Cheniere Energy Reports Second Quarter Results.

HOUSTON--(BUSINESS WIRE)--Aug. 17, 1998--

Cheniere Energy Inc. (Nasdaq:CHEX) reported a loss of $354,884 ($0.02 per share) for the quarter ended June 30, 1999 compared to a loss of $429,816 ($0.03 per share) for the comparable quarter a year earlier. For the six months ended June 30, 1998, Cheniere reported a loss of $683,990 ($0.03 per share) compared to a loss of $619,316 ($0.04 per share) a year earlier. Cheniere is a development stage company and has not yet begun generating operating revenues. The Company is installing a platform for the production of its two natural gas discoveries at West Cameron Block 49. Sales are expected to commence in September.

Houston-based Cheniere Energy Inc. is an independent oil and gas company focusing in the Transition Zone and shallow waters offshore Louisiana. The Company relies extensively on the use of 3-D seismic technology in its exploration.

This news release includes forward-looking statements that are based on assumptions which in the future may prove not to be accurate. 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.