National Post (Canada): Computer Modelling Group and Shell Exploration join forces on software projects (ShellNews.net) Posted 11 March 05

CALGARY (CP) - Computer Modelling Group Ltd. said Thursday it has signed a memorandum of understanding with Shell International Exploration and Production BV to jointly develop software projects modelling oil reservoirs.

The memorandum would give Calgary-based CMG exclusive rights to commercialize the jointly developed software, to which Shell would have unlimited access for internal use.

The project would allow the two companies to combine their reservoir simulator technologies and to jointly develop a new class of large-scale full-physics advanced reservoir simulators.

"By combining our two companies' resources, we will effectively leverage CMG's research and development efforts, as Shell will not only contribute financial assistance but will provide intellectual property know-how, operational experience and in-house technical research," CMG chief executive Kenneth Dedeluk said in a release.

The alliance was expected to have a "minimal impact" on CMG's earnings "with the future potential being subject to the successful commercialization of the alliance projects."

CMG (TSX:CMG) is a computer software technology and consulting company serving the oil and gas industry. Shares in the company were down 12 cents to $4.95 Thursday on the Toronto Stock Exchange.

© The Canadian Press 2005

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