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Chesapeake Energy Corporation Announces $1.02 Billion Mississippi Lime Joint Venture



  Chesapeake Energy Corporation Announces $1.02 Billion Mississippi Lime Joint
  Venture

Business Wire

OKLAHOMA CITY -- February 25, 2013

Chesapeake Energy Corporation (NYSE:CHK) and Sinopec International Petroleum
Exploration and Production Corporation (Sinopec) today announced the execution
of an agreement which provides for Sinopec to purchase a 50% undivided
interest in 850,000 of Chesapeake’s net oil and natural gas leasehold acres in
the Mississippi Lime play in northern Oklahoma (425,000 acres net to Sinopec).
The total consideration for the transaction will be $1.02 billion in cash, of
which approximately 93% will be received upon closing. Payment of the
remaining proceeds will be subject to certain customary title contingencies.
Production from these assets (including Mississippi Lime and other
formations), net to Chesapeake’s interest and prior to Sinopec’s purchase,
averaged approximately 34 thousand barrels of oil equivalent per day in the
2012 fourth quarter and, as of December 31, 2012, there was approximately 140
million barrels of oil equivalent of net proved reserves associated with the
assets. All future exploration and development costs in the joint venture will
be shared proportionately between the parties with no drilling carries
involved. As the operator of the project, Chesapeake will conduct all leasing,
drilling, completion, operations and marketing activities for the joint
venture. The transaction is anticipated to be completed in the 2013 second
quarter.

Steven C. Dixon, Chesapeake’s Chief Operating Officer, said, “We are excited
to announce the execution of our Mississippi Lime joint venture with Sinopec,
which moves us further along in achieving our asset sales goals and secures an
excellent partner to share the capital costs required to actively develop this
very large, liquids-rich resource play.”

Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of
natural gas, a Top 11 producer of oil and natural gas liquids and the most
active driller of new wells in the U.S. Headquartered in Oklahoma City, the
company's operations are focused on discovering and developing unconventional
natural gas and oil fields onshore in the U.S. Chesapeake owns leading
positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa,
Mississippi Lime and Niobrara unconventional liquids plays and in the
Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale
plays. The company has also vertically integrated its operations and owns
substantial marketing and oilfield services businesses through its
subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield
Operating, L.L.C. Further information is available at www.chk.com where
Chesapeake routinely posts announcements, updates, events, investor
information, presentations and news releases.

This news release includes "forward-looking statements" that give Chesapeake's
current expectations or forecasts of future events. Although we believe the
expectations and forecasts reflected in our forward-looking statements are
reasonable, we can give no assurance they will prove to have been correct.
They can be affected by inaccurate assumptions or by known or unknown risks
and uncertainties, and actual results may differ from the expectation
expressed. The Sinopec sale transaction is subject to closing conditions and
may not be completed in the time frame anticipated. Following the closing,
Chesapeake may not be able to satisfy all the requirements necessary to
receive the sale proceeds subject to title contingencies. We caution you not
to place undue reliance on our forward-looking statements, which speak only as
of the date of this news release, and we undertake no obligation to update
this information.

Contact:

Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
Gary T. Clark, CFA, 405-935-6741
gary.clark@chk.com
or
Media Contacts:
Michael Kehs, 405-935-2560
michael.kehs@chk.com
or
Jim Gipson, 405-935-1310
jim.gipson@chk.com
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