Chesapeake Energy 2000 Annual Report Download - page 29

Mmbbl. One million barrels of crude oil or other liquid hydrocarbons.
Mmbtu. One million btus.
Mmcf One million cubic feet.
Mmcfe. One million cubic feet of gas equivalent.
Net Acres or Net Wells. The sum of the fractional working interest owned in gross acres or gross wells.
I\TYMEX. New York Mercantile Exchange.
Operating Cash Flow. The sum of income (loss) before income taxes and extraordinary item, plus oil
and gas depreciation, depletion and amortization, plus depreciation and amortization of other assets. Operating
cash flow should not be considered as an alternative to, or more meaningful than, cash flow from operating
activities as determined in accordance with generally accepted accounting principles as an indicator of
operating performance or liquidity.
Present Value or PV-1O. When used with respect to oil and gas reserves, present value or PV-l0 means the
estimated future gross revenue to be generated from the production of proved reserves, net of estimated
production and future development costs, using prices and costs in effect at the determination date, without
giving effect to non-property related expenses such as general and administrative expenses, debt service and
future income tax expense or to depreciation, depletion and amortization, discounted using an annual discount
rate of 10%.
Productive Well. A well that is producing oil or gas or that is capable of production.
Proved Developed Reserves. Reserves that can be expected to be recovered through existing wells with
existing equipment and operating methods.
Proved Reserves. The estimated quantities of crude oil, natural gas and natural gas liquids which
geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from
known reservoirs under existing economic and operating conditions.
Proved Undeveloped Location. A site on which a development well can be drilled consistent with
spacing rules for purposes of recovering proved undeveloped reserves.
Proved Undeveloped Reserves. Reserves that are expected to be recovered from new wells drilled to
known reservoir on undrilled acreage or from existing wells where a relatively major expenditure is required for
recompletion.
Royalty Interest. An interest in an oil and gas property entitling the owner to a share of oil or gas
production free of costs of production.
Tcf One trillion cubic feet.
Tcfe. One trillion cubic feet of gas equivalent.
Undeveloped Acreage. Lease acreage on which wells have not been drilled or completed to a point that
would permit the production of commercial quantities of oil and gas regardless of whether such acreage
contains proved reserves.
Working Interest. The operating interest which gives the owner the right to drill, produce and conduct
operating activities on the property and a share of production.
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