Chesapeake Energy 1998 Annual Report Download - page 90

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December 31, 1997
June 30. 1997
June 30. 1996
During 1998, the Company acquired approximately 750 Bcfe of proved reserves through merger or through
purchases of oil and gas properties. The total consideration given for the acquisitions was 30 8 million shares of
Company common stock, $280 million of cash, the assumption of $205 million of debt, and the incurrence of
approximately $20 million of other acquisition related costs. Also during 1998, the Company recorded downward
revisions to the December 31, 1997 estimates of approximately 4,082 MBb1 and 60,477 MMcf, or approximately 85
Bcfe. These reserve revisions were primarily attributable to lower oil and gas prices at December 31, 1998. The
weighted average prices used to value the Company's reserves at December 31, 1998 were $10.48 per barrel of oil
and $1.68 per Mcf of gas, as compared to the prices used at December 31, 1997 of $17.62 per barrel of oil and
$2.29 per Mcf of gas.
For the six months ended December 31, 1997, the Company recorded downward revisions to the June 30, 1997
reserve estimates of approximately 3,428 MBb1 and 24,189 MMcf, or approximately 45 Bcfe. The reserve revisions
70
U.S. Canada Combined
Oil
(MBbl) Gas Oil Gas
(MMcf) (Milbi) (MMcf) Oil Gas
(MBbI) (MMcfl
Proved reserves, beginning of period 12,258 351,224 -12,258 351,224
Extensions, discoveries and other
additions 13,874 147,485 -13,874 147,485
Revisions of previous estimates (5,989) (137,938) (5,989) (137,938)
Production (2,770) (62,005) -- -(2,770) (62,005)
Sale of reserves-in-place
Purchase of reserves-in-place
Proved reserves, end of period 17,373 298,766 17,373 298,766
Proved developed reserves:
Beginning of period 3,648 144,721 3,648 144,721
End ofperiod 7,324 151,879 151,879
U.S. Canada Combined
Oil
(MBbI) Gas Oil Gas
(MMcI) (MBbI) (MMcf) Oil Gas
(MBbI) (MMcf)
Proved reserves, beginning of period 5,116 211,808 5,116 211,808
Extensions, discoveries and other
additions 8,781 158,052 8,781 158,052
Revisions of previous estimates (669) 12,987 (669) 12,987
Production (1,413) (51,710) (1,413) (51,710)
Sale of reserves-in-place -
Purchase of reserves-in-place 443 20,087 443 20,087
Proved reserves, end of period 12,258 351,224 j351,224
Proved developed reserves:
Beginning of period 1,973 77,764 77,764
End ofperiod 3,648 144,721 144,721
U.S. Canada Combined
Oil
(MBbI) Gas Oil Gas
(MMcf) (MBbI) (MMcf) Oil
(MBbI) Gas
(MMcf)
Proved reserves, beginning of period 17,373 298,766 --17,373 298,766
Extensions, discoveries and other
additions 5,573 68,813 5,573 68,813
Revisions of previous estimates (3,428) (24,189) (3,428) (24,189)
Production (1,857) (27,327) (1,857) (27,327)
Sale of reserves-in-place ---
Purchase of reserves-in-place 565 23,055 565 23,055
Provedreserves,endofperiod 18,226 339,118 J33 339,118
Proved developed reserves:
Beginning of period 7,324 151,879 7,324 151,879
End ofperiod j, 178,082 10,087 178,082