|
|
Enron Mail |
We know Dave, he has done this a few times. Call if you have questions.
Mark "Ken" <kckrisa@apex2000.net< 03/15/2001 07:10 AM Please respond to kckrisa To: "Mark Castiglione \(E-mail\)" <Mark.Castiglione@enron.com<, "Mark Whitt \(E-mail\)" <mwhitt@enron.com<, "Scott Josey \(E-mail\)" <scott.josey@enron.com<, "Steve Pruett \(E-mail\)" <steve.pruett@enron.com< cc: "Andrew Edison \(E-mail\)" <andrew.edison@enron.com<, "Arvel Martin \(E-mail\)" <amartin@enron.com<, "Audrey O'Neil \(E-mail\)" <Audrey.ONeil@enron.com<, "Chris Clark \(E-mail\)" <chris.clark@enron.com<, "Gerald R. Nemec \(E-mail\)" <Gerald.Nemec@enron.com< Subject: Acquisition of Wildhorse Gathering Assets Yesterday, Jim and I had a discussion with Tom Brown (Bob Mustard) and the potential new owners of the Wildhorse assets. The name of the company is Cantera Resources, Inc. They have offices in Dallas and Denver. They are a midstream gathering and processing company, predominately owned by Morgan Stanley Dean Witter. They recently (about 9 months ago) purchased the processing assets from TXU. The two gentlemen from Cantera on the line were Dave Kenyon (Denver) and Terry Klare (Dallas). They wanted to know about the Entrada gas and our low-Btu gas plans. We indicated that we are in the process of building a 24 MMSCFD plant at the South Canyon interconnect. Also indicated that while the San Arroyo gas was currently covered under an existing gathering agreement, the Badger Wash gas was not dedicated. We indicated that we wanted to bring 10mmscfd from San Arroyo and we could move anywhere from 8-15mmscfd from Badger Wash. All wells are drilled. We did not discuss third party gas. They indicated they are very interested in working with us on this low-Btu project. They also indicated that the only way they make money is by moving gas - as much as possible. The PSA for the transaction has not been executed at this time. Both parties indicated they expect to sign the PSA next week, with closing soon thereafter (no timeframe given). Once the PSA is signed, TBI has no objections to discussions between Crescendo and Cantera to proceed without TBI. Dave and Terry indicated they wanted to enter into more serious discussions with us as soon as the PSA is signed. Athough Bob did indicate to Cantera that there were issues with the San Arroyo Gathering Agreement, we did not discuss any of the other issues with the contract, as the conversation was brief and more of an introduction of us to them. Ken Krisa
|