She  will come on Thu at 10:15.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/18/2000 
02:26 PM ---------------------------


Jeanne A Klein@ENRON_DEVELOPMENT on 01/12/2000 11:55:49 AM
To: Vince J Kaminski@ECT
cc: Mingcheng Lian/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Zimin Lu@ECT 
Subject: Modeling in Real Options

Vince,

My name is Jeanne Anne Klein and I am a financial modeler working with 
Mingcheng Lian on a high profile pipeline project in China. 

Zimin Lu referred us to you regarding questions we have on the Real Option 
Valuation Approach.  We are very enthusiastic about what we have read and 
heard about this valuation method.

We have been doing some preliminary research on the Real Option Valuation 
approach and believe that integrating this approach into our financial model 
would bring a significant increase to the value to the project.   We have 
identified some deal aspects we believe would be ideal to valuate as real 
options.  Our goal is to work with the development team to structure the deal 
to incorporate the Real Option Valuation approach into the model enabling us 
to arrange the contracts within the deal to optimize the project's value.

We would like to arrange a meeting with you at your ealiest convenience to 
brainstorm on additional deal aspects that can be valued using the real 
option approach as well as on ways to quantify these aspects using the Real 
Option valuation Method. 

Please advise if you will be able to meet with us within the next week or 
two. 

Thank you for your kind attention,

Jeanne Anne

X 6-6547