text: **What innovations and advancements have led to CHK’s ability to produce liquids from**
  **shales and other tight reservoirs?**
  During the past five years, Chesapeake and a few other leaders in the independent E&P industry have developed 
  expertise in exploiting shales and other tight reservoir formations targeting natural gas through the combination of 
  horizontal drilling and advanced fracture stimulation techniques. This has allowed the commercialization of plays that 
  were previously uneconomic, most notably in shale formations. Part of our success in producing liquids from tight 
  reservoirs has come from the company’s ability to extend the technological advances gained in the development of 
  tight natural gas formations to new formations known to contain substantial liquids. This led to our first liquids-rich 
  play discovery in the Colony Granite Wash in 2007. As we have increased our focus on liquids-rich plays, we have ben- 
  efited from a growing understanding and mapping of petrophysical properties in unconventional formations as well 
  as an enhanced understanding of the geochemical nature of liquids-rich reservoirs. This has allowed Chesapeake to 
  better identify formations most likely to generate liquids-rich production, including more than a dozen new plays for 
  the company. We have subsequently improved the success of our liquids-rich plays through the use of optimal well- 
  bore lateral lengths, better placement of well laterals though advanced wellbore steering techniques and customized 
  fracture stimulation designs for liquids-rich plays that allow the company to achieve a greater stimulated rock volume 
  in low permeability reservoirs. Finally, the advancements Chesapeake has made in developing liquids-rich plays have 
  been made possible through the use of our proprietary Reservoir Technology Center that has become the industry’s most advanced shale core laboratory. 
  
  Steve Dixon 
  Executive Vice President – 
  Operations and Geosciences and 
  Chief Operating Officer 