Most AVO inversions for rock properties estimation are based on a linearize
d approximation of the PP reflection coefficient. One of the main reasons f
or not using the full Knott-Zoeppritz equation is its complex nature, which
does not give an insight into the separate contributions made by P-velocit
y, S-velocity and density. Also a stable inversion of the nonlinear problem
is not a trivial task. In this paper, we rewrite the Knott-Zoeppritz equat
ion in terms of a background and three contrast parameters allowing a bette
r handle on the parameters to be estimated. No limitations need be imposed
on the magnitude of these contrast parameters. The use of an adjoint state
technique made the nonlinear inversion possible. Analysis of the singular v
alues and the singular vectors in terms of the new parameters show that a f
ull Knott-Zoeppritz equation is necessary in order to correctly estimate th
e contrast parameters. We find that crucial information resides near the cr
itical angle, which cannot be taken into account by the linearized approxim
ation. We also show that addition of the PS AVO information improves the in
version results.