Re: Seismic Data on Oil & Gas field Development via Satellite

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/10/2000
03:23 PM ---------------------------
From: Kevin Garland@ENRON COMMUNICATIONS on 10/10/2000 01:06 PM
To: Richard Reichardt/Enron Communications@Enron Communications
cc: Ken Rice/Enron Communications@Enron Communications, Larry Lawyer/Enron
Communications@Enron Communications, Mike McConnell/HOU/ECT@ECT, Richard
DiMichele/Enron Communications@Enron Communications, Tom Gros/Enron
Communications@Enron Communications, Vince J Kaminski/HOU/ECT@ECT, Jon
Adler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: Seismic Data on Oil & Gas field Development via Satellite

There may be a business opportunity with this company, but I would not advise
making an investment.
Kevin Garland

Richard Reichardt
10/10/00 12:30 PM

To: Mike McConnell/HOU/ECT@ECT
cc: Larry Lawyer/Enron Communications@Enron Communications, Tom Gros/Enron
Communications@Enron Communications, Vince J Kaminski/HOU/ECT@ECT, Kevin
Garland/Enron Communications@Enron Communications, Richard DiMichele/Enron
Communications@Enron Communications, Ken Rice/Enron Communications@Enron
Communications
Subject: Seismic Data on Oil & Gas field Development via Satellite

Mike,

Using NASA satellite transmission of maritime data and establishing a Houston
Data Center to consolidate and centrally process 3D seismic data surveys for
oil and gas extraction, exploration and development could save the petroleum
industry more than $300 million dollars annually through reduced operational
expenses. Added value in shortening the time to process and deliver the
finished surveys should generate more than $26 million per site (based upon
$15/barrel for average oil well production to market 30 days sooner)in
revenue. By re-selling this data to market analysts or by internally using
this data for forecasting future oil/gas production Enron could increase the
accuracy of forecasting reserves and production capabilities globally. By
holding the data as exclusive (or partially exclusive), Enron would have a
significant market advantage in futures pricing for oil and gas.(Vince's team
is quantifying the valuation of this information)

Attached please find an updated version of the business case for seismic data
transfer via satellite, by a geophysicist at SpaceData - William K. Aylor,
calculated using $22/barrel oil.

Based upon your availability, Jon Adler and I would like to make a
presentation to you (or your designated representative) on the Enron
potential of this opportunity, sometime next week (17-20 October).

- SDT Business Case4.pdf

V.R.,

Richard Reichardt
Enron Broadband Services
(713)-345-8377 (Office)
(713)-907-3767 (Mobile)
1400 Smith Street, Suite EB 4364
Houston, Texas 77002