If we are able to sell at all, proceeds will probably be less than $100K.

---------------------- Forwarded by Richard Lydecker/Corp/Enron on 04/02/2001 04:12 PM ---------------------------


Brandi Morris@ECT
04/02/2001 02:47 PM
To:	Richard Lydecker/Corp/Enron@Enron
cc:	 

Subject:	3Tec


Description:  3TEC Energy is as an oil and gas exploration and production company. Formerly Middle Bay Oil, the company operates primarily in East Texas and the Gulf Coast region. It also has properties in the midcontinent region and the Permian and San Juan basins. 

Status:  Sales efforts temporarily suspended due to market conditions.

Origination: Producer Finance.  Received after the restructure of the Magellean investment.

Strategy: Awaiting negotiation of piggy back rights to conclude sale to Convertible Fund.  Convertible Fund is negotiating piggy back rights with preferred shareholders.
 
Rationale:  Out of the money warrants and have been since 1998.  No other interested buyers.

Valuation: $0.  Strike is at $30; currently trading at $16.

Treatment:  Raptor