Chesapeake Energy 1998 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 1998 Chesapeake Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

Drilling Activity
The following table sets forth the wells drilled by the Company during the periods indicated. In the table,
'gross" refers to the total wells in which the Company has a working interest and "net" refers to gross wells
multiplied by the Company's working interest therein.
Included in the above table for 1998, the Company drilled 11(3.6 net) productive development wells and one
(0.4 net) non-productive development wells in Canada. Also during 1998, the Company drilled one (0.3 net)
productive exploratory wells and seven (2.1 net) non-productive exploratory wells in Canada.
Well Data
At December 31, 1998, the Company had interests in 5,304 (2,405 net) producing wells, of which 219 (96 net)
were classified as primarily oil producing wells and 5,085 (2,309 net) were classified as primarily gas producing
wells.
Volumes, Revenue, Prices and Production Costs
The following table sets forth certain information regarding the production volumes, revenue, average prices
received and average production costs associated with the Company's sale of oil and gas for the periods indicated:
Included in the above table are the results of Canadian operations during 1998. The average sales price for the
Company's Canadian gas production was $1.03 during 1998 and the Canadian production expenses and taxes were
$0.24 per Mcf.
3
Year Ended
December 31,
1998
Six Months
Ended
December 31,
1997 Year Ended June 30,
1997 1996
Gross Net Gross Net Gross Net Gross Net
Development:
Productive 169 97.5 55 24.4 90 55.0 111 49.5
Non-productive 10 5103 2
Total 179 102k 56 24.7 92 552 115 51.1
Exploratory:
Productive 47 23.7 28 15.5 71 46.1 29 16.5
Non-productive 16 89 2Q8j
Total 63 326 30 164 79 51.8 33 17.9
Year Ended
December 31,
1998
Six Months
Ended
December 31,
1997 Year Ended June 30.
1997 1996
Net production:
Oil (MBbl) 5,976 1,857 2,770 1,413
Gas (MMCI) 94,421 27,326 62,005 51,710
Gas equivalent (MMcfe) 130,277 38,468 78,625 60,190
Oil and gas sales (S in 000's):
Oil $75,877 $34,523 $57,974 $25,224
Gas 181,010 61,134 134946 85,625
Total oil and gas sales $256,887 $95,657 $ 192,920 $ 110,849
Average sales price:
Oil($perBbl) $12.70 $18.59 $20.93 $17.85
Gas ($ per McI) $1.92 $2.24 $2.18 $1.66
Gas equivalent (S per Mcfe) $1.97 $2.49 $2.45 $1.84
Oil and gas costs (S per Mcfe):
Production expenses and taxes $.45 5.27 S.19 $.14
General and administrative $.15 $.15 $.11 $.08
Depreciation, depletion and amortization of oil
and gas properties $1.13 $1.57 S1.31 $.85