EXHIBIT 99.3
[LETTERHEAD OF CAMWEST]
August 26, 1998
Pinnacle Oil International, Inc.
Calgary, Alberta, Canada.
Re: SFD Data Summary
This report presents a synopsis of CamWest's review of SFD Data derived in
connection with test flights on December 20, 1998 over 14 oil and gas fields in
southeastern Montana and the adjacent portion of northwestern Montana.
The information, observations, and results contained in this report, while
believed to be accurate at this time, are subject to change as more SFD
information, data, and interpretations become available.
This report was prepared as an internal document for the use of CamWest and is
not an independent report, evaluation or review.
This document was written by individuals who are unfamiliar with the principles
of SFD operation and the underlying design physics of the SFD instrument and do
not have any knowledge or understanding regarding how SFD technology works.
This report states only the observations of such individuals made under non-
controlled conditions. As a result thereof, this report should not be
considered or relied upon by any person as report, endorsement, evaluation,
confirmation, opinion or approval of SFD Technology.
This report does not express any conclusion or opinion regarding SFD Technology,
its use, interpretation or value and none should be implied hereby.
Field data and SFD responses are summarized as follows:
Reservoir Gas
# Field System Trap Type Oil/Gas Oil Reserves Reserves SFD Response
- ---- ----- ------------ ------------- ------- ------------ ---------- ---------------------
1 A Cretaceous Stratigraphic Oil/Gas 1.1 MMBO(1) 59.7 BCF(1) Offset, Anomaly
2 B Devonian Structural Oil/Gas 3.1 MMBO(1) 35.2 BCF(1) Offset, Anomaly
3 C Devonian Structural Oil 5.1 MMBO(1) Offset, Anomaly
4 D Devonian Structural Oil 9.6 MMBO(1) Offset, Fault, Anomaly
5 E Cretaceous Stratigraphic Oil/Gas less than 1 MMBO(1) 6.2 BCF(1) Offset, Anomaly
6 F Cretaceous Stratigraphic Oil less than 1 MMBO(1) Offset, Anomaly
7 G Cretaceous Stratigraphic Oil 3.9 MMBO(1) None (while turning)
8 H Cretaceous Stratigraphic Oil/Gas 3.9 MMBO(1) 1.8 BCF(1) Offset, Anomaly
9 I Mississippian/ Structural Oil Subpart of J None
Cretaceous
10 J Mississippian/ Combined Oil 167.6 MMBO(2) Offset, Anomaly
Cretaceous
K Cretaceous Stratigraphic Oil Subpart of J Anomaly
P Cretaceous Stratigraphic Oil Crossing of J Offset, Anomaly
11 L Mississippian Structural Oil 27.3 MMBO(2) Offset, Anomaly
12 M Cretaceous Structural Oil less than 1 MMBO(2) Offset, Anomaly
13 N Devonian Stratigraphic Oil/Gas less than 1 MMBO(2) Offset, Anomaly
14 O Mississippian Structural Oil/Gas 80.8 MMBO(2) Offset, Anomaly
(1) Reserve data derived from the Alberta Energy and Utilities Board 1996
Report
(2) Reserve data derived from the Montana Oil and Gas Conversation Division
1996 Report.
1
Including the SFD "miss" of Field "G" crossed during a turn, the SFD recorded
negative "offsets" ("which usually indicates the structural beginning of a
field") and "anomalies" for 12 of the 14 fields traversed, representing a
coincidence rate of 85%. The remaining 15% of the fields traversed which were
not detected by the SFD involved fields with reserves of less than 4 MMBOE.
2