Drill Stem Test Evaluation Contributes to Challenger

Appraisal & Development Decisions in North Sea Project

June, 2003 - Challenger Minerals Inc. (CMI), the upstream subsidiary of GlobalSantaFe,
recently used OR’s Dynamic Reservoir Characterization™ (DRC) process in support of
their decision to accelerate appraisal drilling in the North Sea’s Broom Field West
Heather Area, and to participate in the ensuing multi-million dollar DNO-operated subsea
development project.

Working with Dr. Dale Wong, OR’s Chief Petroleum Engineer, the Challenger team used
DRC to evaluate the results of the Drillstem test (DST) conducted on the West Heather
2/5-19 appraisal well. Immediately upon receipt of field test data in the office, the
OR/CMI team went to work to: assess effective permeability, detect the presence and
nature (sealing or non-sealing) of faults in the reservoir, analyze the proximity of the
outer reservoir boundary (Oil-Water Contact), and estimate the reservoir volume. The
analysis showed that a seismically-interpreted fault was not pressure-detectable (sealing)
and that the reservoir volume was big enough to support the investment.

Prior to the well test, the team used DRC to perform a virtual DST based on the current
geologic interpretation. "This approach allowed us to test the design of the DST, and
gave us confidence that the DST would actually perform to the objectives set, i.e.
determining if the reservoir appeared large enough to support the proposed investment,"
said Curt Killinger, Sr. Reservoir Engineer on the Challenger team.

Based on the virtual test analysis, the DST plan was optimized by selecting flow rates
that would trigger sufficiently measurable diagnostic pressure responses, and flow
durations that would adequately test the reservoir extent, within the constraints of overall
DST cost and environmental friendliness.

“DRC was able to model the complex, 3-D reservoir characteristics that can be quite
significant, particularly in subsea development. The information gained in the DRC gave
CMI additional confidence to recommend immediate drilling of a follow up well, and
ultimately to commit to the development of the field. OR’s analysis, documentation and
presentation of the findings were essential in providing our management with key
information for decision-making,” commented Killinger.

First production is scheduled for Mid-2004.

Object Reservoir, Inc.

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