This excerpt taken from the CHK 8-K filed Jul 28, 2006.
Now 14.0 Tcfe, Bringing Total Reserve Base to 22.1 Tcfe
Chesapeake attributes its strong drilling results and organic growth rates during 2006 (and in this decade) to managements early recognition that oil and natural gas prices were undergoing structural change and its subsequent decision to invest aggressively in the building blocks of value creation in the E&P industry people, land and science. During the past five years, Chesapeake has significantly strengthened its technical capabilities by increasing its land, geoscience and engineering staff by over 450% to nearly 800 employees. Today, the company has more than 4,100 employees, of which approximately 70% work in the companys E&P operations and approximately 30% work in the companys oilfield service operations.
Since 2000, Chesapeake has invested $4.7 billion in new leasehold and 3-D seismic acquisitions and now owns what it believes to be one of the largest inventories of onshore leasehold (9.7 million net acres) and 3-D seismic (12.9 million acres) in the U.S. On this leasehold, the company has an estimated 24,000 net drilling locations, representing an approximate 10-year inventory of drilling projects, on which it believes it can develop approximately 3.3 tcfe of proved undeveloped reserves and approximately 14.0 tcfe of unproved reserves. Adding the companys total proved reserves of 8.1 tcfe to its estimated 14.0 tcfe of unproved reserves brings Chesapeakes estimated total reserves to 22.1 tcfe.