Chesapeake Energy 1997 Annual Report Download - page 74

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
The principal sources of change in the standardized measure of discounted future net cash flows are as
follows:
For an explanation of the reclassifications made to the standardized measure of discounted future net
cash flows in fiscal 1996 and fiscal 1995, see discussion of Oil and Gas Reserve Quantities included above.
57
June 30,
1997 1996 1995
(S in thousands)
Standardized measure, beginning of year $ 461,411 $ 159,911 $118,608
Sales of oil and gas produced, net of production costs (177,813) (102,546) (52,727)
Net changes in prices and production costs (99,234) 88,729 (24,807)
Extensions and discoveries, net of production and
development costs 287,068 275,916 108,644
Changes in future development costs (12,831) (11,201) 3,406
Development costs incurred during the period that reduced
future development costs 46,888 43,409 23,678
Revisions of previous quantity estimates (199,738) 12,728 (21,595)
Purchase of reserves-in-place 29,641
Accretion of discount 54,702 18,814 14,126
Net change in income taxes 63,719 (57,382) (5,586)
Changes in production rates and other (8,674) 3,392 (3,836)
Standardized measure, end of year $ 415,498 $ 461,411 $159,911