Chesapeake Energy 1994 Annual Report Download - page 47

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NOTE 10. 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:
Unproved properties not subject to amortization at June
30, 1994 and 1993, consist mainly of lease acquisition
costs. The company capitalized approximately $356,000,
$192,000 and $0 of interest during the years ended June
30, 1994, 1993, and 1992 on significant investments in
unproved properties that are not being currently
depreciated, depleted, or amortized and on which
exploration or development activities are in progress. 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.
CHESAPEAKE ENERGY CORPORATION
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:
RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCING
ACTIVITIES (UNAUDITED)
The company's results of operations from oil and gas
producing activities are presented below for the years ended
June 30, 1994, 1993 and 1992, respectively. The following
table includes revenues and expenses associated directly
with the company's oil and gas producing activities. It does
not include any allocation of the company's interest costs
and, therefore, is not necessarily indicative of the
contribution to consolidated net operating results of the
company's oil and gas operations.
Production costs include lease operating expenses and
production taxes.
The imputed income tax provision is hypothetical and
determined without regard to the company's deduction
for general and administrative expenses, interest costs
and other income tax credits and deductions.
45
#OF
OPTIONS
OPTION
PRICES
Options outstanding
at June 30, 1992
Options granted 286,300 $9.60 $12.00
Options exercised
Options terminated (1,080) $9.60
Options outstanding at
June 30, 1993 285,220 $9.60 $12.00
Options granted 309,500 $5.00 $7.70
Options exercised
Options terminated (41,100) $5.00 -$9.60
Options outstanding at
June 30, 1994 553,620 $5.00 $12.00
YEARS ENDED JUNE 30, 1994 1993 1992
)$ IN THOUSANDS)
Development costs $21,812 $12,263 $27,841
Exploration costs 5,358 1,123 724
Acquisition costs:
Unproved properties 3,305 1,364
Proved properties 3,320 976 2,233
Capitalized internal costs 2,110 1,080 449
Proceeds from sale of
leasehold, equipment
and other (7,598) (3,943) (5,500)
Total $28,307 $12,863 $25,747
YEARS ENDED JUNE 30, 1994 1993 1992
($ IN THOUSANDS)
Oil and gas properties:
Proved $83,170 $56,181 $45,729
Unproved 3,729 2,411
Total $86,899 $58,592 $45,729
Less accumulated
depreciation, depletion
and amortization (16,417) (8,276) (4,091)
Net capitalized costs $70,482 $50,316 $41,638
YEARS ENDED JUNE 30, 1994 1993 1992
)$ IN THOUSANDS)
Oil and gas sales $22,404 $11,602 $10,520
Production costs (a) (3,647) (2,890) (2,103)
Depletion and
depreciation (8,141) (4,184) (2,910)
Imputed income tax
provision (b) (3,610) (1,540) (1,872)
Results of operations
from oil and gas
producing activities $7,006 $2,988 $3,635