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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported)
NOVEMBER 9, 1998 (November 2, 1998)
CHESAPEAKE ENERGY CORPORATION
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(Exact name of registrant as specified in its charter)
OKLAHOMA 1-13726 73-1395733
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
6100 NORTH WESTERN AVENUE, OKLAHOMA CITY, OKLAHOMA 73118
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(Address of principal executive offices) (Zip Code)
(405) 848-8000
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(Registrant's telephone number, including area code)
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INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 5. OTHER EVENTS
On November 2, 1998, Chesapeake Energy Corporation ("Chesapeake") issued a
press release announcing that it has agreed to tender its 19.9% stake in Pan
East Petroleum Corp. to Poco Petroleums Ltd. and has agreed to a property
exchange with Pan East.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits. The following exhibit is filed herewith:
99. Press Release issued by the Registrant on November 2, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHESAPEAKE ENERGY CORPORATION
BY: /S/ AUBREY K. MCCLENDON
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Aubrey K. McClendon,
Chief Executive Officer
Dated: November 6, 1998
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EXHIBIT INDEX
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EXHIBIT DESCRIPTION
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99 Press Release issued by the Registrant on November 2, 1998.
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EXHIBIT 99
CONTACT: MARC ROWLAND
CHIEF FINANCIAL OFFICER
(405)879-9232
FOR IMMEDIATE RELEASE TOM PRICE, JR., VICE PRESIDENT-
NOVEMBER 2, 1998 CORPORATE DEVELOPMENT
(405)879-9257
CHESAPEAKE ENERGY CORPORATION TO RECEIVE $28 MILLION IN CASH
AND PROPERTIES FROM POCO ACQUISITION OF PAN EAST
OKLAHOMA CITY, OKLAHOMA, NOVEMBER 2, 1998 -- Chesapeake Energy Corporation
(NYSE:CHK) today announced that it has agreed to tender its 19.9% stake in Pan
East Petroleum Corp. to Poco Petroleums Ltd. and has agreed to a property
exchange with Pan East. The Poco offer to acquire Pan East was announced earlier
today.
For its 12 million shares of Pan East's common stock, Chesapeake will receive
approximately $21 million in cash at closing (based on a Canadian dollar
valuation of U.S. $0.647), which is scheduled for mid-December. Furthermore,
Chesapeake and Pan East have agreed to a property exchange effective upon the
closing of the Pan East/Poco transaction whereby Pan East will acquire
Chesapeake's interests in four exploratory prospects and Chesapeake will receive
Pan East's developed and undeveloped properties in the Helmet area of British
Columbia. As a result of the property exchange, Chesapeake expects to receive an
additional cash payment of approximately $5 million and will increase its net
reserves by approximately four bcfe (having a September 30, 1998 PV-10% value of
approximately $2 million). As part of this transaction, Chesapeake and Pan East
will terminate their 50/50 drilling and acquisitions joint venture. Chesapeake
acquired its stake in Pan East in December 1997 for $22 million (based on a
Canadian dollar valuation of U.S. $0.733).
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Chesapeake Energy Corporation is an independent oil and natural gas producer
headquartered in Oklahoma City. The company's operations are focused on
exploratory and developmental drilling and producing property and corporate
acquisitions in major onshore producing areas of the United States and Canada.
The company's Internet address is http://www.chesapeake-energy.com.
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