Chesapeake Energy 2013 Annual Report Download - page 131

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
123
For accounting purposes, cash proceeds from the sale of VPPs were reflected as a reduction of natural gas and
oil properties with no gain or loss recognized, and our proved reserves were reduced accordingly. We have also
committed to purchase natural gas and liquids associated with our VPP transactions. Production purchased under
these arrangements is based on market prices at the time of production, and the purchased natural gas and liquids
are resold at market prices.
Our outstanding VPPs consist of the following:
Volume Sold
VPP # Date of VPP Location Proceeds Natural
Gas Oil NGL Total
($ in millions) (bcf) (mmbbl) (mmbbl) (bcfe)
10 March 2012 Anadarko Basin Granite
Wash $ 744 87 3.0 9.2 160
9 May 2011 Mid-Continent 853 138 1.7 4.8 177
8 September 2010 Barnett Shale 1,150 390 — — 390
6 February 2010 East Texas and Texas
Gulf Coast 180 44 0.3 — 46
5 August 2009 South Texas 370 67 0.2 — 68
4 December 2008 Anadarko and Arkoma
Basins 412 95 0.5 — 98
3 August 2008 Anadarko Basin 600 93 — — 93
2 May 2008 Texas, Oklahoma and
Kansas 622 94 — — 94
1 December 2007 Kentucky and West
Virginia 1,100 208 — — 208
$ 6,031 1,216 5.7 14.0 1,334