Trinity T3 Genesis Kinex

Trade Agreement: NAFTA/AIT/Canada-Peru FTA/Canada-Colombia FTA Tendering Procedures: Generally only one firm has been invited to bid Attachment: None Non-Competitive Procurement Strategy: Exclusive Rights Comprehensive Land Claim Agreement: No Vendor Name and Address: ZetaWare, Inc. 2299 Lone Star Drive, Unit 403 Sugar Land Texas United States 77479 Nature of Requirements: Trinity T3 Genesis Kinex

1. Purpose of an Advance Contract Notice (ACAN)

An Advance Contract Award Notice (ACAN) allows department and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a goods, service or construction contract to a pre-identified supplier. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting officer will proceed to a full tendering process.

2. Definition of requirements and sole source justification

The Energy Geoscience Sub-Division of the Geological Survey of Canada (GSC) at Natural Resources Canada (NRCAN) has a requirement to be able to perform petroleum systems modeling in 3-D rather than the current capability using out-dated 1-D software. Basin analysis is inherently 3-dimensional at any given point in time, and is 4-dimensional over both geological and historical timescales. The solution required is for a map-based modeling package which allows all the key aspects of the petroleum system to be simulated. Some of the key technical specifications are listed below:

The software should have the functionality to import and export a wide variety of data input formats (see below for examples) to allow interoperability with other software packages used to generate geologic horizon data as inputs for petroleum systems modeling .

Grid Files Application Extension Auto detect Zmap ASCII grid ZMap,Petrosys .dat yes ArcGIS ASCII grid ArcGIS/ArcView .grd yes ArcGIS/ArcView ArcGIS/ArcView .bil yes ArcGIS Raster GRID ArcGIS/ArcView .adf yes ArcGIS EOO export format ArcGIS/ArcView .e00 yes GoCAD TSurf GoCAD .ts yes GoCAD GSurf GoCAD .grs yes DoubleFox 3DMESH DoubleFox .dfd yes CPS3 grid GeoQuest CPS3 .asc yes Surfer ASCII grid Surfer .grd yes Surfer binary grid Surfer .grd yes Digital Elevation Model (OEM) USGS software .dem yes GTOP030 (Global topography) (OEM) USGS software .dem yes Earth Vision binary grid Earth Vision .2grd yes ERMapper grid ERMapper .ers yes SEG Grid Exchange File SEG Grav & Mag Cmty .gxf yes SVS Binary Grid Unknown .svs yes IRAP ASCII grid IRAP .fgr .dat yes Petrel ASCII grid Petrel .dat yes GXF ASCII grid Grid eXchange Format .gxf yes Virtual Toolkit grid Virtual Toolkit .vtk .dat yes SRTM HGT binary grid NASA and NGA raw data .hgt yes Medica Binary IFP Medica, TEMIS3D .g yes TEMIS 30 Binary IFP TEMIS3D .t4d yes Generic XYZ columns SMT, Petrol and others .dat, .asc .xyz interactive Culture Files Application Extension Auto detect Zmap Culture ZMap .dat yes ArcGIS shape file ArcGIS/ArcView .shp yes ArcGIS dbf file ArcGIS/ArcView .dbf yes ArcGIS E00 Export file ArcGIS/ArcView .e00 yes AutoCAD DXF file AutoCAD .dxf yes Google Earth KML file Google Earth .kml yes Earth Vision Annotation file AutoCAD .dxf yes GeoFrame .p701 file GeoFrame .p701, .asc yes Geographix CDF file Geographix .cdf yes GeoMap contour & culture file GeoMap .txt. yes DoubleFox contour & culture file DoubleFox .dfd yes GeoQuest culture GeoQuest .asc, .dat yes OpenWorks culture OpenWorks .dat yes Map Info MIF file Map Info .mif, .mid yes Petrosys culture file Petrosys .asc, .ply, .dat yes Petrosys contour file Petrosys .asc, .dat yes SMT polygons SMT .dat yes TOBIN TDRBM culture TOBIN .dat yes ZGF ASCII ZMAP .zgf yes Generic ASCII files Any .txt, .asc, .dat interactive

Source rock characterization inputs should include both full lithofacies and organofacies concepts and definitions. Source rock kinetic modeling should handle both discrete and distributed activation energy distributions. Kinetics from mixed kerogen models should also be accounted for. Lithological mixing should simulate bedding heterogeneity, rather than simply homogenizing lithology mixes within defined sections. Geothermal calibration of the model should take into account the multi-component nature of inputs into overall heat flow i.e. mantle plus radiogenic heat sources to allow the whole lithosphere to be modeled. Calibration of basinal heat flow should be accounted for by geological inference rather than simple interpolation. A wide variety of outputs is required to allow every aspect of the petroleum system to be investigated and tested within an R&D environment (GSC Organic Geochemistry Laboratory). Examples are provided below:

Density (Rock Grain), g/cm3 Density of Oil Expelled, g/cm3 Density of Oil Remaining, g/cm3 Density of Rock (Bulk), g/cm3 Density of Water, g/cm3 Effective Stress, MPa Effective Stress (Maximum), MPa Expulsion Efficiency,% Flow Velocity (Water), em/my Flux of Water (Cumulative), cm3 Flux of Water (Vertical), cm3/my Fractions of Each Lithology, fraction Fractions of Each Kerogen Type, fraction Gas Expelled, mg/g rock Gas Expelled (C2-C5), mg/g rock Gas Expelled (Methane), mg/g rock Gas Generated, mg/g TOC Gas Generated (C2-C5), mg/g rock Gas Generated (Methane), mg/g rock Gas Generation Rate, mg/g rock/my Geothermal Gradient,C/100m GOR of Expelled Products, scf/bbl GOR of Residual Products, scf/bbl Heat Capacity (Bulk), cal/g C Heat Flow, cal/g.cm2.s Hopane H1 , fraction Hydraulic Potential, MPa Hydrogen Index, mg/g TOC Oil Expelled, mg/g rock Oil Expelled (C15+ ),mg/g rock Oil Expelled (C6-C15),mg/g rock Oil Generated, mg/g rock Oil Generated (C15+),mg/g rock Oil Generated (C6- C15),mg/g rock Oil Generation Rate, mg/g rock/my Permeability (Average Vertical),md Porosity (Bulk),fraction Porosity of Each Lithology, fraction Pressure (Capillary Entry), MPa Pressure (Excess), MPa Pressure (Fluid), MPa Pressure (Hydrostatic), MPa Pressure (Total Overburden), MPa Pressure Gradient, MPa/m Production Index, fraction Quartz cement, fraction Rate of HC Expulsion, mg/g Rock Ratio of Atomic H/C (LL Model), Ratio of Atomic 0/C (LL Model), Remaining Potential, mg/g TOC Residual Coke Generated, mg/g TOC S1, mg/g Rock S2, mg/g Rock Saturation (HC), fraction Seal capacity (oil column), m Seal capacity (gas column), m Solid Hydrocarbon Reflectance, % Sterane A1 , fraction Sterane A3, fraction Sterane S1 , fraction Sub-Layer Thickness, meters Subsidence (Tectonic), meters Subsidence (Total), meters Subsiding Velocity (Matrix), m/my Surface Temperature, C Temperature, C Thermal Conductivity (Bulk), cal/cm2.s.C Thermal Gradient, C/m Tmax, C TOC (Remaining), % Transformation Ratio (HC), fraction Transformation Ratio (TG), fraction TSI, TTl (Waples Model), User Biomarker A, fraction User Biomarker B, fraction Velocity (Acoustic), m/s Vitrinite Ro (ARCO), % Vitrinite Ro (LL Model), % Vitrinite Ro (Waples Model), % Vitrinite Ro (BP), %

Migration must be handled in three-dimensional space, with the capability to simulate tertiary migration due to structural change within the geological timeframe. Migration simulation must be rapid enough to run on a single multi-core Windows PC within a reasonable time (minutes to hours, not days). All model simulations should be calibrated or at least constrained by measured geological data, therefore the model should provide GIS-Iike functionality to import, visualize and perform statistical analysis on actual geospatially-enabled data points. Complex geological concepts such as salt tectonics (thickness changes) and compressional faulting (vertically repeated stratigraphy) should be handled in a geologically meaningful way by the modeling software.

NRCAN intends to purchase the Trinity T3 sofware package and license. The package is comprised of Trinity 3D (T3), Genesis and Kinex for Windows Operating System. The License type is for a Local area network concurrent user license (LAN)

Trinity T3 is a desktop application designed as a standalone "what-if?" tool for investigating scenarios and ascribing probabilities to these. Trinity T3 can also be used and operated by an individual rather than having a team of people, which is required by NRCAN.

The Trinity T3 software package represents a cost-effective solution to fill the current gap in basin analysis capability for Natural Resources Canada (NRCAN) scientists involved in the evaluation of energy resources in both frontier and mature basins.

Zetaware is the sole supplier of Trinity software, since the company is owned by a single person (Dr. Zhiyong He) who is also the sole developer of the software, thus providing an unparalleled level of support for users.

The Trinity T3 package is sufficiently user friendly to be readily used by a wide spectrum of exploration geologists rather than dedicated software specialists, therefore allowing seamless continuity in expertise developed within NRCAN to be easily maintained.

Delivery must be no later than March 31, 2013. Earlier is better.

3. Trade Agreements

Article 1016, Section 2, (b) of the North American Free Trade Agreement (NAFTA) "...where, for works of art, or for reasons connected with the protection of patents, copyrights or other exclusive rights, or proprietary information or where there is an absence of competition for technical reasons, the goods or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;"

Article 506, Section 12 (b) of the Agreement on Internal Trade (AIT) "...where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists;"

4. Government Contracts Regulations Exception This contract is subject to subsection 6 (d) of the Government Contracts Regulations, in that only one person or company is capable of performing the contract.

5. Total Estimated Value $27,500.00 USD

6. Proposed Contractor ZetaWare Inc. 2299 Lone Star Drive, unit 403, Sugar Land, Texas 77479

7. Departmental Contact Person

Suppliers may address inquiries or submit their statement of capabilities to:

Name: Ian Taylor Position: Supply Specialist Tel: (780) 497-3621 Fax: (780) 497-3510 E-mail: Ian.Taylor@pwgsc.gc.ca

8. Submission of Statement of Capabilities by Suppliers

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.

Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.