Here are some things you might be wondering about…

How is ABQ different from our gas marketer? ABQ manages your assets as your agent. We work on your behalf, with the objective of maximizing your profits. We essentially become your own marketing and trading staff. We advise and support you in the development of your sales strategy, then execute that plan.

"Marketers" buy your natural gas. Under most "marketing" arrangements your product is sold for a certain term with prices linked to a certain published index, usually discounted by a few cents or a fixed percentage. The buyer's objective is to pay you the lowest possible price. You are generally precluded from realizing any of the additional revenue generated with your product in downstream markets.

Why is working with an agent better than selling to a marketer? ABQ is an Asset Management Company. Marketing your production is only part of that job. As your agent, ABQ constantly monitors the markets. These markets are very dynamic, and we make strategic decisions each month regarding how to obtain the optimal value for your assets. Having identified any premium market opportunities, we make sales to credit-worthy trading partners in those markets. This allows your management team to focus on what they do best: producing more gas, with the confidence that it is being sold at the exceptional values. During 2000, our managed production portfolio outperformed the market by a weighted average 18.3¢ per MMBtu, or approximately 4.38%.

Do I have a say in how ABQ sells my production? We believe that independent producers should retain control of the value management of their asset base. Our seasoned professional energy management staff supports you in doing just that, without an inordinate investment of your time. You make informed decisions about the strategy, we execute it, and you get the reported results.

Can I hedge my production with ABQ? We also provide experienced professional advisory services in the quantification and management of your price risk. In other words, we help you analyze the market and develop sensible hedge targets and appropriate timing strategies. We'll either execute those strategies for you, or make sure that when you execute them, you know you are getting a fair deal (remember, your bank is trying to make money on your hedge). Of course, we provide all of the administrative assistance that accompanies this work, and we do it for a fraction of the cost of an actual marketing and trading staff.

Can ABQ's services help me if my production is already hedged through my bank? If your production is hedged through the bank, it has probably been done with financial derivatives. These contracts probably settle against some published index for the market that is appropriate for your production. As long as we know what that benchmark is, we can use it as a pricing reference in selling your production and your hedges should perform as expected. If ABQ out performs that market, more money goes to your bottom line.

How can we be assured ABQ will move our gas? In our view, a key element of success for our clients is flowing the maximum amount of production. In fact, our fees are charged on a per-unit basis. If your gas doesn't move, we don't get paid! This is why we have been selectively cultivating trading relationships with purchasers who have the most capability for doing so. Our approach has been to work with buyers that we know can and will perform, then work each day to minimize problems. In doing so, we can achieve the goal of maximizing flows, while protecting the value of the product. Of course, on a given day there may be pipeline operational constraints, which are beyond our control. However, through careful planning and diligent day-to-day management, problems can be minimized.

What price will ABQ pay for my gas? We are not the actual buyers of the gas, so we cannot set out a firm monthly price commitment. However, as your agent we set forth, and are measured against monthly market price performance targets. We have a pretty good idea of what makes sense for you in this regard. Our monthly portfolio price targets for your interest gas will be agreed upon with your management once we have fully evaluated all production information. Our primary objective is to sell your gas at prices that add value to your business.

What are ABQ's fees? ABQ's basic fee structure begins with competitive fees for our very basic Natural Gas Trading service. As services are added our fee increases and is commensurate with your average level of production. We have also added a new fee structure, specifically designed to accommodate independent producers with growth strategies. The new fee schedule has a fixed fee and a variable fee component. Unlike our typical volumetric fee structure your cost per unit will actually decline as your company's production grows and volumes are added under ABQ's management. Finally, the independent producers and ABQ share in any performance above our price performance targets. This incentive provision, along with the volumetric fee, is key in keeping our interests completely aligned. Call us for more detailed information about our service fees.

Can ABQ schedule my gas? Yes, ABQ will handle all nominations, confirmations and other scheduling tasks should you desire. When does ABQ start managing my production? ABQ will assume management responsibility at the wellhead, or the mainline, as may be appropriate for any non-operated production. We are flexible.

When will ABQ pay for my production? ABQ will remit payments to you by wire transfer or ACH no later than the last day of the month following production. Certain buyers, which we view as desirable, have standard payment terms calling for payment on the last day of the month. In the event that the last day of the month falls on a holiday or weekend, they pay on the following business day. ABQ, in turn, will forward that portion of the sales revenues on that day.

I am a very small independent producer. I currently sell my gas under the Joint Operating Agreement, and receive a net check from the Operator. Can ABQ help me achieve a better price and provide the accounting functions the Operator is currently handling? In most cases yes, but the answer depends on your specific situation, and what your operator charges for those services. Call us for a free consultation on your personal situation.

Will ABQ handle the payment of my burdens? Yes. ABQ's Integrated Production Management Service includes full revenue accounting, preparation of reports, and revenue distributions. How much of that service to be provided is completely up to our clients. You decide!