Chesapeake Energy 1997 Annual Report Download - page 29

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Glossary
The terms defined in this section are used throughout this Form 10-K.
Bcf Billion cubic feet.
Bcfe. Billion cubic feet of gas equivalent.
Bbl. One stock tank barrel, or 42 U.S. gallons liquid volume, used herein in reference to crude oil or other
liquid hydrocarbons.
Blu. British thermal unit, which is the heat required to raise the temperature of a one-pound mass of
water from 58.5 to 59.5 degrees Fahrenheit.
Commercial Well, Commercially Productive Well. An oil and gas well which produces oil and gas in
sufficient quantities such that proceeds from the sale of such production exceed production expenses and
taxes.
Developed Acreage. The number of acres which are allocated or assignable to producing wells or wells
capable of production.
Development Well. A well drilled within the proved area of an oil or gas reservoir to the depth of a
stratigraphic horizon known to be productive.
Dry Hole; Dry Well. A well found to be incapable of producing either oil or gas in sufficient quantities to
justify completion as an oil or gas well.
Exploratory Well. A well drilled to find and produce oil or gas in an unproved area, to find a new
reservoir in a field previously found to be productive of oil or gas in another reservoir or to extend a known
reservoir.
Farmout. An assignment of an interest in a drilling location and related acreage conditional upon the
drilling of a well on that location.
Formation. A succession of sedimentary beds that were deposited under the same general geologic
conditions.
Gross Acres or Gross Wells. The total acres or wells, as the case may be, in which a working interest is
owned.
Horizontal Wells. Wells which are drilled at angles greater than 70 from vertical.
MBb1. One thousand barrels of crude oil or other liquid hydrocarbons.
MBtu. One thousand Btus.
Mcf One thousand cubic feet.
Mcfe. One thousand cubic feet of gas equivalent. I
MMBb1. One million barrels of crude oil or other liquid hydrocarbons.
MMBtu. One million Btus.
MMcf One million cubic feet.
MMcfe. One million cubic feet of gas equivalent.
Net Acres or Net Wells. The sum of the fractional working interest owned in gross acres or gross wells.
Present Value. When used with respect to oil and gas reserves, present value means the estimated future
gross revenue to be generated from the production of proved reserves, net of estimated production and future
development costs, using prices and costs in effect at the determination date, without giving effect to
non-property related expenses such as general and administrative expenses, debt service and future income tax
expense or to depreciation, depletion and amortization, discounted using an annual discount rate of 10%.
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