text: Eagle Ford Shale As part of a growing emphasis on increasing oil and natural gas liquids 
  **6**
  production, Chesapeake has built the industry’s second-largest leasehold position in the Eagle 
  Ford Shale play in South Texas. In 2010 Chesapeake increased its leasehold from 80,000 net acres at the 
  beginning of the year to more than 600,000 net acres. In November 2010, Chesapeake completed 
  a $2.2 billion Eagle Ford Shale joint venture agreement with Beijing-based CNOOC Limited 
  (NYSE:CEO), whereby CNOOC acquired a 33.3% interest in 600,000 net leasehold acres in the Eagle 
  Ford Shale. CNOOC paid Chesapeake approximately $1.12 billion in cash at closing and will pay 75% 
  of Chesapeake’s share of drilling and completion expenditures until the $1.08 billion carry obligation 
  has been funded, which Chesapeake expects to occur by year-end 2012. Our focus has been in the wet gas and 
  oil prone portions of the play. We estimate we could drill up to 5,500 net wells on our Eagle Ford acreage and plan 
  to utilize an average of 23 operated rigs in 2011 to further develop our leasehold position in the Eagle Ford Shale. In addition, 
  we believe that the Pearsall Shale should be prospective for natural gas underneath approximately 75% of our Eagle Ford leasehold. 