Chesapeake Energy 1996 Annual Report Download - page 62

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II. 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 sum-
marized as follows:
Unproved properties not subject to amortization at
June 30, 1996 and 1995, consist mainly of lease acquisi-
tion costs. The company capitalized approximately
$6,428,000 and $1,574,000 of interest during the years
ended June 30, 1996 and 1995 on significant investments
in unproved properties that are not being currently de-
preciated, depleted, or amortized and on which explora-
tion or development activities are in progress. The com-
pany will continue to evaluate its unevaluated proper-
ties; however, the timing of the ultimate evaluation and
disposition of the properties has not been determined.
Costs Incurred in Oil and Gas
Acquisition, Exploration and
D eve I o e n t
Costs incurred in oil and gas property acquisition,
exploration and development activities which have been
capitalized are summarized as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Results of Operations from Oil and Gas
Producing Activities (unaudited)
The company's results of operations from oil and gas
producing activities are presented below for the years
ended June 30, 1996, 1995 and 1994, respectively. The
following table includes revenues and expenses associ-
ated directly with the company's oil and gas producing
activities. It does not include any allocation of the
company's interest costs and, therefore, is not necessarily
indicative of the contribution to consolidated net oper-
ating results of the company's oil and gas operations.
(a) Production costs include lease operating expenses
and production taxes.
June 30, 1996 1995 1994
($ in thousands)
Development costs $143,437 $ 81,833 $ 26,277
Exploration costs 39,410 14,129 5,358
Acquisition costs:
Unproved properties 138,188 24,437 3,305
Proved properties 24,560
Capitalized internal costs 1,699 586 965
Proceeds from sale of
leasehold, equipment
andother (11,416) (15,107) (7,598)
Total $335,878 $105,878 $ 28,307
June 30, 996 1995
($ in thousands)
Oil and gas properties:
Proved $ 363,213 $165,302
Unproved 165,441 27,474
Total 528,654 192,776
Less accumulated
depreciation, depletion
and amortization (92,720) (41,821)
Net capitalized costs $435,934 $150,955
June 30, 1996 1995 1994
($ in thousands)
Oil and gas sales $110,849 $56,983 $22,404
Production costs (a) (8,303) (4,256) (3,647)
Depletion and
depreciation (50,899) (25,410) (8,141)
Imputed income
tax provision (b) (18,335) (9,561) (3,610)
Results of operations
from oil and gas
producing activities $ 33,312 $17,756 $ 7,006
CHESAPEAKE E N60 C 0 R P 0 R A T 1 0 N