Chesapeake Energy 1998 Annual Report Download - page 86

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11. Disclosures About Oil And Gas Producing Activities
Net Capitalized Costs
Evaluated and unevaluated capitalized costs related to the Company's oil and gas producing activities are
summarized as follows:
December 31, 1998
December 31, 1997
June 30, 1997
Unproved properties not subject to amortization at December 31, 1998 and 1997, and June 30, 1997 consisted
mainly of lease acquisition costs. The Company capitalized approximately $6.5 million, $5.1 million and $12.9
million of interest during 1998, the six months ended December 31, 1997 and the year ended June 30, 1997 on
significant investments in unproved properties that were not yet included in the amortization base of the full-cost
pool. The Company will continue to evaluate its unevaluated properties; however, the timing of the ultimate
evaluation and disposition of the properties has not been determined.
Costs Incurred in Oil and Gas Acquisition, Exploration and Development
Costs incurred in oil and gas property acquisition, exploration and development activities which have been
capitalized are summarized as follows:
66
U.S. Canada Combined
(S in thousands)
Oil and gas properties:
Proved $ 1,095,363 $$ 1,095,363
Unproved 125,155 125,155
Total 1,220,518 1,220,518
Less accumulated depreciation, depletion and amortization (602,391) (602,391)
Net capitalized costs 8618,127 $$618,127
U.S. Canada Combined
(5 in thousands)
Oil and gas properties:
Proved $865,516 $$865,516
Unproved 128,505 128,505
Total 994,021 994,021
Less accumulated depreciation, depletion and amortization (431,983) (431,983)
Net capitalized costs $562,038 $$562,038
U.S. Canada Combined
(8 in thousands)
Oil and gas properties:
Proved $ 2,060,076 $82,867 $ 2,142,943
Unproved 44,780 7,907 52,687
Total 2,104,856 90,774 2,195,630
Less accumulated depreciation, depletion and amortization (1,556,284) (17,998) (1,574,282)
Net capitalized costs $548,572 $72,776 $621,348