. . . The Meridian Resources Exploration Company and Dynamic Resources Corporation

These pages have been prepared to encourage discussion and eventually a joint project
between The Meridian Resources Exploration Company and Dynamic Resources Corporation.

These pages are not password protected. However, an audit of everyone who has accessed these pages is available on request.

Dynamic has developed a process
named the Prospect Machine,
as shown to the left (and by
clicking on the image for a larger image).
This process is tailored to specific projects.
The Meridian Resources Exploration Company's
area-of-operations fits nicely into the capabilities
of the Prospect Machine and the experience of the
Dynamic Professional NetWork.

The first draft of a Process Model to be used
on this project has been prepared and is at:
www.walden3d.com/TMRX/kb.html.
This model can be reached on each page by clicking on
the blue bar at the top of the page. Also, it is key to
recogize with most clients, the model will be reworked
with Partner counterparts, in order to insure objectives
are being met, and we always are together on Project Goals.

The following outline summarizes how we see providing context for TMRX Areas-of-Operation:

1. Define the boundary of the Area of Mutual Interest, recognizing in this case, at least at this stage, there will be no confidentiality agreements signed, and no participation for Dynamic based on success resulting from the work within TMRX Areas-of-Operations. Internally Dynamic is calling this project AMI-045, and based on The Meridian Resources Exploration Company published operations map shown to the right assumes the major opportunity and focus should be in the area of the large West Cameron, East Cameron, and Vermilion 3-D seismic survey (http://www.TMRX.com/ops/index.htm).
   
   Just as the Knowledge Backbone^SM, as introduced above, provides a project plan and an easy way to index best practices, including experience (skills), resources, processes, and analogs (case histories)), Dynamic has a spatial indexing tool called the Infinite Grid^SM. In Dynamic's Infinite Grid^SM language (see http://www.walden3d.com/dynamic/IG_Lease/IG1_Lease.html), most of TMRX's Areas-of-Operations are within Grid cell E26.93, at what is called an IG3 level of detail. At an IG4 level of detail, the large Cameron/Vermilion 3-D seismic survey is within the Infinite Grid^SM Cells E.26.93.23-34.
   
   The image below shows IG5 grid cells with a semi-transparent overlay of TMRX Operations Map overlain.
   
   
   
2. Having defined the area-of-operations, and thus the basic geologic objectives tied to a specific project, the next step is to review possible team members with experience in the area, and specifically to select a Team Leader to head up the project. Although this process is still being automated, the following steps and links demonstrate the work flow:
   1. Identify NetWork Members who have experience working within the AMI boundary:
      1. Eric D. Carlson
      2. Richard L. Coons
      3. Sam D. LeRoy
      4. H. Roice Nelson, Jr.
      Note in the above list, Roice Nelson worked farther offshore that AMI-045, and each of the other three potential team members have experience in the specific area covered by AMI-045.
   2. Eventually this portion of the Prospect Machine will include automatic linking of resumes with the above referenced spatial distributions of experience on a project by project basis. As an example, and based on NetWork experience, Eric D. Carlson is recommened as the Team Leader for this project (see resume at http://www.walden3d.com/dynamic/NetWork/resumes/ecarlson.html or a word file at ecarlson.doc. Eric describes his professional interests as doing detailed descriptions of complex developed reservoirs, and this seems to match TMRX objectives within the areas-of-operations.
   3. The final step is for TMRX to interview the proposed Team Leader and Team Members and sign off on them being able to accomplish the Project Goals as set out in the Project Plan and associated Knowledge Backbone^SM
   
   
   
3. With a Project Plan, AMI, and Team, the next logical step is to negotiate a contract and enter into a professional business relationship, based on mutually beneficial and agreed objectives. Dynamic's long-term goal is to participate in the upside from hydrocarbons we help discover. We acknowledge that TMRX will never allow participation within existing areas-of-operations. After discussions on the 15th of November with Tom Tourek, and then discussions with potential team members, we have come to the conclusion it is only appropriate to request an ORRI or the equivalent on added reserves outside TMRX existing area-of-operations. In otherwords we will use the Prospect Machine and the Dynamic Professional NetWork to provide Context for The Meridian Resources Exploration Company within existing TMRX area-of-operations on a non-exclusive flat fee basis. However, Dynamic will request an ORRI or the equivalent on new reserves we are responsible for identifying and sell to TMRX outside the AMI. For instance, we have a gas sag prospect in the shallower waters of Vermillion, which we think you would be interested in. The bottom line is that as TMRX evaluates the Dynamic Resources NetWork and technologies, there are several possible business relationships:
   1. Start out with a straight consulting fee based on pre-agreed prices for various services (Eric Carlson charges $75/hour, Dynamic charges 25% for putting a Project together and providing the customer interface (web pages, Infinite Grid^SM>, Richard Nehring has published prices for his database, Sam LeRoy charges $95/hour, etc.).
   2. Enter into a flat fee, three year contract for Dynamic to exclusively data mine TMRX areas-of-operations, monitoring new discoveries, new lease opportunities, capturing legacy reports, doing automated self-classification to identify new trends, and dedicating one half-time FTE (full-time equivalent) explorationists to work the 4 IG4 cells (at $28,000 per cell per year, this is an $112,000 annual expense). Note that if there are new reserves identified outside the existing TMRX area-of-operatoins, and if TMRX successfully leases and drills these new reserves, Dynamic still receives no OORI or the equivalent until all expenses tied to the AMI are recovered by TMRX.
   3. TMRX will have first rights to look at Prospects Dynamic has or is developing within or adjacent to the area-of-operations:
      1. Vermillion Gas Sag Prospect.
      2. Paying for review of ~6,000 miles of 2-D data we have in the area, looking ofor gas sags, gas chimneys, velocity problems, AVO anomalies, etc.
      3. Using Chroma Energy's ImageGenetics^TM pattern finding software to evaluate TMRX 3-D seismic data (Chroma requires participation and all work must be done at Chroma's facilities).
      4. etc.
   4. Some other agreement that makes sense to both parties.
   
   
   
4. Identify and evaluate relevant exploration Concepts in AMI-045. Review the results with TMRX and agree on the next step.
   
   
5. With a mutual agreement on relevant exploration criteria, we would:
   1. Have Richard Nehring mine his database and provide us with fields that meet TMRX' criteria, and relevent G&G data in his database.
   2. Purchase and analyse well data (after collecting relevant data from TMRX' databases), and apply Residuum Energy's automated self-classification data mining tools to identify deep gas Leads.
   3. Do the Land and Engineering work required to highgrade the appropriate fields in order to recommend which fields TMRX consider purchasing.
   4. Prepare a report summarizing the work and the recommendations.
   It is critical at each step to review the results with counterparts at TMRX, and to agree on the next step.
   
   
6. Dynamic would next inventory available 2-D and 3-D spec seismic data, and, where we can identify it, proprietary seismic data. We would negotiate to apply the latest interpretation technologies to this data, in order to generate Prospects. Again, Prospects would be reviewed as they are developed with TMRX counterparts.
   
   
7. As the final phase of exploring in this area, Dynamic would do a detailed portfolio analysis of all existing fields, and provide TMRX with ownership positions, Proven Production, Production Behind Pipe, and where upside potential is most likey to become available over the coming years. This database will be extensible, and will provide TMRX with a solid basis for further exploration in TMRX's AOI.
   
   
8. Produce a lot of hydrocarbons, to the mutual benefit of The Meridian Resources Exploration Company and Dynamic.

What has happened since these web pages were first put together on 21 November 2001:

• Emailed Tom Tourek about the creation of the web pages on 21 November 2001.

For further information contact: