Sara:

I will stop by and will prepare a memo summarizing what I have been doing but this is the most recent one I got (i.e. just got it)

Francisco Pinto-Leite
Enron Americas
1400 Smith Street, EB 3888 
Houston, TX 77002-7361

Tel: 713-345-7942
Fax:713-646-3490
fleite@enron.com

 -----Original Message-----
From: 	Gilbert, George N.  
Sent:	Monday, January 14, 2002 12:40 PM
To:	Leite, Francisco Pinto
Subject:	Enervest

Francisco,

Enervest Energy & Enervest Management are two counterparties ENA has NG hedges on with.  These hedges extend until the year 2004 (approximately) and ENA is "out of the money" (we owe them).  The customer has requested that the year 2002 portion of the hedges be extended until the year 2003.  We would do this transaction at a price that leaves ENA's exposure to the counterparties unchanged.  ENA's exposure to the counterparties is 5,355,728 as 12/11/01 and it would be the same after the change.  The customer wants to do this to "buy time to let the bankruptcy settle out" (right or wrong).  This would be a good thing for ENA because it defers cash flows and also the market could turn around in the future.

The attached file contains the MTM of the counterparties deals as of 12/11/01.

Please let me know if you have any questions.

Thank You,
George N Gilbert (X5222)