Chesapeake Energy 1996 Annual Report Download - page 22

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PRIMARY OPERATING AREAS
Southern Oklahoma
During the past three years,
Chesapeake has also devel-
oped two important new
projects in Oklahoma, Knox and
Sholem Alechem. In Knox, Chesa-
peake was the first company to es-
tablish commingled production from
the Sycamore, Woodford, Hunton,
and Viola fractured carbonates below
15,000 feet. As a result of this drill-
ing success, an aggressive leasehold ac-
quisition program, and the purchase
ofAmerada Hess' working interest in
Chesapeake's wells, the company be-
lieves it can dominate the future de-
velopment of what has become the
most active field in the Mid-Conti-
nent region.
Through fiscal 1996, Chesapeake
successfully completed 41 Knox wells
and was drilling or completing seven
additional wells. Chesapeake's acre-
age inventory of 65,000 gross acres
in the Knox area could support the
drilling of approximately 150-250
additional wells.
Elsewhere in southern Oklahoma,
Chesapeake has enjoyed considerable
CHESAPEAKE ENERGY CORPORATION
Knox
Lindsay Field
Office
success in the Sholem Alechem por-
tion of southern Oklahoma's giant
Sho-Vel-Tum field. Since its discov-
ery more than 80 years ago, this field
has produced more than one billion
barrels of oil and one trillion cubic
feet of natural gas. Chesapeake initi-
ated its Sholem Alechem project on
the belief that the area's geological
environment would be conducive to
the application of the company's
expertise with horizontal drilling
technology.
AREAS OF OPERATION
Sholem Alechem
Lindsay Field
Office
Stephens
County
Garvin
County
Carter
County
Sholem
Alechem
Chesapeake believes its results help
prove the company's theory that by
the innovative application of horizon-
tal drilling and 3-D seismic technolo-
gies, significant new reserves of oil
and gas can be developed, even in
fields once considered fully explored.
Through fiscal 1996, the company
had drilled 25 successful horizontal
wells in SholemAlechem and believes
its acreage inventory could support
the drilling of an additional 25-75
wells.
Drilled Wells 41
Undrilled Locations150-250 Drilled Wells 25
Undrilled Locations 25-75