1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (Date of earliest event reported) NOVEMBER 9, 1998 (November 2, 1998) CHESAPEAKE ENERGY CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) OKLAHOMA 1-13726 73-1395733 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 6100 NORTH WESTERN AVENUE, OKLAHOMA CITY, OKLAHOMA 73118 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (405) 848-8000 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code)
2 INFORMATION TO BE INCLUDED IN THE REPORT ITEM 5. OTHER EVENTS On November 2, 1998, Chesapeake Energy Corporation ("Chesapeake") issued a press release announcing that it has agreed to tender its 19.9% stake in Pan East Petroleum Corp. to Poco Petroleums Ltd. and has agreed to a property exchange with Pan East. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. The following exhibit is filed herewith: 99. Press Release issued by the Registrant on November 2, 1998. 2
3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CHESAPEAKE ENERGY CORPORATION BY: /S/ AUBREY K. MCCLENDON -------------------------------------- Aubrey K. McClendon, Chief Executive Officer Dated: November 6, 1998 3
4 EXHIBIT INDEX - -------------------------------------------------------------------------------- EXHIBIT DESCRIPTION - ------- ------------ 99 Press Release issued by the Registrant on November 2, 1998. 4
1 EXHIBIT 99 CONTACT: MARC ROWLAND CHIEF FINANCIAL OFFICER (405)879-9232 FOR IMMEDIATE RELEASE TOM PRICE, JR., VICE PRESIDENT- NOVEMBER 2, 1998 CORPORATE DEVELOPMENT (405)879-9257 CHESAPEAKE ENERGY CORPORATION TO RECEIVE $28 MILLION IN CASH AND PROPERTIES FROM POCO ACQUISITION OF PAN EAST OKLAHOMA CITY, OKLAHOMA, NOVEMBER 2, 1998 -- Chesapeake Energy Corporation (NYSE:CHK) today announced that it has agreed to tender its 19.9% stake in Pan East Petroleum Corp. to Poco Petroleums Ltd. and has agreed to a property exchange with Pan East. The Poco offer to acquire Pan East was announced earlier today. For its 12 million shares of Pan East's common stock, Chesapeake will receive approximately $21 million in cash at closing (based on a Canadian dollar valuation of U.S. $0.647), which is scheduled for mid-December. Furthermore, Chesapeake and Pan East have agreed to a property exchange effective upon the closing of the Pan East/Poco transaction whereby Pan East will acquire Chesapeake's interests in four exploratory prospects and Chesapeake will receive Pan East's developed and undeveloped properties in the Helmet area of British Columbia. As a result of the property exchange, Chesapeake expects to receive an additional cash payment of approximately $5 million and will increase its net reserves by approximately four bcfe (having a September 30, 1998 PV-10% value of approximately $2 million). As part of this transaction, Chesapeake and Pan East will terminate their 50/50 drilling and acquisitions joint venture. Chesapeake acquired its stake in Pan East in December 1997 for $22 million (based on a Canadian dollar valuation of U.S. $0.733). #### Chesapeake Energy Corporation is an independent oil and natural gas producer headquartered in Oklahoma City. The company's operations are focused on exploratory and developmental drilling and producing property and corporate acquisitions in major onshore producing areas of the United States and Canada. The company's Internet address is http://www.chesapeake-energy.com. 5