# 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