Gryphon was formed by Cheniere in October of 2000 and funded by Warburg Pincus Equity Partners, LLP, which has contributed $45 million in capital to date for a 76 percent ownership interest. Cheniere owns 24 percent of Gryphon.
Since its inception, Gryphon has participated in the drilling of nine exploratory prospects and has made four discoveries. The High Island Block 52 discovery is Gryphon's second well to go into production this year. The company's net production from the two wells is approximately 4.5 Mmcf/d.
Cheniere also announced that Gryphon's discovery at West Cameron Block 43 is awaiting production facilities and is expected to begin production during the first quarter of 2002. In addition, the company encountered 100 feet of pay from multiple zones on its latest exploration prospect. Completion of the well is currently underway.
Gryphon has an inventory of 14 drill-ready prospects and expects to begin drilling its next exploratory well in October and to maintain an active exploration schedule for the remainder of 2001 and in 2002.
Last month Gryphon expanded its 3D Seismic database to more than 16,000 square miles covering almost 2,000 blocks in the shallow water of the Gulf of Mexico. All the data will continue to be reprocessed through Pre-Stack Time Migration.
Charles Reimer, CEO of Cheniere, said, "We are gratified that the business model we generated for Gryphon is yielding a large crop of new prospects and are confident that the new data acquisition will allow the company to expand its inventory of quality prospects for several years."
Houston-based Cheniere Energy Inc. conducts oil and gas exploration using a database of approximately 7,000 square miles of 3D seismic data licensed in and around the western Gulf of Mexico. It holds a 24 percent interest in Gryphon Exploration Company, whose principal shareholder is Warburg Pincus Equity Partners, LLP. Cheniere is also developing LNG receiving terminals on the Texas Gulf Coast.
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