. . . Investment Opportunities Dynamic Resources Corporation

Over the last three decades H. Roice Nelson, Jr. has led geotechnical teams redefining methodologies and tools for hydrocarbon exploration. This work has changed the way every oil and gas company in the world looks for oil and gas, it has resulted in better discovery rates, many significant new oil and gas field discoveries, and has provided key technology drivers in the "reengineering" of the petroleum industry.

With the dawning of a new millenium, Roice decided to find hydrocarbons using the technologies he has helped create and emerging technologies he has yet to share, rather than to develop, enhance, and sell tools for others to use, which allows them to retain most of the economic benefit. To meet this end, several strategic development partners have formed Dynamic Resources Corporation ("Dynamic"). As a professional NetWork of proven oil finders, we are creating the first practical implementation of the widely discussed "virtual oil company." The Dynamic Professional NetWork uses both traditional exploration tools and methodologies, as well as new data mining and pattern finding tools and proven synergistic team processes.

Dynamic is raising money to fund the geotechnical work necessary to define where to purchase mineral leases, where to collect additional data, and where to optimally drill for hydrocarbons. Investment options include:

Dynamic has identified a strategic gap in exploration activities - namely identifying Prospects within the framework of regional geologically defined new exploration Concepts. The majors and the large independents stopped most of their regional geotechnical work in the continental U.S. when the industry downturn occurred about a decade ago. Dynamic's data mining technologies show how this stoppage resulted in far fewer new discoveries. Dynamic is going to fill this gap and make up for the decrease in discoveries. Dynamic is looking for a few investors who are interested in a significant return on their investment and are interested in access to new hydrocarbon reserves.

The Dynamic Professional NetWork (NetWork") has thousands of years of experience (100+ scientists and engineers with an average of 20 years experience). In addition, NetWork members have proprietary technologies and CLPs (new exploration Concept(s) [like using bright spots to find gas or exploring subsalt], Lead(s) [places to look and ways to look for undrilled compartments], and Prospect(s) [leased properties with drilling location(s), typically confirmed with 3-D seismic]). The following summarizes the Dynamic exploration process.

Dynamic has an exclusive contract with Richard Nehring and NRG Associates providing access to the NRG database, and a guarantee of 21 new exploration Concepts and Leads in the Gulf Coast AOI (Area-Of-Interest) during 2001. Each Concept is anticipated to include many Leads and dozens of drilling Prospects. Because much of the Gulf Coast AOI is onshore, it is anticipated many of the Concepts and Leads will be for wells in the 12-20,000 foot depth range.

Dynamic has a similar agreement with Dr. Bob Ehrlich and his partners at Residuum Energy, Inc. Residuum will provide dedicated staff to support Dynamic generation of CLPs, proprietary tools for cleaning and vetting geotechnical databases, multivariate data analysis tools for automatically indexing and mining databases, mapping undrilled compartments, and mapping geohistory from databases of 20,000 or even 100,000 wells and other geotechnical data.

Dynamic is contractually committed to Dr. Peter Duncan and his colleagues at Chroma Energy to sell the use of Chroma pattern finding technologies, which are particularly useful to extrapolate reservoir rocks from well control through pattern finding using the multiple attributes of a 3-D seismic survey, in exchange for overriding royalty interests or the equivalent as part of Dynamic's interaction with other oil companies, to provide consultants to work on E&P projects, and to subcontract Chroma Energy to work on Dynamic E&P projects.

Dynamic has a contract with Dr. Sam LeRoy and EarthView Associates to provide dedicated technical support, including being the Team Leader for the Gulf Coast AOI, specifically using recent research on dynamic pressure fields to find dynamically replenishing oil and gas fields in the Gulf Coast AOI.

Dynamic's business is to develop CLPs and sell them to operating oil companies in exchange for an Overriding Royalty Interest or its equivalent.

By partnering with proven professionals already working in a specific area, Dynamic is able to apply NetWork technologies to exploration projects across the globe. The first focus area is the Gulf Coast AOI, which includes New Mexico (except the San Juan and Raton Basins), Oklahoma, Texas, Arkansas, Louisiana, Mississippi, Alabama, Florida, and adjacent state and federal waters. Because Roice designed, tested, and trained numerous users in Landmark Graphics interactive interpretation software, hypertext tools, and immersive visualization tools, and because he has lifetime licenses to each key technology, Dynamic is starting 2001 with state-of-the-art technology and extensive experience in using technology to find CLPs. In addition, a 4+ year partnership with Dave Agarwal and Les Denham of Interactive Interpretation & Training gives access to a dozen GeoQuest licenses and a downtown Houston office. The NetWork also brings the latest technologies and tools from suppliers like Seismic MicroTechnology, or new developments in prestack depth seismic processing, in azimuthal anisotrphy, in seismic modeling and inversion, in core and cuttings scanning, seismic scale outcrop analogs, etc.

Dynamic's business model is to identify new CLPs, lease mineral rights, collect new data when necessary, and partner with operators in exchange for an overriding royalty interest, a production performance bonus, or a working interest carried to the tank. Dynamic's existing contracts guarantee more new exploration Concepts than most independent oil companies have ever generated. The Concepts developed for Dynamic by Richard Nehring, Bob Ehrlich, Peter Duncan, Sam LeRoy, Heloise Lynn, Roger Anderson, Dick Coons, and other NetWork members will only be available to Investors and Partners under non-disclosure.

Existing AMI Agreements are described in the table on the next page. Dynamic has agreements with expert teams with proven track records for turning Concept(s) and Lead(s) into Prospect(s). Because of the exploration nature of Dynamic's efforts, there will be some dry holes. Risks will be quantified for Investors prior to expenditure of funds, and Investors will be partners in the process of determining which wells to drill first. This is part of the excitement of an exploration company.

Proprietary tools for skill, resource, case history, best and worst practice, and activity indexing (Knowledge BackboneSM), spatial indexing (Infinite GridSM), and temporal indexing (TimeDexSM) provide a new way to document successes and failures and to confidentially share information with on-line Investors and Partners using the Internet. Dynamic's documentation and data mining tools enable faster and smarter work than the competition, and the ability to do it with a smaller staff at less expense. The result will be a better return for investors than is available elsewhere in the oil patch.

Investment opportunities in Dynamic include the funding an AOI study, financing development of specific AMI, purchasing of data or funding data collection, purchasing leases, participating in the cost of drilling specific wells on prospects, or the purchase of stock. There are specific ownership rights and upside potential for each type of investment. The Investor(s) must be accredited investors as defined under U.S. securities laws and regulations.

AOINameLocationPartnerTeam LeaderExperiencePhase 1Phase 2
001Gulf Coast AOINew Mexico (except Raton and San Juan Basins), Oklahoma, Arkansas, Louisiana, Mississipi, Alabama, Florida, and adjacent State and Federal WatersOpenDr. Sam LeRoyExploration and research geoscientist and seismic interpreter with 25 years experience. Special skills in statistics, multi-attribute seismic stratigraph, and continental margins analysis using gravity and magnetics integrated with geologic and seismic data. Worldwide experience including the Gulf of Mexico (shelf, deepwater, and sub-salt, West Africa, California, Australia, and Alaska. Ph.D. from the University of Southern California. Oil company experience with Texaco and Conoco.US$2,000,000.US$100,000,000.
002Rocky Mountain AOIIdaho, Utah, Arizona, Colorado, Wyoming, and MontanaOpenEdward Gray25 years experience in oil & gas exploration, based out of Salt Lake City, Utah since 1979.US$750,000.US$25,000,000.
003Indian Reservation AOIIndian Reservations inside the United StatesOpenRiley Skeen25 years experience in the Rocky Mountains, and successful projects with the geophysicist responsible for all natural resource extraction for Indian ReservationsUS$650,000.US$10,000,000.
AMINameLocationPartnerTeam LeaderExperiencePhase 1Phase 2
001East Cameron
South Addition AMI
Gulf Coast AOIRidgelakeH. Roice Nelson, Jr.Consultant on BHP team that purchased 70+ blocks of sub-salt federal leases in the Gulf.US$800,000. for geophysical data and reservoir rock confirmation of a potential 3TCF gas field.US$25 million for 20,000+ foot test well through the salt weld.
002North Padre Island AMIGulf Coast AOIResource TechnologiesDick CoonsSpecialization in velocity issues associated with fault shadows, gas chimneys, AVO, etc. over the last 20+ years.US$275,000. for data transcription, reprocessing 2,000 miles of seismic, and AVO processing to turn six strong Leads into 10+ Prospects.US$1.2 million for 6 federal leases in August 2001.
003South Padre Island AMIGulf Coast AOIResource TechnologiesDick CoonsProprietary software and prestack interpretation. Dick's roles include a Gulf Oil research scientist and Chief Geophysicist for West Africa, Vice-President for Forest Oil, and a consultant.US$225,000. for data transcription and reprocessing of 1,000 miles of seismic and confirmation of 5 leads and a submarine fan covering 80 blocks.US$1.6 million for 6-10 federal leases in August 2001.
004Houston, Trinity, and Walker County AMIGulf Coast AOIKlaveness ResearchAlf KlavenessOriginally developed this project in December 1979.US$200,000. to repurchase leases and study speculative seismic to confirm 720 BCF potential recoverable gas in 15,100 acres from Jurassic Knowles Limestone.US$3.0 million for a 20,000. foot test well to exploit a new Cotton Valley Reef Trend.
005Offshore Eastern Louisiana AMIGulf Coast AOISeeking PartnerDr. Sam LeRoy and Team65+ man years experience at Conoco and as consultants in this geologic province.US$2.0 million for data mining, pattern finding, CLP generation, assessment of strategic fit, etc.US$75.0 million for purchasing fields, doing farm-ins, collecting seismic, and drilling top 25 CLPs.
006Washington County AMIColoradoUnder NegotiationOpenDenver NetWork member with 20 years experience in DJ Basin available.US$130,000. for data collection, pattern finding, and CLP generation.US$800,000. for drilling 4 wells to test top 4 CLPs.
007Rio Grande County AMIColoradoNorthstar CapitalH. Roice Nelson, Jr.Analog to the Price Gramps Field which has dynamic replenishment and has produced 7 MBOE with a 200% recovery factor.US$1.0 million for 2% of 8/8ths overriding royalty interest.US$2.5 million for wildcat well and backin to 50 square mile 3-D seismic survey completed December 2000.
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Naturally-Fractured Gas Reservoir AMIColorado, Utah, and WyomingLynn IncorporatedDr. Heloise Lynn16+ years as principal scientist on DOE funded anisotropy projects, collecting, processing, interpreting seismic, and recommending drilling locationsUS$5.0 million for lease purchase and 3 test wells.US$25 million for field development of 4.0 TCF anticipated gas, mostly shallow, and all adjacent to producing fields.

Dynamic Oil & Gas Corporation was founded on May 22, 1991 in Houston, Texas for the purpose of commercializing the Global Basin Research Network's dynamic replenishment research (see http://www.ldeo.columbia.edu/GBRN/doe_report/081593/0893.html). Because of other activities Dynamic was mothballed until January of 2001, and has been reformed as Dynamic Resources Corporation, a Texas Corporation. These investment opportunities in Dynamic Resources Corporation represent a unique opportunity resulting from technical advances over the last decade in understanding relationships between porosity, temperature, pressure, dynamic pressure fields, fluid migration, trapping, and fluid extraction. The principals associated with Dynamic developed these technologies, and are cataloging related Best Practices in order to find and produce previously invisible hydrocarbons. Dynamic is the virtual oil company, and is exploiting how recent price increases have created economic incentives to once again explore.

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Dynamic Resources Corporation, P.O. Box 382, Barker, TX 77413-0382
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