---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/07/2000 
12:29 PM ---------------------------


John Peyton
01/04/2000 11:12 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc: Chris Hilgert/HOU/ECT@ect, Randal T Maffett/HOU/ECT@ECT, W Tom 
Byargeon/HOU/ECT@ECT, Fred Lagrasta/HOU/ECT@ECT 
Subject: Amerada Hess Day Rate Hedge numbers

Attached are the historical numbers for the Semi-submersibles 4th and 5th 
generation day rates.  Their price is 155,000/day for the next 4 years.  I 
would think that a floor of $100,000 would be the place to start Jan 1, 2001 
through Dec 31, 2004.  We need to know the Call strike that would make it 
costless.

I plan on making some examples discussion purposes to discuss with them on 
Friday of this week.  I will update you ASAP on the balance of day rate 
prices.  Let me know what else you will need to prepare the statistical 
analysis.   The numbers include highs and lows; let me know your ideas on how 
to address this in the quote.

Thanks,

John
30395