Chesapeake Energy 1999 Annual Report Download - page 69

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-59-
Unproved properties not subject to amortization at December 31, 1999 and 1998 consisted mainly of lease
acquisition costs. The Company capitalized approximately $3.5 million, $6.5 million, $5.1 million and $12.9 million
of interest during 1999, 1998, the Transition Period and fiscal 1997, respectively, on significant investments in
unproved properties that were not yet included in the amortization base of the full-cost pool. The Company will
continue to evaluate its unevaluated properties; 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 Development
Costs incurred in oil and gas property acquisition, exploration and development activities which have been
capitalized are summarized as follows:
Year Ended December 31, 1999 U.S. Canada Combined
(S in thousands)
Development and leasehold costs $95,329 $31,536 $ 126,865
Exploration costs 23,651 42 23,693
Acquisition costs 47,993 4,100 52,093
Sales of oil and gas properties (44,822) (813) (45,635)
Capitalized internal costs 2,710 2,710
Total $124,861 $34.865 $ 159726
Year Ended December 31, 1998 U.S. Canada Combined
($ in thousands)
Development and leasehold costs $169,491 $7,119 $ 176,610
Exploration costs 63,245 5,427 68,672
Acquisition costs 662,104 78,176 740,280
Sales of oil and gas properties (15,712) (15,712)
Capitalized internal costs 5.262 5,262
$884.390 $90.722 S 975j12
Total
Six Months Ended December 31, 1997 U.S. Canada Combined
(S in thousands)
Development and leasehold costs $144,283 $$ 144,283
Exploration costs 40,534 40,534
Acquisition costs 39,245 39,245
Capitalized internal costs 2.43 5 2.43 5
£226.497 $$ 226.497
Total
December 31, 1999 U.S. Canada Combined
Oil and gas properties: (S in thousands)
Proved $ 2,193,492 $121,856 $ 2,315,348
Unproved 36.225 3,783 40.008
Total 2,229,717 125,639 2,355,356
Less accumulated depreciation, depletion and amortization (1,645. 185) (25,3 57) (1,670.542)
Net capitalized costs $584 532 $100282 $684.814
December 31, 1998 U.S. Canada Combined
($ in thousands)
Oil and gas properties:
Proved $ 2,060,076 $82,867 $ 2,142,943
Unproved 44,780 7 907 52,687
Total 2,104,856 90,774 2,195,630
Less accumulated depreciation, depletion and amortization (1,556,284) (17 998) (1,574.282)
Net capitalized costs $548.572 $72.776 $621.348