Chesapeake Energy 2008 Annual Report Download - page 15

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Sunset provides a spectacular
setting for a Chesapeake-
the next three years.
■
Chesapeake entered the Marcellus
Shale play in 2005 through its acquisition
of Columbia Natural Resources, LLC and
later expanded its leasing activities
■
Chesapeake is the largest leasehold owner
in the Marcellus Shale play that spans from
West Virginia across much of Pennsylvania
into southern New York
■
Chesapeake anticipates ending 2009 as
the most active driller and the largest
producer of natural gas from the Marcellus
■
In 2008, Chesapeake entered into a
joint venture and sold a 32.5% interest
in its Marcellus Shale assets, including
approximately 600,000 net acres of lease-
hold, to StatoilHydro for $3.375 billion of
cash and future drilling carries
■
During 2009 and 2010, 75% of Chesapeake’s
drilling costs, or approximately $650 million,
will be paid for by its joint venture partner
StatoilHydro
Letter to Shareholders
15