2008-08-30-2008-05-01-2008-05-01

Purchased VPP, gaining 47 MMcf/d for 11 years from TX, OK, KS.

An undisclosed buyer has acquired production from long-lived assets in Texas, Oklahoma and Kansas in a volumetric production payment (VPP) from Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) for $622.7 million. The VPP included proved reserves of approximately 94.3 billion cubic feet equivalent to be produced over 11 years for $6.63 per thousand cubic feet. Current net production is approximately 47 million cubic feet per day. Chesapeake is operator and will retain drilling rights on the properties below currently producing intervals. The VPP is Chesapeake's second such transaction as part of the company's plan to monetize assets to fund increased capex.