. . . Investment Opportunities

Over the last three decades H. Roice Nelson, Jr. has led technical teams redefining methodologies and tools for hydrocarbon exploration. Effective January 2001 he is reformalizing and leading an extensive professional NetWork in the exploration for hydrocarbons using both traditional methods and new data mining and pattern finding tools via Dynamic Resources Corporation ("Dynamic").

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], and Prospect(s) [leased properties with drilling location(s), typically confirmed with 3-D seismic]). For instance, Dynamic has an exclusive agreement with Richard Nehring and NRG Associates providing:

  1. access to the NRG database, and
  2. a guarantee of 21 new Concepts and Leads in the Gulf Coast AOI (Area-Of-Interest) during 2001.
Each Concept is anticipated to include many Leads and dozens of 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:

  1. dedicated staff to support Dynamic generation of CLPs,
  2. proprietary tools for cleaning and vetting geotechnical databases, and
  3. tools for automatically indexing and mining databases.
Dynamic is contractually committed to Dr. Peter Duncan and his colleagues at Chroma Energy to:
  1. sell use of Chroma pattern finding technologies, which are particularly useful to extrapolate reservoir rocks from well control through the multiple attributes of a 3-D seismic survey, in exchange for overriding royalty interests or a production bonus as part of Dynamic's interaction with other oil companies,
  2. provide consultants to work on Chroma Energy E&P projects, and
  3. 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, specifically using recent research on dynamic pressure fields, as a key process to find dynamically replenishing oil and gas fields in the Gulf Coast AOI. To point out the range of tools available through the NetWork, EarthView has a license for a Seismic MicroTechnology interpretation system.

Dynamic's business is to develop CLPs in the Gulf Coast AOI and in other selected AMIs (Areas of Mutual Interest). Dynamic's Gulf Coast AOI 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, Roice has has a 4+ year partnership with Dave Agarwal and Dr. Les Denham of Interactive Interpretation & Training, which gives access to a dozen GeoQuest licenses and a downtown Houston office.

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 already has more new exploration Concepts than most independent oil companies. The Concepts developed for Dynamic by Richard Nehring 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. Proprietary tools for skill, resource, case history, best and worst practice, and activity indexing (Knowledge Backbone (SM)), spatial indexing (Infinite Grid (SM)), and temporal indexing (TimeDex (SM)) provide a new way to document successes and failures and to confidentially share information with on-line Investors and Partner's 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 purchase of stock, funding an AOI study, financing development of specific AMIs, purchasing of data or funding data collection, purchasing leases, or participating in the cost of drilling specific wells on prospects. 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.

Partner
AMINameLocationTeam LeaderExperience Phase 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$150,000 for 1% of 8/8th s overriding royalty interest.US$2.5 million for wildcat well and backin to 50 square mile 3-D seismic survey completed December 2000.
008
009
010
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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