Chesapeake Energy 1995 Annual Report Download - page 50

Option Committee of the Board of Directors. No options
may be granted under the ISO Plan after December 16,
1994.
Under the Company's 1992 Nonstatutory Stock
Option Plan (the "NSO Plan"), non-qualified options to
purchase Common Stock may be granted only to directors
and consultants of the Company. Subject to any
adjustment as provided by the NSO Plan, the aggregate
number of shares which may be issued and sold may not
exceed 696,000 shares. The maximum period for exercise
of an option may not be more than ren years from the date
of grant, and the exercise price may not be less than the fair
market value of the shares underlying the options on the
date of grant. Options granted become exercisable at dates
determined by the Stock Option Committee of the Board
of Directors. No options may be granted under the NSO
Plan after December 10, 2002.
Under the Company's 1994 Stock Option Plan (the
"1994 Plan"), incentive and nonqualified stock options to
purchase Common Stock may be granted to employees of
the Company and its subsidiaries. Subject to any
adjustment as provided by the 1994 Plan, the aggregate
number of shares which may be issued and sold may not
exceed I ,085,980 shares. The maximum period for exercise
of an option may nor be more than ten years from the date
of grant, and the exercise price may not be less than the fair
market value of the shares underlying the options on the
date of grant. Options granted become exercisable at dates
determined by the Stock Option Committee of the Board
of Directors. No options may be granted under the 1994
Plan after December 16, 2004.
The exercise of stock options results in state and federal
income tax benefits to the Company related to the
difference between the market price of the Common Stock
at the date of disposition (or sale) and the option price.
During fiscal 1995, $1,229,000 was credited to additional
paid-in capital with respect to such tax beneflts.
10. DISCLOSURES ABOUT OIL
AND GAS PRODUCING ACTIVITIES
NET CAPTAUZED COSTS
Evaluated and unevaluated capitalized costs related to
the Company's oil and gas producing activities are
summarized as follows:
# OF OPTIONS OPTION PRICES
Options granted 393,680 $ 2.50 $ 6.00
Options exercised
Options terminated
Options outstanding at
June 30, 1993 393,680 $ 2.50 $ 6.00
Options granted 729,000 $ 2.50 $ 3.85
Options exercised
Options terminated (4,160) $2.50- $3.00
Options outstanding at
June 30, 1994 1,118,520 $ 2.50 $ 6.00
Options granted 707,900 $10.13 -$22.13
Options exercised (286,385) $ 2.50 $ 6.00
Options terminated (22,570) $2.50- $10.13
Options outstanding at
June 30, 1995 1,517,465 $ 2.50- $22.13
YEARS ENDED JUNE 30, 1995 1994 1993
Oil and gas properties: ($ IN THOUSANDS)
Proved $ 165,302 $ 83,170 $ 56,181
Unproved 27,474 3,729 2,411
Total 192,776 86,899 58,592
Less accumulated
depreciation, depletion
and amortization (41,821) (16,417) $( 8,276)
Net capitalized costs $ 150,955 $ 70,482 $50,316
48 CHESAPEAKE ENERGY CORPORATION