Chesapeake Energy 1994 Annual Report Download - page 30

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SUPPLEMENTAL SCHEDULE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES:
During the year ended June 30, 1992, accounts
receivable in the amount of $1,049,000 were settled by an
acceptance of an assignment of a working interest in
specified wells. The trade receivable due from the industry
partner was reclassified to oil and gas properties.
During the year ended June 30, 1992, the company
executed note agreements with several vendors to formalize
payment terms on approximately $3,700,000 of accounts
payable.
During the year ended June 30, 1993, notes payable in
the amount of $7,500,000 were converted to preferred
stock.
On June 30, 1994 and 1993, the company became the
legal and beneficial owner of certain oil and gas equipment
inventory. The total purchase price to be paid for the
The accompanying notes are an integral part of these consolidated financial statements.
equipment is $5,952,000 and $2,498,000, respectively. No
cash consideration will be exchanged for the inventory
until actual draws on the inventory are made.
On March 31, 1994, the company issued 8,000 units
(see Note 2) to Trust Company of the West ("TCW")
primarily in consideration for TCW's surrender of 576,923
shares of the company's 9% convertible preferred stock,
including its rights to dividends ($725,000 accrued but
unpaid at December 31, 1993).
In February 1994, pending litigation against the
company's subsidiary, Chesapeake Operating, Inc. ("COT"),
was settled. The agreement requires COI to pay $1.25
million, of which $250,000 plus interest was paid in July
1994, and the balance of which will be payable over six
years in equal quarterly installments with 7% interest.
28 CHESAPEAKE ENERGY CORPORATION