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EXHIBIT 99.1
CHENIERE ENERGY, INC. NEWS RELEASE
CONTACT: DAVID CASTANEDA
INVESTOR RELATIONS
1-888-948-2036
E-mail: [email protected]
FOR IMMEDIATE RELEASE
Cheniere Energy Announces $25,000,000 Investment by Warburg Pincus
HOUSTON - SEPTEMBER 15, 2000 - Cheniere Energy, Inc. (NASDAQ: CHEX) has
reached an agreement with Warburg, Pincus Equity Partners, L.P., a global
private equity fund based in New York, to fund its exploration program on
the Fairfield database through a newly formed subsidiary, Gryphon
Exploration Company. Cheniere will contribute selected assets that
include: 3D seismic data acquired from Fairfield Industries, Inc. over
approximately 8,800 square miles in the Gulf of Mexico, certain offshore
leases, its Shark Prospect currently being drilled, its Joint Exploration
Agreement with Samson Offshore Company and certain other assets. Warburg
Pincus will contribute $25,000,000 and receive preferred stock, with an 8%
accrued dividend, convertible into 63.2% of Gryphon's common stock.
Cheniere and Warburg Pincus have also agreed under certain circumstances to
contribute to Gryphon their respective shares of an additional $75,000,000.
In addition to a 36.8% interest in Gryphon, Cheniere will maintain
ownership of its currently producing oil and gas properties with reserves
valued at $12.1 million as of June 30, 2000, its proprietary 3D seismic
data set in the Cameron area of Louisiana, a license to 1,900 square miles
of 3D seismic data recently acquired from Seitel Data, Ltd. and the option
to license an additional 3,100 square miles of data from Seitel.
Charif Souki, Cheniere's Chairman said, "This agreement provides the
capital to aggressively pursue the opportunities developed on the Fairfield
data set which we acquired in June of last year. Warburg Pincus has been
an excellent financial partner to some very successful exploration and
production companies. We look forward to our affiliation with them.
Cheniere will now turn its attention to the exploitation of its proprietary
data base and the data licensed from Seitel and to the management of its
production."
The transaction is subject to standard closing conditions, including
approval under the Hart-Scott-Rodino Antitrust Improvements Act, and is
expected to close by early October. Petrie Parkman & Co. acted as
financial advisor to Cheniere in connection with the transaction.
Michael L. Harvey has agreed to become Chairman and CEO of Gryphon.
Effective upon assuming his new role, Mr. Harvey will resign as Director,
President and CEO of Cheniere.
Cheniere Energy, Inc. is an independent oil and gas company focused in and
around the Gulf of Mexico. The company generates drilling prospects
internally using its 11,000-square-mile 3D seismic database and acquires
drilling rights on these prospects through lease sales and farm-ins.
Additional information about Cheniere can be found by calling the company's
Investor and Media Relations Department at 888-948-2036 or by writing to
[email protected].
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.
