To start the new year off with a bang, Scotia has decided to test the waters in Houston by opening an office at One Allen Center during the 2nd quarter.

In additiion to having a number of current clients in the Houston area, and the financial community showing a rather fateful move from the Big Apple, we will now be where the action is.

Our success with government assignments continues with the landing of the Elk Hills assessment of the DOE. Also, the Western Basins tight gas project has been extended to now include the Wind River Basin.

On the international front, reservoir studies in Australia and Venezuela will continue through 1997.

A major assignment in Kazakstan has just commenced with the dispatch of a four-man team to Almaty.

Offshore Gulf of Mexico is booming and Scotia has been involved in several studies including deep water.

Welcome to David Pearson and Patrick Kenney. David joins Scotia as a reservoir engineer with vast west Texas experience with Exxon. Patrick, senior reservoir engineer, has extensive reservoir simulation experience throughout the world.

We completed assignments for 49 companies last year. Our reservoir simulation business is expanding with the addition of three new large projects.

Scotia staff acted as program and session chairmen and presented a paper at the HEES in Dallas.