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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 MAY 21, 1998
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DATE OF EARLIEST EVENT REPORTED MAY 21, 1998
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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 Identification No.)
of incorporation) File Number)
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 May 21, 1998, Chesapeake Energy Corporation ("Chesapeake") issued a
press release to announce significant positive development in Union Pacific
Resources Company patent litigation. The May 21, 1998 press release is filed
herewith as Exhibit 99 and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits. The following exhibit is filed herewith:
99. Press Release issued by the Registrant on May 21, 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, thereunto duly authorized.
CHESAPEAKE ENERGY CORPORATION
BY: /s/ AUBREY K. MCCLENDON
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AUBREY K. MCCLENDON,
Chairman of the Board and
Chief Executive Officer
Dated: May 21, 1998
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EXHIBIT INDEX
EXHIBIT DESCRIPTION
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99 Press Release issued by the Registrant on May 21, 1998.
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FOR IMMEDIATE RELEASE
MAY 21, 1998
CONTACT: MARC ROWLAND, CHIEF FINANCIAL OFFICER
(405) 848-8000, EXT. 232
TOM PRICE, JR., VICE PRESIDENT-
CORPORATE DEVELOPMENT
(405) 848-8000, EXT. 257
CHESAPEAKE ENERGY CORPORATION ANNOUNCES SIGNIFICANT
POSITIVE DEVELOPMENT IN UPRC PATENT LITIGATION
OKLAHOMA CITY, OKLAHOMA, MAY 21, 1998 -- Chesapeake Energy Corporation
(NYSE:CHK) announced a significant positive development in its litigation with
Union Pacific Resources Company ("UPRC") concerning Chesapeake's alleged misuse
of certain horizontal drillbit steering technology. On May 20, 1998, the United
States District Court for the Northern District of Texas in Fort Worth entered
two orders in Case No. 96-CV-726-Y granting Chesapeake summary judgment on
several important issues. Specifically, the Court ruled as a matter of law that
UPRC's tort claims for misappropriation of trade secrets and tortious
interference with contract are barred by the statue of limitations. Further, the
Court found that UPRC's claim for inducement to infringe its log correlation
patent is barred as to any wells drilled prior to August 14, 1995. The Court
found that there is "no evidence that Chesapeake had any knowledge of the
allegedly infringed patent prior to August 14, 1995." With these rulings, the
only remaining issues in the case involve the validity, potential infringement,
and value of UPRC's patent, if any. Chesapeake intends to continue its vigorous
defense against UPRC's remaining claims, which the company believes are without
merit.
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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.
The information in this release includes certain forward-looking statements that
are based on assumptions that in the future may prove not to have been accurate.
Those statements, and Chesapeake Energy Corporation's business and prospects,
are subject to a number of risks, including production variances from
expectations, uncertainties about estimates of reserves, volatility of oil and
gas prices, the need to develop and replace its reserves, the substantial
capital expenditures required to fund its operations, environmental risks,
drilling and operating risks, risks related to exploratory and developmental
drilling, competition, government regulation, and the ability of the company to
implement its business strategy. These and other risks are described in the
company's documents and reports that are available from the United States
Securities and Exchange Commission, including the report filed on Form 10-K for
the six-month transition period ended December 31, 1997.
