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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 .