NYSBC:(NASDAQ:CHEX)CheniereEnergy

                NewYorkStockBrokersClub @ Harry`s @ Hanover Sq

  ============================: TUE.SEP,970916 :============================

NYSBC:(NASDAQ:CHEX)CheniereEnergy ; 713-659-1361 ; Houston TX



|16:46| BillForster CEO : devel stage . 0 cash flow . @ it 18mo . doing 3D

 seismic in Lousiana - pre drilling - costline transition zone +- 3 mi frm

 shor. last fronter in LA . processing on interal computers . beginning

 drilling for oil & gas . See  Map  ( 170k )

 Founded 960223 into public shell revers merger . NASD . .41 of 14M shares

 ownd by princpls . Ex MngDir Lehman since `83 OK cty w McGee | w JV partner

 | So Lousiana - mainly for Gas | Comp Tek now accessable to small Cos

 | keeping salary cnt low . wrkng w Strat Ptnrs . Tight cntrl overhead .

 Aim grw net asset val .

 Contol of large Prospective Land Pos . CameronParish . 3D seismeic by Zydeco

 . Early fin mngd internally

|16:54| KeithCarney CFO : Ex shell & res analyst :

 Land Posn :So LA proven but ~ finishd . 3D seis ~ been shot over whole area .

 Flow quick but short lived . Transition Zn . Tx & east | 3D seis 1st done

 off shore - easer to just drag behind boat . Swamp ~ been done . 8-10 by 200

 mi survey zone . | 8 10 x 200 |>| 1600 2000

 Other Cos on map | data owned confidentialy by CHEX for 10yr |

 Large Gas Vol in small area = good econs | red fields  3.5T SqFt ==  10B $

 1BCF % sq mi |  228 sq mi x  | multiple prospect - range of risk%return |

 LTZ objec 98q1 : portfolio of drill ready prospects . | Raised 15M $ private

 13.5 spent - 6-8M$ raising for further seismic - lookng for Name brand 3rd

 pth w cash + expert eyes | `98 Additional Cap for drilling .

 - No question - RISK . may move even in mean time .

|17:6| ?s | Michael Storm : mngt part of private placement ? some by shell |

 Abe : gas ? mainly . pipeline infrastructure in area . sell @ well head .

 sell HenryHub price

 Zydeco ZNRG ? JV partner : NASD last month 13M IPO . been pub since `95

 Mona : how pie really cut ? CHEX paid 13M to pay 1.0 of frst 13.5 | Z pay

 for interpretation 250%mo of & land handleing -

 .5 .5 split of return | 3rd ptnr would buy in pay to .

 are not carried thru drilling .

 | TX ? SpindleTop . but dif geo | all .41 restricted & no intention to sell

 | Lift cost ? low . frm lower Miocene . Zilk energy 100BCF in 4 yr frm 3

  wells , 1 platform . cost 25M$ income 2-300M . | Life ? 5yr

 | where were you 15 yrs ago ? comp power cheap now | Drilling cost down ?

 yes because know wher to drill . Used to do on Shell Cray , now on HP Convex

 cost 2M$ | WesternGeophysical | 300 ft voxel | Horizontal drilling ? no

 directional . Rig mkt very tight . 8-10k % day . can do frm shore | Clare :

 how soon operate on profit ? ( looking for forward stmnt ? ) >= `99 |

 | survey & interpretation finishd by eoy | 3 yrs best case to breakeven .

  general disclamer : so many risks & alt paths may be sooner or never

 | Mona : either have shot

 | personally invested ? Bill sevrl 100k$ . no salery or T&E |

 | David : TX Oil & Gas . groom Co to be taken over ? If feel like `81 boom

  w sell . In it to make money . Is very intelligent exploration .

 Big Names ? if someone comes w deep pockets & production expertise . if

  200$ % acres lease option for  yr | off shore - exclusive frm state til Feb

  98 to bid . so will know better & therefore bid better . Lease mineral

  rights . Key to profit :Big volumes in Small area |17:33|

| After presentation | w Keith : yes Arbitrage possible : CHEX % ZNRG .