This excerpt taken from the CHK 8-K filed Nov 1, 2005.
Capitalized Internal Cost
The Company capitalizes specific internal cost associated with leasehold acquisition, geological and engineering work performed in the exploration and development of oil and gas properties. The amount of internal cost capitalized for the periods ended December 31, 2004 and 2003, was $2.9 million and $0, respectively.
Columbia Energy Resources, LLC (a wholly owned
subsidiary of Triana Energy Holdings, LLC)
Notes to Consolidated Financial Statements (continued)
2. Critical Accounting Policies and Estimates (continued)