Day

Date

Location

NetWork Member

Technology

Activity

Reference

Description

• Management Possibilities:
  • Roice Nelson,
  • Swede Nelson,
  • Ed Story
  • John Snyder
• Prospect Generators:
  • Dick Coons
  • Parker Gay
  • Ed Gray
  • Alf Klaveness
  • Sam LeRoy
  • Heloise Lynn
  • Riley Skeen
• Technologies:
  • Albert Boulanger, Bryan Bentz, and Roger Anderson
  • Christian Singfield and core imaging
  • Chroma
  • II&T
  • Nehring
  • Residuum
• Investors:
  • Will come when a real need is being met!
• Need:
  • California energy needs (if California has blackouts, they will propagate through all of the western states);
  • New chairman for FERC (Federal Energy Regulatory Commision) was Bush's guy in Texas and he will help find funding for any new energy solutions;
  • Pipeline capacity (Williams Company is aggressively working to fill up it's pipelines);
  • Gas for electricity plants (particularly a need in the west); and
  • Gas for stroage facilities (Dave Donihue of IHRDC runs a large gas Repository outside of New York City and Boston).

1. Define energy needs better and talk to those "on-the-line";
2. Share the Dynamic data mining plan to find bypassed hydrocarbons;
3. Based on a solution to their need they will find required investment;
4. Establish project management;
5. Use technologies to locate bypassed hydrocarbons;
6. Partner with operators to produce hydrocarbons to meet need; and
7. Turn Dynamic Resources Corporation into a significant oil & gas company.

• Roice reviewed AMI013.
• Swede Nelson called in and described his view of Dynamic, and specifically the need to improve the business model. He did say "$5 or $10 million is in the bank, once the business model is defined." and that it will take several months to close on the investment money from his sources.
• Roger Anderson reviewed Dynamic Replenishment from Eugene Island 330 and several other examples. This presentation will be posted on the web. Notes: There is a lot of activity along property lines because companies do not want to work together. EI330 is now at 5,000 barrels per day. Stacked reservoirs require fine tuning the seismic to get worthwhile 4-D seismic. Seismic Reservoir Simulation merges seismic modeling with reservoir simulation. Water injection goes proportional to geology.
• Sam LeRoy talked about Dynamic Pressure Seals. This presentation is on the web at (Sam e-mail the address). Notes: 2 deep seals are temperature only. Shallower ones are temperature and pressure. 165^oF isotherm creates a capillary seal. A vapor lock seal occurs when gas comes out and reduces capillary pressure. It must be constantly fed to keep the seal there. Hydrocarbon distribution appears to form a 3-D halo around central thermal anomallys. The lower solubility seal is at the 270^oF isotherm. Pay occurs on top and at the flanks of the clam shaped dynamic pressure field. Seals respond over 100K years. Most Gulf Coast seals are gradational. This is particularly useful as an exploration and screening model. Temperature is measured at the casing point.
• Dick Coons showed North Padre Island velocity data which is explained by Sam's presentation. Gas chimney's follow the axes of structural highs.
• Neal Brossard gave the Residuum presenation. Notes: Structural Congruency or Spaghetti Map is based on residuals, or zero contours and shows episodically reactived far field stress faults. Automated geohistory is overlaid on the congruency analysis. The first derivative of a decline curve is the difference between the rate of year 1 and the rate of year 2. Far field stress faults go vertical to 81^o-90^o
• Christian Singfield called in from Brisbane and gave an on-line presentation about his Core Imaging system. It has a 42 micron capture, with as close to natural sunlight as possible. There is a maximum of 10:1 magnification. Everyone was impressed with a satellite image of Brisbane and zooming in to measure a 17 meter yaucht. The site is www.sautec.com.au.
• Dave Agarwal described a project they are doing in Matagorda Island for a major client. Rocky Roden pointed out it must be for BP, which annoucned it's virtual prospect inituitive in a public meeting. Also, Veritas is hiring oil company folks, and believes all future interpretation work will be done by contractors.
• Riley Skeen described his work with the Bureau of Indian Affairs (BIA). The downside is it costs a higher royalty. The upside is you can get all of the acreage at one time.
• We ended with a brief round table discussion. Technology Meeting #3 will be on Monday, 02 April 2001, at a place yet to be finalized. Everyone seemed to like not having to drive through traffic. It was suggested we focus on one or two things in detail. There needs to be some discussion about confidentiality, specifically if we are going to have folks describe the family jewels in detail. Albert Boulaneger had introduced a book, The Predictors by Thomas A. Bass, which is a financial institution analog to the type of data mining Dynamic is planning. Rocky contributed, and the comment was made that visitors are good. Rocky suggested the pressure fields be tied into the Chroma algorithms. Alf stressed we need to do something to generate revenue as soon as possible. Dick has 4 prospects at $2 million dry hole cost. There is Alf's prospect, and the work Dave Agarwal is doing in Matagorda Island.

1. Start with total
2. Break into pieces
3. Structured input to unstructured output
4. Unstructured input to structured output
5. Unstructured input to unstructured output

• Schedule A:
  Fundamentals of a Project
• Schedule B:
  Data Provided
  Deliverables
  Project Management Structure
  Details: Team Leader, Team Members, etc.

• Web Log:
  • Log in control and view of news
  • Requires an editor (the role Roice is currently playing for these news pages)
  • Call Roice if you want to see a demo.
  • Dynamic Team Leaders will be required to post regular news updates as part of their Work Order
• Peer-to-Peer:
  • See http://www.endtech.com
  • Everyone is a client and a Server
  • Distributed Workspace
  • Add Buddies
  • Contents available to all phones
  • Do not give up document ownership

• The cost of 21 Concepts and any Prospects needs to be packaged as a bonus after drilling.
• Presentations to make a drilling decision should only take one hour.
• Need to rewrite technologies section, and the process needs to be more focused.
• If management training is even mentioned, it needs to be stressed it is for members of the NetWork.
• Intellectual Property is a big issue, and needs to be better addressed.
• The relationship of Principals and Associates in the NetWork needs to be better defined, especially as they are related to the operations management structure of Dynamic. This section needs to address any conflict-of-interest issues.
• Founding Investors need to participate for the life of the Project, not just for 5 years. Specifically their investment must not be negatively impacted by a single cent by other projects, like the Indian Reservations AOI, and yet as Founding Investors they need to be rewared if other areas are successful.
• Investors either participate at the same level as later investors, or it is defined up front what they receive: 1-4% (reasonable and equitable).
• The economic model needs revision. Need to tie investment use to the plan. Typically a third for a quarter: which translates as Investors put up 3/3rds, or 100% for 75% ownership.
• All the documentation should be 8-9 pages.

• Paid consulting work
• Speculative OORI work

• it is not in deep water, because of the need for early cash flow; and
• the drilling cost are covered, or at least well defined up front

• Carl Marrullier, used to work with Roice at Landmark and is now at Seis-Strat Services with Jory Pact. Interested in the NetWork.
• Jim Bedford, was in the starting group with Roice at Mobil in 1974 and is now at Fender E&P in Tyler. Interested in Alf's Cotton Valley Play (AMI004)
• Michael Padgett, VP Gulf of Mexico for EEX, interested in lease funding for two dozen blocks in the end of March Lease Sale (about US$6 million lease money), and John Bissell is the contact in San Antonio who will be very interested in the Nehring, Residuum, Chroma connection.
• James Spear and Kyle Guidry at Halliburton, where they put people in oil companies in exchange for a piece of the action and to get the service business. Not sure where this will go, and it is interesting.
• David Scolman, an independent consultant in Denver, interested in the NetWork and the plans.
• Tom Mazza, DDD Energy, Greenwood Village, CO, interested in the NetWork and the plans. He promised to be in touch and talkd like he is interested in funding Dynamic in some way.
• Steve Walters (Denver, CO) and David Coddling (Artesia, NM) of Yates Petroleum. They have heard of an approach of statistically looking at deep faults and following them up through the section for a group out of Denver who has been doing this type of mapping for over 10 years. They are not aware the Denver group has had very much success. They are interested in the concept, and they would like a presentation in Denver. I told them we will follow up with Richard Nehring's contact, Bill Stanton.
• Bo Walters, Petris, founded Petris after attending a HyperEdge Exerpt Association Breakfast. He is interested in what Dynamic is doing and will work to get us lined up with what Petris is doing.
• Louis Berent, attended the HyperEdge Expert Association Breakfasts, and has been consulting for a decade. He has just taken on a job with Santos, and is preparing material to show them opportunities for Gas in the Gulf Coast. He also has done extensive work in the Black Warrior Basin of Alabama and Mississippi. He has some very nice seismic examples, showing how to unravel the Black Warrior, and Roice captured them with the digital camera and is setting up an AMI, which Louis will be the Team Leader of.