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From Pinnacle's NASDAQ application form 10-12:
The SFD Survey System ... is able to identify large oil and gas deposits while moving at speeds in excess of 150 mph in an airplane. The SFD Survey System thus affords a capability to carry out "wide-area exploration" far more rapidly than traditional methods, and at a fraction of the cost of those methods.
The SFD Survey System is an integrated modular electronic system comprised of (i) Momentum's proprietary Stress Field Detector, and (ii) various electronic subsystems proprietary to the Company, including a data acquisition system incorporating a global positioning system ("GPS"). The SFD Survey System operates on the theory that subsurface mechanical stresses in rocks and pressure differentials in fluids produce above ground, non-electromagnetic energy patterns (which the Company refers to as a "stress field"), which patterns can be recognized by the Stress Field Detector in the form of a digitized electronic signal (which the Company refers to as a "wave form"). Each type of stress-influenced subsurface condition exhibits a unique or "signature" wave form. The primary component of the Stress Field Detector is the "SFD Sensor," a passive transducer which captures or recognizes these energy patterns.
In field operation, the SFD Survey System is flown over a pre-selected survey area (either land or water) in an airplane. During each traverse, the Company's data acquisition system continuously records the changing wave forms from the underlying area captured by the Stress Field Sensor, and the corresponding GPS coordinates associated with each such wave form. Simultaneously, all relevant information including original and processed signal wave forms ("SFD Profiles") are displayed on a monitor in "real time." In addition, the SFD Survey System maintains a database of wave forms collected in a given area, as well as creating a "library" of signatures wave forms of known subsurface conditions for reference purposes. The waveforms from the SFD Profiles are subsequently interpreted, analyzed and compared against the signatures of known viable oil and gas pools, which allows the Company to ascertain the character and scope of the oil and gas accumulations indicated by the wave form being examined. The Company uses the term "SFD Anomaly" to indicate a wave form which varies from the norm and may be associated with hydrocarbon deposits. The Stress Field Detector and its underlying scientific theories are referred to as the "SFD Technology."
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