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NEWS RELEASE
[CHESAPEAKE ENERGY CORPORATION LETTERHEAD]
[CHESAPEAKE LOGO]
FOR IMMEDIATE RELEASE
JANUARY 16, 2001
CONTACT:
MARC ROWLAND TOM PRICE, JR.
EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER CORPORATE DEVELOPMENT
(405) 879-9232 (405) 879-9257
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CHESAPEAKE ENERGY CORPORATION COMPLETES
ACQUISITION OF GOTHIC ENERGY CORPORATION
OKLAHOMA CITY, OKLAHOMA, JANUARY 16, 2001 - Chesapeake Energy Corporation (NYSE:
CHK) announced today that it has completed its acquisition of Gothic Energy
Corporation (OTCBB: GOTH) with the issuance of 4.0 million common shares of
Chesapeake to Gothic shareholders (0.1908 of a share of Chesapeake common stock
for each share of Gothic common stock) and the assumption of approximately $203
million of Gothic's 11.125% senior notes that mature in 2005. The total
acquisition cost to Chesapeake will be approximately $345 million, or $1.08 per
mcfe, after allocation of $20 million to Gothic's unevaluated leasehold, 3-D
seismic inventory, field telemetry system and non-oil and gas fixed assets.
Existing warrants on Gothic common stock will be assumed by Chesapeake and the
terms of the warrants will be modified to reflect the 0.1908 exchange ratio. The
parties executed a definitive merger agreement on September 8, 2000, and
Gothic's shareholders approved the merger at a special meeting of shareholders
on December 12, 2000.
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 reserves, the substantial capital
expenditures required to fund 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 those discussed under Risk Factors in the proxy
statement/prospectus for the Gothic acquisition dated November 1, 2000, a form
of which is included in our registration statement on Form S-4 (file no.
333-47330).
Chesapeake Energy Corporation is the 10th largest independent natural gas
producer based in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and producing
property acquisitions in the Mid-Continent region of the United States. The
company's Internet address is www.chkenergy.com.
