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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 (DATE OF EARLIEST EVENT REPORTED) SEPTEMBER 27, 1999
(SEPTEMBER 24, 1999)
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CHESAPEAKE ENERGY CORPORATION
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(Exact name of Registrant as specified in its Charter)
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OKLAHOMA 1-13726 73-1395733
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(State or other jurisdiction (Commission (IRS Employer Identification No.)
of incorporation) File Number)
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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 September 24, 1999, Chesapeake Energy Corporation ("Chesapeake")
issued a press release to announce a significant legal victory in a patent
infringement lawsuit filed by Union Pacific Resources. The September 24, 1999
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 September 24, 1999.
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SIGNATURE
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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: September 27, 1999
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EXHIBIT INDEX
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EXHIBIT
NUMBER DESCRIPTION
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99 Press Release issued by the Registrant on September 24, 1999.
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EXHIBIT 99
CONTACT: MARC ROWLAND,
CHIEF FINANCIAL OFFICER
(405) 879-9232
FOR IMMEDIATE RELEASE TOM PRICE, JR.,VICE PRESIDENT-
SEPTEMBER 24, 1999 CORPORATE DEVELOPMENT
(405) 879-9257
CHESAPEAKE ENERGY WINS SIGNIFICANT
PATENT LITIGATION CASE AGAINST UPR
OKLAHOMA CITY, OKLAHOMA, SEPTEMBER 24, 1999 - Chesapeake Energy Corporation
(NYSE: CHK) today announced a significant legal victory in a patent infringement
lawsuit filed by Union Pacific Resources. Following a twelve day trial in June
1999 before the United States District Court in Fort Worth, the Court issued its
ruling on September 22, 1999, finding that the patent claimed by UPR covering a
"geosteering" method utilized in drilling horizontal wells was invalid. Filed in
October 1996, the lawsuit asserted that Chesapeake had infringed UPR's patent.
Because the patent was declared invalid, the Court held that Chesapeake could
not have infringed the patent, dismissed all of UPR's claims and awarded
Chesapeake court costs.
The Court concluded that the UPR patent was invalid for failure to definitively
describe the patented method in the patent claims and for failure to provide
sufficient disclosure in the patent to enable one of ordinary skill in the art
to practice the patented method. The Court also found that when applying for its
patent, UPR failed to disclose to the Patent Office the true state of the
industry or "prior art" relating to geosteering of horizontal oil and gas wells.
Chesapeake's Chairman and Chief Executive Officer, Aubrey K. McClendon,
commented, "This is a great victory for Chesapeake, our shareholders, and other
oil and gas operators and geosteering providers in the United States. Although
few, if any, in the industry believed UPR's patent was valid, UPR has tried to
use the patent to limit competition in horizontal drilling. As the leader in
developing the one trillion cubic feet of natural gas reserves in the Downdip
Giddings Field, Chesapeake was targeted to test the patent's validity. As a
result, Chesapeake and its non-operators have been forced to bear the cost of
defeating the patent, which to date has exceeded $5 million. We will now focus
our efforts in this case on recovering these costs."
Chesapeake will also release an update of its third quarter operations prior to
the opening of the market on Monday, September 27, 1999.
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