Chesapeake Energy 2000 Annual Report Download - page 8

Primary Operating Areas
Mid-Continent
Chesapeake's Mid-Continent
proved reserves of 967 bcfe
represented 71% of our total
proved reserves as of
December 31, 2000, and this
area produced 78.3 bcfe, or
58% of our 2000 production.
During 2000, we invested
approximately $109.1 million
to drill 311 (149.8 net) wells
in the Mid-Continent. We
anticipate spending approxi-
mately 60% to 70% of OUF
total budget for exploration
and development activities in
the Mid-Continent region
during 2001. We anticipate
the Mid-Continent will con-
tribute approximately 116 bcfe
of production during 2001,
or 65% of expected total
production.
Other Operating Area
Gulf Coast
Chesapeake's Gulf Coast
proved reserves (consisting
primarily of the Deep Giddings
Field in Texas and the Austin
Chalk and Tuscaloosa Trends
in Louisiana) represented 158
bcfe, or 12% of our total
proved reserves as of
December 31, 2000. During
2000, the Gulf Coast assets
produced 35.2 bcfe, or 26% of
our total production. During
2000, we invested approxi-
mately $21.5 million to drill
12(6.4 net) wells in the Gulf
Coast. In 2001, we anticipate
the Gulf Coast will contribute
approximately 38 bcfe of pro-
duction, or 21% of expected
total production. We anticipate
spending approximately 15%
to 20% of our total budget for
exploration and development
activities in the Gulf Coast
region during 2001.
Northwest Territory
British
Columhia
Alberta
Helmet
Chesapeake's Canadian
proved reserves of 159 bcfe
represented 12% of our total
proved reserves at December
31, 2000. During 2000, pro-
duction from Canada was 121
bcfe, or 9% of our total pro-
duction. During 2000, we
invested approximately $13.6
million to drill 14 (6.9 net)
wells, install various pipelines
and compressors and to
perform capital workovers in
Canada. We anticipate
spending approximately 9%
of our total budget for
exploration and development
activities in Canada during
2001 and expect production
of 15 bcfe in Canada, or
8% of our estimated total
production for 2001.
In addition to the primary operating areas
described above, which consist primarily of natural
gas properties, Chesapeake maintains operations
in the Williston Basin of North Dakota, Montana,
and Saskatchewan, Canada which are focused on
developing oil properties. In 2000, these areas
contributed 2.4 bcfe, or 2% of our total produc-
tion. In 2001, production levels should increase
to approximately 4 bcfe as a result of allocating
approximately 2% of our total budget for explo-
ration and development activities in these areas.
Pe
Chesapeake's Permian Basin
proved reserves, consisting
primarily of the Lovington area
in New Mexico, represented
21 bcfe, or 2% of our total
proved reserves as of
December 31, 2000. During
2000, the Permian assets pro-
duced 6.2 bcfe, or 5% of our
total production. We anticipate
the Permian Basin will con-
tribute approximately 5 bcfe of
production during 2001, or
3% of expected total produc-
tion. During 2000, we invested
approximately $13.6 million to
drill 13(8.8 net) wells in the
Permian Basin. For 2001, we
anticipate spending approxi-
mately 3% to 4% of our total
budget for exploration and
development activities in the
Permian Basin.
Proved Reserves
by Area (rnmcfe
Mid-Continent 74%
Gulf Coast 9%
.- Canada 10%
Pennian 4%
Other 3%
Chesapee 6
Saskatchewan
Montana North Dakota