Chesapeake Prices Offering of $425MM of Senior Notes

Chesapeake has priced its previously announced public offering of $425 million aggregate principal amount of 9.50% Senior Notes due 2015. The notes were priced at 97.75% of par to yield 10.0%. The offering was increased from a previously announced offering size of $300 million, resulting in net proceeds to Chesapeake of approximately $409 million after deducting underwriting discounts and commissions. Chesapeake expects the issuance and delivery of the notes to occur on February 17, 2009, subject to customary closing conditions.

Chesapeake intends to use the net proceeds from the offering to repay outstanding indebtedness under its revolving bank credit facility, which it anticipates reborrowing from time to time to fund drilling and leasehold acquisition initiatives and for general corporate purposes.

The notes were offered pursuant to a shelf registration statement filed on January 27, 2009 with the U.S. Securities and Exchange Commission. Chesapeake intends to list the notes on the New York Stock Exchange after issuance.

The notes are being offered as additional debt securities under an indenture pursuant to which Chesapeake had previously issued $1.0 billion of its 9.50% Senior Notes due 2015. The notes and the other notes issued on February 2, 2009 will be treated as a single class of debt securities under the indenture.


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