EXHIBIT 99.3
CamWest, Inc.
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INTEROFFICE MEMORANDUM
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TO: Xxxx Xxxxxx
CC: Xxx Xxxxxxx; Xxxxxx Xxxxx; Xxx Xxxxxx
FROM: Xxx Xxxxxx
DATE 19 January 1998
SUBJECT: SFD Data Summary
I have completed a more in-depth review of SFD test flight data in conjunction
with evaluation of the Exploration Geosciences Northwest Montana Exploration
Evaluation which we recently acquired. During our test flight, we traversed 14
known oil and gas fields in southeastern Alberta and the adjacent portion of
northwestern Montana. These fields are denoted by letters A through P on the
test flight overlays and summary below. I have yet to acquire specific field and
production data for the Canadian fields traversed during the flight (including
fields A through II), such that reserve figures listed below are only estimates
based on my involvement in the area several years ago. The test flight data were
reviewed with Xxxxxx, Kim, Doug, Xxxx and Xxx at our Denver office on 13
January. Field data and SFD responses are summarized as follows:
Field Reservoir System Trap Type Oil/Gas Reserves SFD Response
----- ---------------- --------- ------- -------- ------------
A Cretaceous Stratigraphic Oil/Gas less than 1 MMBO Offset, Anomaly
B Devonian Structural Oil 2 MMBO Offset, Anomaly
C Devonian Structural Oil 5 MMBO Offset, Anomaly
D Devonian Structural Oil 5 MMBO Offset, Fault, Anomaly
E Cretaceous Stratigraphic Oil less than 1 MMBO Offset, Anomaly?
F Cretaceous Stratigraphic Oil 5 MMBO Offset, Anomaly
G Cretaceous Stratigraphic Oil less than 1 MMBO None; Turning
H Cretaceous Stratigraphic Oil less than 1 MMBO Offset, Anomaly?
I Mississippian/Cretaceous Structural Oil less than 1 MMBO None
J Mississippian/Cretaceous Combined Oil 150 MMBO Offset, Anomaly, Q2(x3)
K Cretaceous Stratigraphic Oil (S part of "J") Anomaly
L Mississippian Structural Oil 30 MMBO Offset, Anomaly
M Cretaceous Structural Oil less than 1 MMBO Offset, Anomaly
N Devonian Stratigraphic Oil/Gas 1 MMBO Offset, Anomaly, Q2
O Mississippian Structural Oil/Gas 100 MMBO Offset, Anomaly, Q1, Q2
P Cretaceous Stratigraphic Oil (crossing of "J") Offset, Anomaly
Including the SFD "miss" of Field "G" crossed during a turn, the SFD recorded
negative "offset" ("which usually indicates the structural beginning of a
field") and "anomalies" for 12 of the 14 fields traversed, representing a
coincidence rate of 85%. Altogether, traversed fields contain about 300 MMBOE of
proven reserves. The largest of these accumulations were characterized as having
better than average SFD anomalies as well having other "indicators" denoted as
Q1 (hydrocarbons) and Q2 (accumulation area). Consequently, the SFD appears to
have some capability in qualifying accumulation size. Also, the SFD appears to
relatively accurately delineate the edges of both structural and stratigraphic
hydrocarbon-bearing traps of a wide range of size (less than 0-000 XXXXX).
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0000 XXXX XXXXX XXXXXX . XXXXXXXXX, XX 00000 . (000) 000-0000 .
FAX (000) 000-0000
CAMWEST, INC.
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INTEROFFICE MEMORANDUM
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page two
As discussed during our 13 January meeting, SFD anomalies recorded during our
test flight do not appear to result from gravity or magnetic phenomena except
---
where coincident with structures and hydrocarbon accumulations. Our test flight
also took us over a variety of terrain, and we traversed several river valleys
(certain of which were coincident with SFD anomalies), numerous pipelines (a
couple of which were coincident with SFD anomalies), and other surface phenomena
(including ranches and towns) which were "transparent" to the SFD.
The SFD also recorded other types of responses which appeared to be different
in some respects from offsets and anomalies associated with hydrocarbon
accumulations. Twenty such responses were reported by Pinnacle (most confirmed
by my flight log) as follows:
No. SFD Response Comments
--- ------------ --------
1 Offset? edge of shallow gas field
2 Offset, Anomaly between two shallow oil fields; dry holes present
3 Offset dry holes present; shallow gas in vicinity; near end of turn
4 Offset dry holes present; shallow oil in vicinity
5 Offset, Anomaly dry holes present; 2 miles from shallow oil xxxxx; turning
6 Offset, Anomaly, Faults? dry holes present; 2 miles from shallow oil xxxxx; turning
7 Offset? dry holes present
8 Offset, Fault dry holes present; river valley
9 Fault? dry holes present
10 Anomaly no well control; turning
11 Offset, Anomaly dry hole with gas show
12 Change no well control; pipelines; Scapegoat-Bannatyne Trend
13 Offset, Anomaly no well control; 4 miles from shallow oil xxxxx
14 Change no well control; Scapegoat-Bannatyne Trend
15 Anomaly, Fault no well control; river valley
16 Offset? dry hole in vicinity
17 Drop dry holes with gas shows in vicinity; turning
18 Offset, Anomaly edge of shallow gas field
19 Drop edge of oil and gas field; SFD in "saturating" mode
20 Anomalies, Faults eastern front of Disturbed Belt
Certain of these responses were clearly associated with turns in the flight
path. I recorded a couple of other SFD responses during turns which Pinnacle
apparently disregarded (it is their normal practice to discard all turn data).
Others were coincident with river valleys (fault controlled?), possible faults,
and known structural lineaments barren of hydrocarbons. Of these 20 recorded
"minor" responses, none would be considered as potential drilling prospects. I
plan on acquiring specific data on the Canadian fields traversed, with the
objective of competing test flight files.
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0000 XXXX XXXXX XXXXXX . XXXXXXXXX, XX 00000 . (000) 000-0000 .
FAX (000) 000-0000
Pinnacle SFD Test Flight Log
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Elapsed Time Recording
h:m:s Seconds* SFD Comments
------------ --------- --- --------
0:00:00 0.3995 take off from Calgary International
0:08:00 0.4005 SFD fairly "tight" (saturated); gradually increase
0:16:00 0 0.4029 begin recording at river; moderately bumpy air
0:19:00 170 0.4032 begin descent to 1000' altitude; possible anomaly
0:21:30 320 0.4015 start anomaly; relatively calm air
0:22:15 365 0.4033 end anomaly
0:23:00 410 0.4033 oil xxxxx to northeast
0:26:30 620 0.4034 turn to SE; @ 1300' above ground level
0:32:30 980 0.4035 increase
0:32:30 980 0.4019 start of anomaly
0:33:00 1010 0.4036 end of anomaly
0:38:30 1340 0.4037 increase
0:38:30 1340 0.4021 start of anomaly; oil xxxxx to southeast
0:38:50 1360 0.4037 end of anomaly
0:39:45 1415 0.4021 start of anomaly; oil xxxxx to northeast
0:39:55 1425 0.4037 end of anomaly
0:41:10 1500 0.4021 start of anomaly; oil xxxxx to southeast
0:41:30 1520 0.4037 end of anomaly
0:43:00 1610 0.4037 Point #1
0:43:15 1625 0.4020 start of anomaly; cross river; begin turn to south
0:44:00 1670 0.4037 end of anomaly; turning south
0:49:15 1985 0.4020 start of anomaly; oil well to east
0:49:20 1990 0.4034 end of anomaly; moderately bumpy air
0:53:20 2230 0.4034 correction turn to southwest
0:53:50 2260 0.4034 possible anomaly; still turning
0:53:55 2265 0.4034 end possible anomaly
0:54:55 2325 0.4017 start of anomaly
0:55:00 2330 0.4030 end of anomaly
0:55:25 2355 0.4017 start of anomaly
0:55:30 2360 0.4030 end of anomaly
0:56:25 2415 0.4019 start of anomaly
0:57:10 2460 0.4033 end of anomaly
0:59:45 2615 0.4033 cross highway; moving map malfunction
1:02:00 2750 0.4031 cross Milk River
1:02:00 2750 0.4017 start of anomaly; possible fault
1:02:30 2780 0.4031 end of anomaly
1:03:00 2810 0.4031 correction turn to southwest; 5 km east of flight line
1:04:00 2870 0.4031 turn back to south
1:05:00 2930 0.4031 3 km east of flight line
1:07:50 3100 0.4031 Point #2
1:08:00 3110 0.4013 start of anomaly
1:08:45 3155 0.4031 end of anomaly
1:11:45 3335 0.4031 bumpy air
1:13:30 3440 0.4013 start of anomaly
1:14:10 3480 0.4031 end of anomaly
1:15:00 3530 0.4031 town of Cut Bank to east; airport to west
1:17:00 3650 0.4029 decrease
1:19:20 3790 0.4011 start of anomaly
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CamWest Limited Partnership Page 1 12/20/1997
Pinnacle SFD Test Flight Log
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Elapsed Time Recording
h:m:s Seconds* SFD Comments
------------ --------- --- --------
1:20:00 3830 0.4029 end of anomaly
1:23:00 4010 0.4029 Point #3; GPS system not in agreement
1:25:00 4130 0.4013 start of anomaly
1:25:30 4160 0.4030 end of anomaly
1:26:30 4220 0.4032 increase
1:28:00 4310 0.4033 increase
1:29:30 4400 0.4034 increase
1:29:30 4400 0.4019 start of anomaly
1:29:50 4420 0.4035 end of anomaly
1:30:00 4430 0.4036 Point #4; GPS indicates we are 10 km southeast; begin turn
1:33:30 4640 0.4038 increase
1:33:30 4640 0.4015 start of anomaly; still turning
1:34:50 4720 0.4038 end of anomaly; still turning
1:35:45 4775 0.4040 increase
1:36:00 4790 0.4042 increase; end of turn
1:37:00 4850 0.4044 increase
1:38:30 4940 0.4044 cross river
1:39:00 4970 0.4028 start of anomaly
1:39:30 5000 0.4046 end of anomaly
1:40:00 5030 0.4047 increase
1:40:30 5060 0.4047 correction turn to east
1:41:00 5090 0.4047 end turn
1:42:00 5150 0.4048 increase
1:42:45 5195 0.4048 bumpy air
1:44:30 5300 0.4031 start of anomaly
1:45:00 5330 0.4048 end of anomaly
1:45:30 5360 0.4048 begin turn to north
1:47:00 5450 0.4048 Point #5
1:49:30 5600 0.4031 start of anomaly; possible fault or fractures
1:50:10 5640 0.4048 end of anomaly
1:51:15 5705 0.4047 decrease; rapid changes; possible gas; cross river
1:53:15 5825 0.4047 small change
1:54:00 5870 0.4029 start of anomaly
1:54:30 5900 0.4047 end of anomaly
1:55:00 5930 0.4048 increase
1:56:00 5990 0.4047 decrease; town of Xxxxxxx to east
1:58:15 6125 0.4029 start of anomaly; start turn to west
1:58:35 6145 0.4047 end of anomaly; still turning
1:59:30 6200 0.4047 Point #6
2:01:00 6290 0.4045 decreasing; end turn
2:02:15 6365 0.4027 start of anomaly
2:02:30 6380 0.4045 end of anomaly
2:04:50 6520 0.4027 start of anomaly; deep signature
2:05:05 6535 0.4045 end of anomaly
2:07:00 6650 0.4046 increase
2:08:00 6710 0.4029 start of anomaly; oil xxxxx to south; East Xxxxx Xxxxx
2:08:30 6740 0.4046 end of anomaly
2:10:00 6830 0.4047 increase
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CamWest Limited Partnership Page 2 12/20/97
Pinnacle SFD Test Flight Log
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Elapsed Time Recording
h:m:s Seconds* SFD Comments
------------ --------- --- --------
2:12:00 6950 0.4049 increase; hydrocarbon signature
2:12:45 6995 0.4050 increase; probable large accumulation
2:13:15 7025 0.4052 increase
2:13:45 7055 0.4034 start of anomaly; possible shallow light oil or gas signature
2:14:20 7090 0.4050 end of anomaly
2:16:00 7190 0.4052 increase
2:17:00 7250 0.4053 increase
2:18:30 7340 0.4054 increase
2:18:40 7350 0.4037 start of anomaly; possible fault
2:18:45 7355 0.4054 end of anomaly
2:19:00 7370 0.4055 increase
2:19:30 7400 0.4056 increase
2:20:00 7430 0.4039 start of anomaly; possible deep reef
2:20:10 7440 0.4056 end of anomaly
2:21:00 7490 0.4057 increase
2:21:30 7520 0.4058 increase
2:22:00 7550 0.4044 start of anomaly
2:22:20 7570 0.4059 end of anomaly
2:22:45 7595 0.4060 increase
2:23:30 7640 0.4061 increase
2:24:30 7700 0.4062 increase
2:25:15 7745 0.4044 start of anomaly
2:25:45 7775 0.4062 end of anomaly
2:26:00 7790 0.4063 increase
2:27:00 7850 0.4064 increase
2:28:00 7910 0.4065 increase
2:29:30 8000 0.4066 increase
2:30:00 8030 0.4067 increase
2:31:00 8090 0.4068 increase
2:31:45 8135 0.4055 start of anomaly; possible faults
2:31:50 8140 0.4069 end of anomaly
2:32:00 8150 0.4070 increase; probably past Point #7
2:32:45 8195 0.4053 start of anomaly; begin turn
2:37:00 8450 0.4070 end of anomaly; still turning; stop recording
3:00:00 arrive back at Calgary International
* Recording start time adjusted to match actual SFD start time
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CamWest Limited Partnership Page 3 12/20/97
