Chesapeake Energy (CHK)

COLUMBIA NATURAL RESOURCES, LLC

OKLAHOMA CITY, OKLAHOMA, NOVEMBER 16, 2005 – Chesapeake Energy Corporation (CHK:NYSE) has closed its previously announced acquisition of Columbia Natural Resources, LLC and certain affiliated entities (CNR) from Triana Energy Holdings, LLC. The purchase price was $2.95 billion, which consisted of $2.2 billion in cash and $0.75 billion in liabilities assumed at closing.

Through this transaction, Chesapeake acquired an internally estimated 2.5 trillion cubic feet of natural gas equivalent (tcfe) of proved, probable and possible (3P) reserves, comprised of 1.1 tcfe of proved reserves and 1.4 tcfe of probable and possible reserves. Current daily net production from the acquired properties is approximately 125 million cubic feet of natural gas equivalent, providing a proved reserves-to-production index of approximately 23 years and a proved developed reserves-to-production index of approximately 16 years. On the acquired properties, Chesapeake has identified approximately 1,300 proved undeveloped locations, 6,300 probable locations and 1,800 possible locations for a total of 9,400 undrilled locations, or an estimated drilling inventory of more than 15 years. The properties are principally located in West Virginia, Kentucky, Ohio, Pennsylvania and New York.

After allocating $175 million of the purchase price to the extensive mid-stream natural gas assets being acquired (including over 6,500 miles of natural gas gathering lines) and $500 million to the unevaluated portion of the 4.1 million net leasehold acres being acquired (3.5 million net acres in the U.S. and 0.6 million net acres in Canada), Chesapeake’s acquisition cost for the 1.1 tcfe of internally estimated proved reserves was approximately $2.275 billion, or $2.20 per thousand cubic feet of natural gas equivalent (mcfe). Based on the company’s projected development plan, which includes approximately $4.1 billion of

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anticipated future drilling and development costs, Chesapeake estimates that its all-in cost of acquiring and developing the 2.5 tcfe of 3P reserves will be approximately $2.79 per mcfe.

Chesapeake’s Appalachian proved reserves are long-lived, have low production decline rates (the proved developed producing base is projected to decline at less than 10% per year), are 99% natural gas, have an average BTU content of 1,140 and are 69% proved developed. In addition, gas sold from the properties generally receives a $0.25-0.50 per mmbtu premium to NYMEX gas prices, compared to basis differential discounts that are currently approximately $3.00 per mmbtu in various southwestern and western U.S. natural gas supply basins. Adjusting further for the favorable BTU content, Chesapeake’s Appalachian natural gas is today generating wellhead prices of up to $4.00 per mcfe more than typical southwestern and western U.S. natural gas production.

Chesapeake now owns an internally estimated 14.3 tcfe of proved and unproved oil and natural gas reserves, comprised of 7.3 tcfe of proved reserves (which are 92% natural gas and 100% onshore) and 7.0 tcfe of unproved reserves. The company intends to spend at least $200 million per year for the foreseeable future in further developing the acquired properties and is budgeting production growth from the acquired assets of 5-10% per year.

Following the announcement of the agreement to acquire CNR on October 3, 2005, Chesapeake hedged approximately 100 bcf of natural gas production at an average price of $10.76 per mmbtu. More specifically, the company hedged 7.4 bcf of fourth quarter 2005 gas production at a NYMEX price of $12.75 per mmbtu, 57.3 bcf of 2006 gas production at a NYMEX price of $11.40 per mmbtu, 23.7 bcf of 2007 gas production at a NYMEX price of $9.70 per mmbtu and 11.0 bcf of 2008 gas production at a NYMEX price of $8.37 per mmbtu. The hedged prices significantly exceed the pricing assumptions used by Chesapeake to value the properties.

Triana was formed in 2001 by management and executives of Metalmark Capital LLC as a Morgan Stanley Capital Partners portfolio company. Triana was advised in this transaction by Morgan Stanley & Co. Incorporated and Credit Suisse First Boston LLC.