FW: Very Notional Gas Basis Bids for Abraxas

Charlie,

They basically want to fix the NYMEX and Basis for a potential VPP transaction.

This is pretty straight forward. Just set up swap model, one for each of the points listed below. Use the indicated 5,000 mmbtu/d as the volume. It will be a 10 year deal, with the quotes split out for each of the first 5 years and then one number for the tail.

This would be a good one to talk to Dutch about (individual yearly quotes vs. one swap quote). We might also want to have the same discussion with the basis traders.

Tenn (S.Brawner)- we need to know which leg (assume for now Zone L-500 leg)
Ship (Eric Bass) - is Houston Ship Channel
TETCO STX (S.Brawner)
Transco Z1 (S.Brawner)

Once you have the model built let me know and this afternoon we can talk to the traders.

Eric

-----Original Message-----
From: Quick, Joan
Sent: Thursday, May 24, 2001 3:29 PM
To: Boyt, Eric
Cc: Kalb, Thomas; Jain, Avinash
Subject: Very Notional Gas Basis Bids for Abraxas

Eric,

We are doing our first preliminary look at a VPP with Abraxas. Please provide me with very notional gas basis numbers for the below points. I will have more to add, but it will be next week. If I could get bids by year for the first five yrs, then one number for yrs 6 thru 10, that would be great. I don't know what the vol will be...just assume 5,000 MMBtu/d.

Tenn [TX]
Ship
TETCO [S TX]
Transco zn 1 [pooling point]

thanks
joan