Cheniere Energy Exploration Update.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--April 18, 2002 Cheniere Energy Inc. (AMEX AMEX See: American Stock Exchange :CXY) announced today that the first prospect in its 2002 exploration program has been completed as a discovery in the Main Pass OCS OCS - Object Compatibility Standard Area of Offshore Louisiana. Cheniere retained a small overriding royalty in the discovery well that went on production in early March. Cheniere's exploration group also generated and sold 7 additional prospects last year, which are expected to be drilled in 2002. A test well on the second prospect in the program was spudded this week in the Brazos Area, Offshore Texas. Cheniere's third 2002 drilling prospect is expected to be tested within the next 60 days in the Main Pass Area. Cheniere retains an override An arrangement whereby commissions are made by sales managers based upon the sales made by their subordinate sales representatives. A term found in an agreement between a real estate agent and a property owner whereby the agent keeps the right to receive a commission for the sale of convertible to a working interest in the second well and an override in the third well. At the Texas State Lease Sale last week, a prospect generated by Cheniere and located in the High Island Area, Offshore Texas was acquired by a partner. When drilled, Cheniere will retain a 3% override convertible after prospect payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. into a 15% working interest. Walter Williams, vice chairman of Cheniere, said, "We are continuing to generate and sell to industry participants prospects developed from our 7,000 square mile 3D seismic data base. The prospects we acquired last year are now being drilled and so far the results are very encouraging." 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 A square mil is a unit of area, equal to the area of a square with sides of length one mil. A mil is one thousandth of an international inch. This unit of area is usually used in specifying the area of the cross section of a wire or cable. of 3D seismic coverage. It also owns options on three sites along the 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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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