Chesapeake Energy 1999 Annual Report Download - page 23

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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%.
Productive Well. A well that is producing oil or gas or that is capable of production.
Proved Developed Reserves. Reserves that can be expected to be recovered through existing wells with existing
equipment and operating methods.
Proved Reserves. The estimated quantities of crude oil, natural gas and natural gas liquids which geological and
engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs
under existing economic and operating conditions.
Proved Undeveloped Location. A site on which a development well can be drilled consistent with spacing rules
for purposes of recovering proved undeveloped reserves.
Proved Undeveloped Reserves. Reserves that are expected to be recovered from new wells drilled to known
reservoir on undrilled acreage or from existing wells where a relatively major expenditure is required for
recompletion.
Royalty Interest. An interest in an oil and gas property entitling the owner to a share of oil or gas production free
of costs of production.
Tcf One trillion cubic feet.
Tcfe. One trillion cubic feet of gas equivalent.
Undeveloped Acreage. Lease acreage on which wells have not been drilled or completed to a point thatwould
permit the production of commercial quantities of oil and gas regardless of whether such acreage contains proved
reserves.
Working Interest. The operating interest which gives the owner the right to drill, produce and conduct operating
activities on the property and a share of production.
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