text: Marcellus Shale Chesapeake is the industry’s leading leasehold owner, largest producer and 
  most active developer in the Marcellus Shale play that spans from northern West Virginia across 
  
  **4**
  much of Pennsylvania into southern New York. The Marcellus is located in the highest gas- 
  consuming region of the U.S. and therefore receives the best natural gas prices in the nation. 
  We estimate we could drill up to 21,000 net wells on our Marcellus acreage in the future and plan 
  to utilize an average of approximately 32 operated rigs in 2011 to further develop our 
  1.7 million net acres of Marcellus Shale leasehold. During 2010 approximately $600 
  million of Chesapeake’s drilling costs in the Marcellus were paid by its joint ven- 
  ture partner, Oslo-based Statoil (NYSE:STO, OSE:STL). During 2011 and 2012, 75% 
  of Chesapeake’s drilling and completion costs in the Marcellus, up to $1.4 billion, will 
  be paid by STO. We expect that over time, the Marcellus Shale will become the largest natural gas 
  field in the U.S. and the second-largest in the world. 