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interests, both developed and undeveloped, (6) information
concerning 4 major leased, but undrilled, prospects in which Tri-
Power had an interest, (7) a list of Tri-Power's unleased,
geologically-geophysically defined prospects, and (8) schedules
showing Tri-Power's tax losses. Larry A. Martin, of LAM, was a
well-known petroleum engineer.
During October 1986, Mr. Billings contacted Dwight Cassell,
TPC's contact person with respect to the sale of its subsidiary,
Tri-Power. Mr. Cassell, a petroleum geologist, served as Tri-
Power's exploration manager. On October 2, 1986, following a
telephone conversation with Mr. Cassell earlier that day, Mr.
Billings wrote a letter to Mr. Cassell describing petitioner's
objectives and intentions as follows: "Plains is seeking a Gulf
Coast presence and hopes to seek property acquisitions from
there. It will probably explore in only modest amounts in the
current economic climate." By letter dated October 2, 1986, TPC
offered to sell two of its subsidiaries, Tri-Power and Bonanza
Petroleum, Inc. (Bonanza), to petitioner.
The assets of Tri-Power and * * * [Bonanza] are
being offered for sale. These assets include 100
percent of the stock of Tri-Power and Bonanza, which in
turn represents ownership in producing oil and gas
wells, non-producing prospective leaseholds, unleased
oil and gas prospects plus office equipment and
records. The data transmitted herewith provides the
basis for determining worth of both producing
properties and non-producing leaseholds that relate to
defined drillable prospects.
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