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UPDATE: Reports of Operation at Site Where Hostages Are Being Held by Terrorists in Algeria

Jennifer Griffin reported on the latest developments out of Algeria, where Al Qaeda-linked terrorists attacked a natural gas complex Wednesday and took dozens of hostages, including some Americans.

The facility, which is right on the Libyan border, was surrounded by the Algerian military Thursday. Troops opened fire from helicopter gunships when some of the suspected attackers tried to leave. A spokesman for a militant group involved in the attack told local media that 35 hostages were killed and that seven were still being held.

Griffin said that claim has not been confirmed by U.S. officials, describing the situation as "murky." She said some Americans

that worked at the facility escaped, but it's unclear whether that happened during the attack or after they were taken hostage.

An Algerian militant - nicknamed Mr. Marlboro - has claimed responsibility for the attack.

Griffin described Mokhtar Belmokhtar as a veteran Islamic militant who lost an eye fighting the Soviets in Afghanistan. She said he has formed a splinter group after breaking away from Al Qaeda's North African wing and had fighters in Mali. Griffin said the attack in Algeria appears to have been carried out as a protest to the French military action against terror groups in Mali.

Watch the report:

Stay tuned to Fox News Channel for the latest on this developing story.

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