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 …

The ''Seismic Evaluation of Hydrocarbon Saturation in Deep-Water Reservoirs'' (Grant/Cooperative Agreement DE-FC26-02NT15342) began September 1, 2002. During this second quarter: A Direct Hydrocarbon Indicator (DHI) symposium was held at UH; Current DHI methods were presented and forecasts made on future techniques; Dr. Han moved his laboratory from HARC to the University of Houston; Subcontracts were re-initiated with UH and TAMU; Theoretical and numerical modeling work began at TAMU; Geophysical Development Corp. agreed to provide petrophysical data; Negotiations were begun with Veritas GDC to obtain limited seismic data; Software licensing and training schedules were arranged with Paradigm; and Data selection and acquisition continues. The broad industry symposium on Direct Hydrocarbon Indicators was held at the University of Houston as part of this project. This meeting was well attended and well received. A large amount of information was presented, not only on application of the current state of the art, but also on expected future trends. Although acquisition of appropriate seismic data was expected to be a significant problem, progress has been made. A 3-D seismic data set from the shelf has been installed at Texas A&M University and analysis begun. Veritas GDC has expressed a willingness to provide data in the …