Statoil implements new GeoX risking approach for handling seismic anomaly indicators

STAVANGER, Norway -- April 2, 2003 -- Statoil has committed to a company-wide implementation of the new GeoX approach for risking prospects for seismic anomaly indicators. The approach is based on the DFI (Direct Fluid Indicator) Bayesian risk modification scheme that is incorporated in the GeoX gProspectR tool for prospect resource and risk assessment.

Statoil's decision to adopt the GeoX approach is based on both earlier experiences with alternative methods and an in-depth review of the GeoX supported approach. The decision was based on a number of considerations.

"For me personally, the most important reason for chosing the GeoX approach is that it is mathematically correct and is consistent with the rest of our prospect risking methodology" says Hans Martin Veding, Advisor in Play and Prospect Analysis. "For many of my colleagues, the emphasis has been on that the approach is easy to use and transparent".

"The user feedback after applying the methodology to real cases has been very positive." Veding continues. "Our experience so far with the approach has shown that the most important benefit is that it has forced us to focus more explicitly on alternative explanations for seismic anomalies. This helps avoid success case bias. "

As part of the implementation of the methodology, Statoil has held a number of one-day workshops for all explorationists.

"GeoX evolves in close collaboration with our customers' demand" says Charles Stabell, CEO of GeoKnowledge. "We are therefore both very happy and proud that innovative exploration companies such as Statoil have chosen to extend their use of GeoX. We look forward to continued cooperation to maximize the value achived through effective use of best practice tools."

What challenges does Statoil see ahead?

"Explorationists are not used to estimating likelihoods. The situation is similar to the problems encountered 30 years ago when geologists were asked to produce quantitative risk factor estimates. Over time, experience and calibration exercises will help. And we are working to develop analytical estimation routines" Hans Martin Veding concludes.

About Statoil
Statoil ASA is an integrated oil and gas company with business operations in 25 countries. At 31 December 2001, the group had 16,686 employees. On the basis of reserves and production, Statoil is an important player internationally and a leading retailer of petrol and oil products in Scandinavia, Ireland, Poland and the Baltic states.

Production of oil and natural gas on the Norwegian continental shelf is the backbone of the group's business. But for more than a decade Statoil has increased its activities in other countries and built up considerable petroleum reserves amid stiff international competition.

For more information, visit www.statoil.com

About GeoKnowledge
GeoKnowledge develops and markets the GeoX system for stochastic assessment of resources, risks and economic value. The system is designed explicitly to support mission critical asset management decisions in oil and gas exploration projects. A distinctive model-based architecture working over the industry-standard database promotes effective use and integration of data and judgment in decision-making. The latest version of GeoX incorporates more than 15 years of active collaboration and interaction with premier exploration shops around the world.

GeoKnowledge is headquartered in Oslo, Norway with a North American office in Houston, Texas.

For more information, visit www.geoknowledge.com