Chesapeake Oilfield Operating, L.L.C. Announces Pricing of $500 Million Private Placement of 6.5% Senior Notes Due 2022

  Chesapeake Oilfield Operating, L.L.C. Announces Pricing of $500 Million
  Private Placement of 6.5% Senior Notes Due 2022

Business Wire

OKLAHOMA CITY -- June 12, 2014

Chesapeake Oilfield Operating, L.L.C., (the “Company”), an indirect
wholly-owned subsidiary of Chesapeake Energy Corporation (“Chesapeake”) (NYSE:
CHK) that will be renamed Seventy Seven Energy Inc. in connection with its
previously announced spin-off from Chesapeake, announced today the pricing of
$500 million in aggregate principal amount of 6.5% senior unsecured notes due
2022 (the “Notes”) in a private placement under Rule144A and Regulation S of
the Securities Act of 1933, as amended (the “Securities Act”), to eligible
purchasers. The Notes mature on July 15, 2022 and will be issued at par.

The Company intends to use the net proceeds from the private placement to make
a cash distribution to COS Holdings, L.L.C., its direct parent, to repay all
outstanding indebtedness under the Company’s new asset backed lending credit
facility to be entered into in connection with the spin-off and for general
corporate purposes. The offering of the Notes is not conditioned on the
consummation of the spin-off from Chesapeake.

The offering of the Notes is expected to close on June 26, 2014, subject to
customary conditions.

The securities to be sold have not been registered under the Securities Act,
or any state securities laws, and unless so registered, the securities may not
be offered or sold in the United States except pursuant to an exemption from,
or in a transaction not subject to, the registration requirements of the
Securities Act and applicable state securities laws. The Company plans to
offer and sell the notes only to qualified institutional buyers pursuant to
Rule144A under the Securities Act and to persons outside the United States
pursuant to Regulation S under the Securities Act.

This press release shall not constitute an offer to sell, or the solicitation
of an offer to buy, any of these securities, nor shall there be any sale of
these securities in any state in which such offer, solicitation, or sale would
be unlawful prior to registration or qualification under the securities laws
of such states.

Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of
natural gas and the 10th largest producer of oil and natural gas liquids in
the U.S. Headquartered in Oklahoma City, the company's operations are focused
on discovering and developing its large and geographically diverse resource
base of unconventional natural gas and oil assets onshore in the U.S. The
company also owns substantial marketing, compression and oilfield services
businesses. Further information is available at www.chk.com where Chesapeake
routinely posts announcements, updates, events, investor information,
presentations and news releases.

About Chesapeake Oilfield Operating, L.L.C. (to be renamed Seventy Seven
Energy Inc.)

Chesapeake Oilfield Operating, L.L.C. is currently an indirect wholly-owned
subsidiary of Chesapeake Energy Corporation. The Company is a diversified
oilfield services company that provides a wide range of wellsite services and
equipment to U.S. land-based exploration and production customers operating in
unconventional resource plays. The Company’s primary services include
drilling, hydraulic fracturing, oilfield rentals, rig relocation and water
transport and disposal. The Company is headquartered in Oklahoma City,
Oklahoma.

This press release includes statements that may constitute forward-looking
statements. Such forward-looking statements are subject to a variety of known
and unknown risks, uncertainties, and other factors that are difficult to
predict and many of which are beyond management’s control. Factors that can
affect future results are discussed in the Company’s Annual Report on Form
10-K for the year ended December 31, 2013, and other reports filed by the
Company from time to time with the Securities and Exchange Commission. The
Company undertakes no obligation to update or revise any forward-looking
statement to reflect new information or events.

Contact:

Chesapeake Energy Corporation
Investor Contact:
Gary T. Clark, CFA, 405-935-8870
ir@chk.com
or
Media Contact:
Gordon Pennoyer, 405-935-8878
media@chk.com
 
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