Antara

I talked to Delainey last week and he said he wanted to have a meeting to
discuss. This analysis is interesting.
----- Forwarded by Richard B Sanders/HOU/ECT on 07/23/2000 09:05 AM -----

James Ledlow
07/17/2000 04:55 PM

To: Richard B Sanders/HOU/ECT@ECT, owens@bkollp.com
cc:
Subject: Antara

Attached please find the revised summary for Antara. Please delete the
previous file you received and replace with this version.

Pricing has the biggest impact on valuation from where we were 6 months ago,
as depicted in the operations cash flow section for the Gulf Coast.

As discussed, risk factors are estimates and are subjective.

The Proved Undeveloped (PUD) reserves in the Rockies are based on the
Netherland and Sewell (NSA) 1/1/99 reserve report and do not reflect what
Enron thought 6 months ago. Our in-house estimates of the PUD reserves are
50-75% of NSA and would indicate a current unrisked value for the PUDs of
perhaps $4-5 million. However, a potential acquirer may just use the NSA
numbers and risk adjust as I have done in the spreadsheet.

Let me know if you have any questions.

Thanks,

Jim Ledlow