Chesapeake Energy Corporation (NYSE:CHK) General Counsel Henry J. Hood
issued the following statement in response to recently published media
reports: "The Founders Well Participation Program (FWPP) has been in
place since the company's founding and was reapproved by shareholders by
a wide margin in 2005. The terms and procedures for the program are
clear and detailed in every proxy for all shareholders to see. Mr.
McClendon's interests and Chesapeake's are completely aligned. In
addition, there are numerous third-party participants in the company's
wells, including some of the largest energy companies in the world, that
monitor the actions of the company through a number of processes,
including well audits, reporting, governmental filings and hearings,
participation in development plans and marketing of production. The
suggestion of any conflicts of interest is unfounded."
Hood also added, "The Board of Directors is fully aware of the existence
of Mr. McClendon's financing transactions and the fact that these occur
is disclosed in the proxy. Additionally, the total amount of his cost
obligations and revenue attributable to the FWPP for each year are
detailed in the proxy. The FWPP fully aligns the interests of Mr.
McClendon with the company and the Board of Directors supports this
program as does the majority of its shareholders."
Please visit www.chk.com/Reuters
for more information regarding the company's disclosure on this topic.
Headquartered in Oklahoma City, Chesapeake Energy Corporation
(NYSE:CHK) is focused on discovering and developing unconventional
natural gas and oil fields onshore in the U.S. Chesapeake
owns positions in the Barnett, Haynesville, Bossier, Marcellus and
Pearsall natural gas shale plays and in the Eagle Ford, Utica, Granite
Wash, Cleveland, Tonkawa, Mississippi Lime, Bone Spring, Avalon,
Wolfcamp, Wolfberry and Niobrara unconventional liquids plays. The
company has also vertically integrated its operations and owns
substantial marketing, midstream and oilfield services businesses
directly and indirectly through its subsidiaries Chesapeake Energy
Marketing Inc., Chesapeake Midstream Development, L.P. and COS
Holdings,, L.L.C. and its affiliate Chesapeake Midstream Partners, L.P.
(NYSE:CHKM). Further information is available at www.chk.com
where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.
Jeffrey L. Mobley, CFA, 405-767-4763
J. Kilgallon, 405-935-4441
Michael Kehs, 405-935-2560