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OKLAHOMA CITY, Apr 16, 2008 (BUSINESS WIRE) -- Enogex LLC, a subsidiary of OGE Energy Corp. (NYSE: OGE),
announced it will provide natural gas gathering, processing and
transportation services for Chesapeake Energy Corporation (NYSE:CHK)
in the Colony Granite Wash play in Custer and Washita counties in the
Anadarko Basin of western Oklahoma.
To accommodate the expected production growth in the Colony
Granite Wash area, Enogex is preparing to invest more than $55 million
in a combination of additional gathering and transportation pipeline
infrastructure and a natural gas processing plant near Clinton, Okla.
The plant is expected to be in service in 2009 and will process up to
120 million cubic feet of natural gas equivalent (mmcfe) per day.
Enogex is prepared for further growth to accommodate increasing
Chesapeake production in the region.
Chesapeake is the largest producer of natural gas, the most active
driller and the largest leasehold owner in the various Granite Wash
plays of the Anadarko Basin. Chesapeake is currently using 12 operated
rigs to further develop approximately 200,000 net acres of Granite
Wash leasehold. Chesapeake believes it owns a backlog of more than 650
net wells to drill in its various Granite Wash plays in the Anadarko
Basin, including approximately 250 Colony Granite Wash wells. From the
Colony Granite Wash, Chesapeake is currently producing approximately
55 gross mmcfe per day from 18 gross (12 net) operated wells.
"We are very pleased to once again be working with Chesapeake in
western Oklahoma to bring their new production in the Colony Granite
Wash area to market. Enogex's integrated midstream natural gas system
will enable us to deliver this natural gas to consumers in Oklahoma as
well as to markets in the southeastern and eastern United States,"
said Pete Delaney, Chief Executive Officer of OGE Energy and its
subsidiary, Enogex.
Aubrey K. McClendon, Chesapeake's Chief Executive Officer,
remarked, "Chesapeake and Enogex have long enjoyed a strong working
relationship in various prolific natural gas plays in Oklahoma. Enogex
enjoys a great reputation in the mid-stream natural gas business for
its responsive service and attractive pricing for producers. We are
pleased to work on another important new project with Enogex and we
look forward to more collaboration in the future."
Enogex LLC, previously known as Enogex, Inc., owns an integrated
midstream natural gas system engaged in natural gas gathering,
processing, transportation, storage and marketing. With principal
operations in Oklahoma, the system includes about 7,800 miles of pipe,
six processing plants, and 23 billion cubic feet of storage capacity.
OGE Energy Corp. (NYSE: OGE), headquartered in Oklahoma City, also
is the parent company of OG&E Electric Services, a regulated electric
utility serving approximately 762,000 customers in a service territory
spanning 30,000 square miles in Oklahoma and western Arkansas. OGE's
Internet address is www.oge.com.
Chesapeake Energy Corporation is the largest independent and
third-largest overall producer of natural gas in the U.S.
Headquartered in Oklahoma City, the company's operations are focused
on exploratory and developmental drilling and corporate and property
acquisitions in the Fort Worth Barnett Shale, Fayetteville Shale,
Haynesville Shale, Mid-Continent, Appalachian Basin, Permian Basin,
Delaware Basin, South Texas, Texas Gulf Coast and Ark-La-Tex regions
of the U.S. Chesapeake's Internet address is www.chk.com.
SOURCE: Chesapeake Energy Corporation or OGE Energy Corp.
OGE Energy Corp.
Gil Broyles, 405-553-3643
broylecg@oge.com
or
Todd Tidwell, 405-553-3966
tidweltj@oge.com
or
Chesapeake Energy Corporation
Marc Rowland, 405-879-9232
marc.rowland@chk.com
or
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com