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# OF

OPTION

OPTIONS

PRICES

COSTS INCURRED IN

Costs incurred in oil and gas property acquisition, exploration and development activities which have been

Options outstanding at June 30, 1992 Options granted

OIL AND GAS ACQUISITION,

EXPLORATION AND DEVELOPMENT

capitalized are summarized as follows:

286,300

$9.60

$12.00

YEARS ENDED JUNE 30,

Options terminated

$9.60

285,220

Options granted

309,500

$5.00

Options terminated

(41,100)

$5.00 -$9.60

Options outstanding at June 30, 1994

553,620

$9.60

$12.00 $7.70

Options exercised

$5.00

$12.00

Development costs $21,812 $12,263 $27,841 1,123 724 Exploration costs 5,358 Acquisition costs: Unproved properties 1,364 3,305 Proved properties 976 2,233 3,320 1,080 449 Capitalized internal costs 2,110 Proceeds from sale of leasehold, equipment and other (5,500) (7,598) (3,943) Total

NOTE 10. DISCLOSURES ABOUT OIL AND GAS PRODUCING ACTIVITIES

$28,307

$12,863

$25,747

RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED)

NET CAPITALIZED COSTS

The company's results of operations from oil and gas

Evaluated and unevaluated capitalized costs related to

the company's oil and gas producing activities are summarized as follows: 1994

1993

1992

($ IN THOUSANDS)

Oil and gas properties: Proved Unproved Total

1992

)$ IN THOUSANDS)

(1,080)

Options outstanding at June 30, 1993

YEARS ENDED JUNE 30,

1993

1994

Options exercised

$83,170 3,729 $86,899

$56,181 2,411 $58,592

$45,729

table includes revenues and expenses associated directly with the company's oil and gas producing activities. It does not include any allocation of the company's interest costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of the company's oil and gas operations. YEARS ENDED JUNE 30,

$45,729

Less accumulated depreciation, depletion (16,417) (8,276) (4,091) and amortization Net capitalized costs $70,482 $50,316 $41,638

Unproved properties not subject to amortization at June

30, 1994 and 1993, consist mainly of lease acquisition costs. The company capitalized approximately $356,000, $192,000 and $0 of interest during the years ended June 30, 1994, 1993, and 1992 on significant investments in unproved properties that are not being currently depreciated, depleted, or amortized and on which exploration or development activities are in progress. The company will continue to evaluate its unevaluated properties; however, the timing of the ultimate evaluation and disposition of the properties has not been determined.

CHESAPEAKE ENERGY CORPORATION

producing activities are presented below for the years ended June 30, 1994, 1993 and 1992, respectively. The following

1994

1992

1993

)$ IN THOUSANDS)

Oil and gas sales Production costs (a) Depletion and depreciation Imputed income tax provision (b) Results of operations from oil and gas producing activities

$22,404 $11,602 $10,520 (3,647) (2,890) (2,103) (8,141)

(4,184)

(2,910)

(3,610)

(1,540)

(1,872)

$7,006

$2,988

$3,635

Production costs include lease operating expenses and production taxes.

The imputed income tax provision is hypothetical and determined without regard to the company's deduction for general and administrative expenses, interest costs and other income tax credits and deductions.

45

Profile for Chesapeake Energy

Annual Report 1994  

Annual Report 1994