Chesapeake Energy 2000 Annual Report Download - page 28

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.
Btu. 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.
EBITDA. Net income (loss) before interest expense, income taxes, depreciation, depletion and
amortization, impairments of oil and gas properties and other assets, extraordinary items, and certain other
non-cash charges. EBITDA is not a measure of cash flow as determined by generally accepted accounting
principles. EBITDA information has been included in this report because EBITDA is a measure used by some
investors in determining historical ability to service indebtedness. EBITDA should not be considered as an
alternative to, or more meaningful than, net income or cash flows as determined in accordance with generally
accepted accounting principles as an indicator of operating performance or liquidity.
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.
Full-Cost Pool. The full-cost pooi consists of all costs associated with property acquisition, exploration,
and development activities for a company using the full-cost method of accounting. Additionally, any internal
costs that can be directly identified with acquisition, exploration and development activities are included. Any
costs related to production, general corporate overhead or similar activities are not included.
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.
Mbbl. 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.
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