ERC Tigress to market Chevron geostatistics software.

HOUSTON--(BUSINESS WIRE)--Nov. 27, 1995--ERC Tigress Inc., a member of the PGS group (NASDAQ:PGSAY), has signed an agreement with Chevron Petroleum Technology Company, a division of Chevron U.S.A., Inc., to market GEOLITH, Chevron's formerly proprietary software for geostatistics, and use it for consulting purposes throughout Petroleum Geo-Services A/S. Geostatistical techniques, such as those found in GEOLITH, are used to build detailed 3-D reservoir models from well log, core data and seismic attribute data.

"GEOLITH is used to assess risks and develop alternatives to improve reservoir modeling techniques," said Thomas J. McMillen, Chevron's manager of reservoir modeling and performance prediction. "The use of GEOLITH was a key to Chevron's dramatic increase in reservoir simulation throughout the company," he said.

"This licensing agreement allows ERC Tigress to offer the additional functionalities demanded by our customers through a product that has been proven in more than 100 different reservoirs," said R. Wayne Carpenter, president of ERC Tigress Inc. In addition to Chevron, GEOLITH has been used by Saudi Aramco, Caltex Pacific Indonesia, and the Hibernia group of Canada, for example.

Under the agreement, Chevron will receive a royalty on each GEOLITH license sold by ERC Tigress. Licenses will be sold for $35,000, and the product is available immediately as an optional extra to the suite of applications available for TIGRESS(TM) (The Integrated Geoscience and Reservoir Engineering Software System).

"Our companies reached an agreement to market the Chevron software after successfully completing a partial link of the software to TIGRESS," Carpenter explained. "Progress to date is another example of the ability of TIGRESS to link with proprietary third party systems, although some further software development is required to complete the link."

ERC Tigress will support future licenses of GEOLITH through its customer service department. According to the agreement, Chevron will provide software maintenance to ERC Tigress.

"The marketing and licensing arrangement illustrates the business coalitions developing between vendors and customers to further the interests of both," Carpenter noted. "By working with ERC Tigress, Chevron is able to offer its software to other oil companies, likely not possible through a direct exchange."

"This contract is not viewed as a single transaction, but rather the first in an expected longer term synergistic relationship that will enable us to offer our software to others, while increasing its performance," McMillen said.

ERC Tigress Inc. provides petroleum software and consulting services for worldwide exploration and production. United with Petroleum Geo-Services A/S in July 1994, the firm's worldwide operations include offices in nine countries. Its Tigress(TM) is a client-server database featuring an open system architecture, with 2-D and 3-D seismic interpretation, mapping, modeling, petrophysics, petroleum and reservoir engineering and reservoir simulation applications.

Chevron Petroleum Technology Company, a division of Chevron U.S.A., Inc., is a worldwide petroleum and chemical company.

For additional product information, please contact: ERC Tigress Inc., 11200 Westheimer, Suite 200, Houston, Texas, 77042, 713/953-0054; or ERC Tigress Limited (U.K.), Anglers Court, Spittal St., Marlow Bucks, England, SL7 1DB, 011-441628474911.

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