Cheniere Energy, Gryphon Exploration Update.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--April 16, 2002 Cheniere Energy Inc. (AMEX AMEX See: American Stock Exchange :CXY) reported that its affiliate, Gryphon Exploration had a very successful first year of exploration. Gryphon completed four prospects in nine attempts during 2001, finishing the year with 19 Bcfe of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. net to its interest. During the first quarter of 2002, Gryphon drilled an additional prospect, West Cameron Block 116, Offshore Louisiana. The well encountered 70 feet of net pay and tested at the rate of 8600 Mcf per day at a flowing tubing pressure of 8850 Psi. It is currently being completed and should be on production this summer. A second well located at High Island Block 85 has been successfully drilled and is currently being completed. Additional test wells on new prospects are planned to be started during the second quarter. Gryphon also was the apparent winner of leases covering 5 new prospects at the March Federal OCS OCS - Object Compatibility Standard lease sale in Louisiana and the Texas Offshore Lease Sale in April. Warburg Pincus Warburg Pincus is a private equity firm with offices in the United States, Europe and Asia. It has been a leading private equity investor since 1971. The firm currently has approximately $14 billion under management, and invests in a range of industries including information and has invested $60,000,000 to date in Gryphon convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . Although Cheniere presently owns 100% of Gryphon's common stock, if the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. is converted, Cheniere would currently own 13% of Gryphon and has the option to acquire 6% more at a cost of approximately $2,500,000. Cheniere Energy is a Houston-based energy company. It owns 13% of Gryphon Exploration Company, with Warburg, Pincus Equity Partners, L.P. owning the other 87%. Cheniere conducts exploration in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east using a regional database of 7,000 square miles of 3D seismic coverage. It also owns options on three sites along the Texas Gulf Coast for the development of LNG LNG (liquefied natural gas): see under natural gas. receiving terminals. Additional information on the company may be found on its Web site at www.cheniere.com, by contacting the company's investor and media relations department toll-free at 888/948-2036 or by writing to: cxy@mdcgroup.com. Except for the historical statements contained herein, this news release presents forward-looking statements that involve risks and uncertainties. Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Certain risks and uncertainties inherent in the company's business are set forth in the company's periodic reports that are filed with and available from the Securities and Exchange Commission. |
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