confirmation on orri wells from terry, page-14

Thanks for that sharks37,

those numbers certainly will be well recieved by all SH's I am sure but, lets remember that CHK are going to be drilling up to 25 wells a year for the next 3 years,2011,2012,2013 so lots more income heading into Terry's bottom line.

In addition to Samson's operated acreage in its Niobrara]focused Hawk Springs project, the company retained an overriding royalty interest (ORRI) in the acreage sold to Chesapeake. In our last report, the company estimated the
ORRI at 4.8%, but has reduced it to 3.8% as a consequence of some title defects in the sold acreage, per Samson's October 14, 2010 announcement.

To value the ORRI, we assumed that Chesapeake would drill 25 wells per year in 2011, 2012 and 2013 on the acreage purchased from Samson. Using the
Most Likely case production decline curve, we applied a flat realized combined,weighted]average oil and natural gas price of $69.83 per barrel over the forecast period (the five]year NYMEX strip). Then, we applied the 3.8% ORRI to
the forecasted revenue stream (for the Low, Most Likely and Optimist Cases)and estimated the present value of future value of royalties discounted at 10% to be $48.1 million or a net asset value contribution between $0.28 and $0.84 per basic share (see Figure 10).

ENERCOM REPORT