Chesapeake Energy Corp. reported yesterday that its provedreserves increased by 37% over a year ago to 1,655 Bcfe, with areserve replacement rate of 435% and reserve replacement costs of$1.04 per Mcfe. The company also reported the recent completion ofCarl No. 1-H, the company’s second consecutive important Georgetownexploratory success in Washington County, TX.

Reserves rose 301 Bcfe after the company completed itsacquisition of Gothic Energy last month. Excluding the Gothicpurchase, Chesapeake grew its proved reserves to 1,355 Bcfe, up 149Bcfe and a reserve replacement rate of 211%.

Located in the Deep Giddings Field, the second well beganoperation on Jan. 31and is currently producing 23 MMcf/d.Chesapeake owns a 55% interest in the Carl and Belco Oil & GasCorp., which owns a 23.8% stake in the well.

Based on 28 MMcf/d from the first Georgetown well (Ricks well),and 23 MMcf/d from the Carl well, prospects look good for the thirdGeorgetown exploratory well to be drilled in Independence laterthis year. Chesapeake said it expects to grow to a four-to-five rigGeorgetown drilling program within the next 90 days.

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