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Geomodeling Releases Multi-Phase Upscaling in SBED 2005 Version 4 Software

January 10, 2006

Other new features include Default Saturation Functions and Project Template Lists

(Calgary, Canada - January 10, 2006) Geomodeling Technology Corp., a leading innovator in geoscience software for the oil and gas industry, today announced that Multi-Phase Upscaling has been included in its feature set of SBED software. SBED is the only commercial software for modeling the small-scale geological heterogeneity that impacts large-scale reservoir performance.

Multi-Phase Upscaling allows the fundamentals of physical composition on one level to be encapsulated on a larger level. Conventional reservoir modeling technologies extrapolate relative permeability curves measured from core plugs to full-field reservoir model, without considering the impact of small-scale geological details. Understanding all of the processes involved in fluid flow through sedimentary rocks is key to understanding contaminant migration and petroleum production.

"By using multi-phase upscaling data, reservoir simulation engineers can improve history matching and reserve forecasting by designing better development plans. This will contribute to improved oil and gas recovery," says Renjun Wen, Geomodeling President and CEO. "SBED enables the user to model the small-scale bedding structures that impact fluid distribution. Integration of these small-scale effects into large-scale reservoir models decreases the uncertainty in your reservoir predictions."

Other new features included in this release are:
• Default saturation functions
• Project template to manage saturation functions
• Preview and edit saturation curves
• Linear flow boundary condition
• Periodic flow boundary condition
• Toolbar icons in workspace manager and 3D view window
• Launch Release Notes via menu command
• Multi-thread upscaling capability
• Assign submodel X, Y, Z display coordinates
• Moving windows upscaling for irregular porosity/permeability grids

Availability
Geomodeling's SBED 2005 Version 4 software with Multi-phase Upscaling is available today. Please contact your local Geomodeling representative via the Geomodeling website at www.geomodeling.com or by email at info@geomodeling.com.

About Geomodeling
Geomodeling Technology Corp. is the leading innovator in geoscience software for the oil and gas industry. Geomodeling enables petroleum companies to maximize revenue and reduce costs with software solutions for improved reservoir characterization and recovery. Founded in 1996, Geomodeling has offices and resource centers in Brazil, Canada, China, Malaysia, Mexico, Norway, United Kingdom, USA and Venezuela. Find us on the web at www.geomodeling.com