Chesapeake acquires US Midcontinent gas reserves

Chesapeake Energy Corp., Oklahoma City, on Wednesday announced that it has acquired over the past several weeks estimated proved reserves of 33 bcf of natural gas in Oklahoma's Arkoma basin in three transactions with a combined value of $22 million.


Chesapeake Energy Corp., Oklahoma City, on Wednesday announced that it has acquired over the past several weeks estimated proved reserves of 33 bcf of natural gas in Oklahoma's Arkoma basin in three transactions with a combined value of $22 million.

The reserves, consisting entirely of gas, were acquired for $0.67/Mcf. The assets have a reserves-to-production index of more than 9 years and, at unescalated prices of $2.50/Mcf and $3.50/Mcf, have estimated PV-10 values of $29.8 million and $48.3 million, respectively.

The properties are contiguous to or near Chesapeake's existing base of operations in eastern Oklahoma and have numerous drilling opportunities associated with them. The company plans an active drilling program on these properties during the remainder of 2000 and in the years ahead.

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