text: Permian Basin Chesapeake has built a strong position of approx- 
  imately 1.2 million net leasehold acres in the Permian Basin including 
  
  **7**
  560,000 net leasehold acres in the Bone Spring, Avalon, Wolfcamp and Wolfberry 
  unconventional liquids plays. This area has the potential to deliver significant 
  upside as we move toward increasing our oil production substantially in the years 
  ahead. We have developed multiple new horizontal oil projects in this area, where 
  we plan to utilize an average of approximately eight operated rigs in 2011 to further 
  develop our leasehold in the Permian and Delaware basins and estimate we could drill 
  up to 4,400 net wells. 