Cheniere Energy Releases 2002 Year-End Reserve and Exploration Update.

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--March 10, 2003

Cheniere Energy, Inc. (AMEX: CXY) reported today on the results for its exploration division Cheniere Exploration Group and for its affiliate Gryphon Exploration Company as of December 31, 2002.

Cheniere Exploration Group

In November 2000, Cheniere's Exploration Group acquired 7000 square miles of 3-D seismic data. Using this data during the years 2001 and 2002, the Group generated, captured and sold 16 prospects to a variety of industry partners. Cheniere received up-front payments along with retained overrides and carried working interests with no obligation for drilling and development costs. Seven of these prospects were drilled during 2002 resulting in five discoveries. One development well was also drilled successfully in 2002. At year-end, Cheniere's net reserves from these successful prospects were 2.5 Bcfe of natural gas, of which 1.3 Bcfe were classified as proved and 1.2 Bcfe were classified as probable. In accordance with SEC specifications, the PV-10 value of the proved reserves was $5.1 million, and for the combined proved and probable reserves it was $9.4 million.

So far in 2003, Cheniere's partners have drilled three development wells, adding 0.5 Bcfe of net proved reserves, bringing Cheniere's total proved and probable reserves to 3.0 Bcfe to date. Cheniere's partners are planning to drill an additional development well and eight exploratory wells on Cheniere prospects during the year. In the meantime, Cheniere continues to build its inventory of prospects at a time when they are at a premium in the industry.

Cheniere Energy Vice Chairman, Walter Williams said, "We have now successfully replaced a major part of our West Cameron Block 49 reserves that were sold in early 2002. In addition, our successful results in 2002 have demonstrated the quality of our new exploration team that was formed after the contribution of our all of our exploration assets to Gryphon Exploration in 2000. The financial results will continue to improve throughout the year such that we expect revenues from existing wells of about $500,000 per month by year-end."

Gryphon Exploration Company

Gryphon Exploration Company, in which Cheniere owns a 9.3% interest and Warburg Pincus the balance, drilled nine wells in 2002 and had five discoveries. At year-end, Gryphon had proved reserves of 29.7 Bcfe and probable reserves of 9.2 Bcfe for a combined total of 38.9 Bcfe. The PV-10 value of the proved reserves was $106.9 million, and for the combined proved and probable reserves it was $138.8 million. Gryphon expects to drill 14 exploratory wells and three to four development wells in 2003. Its daily production at year-end was 20 Mmcfe/day and expected to rise to 35 Mmcfe by the end of the first quarter.

Charif Souki, Cheniere Energy's Chairman said, "Both of our exploration efforts are now on solid footing with cash-flow, reserves and strong inventories of prospects. 2002 provided excellent returns on our investments on exploration assets and positioned us for an even better 2003."

Cheniere Energy is a Houston-based energy company. Cheniere conducts exploration in the Gulf of Mexico using a regional database of 7,000 square miles of 3D seismic coverage. It owns 9% of Gryphon Exploration Company, with Warburg, Pincus Equity Partners, L.P. owning the other 91%. Cheniere is also developing 4 sites for LNG receiving facilities along the Texas Gulf Coast. Additional information on the company may be found on its website at www.cheniere.com, by contacting the company's investor and media relations department toll-free at [phone] or by writing to: [e-mail].

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.