Amerada Hess Day Rate Hedge numbers

---------------------- 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