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