The work plan for the quarter of October 1, 1997--December 31, 1997 consisted of two tasks: (1) Present results of Rulison field test at various conferences, seminars, and to Barrett Resources and Snyder Oil Co. and (2) Continue work into developing a predictive quantitative method for locating fault-related natural fractures. The first task was completed during this reporting period. The second task continues the beginning of quantitative fracture mechanics analysis of the geologic processes that are involved for the development of fault-related natural fractures. The goal of this work is to develop a predictive capability of locating natural fractures prior to drilling.