Crescendo Energy weekly meeting 07/25

Gentlemen:

I will be on the road tomorrow in meetings related to Project 20/20 and
therefore will miss our weekly meeting. However, the following list provides
a general summary of issues/events:

1) Legal has prepared a draft of the letter to Wildhorse detailing our
acquisition of Enogex's reserves and the associated gathering contract;
Gerald's looking for comments regarding the current issues with the contract
(dedication, quality, pressure, etc.). I hope we can get the letter to
Wildhorse ASAP.

By the way, NG/Crescendo has approved Gerald's letter allowing ENA to
negotiate with Wildhorse et al on Crescendo's behalf.

2) I have scheduled a meeting with Wildhorse on Aug. 1 & 2 to get a field
tour of the Wildhorse assets in this area and get a better understanding of
our gathering & processing options. I'll coordinate with Rusty to see who,
if anyone, from Houston will attend; I suggest they fly directly to Grand
Junction, CO on Tues morning. I anticipate that Dan Reineke, Crescendo's
contract operator who has a significant history in this area, will be in
attendance also.

3) Wildhorse was in the field last week identifying long-term solutions to
improve current production, as well as preparing cost estimates for the low
Btu gas. They've said this since late June, however, they hope to have a
proposal within two weeks. I told them that's too long. Maybe the letter
above will help.

4) Continuing to work on a meeting schedule with Tom Brown....this is a
priority. Plan to have follow-up meetings with other 3rd party producers
possibly next week while in Grand Junction and the following week at the COGA
Conference (Colorado O&G Ass'n) in Denver.

5) Working with Legal to get a draft processing agreement and gas purchasing
structure prepared for the above potential 3rd party producers.

6) Lastly, Wildhorse told me today that they have repaired a propane unit at
a plant in the San Arroyo area (Westwater) which they think will allow some
gas deliveries to resume into NWPL from Westwater. Bottom-line: Wildhorse
says this should increase volumes from our wells in San Arroyo as early as
tomorrow. We'll see; at least they seem to be trying to resolve some
production problems which will help us get more comfortable transacting the
VPP.

Please let me know if other significant issues are addressed in tomorrow's
meeting.

Thanks.

Dan