EXHIBIT 99.1


CHENIERE ENERGY, INC.                                   CONTACT: DAVID CASTANEDA
                                                              INVESTOR RELATIONS
                                                                  1-888-948-2036

NEWS RELEASE                                          E-mail:  chex@mdcgroup.com
                                                               -----------------

Cheniere Energy Closes $25,000,000 Funding With Warburg Pincus

HOUSTON, October 12, 2000 -- Cheniere Energy Inc. (NASDAQ: CHEXC) announced
today that it has closed on its $25,000,000 funding agreement with Warburg,
Pincus Equity Partners, L.P., a global private equity fund based in New York.

Cheniere's Chairman Charif Souki said, ``We have now funded our initial
exploration program on the Fairfield Database with our new financial partner,
Warburg Pincus. This achieves our goal of combining substantial financial
resources with our leading edge exploration technology, and our world-class
staff of exploration experts and managers. I think our prospects for success are
very high with this combination."

The previously announced agreement between Cheniere and Warburg for the
formation of Gryphon Exploration Company calls for Cheniere to contribute
selected assets that include the 3D seismic database acquired from Fairfield
Industries Inc., over approximately 8,800 square miles in the Gulf of Mexico,
the prospects generated thereon, certain offshore leases, its Shark Prospect
currently being drilled, its Joint Exploration Agreement with Samson Offshore
Company and certain other assets. For its investment of $25,000,000, Warburg
Pincus receives preferred stock with an 8 percent accrued dividend, convertible
into 63.2 percent of Gryphon's common stock. Cheniere and Warburg Pincus also
agreed, under certain circumstances, to contribute to Gryphon their pro rata
portions of an additional $75 million.

In addition to a 36.8 percent interest in Gryphon, Cheniere maintains ownership
of its currently producing oil and gas properties with reserves valued at
$12,100,000 as of June 30, 2000, its proprietary 3D seismic database in the West
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.

Souki added, "During the course of this year we achieved many of the goals we
set forth for Cheniere's growth; we successfully attracted a sophisticated
industry partner in Samson Resources for our Fairfield Database exploration
program. We achieved positive cash flow and earnings. The recent addition to our
management team of Charles Reimer to run operations at the Cheniere level,
positions us to aggressively pursue our basket of opportunities on numerous
fronts." Charles Reimer, who assumed Cheniere's helm as chief executive officer
upon closing of the transaction, will remain on Cheniere's Board as well as
serving on Gryphon's board of directors along with Cheniere Chairman Charif
Souki, two representatives from Warburg Pincus and Mike Harvey, Gryphon's CEO.

Reimer said, "I'm anxious to move forward with Cheniere's business plan." As he
takes over Cheniere's operations monthly cash flow is expected to average about
$400,000 a month for the remainder of the year with the current production rate
of 3MMcf/d after installation of compression earlier this month. He added, "This
is a base from which we will look to grow as we develop an aggressive drilling
program on our Seitel and proprietary databases, while pursuing several other
opportunities. We are also excited that the Warburg investment enables us to
ramp up the exploration program within Gryphon, under Mike Harvey's capable
leadership. We expect all these activities to contribute to shareholder value as
we continue to execute Cheniere's business plan."

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 regional 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 chex@mdcgroup.com.
                                            ------------------

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.

                                      ###