Chesapeake began 2002 with estimated proved reserves of 1,780 bcfe and ended the year with 2,205 bcfe, an increase of 425 bcfe, or 24%. Reserve replacement during the year was 606 bcfe, or 335%, at an all-in finding cost of $1.31 per mcfe. Reserve additions through acquisitions totaled 275 bcfe at a cost of $1.38 per mcfe (including $0.23 per mcfe from non-cash tax basis step-ups). Reserve additions through drilling (including price and performance revisions) were 333 bcfe at a cost of $1.21 per mcfe, for a reserve replacement ratio of 183%. Excluding revisions related to higher oil and gas prices, Chesapeake's 2002 finding costs through the drillbit were $1.57 per mcfe. Pro forma for the ONEOK acquisition, which closed on January 31, 2003, the company's proved reserves at year-end 2002 were 2,401 bcfe.
Of the company's estimated proved reserves at year-end 2002, 74% were proved developed compared to 71% last year. In addition, 73% of this year's estimated proved reserves were prepared by outside engineers compared to 71% last year.
