During this last quarter of the ''Seismic Evaluation of Hydrocarbon Saturation in Deep-Water Reservoirs'' project (Grant/Cooperative Agreement DE-FC26-02NT15342), we have moved forward on several fronts, including data acquisition as well as analysis and application. During this quarter we have: (1) Completed our site selection (finally); (2) Measured fluid effects in Troika deep water sand sample; (3) Applied the result to Ursa ''fizz gas'' zone; (4) Compared thin layer property averaging on AVO response; (5) Developed target oriented NMO stretch correction; (6) Examined thin bed effects on A-B crossplots; and (7) Begun incorporating outcrop descriptive models in seismic forward models. Several factors can contribute to limit our ability to extract accurate hydrocarbon saturations in deep water environments. Rock and fluid properties are one factor, since, for example, hydrocarbon properties will be considerably different with great depths (high pressure) when compared to shallow properties. Significant over pressure, on the other hand will make the rocks behave as if they were shallower. In addition to the physical properties, the scale and tuning will alter our hydrocarbon indicators. Reservoirs composed of thin bed effects will broaden the reflection amplitude distribution with incident angle. Normal move out (NMO) stretch corrections based on frequency shifts can …