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Form Value-Creating Joint Ventures

Since 2008, the company has entered into seven significant joint ventures. Through these agreements, Chesapeake has collaborated with other leading energy companies to accelerate the development of its properties in the Haynesville and Bossier Shales, Fayetteville Shale (sold Fayetteville Shale assets in the first quarter of 2011), Marcellus Shale, Barnett Shale, Eagle Ford, Niobrara and Utica Shale. We have sold leasehold and producing property assets to our partners for $7.1 billion of total cash consideration and $9.0 billion of drilling cost carries while retaining a majority interest in each play. The remaining drilling cost carries of approximately $1.7 billion as of September 30, 2012 will be extremely valuable in the years ahead by enabling the company to develop reserves in these unconventional plays at greatly reduced costs. We are also considering opportunities for additional joint ventures to develop certain of our other properties. 

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