Cheniere Energy Inc. commences 250 square mile proprietary 3-D shoot in Louisiana Transition Zone.

HOUSTON--(BUSINESS WIRE)--Oct. 1, 1996--Cheniere Energy Inc. (EBB:CHEX) and its partner, Zydeco Energy Inc. (NASDAQ:Small Cap(tm): ZNRG), began the acquisition phase on the recently announced proprietary 3-D seismic survey in West Cameron Parish, which is being conducted in the Louisiana Transition Zone.

Zydeco Energy, operator of the project, awarded the acquisition phase to Grant Geophysical in August. The acquisition of 3-D data started on Sept. 23 and completion is expected in January 1997. Processing and interpretation will begin concurrently with the acquisition phase. The survey covers approximately 250 square miles, including 51,360 acres of state waters.

This is the first 3-D survey of its size in the western portion of the Louisiana Transition Zone. The Louisiana Transition Zone, a region of land, marshes and shallow water extending a few miles on either side of the coastline, represents an underexplored corridor within one of the most prolific oil and gas regions in North America.

"To insure control of the acquired 3-D data and to facilitate its interpretation, the data is being processed in-house using proprietary technology," said William D. Forster, chief executive officer of Cheniere. "The survey design and processing technology were developed specifically to image complex subsurface structures while resolving the complications that arise from shooting across varied surface coastal environments. We are confident that our work here will uncover significant gas reserves in this region. Our goal is to drill our first well within this area by year-end 1997."

Houston-based Cheniere Energy Inc. is an independent oil and gas company that focuses on early-stage oil and gas projects characterized by high reserve potential in which the company can attain a large working interest.

CONTACT: Cheniere Energy Inc., Houston

Keith F. Carney, 713/659-1361