Chesapeake Energy 1999 Annual Report Download - page 14

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Included in the above table are the results of Canadian operations during 1999 and 1998. The average sales price
for the Company's Canadian gas production was $1.19 and $1.03 during 1999 and 1998, respectively, and the
Canadian production expenses were $0.18 and $0.24 per Mcfe, respectively.
Proved Reserves
The following table sets forth the Company's estimated proved reserves and the present value (discounted at
10%) of the proved reserves (based on weighted average prices at December 31, 1999 of $24.72 per barrel of oil and
$2.25 per Mcf of gas):
During 1999, Chesapeake increased its proved developed reserve percentage to 80% by present value and 72%
by volume, and natural gas reserves accounted for 88% of proved reserves at December 31, 1999.
DeveLopment, Exploration and Acquisition Expenditures
The following table sets forth certain information regarding the costs incurred by the Company in its
development, exploration and acquisition activities during the periods indicated:
-4-
Years Ended
December 31. Six Months Ended
December 31,
1997
Year Ended
June 30,
1997
1999 1998
Net production:
Oil (MBbI) 4,147 5,976 1,857 2,770
Gas (MMcf) 108,610 94,421 27,326 62,005
Gas equivalent (MMcfe) 133,492 130,277 38,468 78,625
Oil and gas sales (S in 000's):
Oil $66,413 $75,877 $34,523 $57,974
Gas 214,032 181,010 61,134 134.946
Total oil and as sales 5280 445 $256.887 $95657 $ 192.920
Average sales price:
Oil($perBbl) S16.01 $12.70 $18.59 $20.93
Gas (S per Mcf) $1.97 $1.92 $2.24 $2.18
Gas equivalent ($ per Mcfe) $2.10 $1.97 $2.49 $2.45
Oil and gas costs (S per Mcfe):
Production expenses $.35 $.39 $.20 $.14
Production taxes $.10 $.06 $.07 $.05
General and administrative $.10 $.15 $.15 $.11
Depreciation, depletion and amortization $ .71 $1.13 $1.57 $1.31
Gas Percent
of Present
Value
Oil Gas Equivalent Proved (Disc. 10%)
(MabI) (MMcf) (MMcfe) Reserves (S in 000's)
Mid-Continent 12,230 684,178 757,559 63% $663,993
Gulf Coast 4,169 164,693 189,708 15 211,348
Canada -178,242 178,242 15 97,749
Other areas 29.7 13 80.086 7116,406
Total 24.795 1.056,826 1.205.595 .i.OQ% 5 1,089.496
Years Ended
December 31.
Six Months
Ended
December 31,
1997
Year Ended
June 30,
1997
1999 1998 (Sin thousands)
Development and leasehold costs $ 126,865 $ 176,610 $ 144,283 $ 324,989
Exploration Costs 23,693 68,672 40,534 136,473
Acquisition costs 52,093 740,280 39,245 -
Sales of oil and gas properties (45,635) (15,712)
Capitalized internal costs 2710 5 262 2,435 3.905
Total S 159726 $ 975.112 $ 226.497 S 465,367