Chesapeake Energy 2013 Annual Report Download - page 163

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
SUPPLEMENTARY INFORMATION – (Continued)
155
assigned in the structurally higher portions of the reservoir only if geoscience, engineering or performance data and
reliable technology establish the higher contact with reasonable certainty. Reserves which can be produced
economically through application of improved recovery techniques (including, but not limited to, fluid injection) are
included in the proved classification when: (i) successful testing by a pilot project in an area of the reservoir with
properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or
an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the
engineering analysis on which the project or program was based; and (ii) the project has been approved for development
by all necessary parties and entities, including governmental entities.
Developed natural gas, oil and NGL reserves are reserves of any category that can be expected to be recovered
through existing wells with existing equipment and operating methods or in which the cost of the required equipment
is relatively minor compared to the cost of a new well.
The information below on our natural gas, oil and NGL reserves is presented in accordance with regulations
prescribed by the SEC. Our reserve estimates are generally based upon extrapolation of historical production trends,
analogy to similar properties and volumetric calculations. Accordingly, these estimates will change as future information
becomes available and as commodity prices change. Such changes could be material and could occur in the near
term.
Presented below is a summary of changes in estimated reserves for 2013, 2012 and 2011.
Gas Oil NGL Total
(bcf) (mmbbl) (mmbbl) (mmboe)
December 31, 2013
Proved reserves, beginning of period ..................................... 10,933 495.5 297.3 2,615
Extensions, discoveries and other additions .................... 2,160 96.3 68.0 524
Revisions of previous estimates....................................... 388 (61.1) (32.9) (30)
Production ........................................................................ (1,095) (41.1) (20.9) (244)
Sale of reserves-in-place ................................................. (657) (66.4) (13.1) (189)
Purchase of reserves-in-place ......................................... 5 0.6 0.6 2
Proved reserves, end of period(a) ................................................ 11,734 423.8 299.0 2,678
Proved developed reserves:
Beginning of period .......................................................... 7,174 162.9 132.1 1,491
End of period.................................................................... 8,584 201.3 177.1 1,809
Proved undeveloped reserves:
Beginning of period .......................................................... 3,759 322.6 165.2 1,124
End of period(b) ................................................................. 3,150 222.5 121.9 869