Oil and Gas Fields of the Gulf of Mexico Database combines extensive economic data with the standard geologic-engineering variables.
  2. It is the only database that provides production and reserve data for each economic product (crude oil, marketable natural gas, and natural gas liquids).
  3. It is the only field and reservoir database providing complete recent (1970 to 1996) field production histories by product and major reservoir production histories from 1982 to 1996).
  4. It is the only field and reservoir database providing year-end well counts by field.
  • The Significant Oil and Gas Fields of the Gulf of Mexico Database is the only database providing complete recent field size histories, including complete recent major reservoir size histories for OCS fields. Thus it is the only database capable of supporting studies of past field, reservoir, and play growth and redevelopment potential in the Gulf of Mexico.
  • The Significant Oil and Gas Fields of the Gulf of Mexico Database has several other exclusive features including:
    1. Field and reservoir original oil-in-place and gas-in-place;
    2. Field and reservoir discovery well information (by economic discovery well);
    3. Two sets of play definitions (BEG/MMS and NRG, the latter incorporating our experience in play definition and description);
    4. A complete field list, including all recognized discoveries currently being evaluated or developed for which reserves have not yet been booked (provided in the New Fields table of the database); and
    5. Additional fluid data (oil formation volume factor, gas compressibility, gas heating value, and some gas analyses).
  • The Significant Oil and Gas Fields of the Gulf of Mexico Database will be updated and expanded regularly on a dimely basis. Our 1995 update was available in May 1997 our 1996 update was availabe in March 1998. Complete printed and digitized play descriptions were availabe in the spring of 1998. Subsequent updates will be available annually by late winter.
  • State-of-the-art GIS software is now available to maximize the value of the Significant Oil and Gas Fields of the Gulf of Mexico Database. Earth Science Associates has developed an ArcView program called the U.S. Oil and Gas Resources System - GOM for use with the database. Dozens of field and reservoir attribuetes, as well as lease, pipeline, and well data, can be viewed, mapped, graphed, and queried using this system. NRG Assocaites has developed an extensive digitized help system that is included with the database.

    • PRINCIPAL

    Richard Nehring, President, is a Rhodes Scholar who became interested in this data as an analyst for the Rand Corporation. His 25+ year career has centered on understanding the facts associated with the petroleum industry in the continental United States.

    NRG Associates. Inc.
    P.O Box 1655
    Colorado Springs, CO 80901
    telephone: 719.630.1650
    facsimile: 719.630.1847
    e-mail: nehringdatabase@quest.net

    This page is at: http://www.walden3d.com/dynamic/investors/Nehring.html

    CONFIDENTIAL INFORMATION
    Copyright © 2001 Dynamic Resources Corporation
    All rights reserved. Published in The United States of America
    This page, or parts thereof, may not be reproduced in any form without permission of the publisher.

    For further information contact:

    Dynamic Resources Corporation, P.O. Box 382, Barker, TX 77413-0382
    - 281.579.0172 - facsimile: 281.579.2141 - cell: 713.542.2207 -
    - URL: http://www.walden3d.com/dynamic - e-mail: dynamic@walden3d.com -