SGI and Fakespace Systems Deliver Advanced Visualization Capability For Oil and Gas Exploration

Norsk Hydro's Houston Office Uses Immersive WorkWall™ Visualization System to Cut Costs, Accelerate Well-Planning Success

Mountain View, CA and KITCHENER, ON - July 25, 2002 - SGI (NYSE: SGI) and Fakespace Systems Inc. today announced the completion of an advanced visualization system for oil and gas exploration at the Houston, Texas offices of Norsk Hydro, Norway's second-largest energy company. Norsk Hydro, which already has six immersive SGI® Reality Center™ installations in Norway, attributes an $86 million return on investment to its work with visualization since the first system was implemented in 1997.

The new visualization system in the Houston office is based on a large-scale stereoscopic WorkWall™ display from Fakespace Systems, driven by a powerful SGI® Onyx® 3200 supercomputer. It provides a collaborative environment that improves and accelerates well-planning decisions for Norsk Hydro's geoscientists, geophysicists and engineers exploring opportunities in the Gulf of Mexico.

"The proven value of immersive visualization in helping multidisciplinary teams bring new efficiencies to the exploration process led us to contract with SGI and Fakespace for our seventh large-scale display system," said Rolf Helland, senior geophysicist, Norsk Hydro E&P Americas. "Our experience in working with these companies has been exceptional, and the new flat wall stereoscopic system was delivered in record time to meet our needs."

Following extensive work with CAVE® and flat wall displays, Norsk Hydro chose an 8x18-foot, high-brightness, flat wall display based on the newest digital stereoscopic projection technology. A single-pipe Onyx 3200 system with InfiniteReality3™ graphics drives the edge-blended rear-projection display.

The new system enables exploration team members to interact with each other and with huge data sets simultaneously in an immersive environment that integrates data from all disciplines. The Fakespace WorkWall is equipped with two active stereo DLP™ (Digital Light Processing) Mirage™ 5000 projectors, providing a stable display that is bright enough for use in a normally lit room, so that users can also reference documents and drawings as needed.

"Norsk Hydro is an innovator in exploration work using immersive visualization," said Jim Angelillo, vice president of strategic relations at Fakespace Systems Inc. "We installed their first visualization system, a CAVE, back in 1997 in Bergen, Norway, and more recently installed a RAVE [Reconfigurable Advanced Visualization Environment] at the Norwegian University of Science and Technology located in Trondheim, Norway, which Norsk Hydro helped fund. Both systems have significantly aided Norsk Hydro in improving their success in locating reservoirs and choosing well paths."

"Norsk Hydro is an industry leader in the application of SGI Reality Center technologies for oil and gas exploration," said Bill Bartling, director, Global Energy Solutions, SGI. "They’ve made full use of the unique visualization power of SGI Onyx systems by developing specialized immersive applications that take exploration teams inside the data to reach better decisions in a shorter time. As prime contractor for six out of seven Reality Center installations for Norsk Hydro, we have been pleased to contribute to the company’s growth and prosperity over our five-year relationship."

Norsk Hydro's first virtual reality environment was installed at the company's research facility in Bergen, Norway, in 1997. In 2001, Norsk Hydro installed four additional SGI Reality Center facilities in Norway: two in Bergen, one in Oslo and one in Stavanger. In 2002, Norsk Hydro's research center in Porsgrunn, Norway, installed yet another facility. The proven value of SGI Reality Center technologies as exploration tools led to the installation in Houston, Texas.

Norsk Hydro cites its operations in the Oseberg field in western Norway as an example of the benefits of working with advanced visualization systems. Complete details about SGI Reality Center systems are available at www.sgi.com/realitycenter/.

Fakespace Systems provides the broadest range of visualization systems available today for seismic data interpretation and subsurface evaluation. These systems, which are used by geologists, geophysicists and engineers to promote collaboration and better understanding of complex data, range from fully immersive room environments to small-group systems that fit in an average-size conference room. Fakespace displays are available with passive or active stereo, CRT or digital projection technology, and a range of motion-tracking and interaction options.

For further information about applications of SGI® technologies for the oil and gas industry, visit the newly launched SGI energy Web site, www.sgi.com/industries/energy/, and for further details on Reality Center technologies visit www.sgi.com/realitycenter/.

 

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About Mechdyne Corporation

Mechdyne Corporation is the world’s largest company dedicated to consulting and development of immersive, networked and collaborative visualization systems. The company addresses complex projects where an in-depth understanding of user requirements leads to the development of products and customized solutions involving elements of visual, software and support systems. Mechdyne’s product divisions provide advanced display technology, audio/visual systems design, and implementation services, as well as immersive and interactive software development and support. Headquartered in Marshalltown, Iowa, Mechdyne’s customers include leading government laboratories, military research programs, energy companies and a variety of ‘edutainment,’ manufacturing, and other users of visualization technology. More information is available at www.mechdyne.com.

About SGI

Celebrating its 20th year, SGI, also known as Silicon Graphics, Inc., is the world’s leader in high-performance computing, visualization and the management of complex data. SGI products, services and solutions enable its technical and creative customers to gain strategic and competitive advantages in their core businesses. Whether being used to design and build safer cars and airplanes, discover new medications and oil reserves, predict the weather, entertain us with thrilling movie special effects or provide mission-critical support for government and defense, SGI systems and expertise are empowering a world of innovation and discovery. The company, located on the Web at www.sgi.com, is headquartered in Mountain View, Calif., and has offices worldwide.

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