Chesapeake Energy 1995 Annual Report Download - page 7
Download and view the complete annual report
Please find page 7 of the 1995 Chesapeake Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.LETTER TO SHAREHOLDERS
THREE-YEAR INVENTORY OF DRILLSITES
A leading indicator of an energy company's potential for future success is the
size and quality of its inventory of future drilling projects. Chesapeake's three-
year inventory of undrilled locations is our second competitive advantage and
provides a strong foundation for our continued reserve and production
growth.
The greatest challenge facing all energy producers is the need to replace the
oil and natural gas reserves that deplete through daily oil and natural gas
production. Similarly, the greatest challenge facing energy investors is the need
to identify companies that can continue to grow their reserves and production.
Rather than requiring an investor to speculate as to how Chesapeake might
replace its depleting reserves with unspecified drilling or future property
acquisitions, we have indentified 500 future drillsites on Chesapeake's existing
leasehold.
This inventory consists of undrilled locations in the Navasota River,
Independence, Knox, Masters Creek, Sholem Alechem, and Arkoma Jackfork
project areas. We believe these future drilling opportunities have the potential
to more than double Chesapeake's current reserves of oil and natural gas. The
common theme linking these projects is Chesapeake's geological focus on
unconventional reservoirs. The company has developed all of these projects
during the past two years and is now working on several new project areas that
have the potential to produce new discoveries in fiscal 1997 and beyond.
Chesapeake Una'rilled Locations
Cheaspeake's operations are diversified
in seven major operating areas. Navasota River
Etuda/Ceorgetown
9% (45)
Knox
30% 11501
Sholem Alechern
10% 1501
Aikoma Jackfork
10% (50)
Miscellaneous
10% (50)
Masters Creek
10% (50)
Navasota River
Austin Chalk
6% (30)
Independence
15% 175)
UNDRILLED LOCATION INVENTORY
525
450
375
300
225
91 92 93
Chesapeake's prospect inventory
provides substantial future growth
opportunities.
CHESAPEAKE ENERGY CORPORATION 5