Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) reports its second quarter results from the Anadarko Basin Granite Wash assets in western Oklahoma and Texas Panhandle.

In Oklahoma, the Balzar 2-7H in Washita County, Oklahoma commenced production on June 11 and achieved a peak rate of 23.6 million cubic feet of gas equivalent per day (including 1,800 barrels per day of oil) and a first 30-day average rate of 17.1 million cubic feet equivalent per day (including 1,300 barrels per day of oil).

The Miller 1-21H in Washita County commenced production on June 27 with a peak rate of 22.7 million cubic feet equivalent per day (including 1,500 barrels of oil per day) and a first 30-day average rate of 16 million cubic feet equivalent per day (including 900 barrels per day).

The Martin 1-16H in Washita County commenced production on May 30 with a peak rate of 19.7 million cubic feet equivalent per day (including 1,400 barrels per day) and a first 30-day average rate of 15.4 million cubic feet equivalent per day (including 1,100 barrels per day).

In the Texas Panhandle, the most notable completion was the Stiles Ranch 23-11H in Wheeler County, that commenced production on June 24 with a peak rate of 6.6 million cubic feet equivalent per day (including 650 barrels per day) and a first 30-day average rate of 3.2 million cubic feet equivalent per day (including 200 barrel per day).

The Reed 70-6H in Wheeler County commenced production on June 25 with a peak rate of 4.8 million cubic feet equivalent per day (including 220 barrels per day of oil) and a first 30-day average rate of 3.6 million cubic feet equivalent per day (including 130 barrels per day of oil).

The Lott 2 4H in Wheeler County commenced production on May 31 with a peak rate of 4.5 million cubic feet equivalent per day (including 350 barrels per day of oil) and a first 30-day average rate of 3.2 million cubic feet equivalent per day (including 210 barrels per day of oil).

In the various Wash plays of the Anadarko Basin, Chesapeake is the largest leasehold owner with approximately 360,000 net acres and also the most active driller and largest producer.

In the Colony Granite Wash, Chesapeake is the largest leasehold owner with 60,000 net acres and is also the most active driller and largest producer in the play. During the second quarter, Chesapeake’s average daily net production of 75 million cubic feet equivalent increased approximately 30% over the first quarter and approximately 85% over the 2008 second quarter.

Chesapeake is currently producing approximately 90 million cubic feet equivalent net per day (165 million cubic feet equivalent gross operated) from the Colony Granite Wash and anticipates reaching approximately 105 million cubic feet equivalent net per day (190 million cubic feet equivalent gross operated) by year-end 2009 and approximately 140 million cubic feet equivalent net per day (250 million cubic feet equivalent gross operated) by year-end 2010.

In the Texas Panhandle Granite Wash, Chesapeake is one of the largest leasehold owners with 40,000 net acres and also one of the most active drillers and largest producers in the play. During the second quarter, Chesapeake’s average daily net production of 70 million cubic feet equivalent in the Texas Panhandle Granite Wash increased approximately 5% over the 2009 first quarter and approximately 15% over the 2008 second quarter.

Chesapeake is currently producing approximately 70 million cubic feet equivalent net per day (95 million cubic feet equivalent gross operated) from the Texas Panhandle Granite Wash and anticipates reaching approximately 75 million cubic feet equivalent net per day (100 million cubic feet equivalent gross operated) by year-end 2009 and approximately 80 million cubic feet equivalent net per day (110 million cubic feet equivalent gross operated) by year-end 2010.

To further develop its 40,000 net acres of Texas Panhandle Granite Wash leasehold, Chesapeake anticipates operating an average of two rigs in the second half of 2009 and in 2010 to drill approximately 10 and 20 net wells, respectively.

Chesapeake chief executive Aubrey K. McClendon says, “Our drilling activities in each of our Big 4 shale plays continue to generate outstanding results and we have raised our recovery expectations in the Marcellus and Fayetteville shale plays. Additionally, our Colony Granite Wash and Texas Panhandle Granite Wash plays are delivering exceptional rates of return even in the current low commodity price environment. We have been very successful in reducing our drilling and operating costs and are also benefiting from substantially lower oilfield service prices relative to year-ago levels. We look forward to providing additional details on 2009 second quarter results next week.”

Chesapeake has oil and gas properties in Oklahoma, Texas, Alabama, Arkansas, Louisiana, Kansas, Montana, Colorado, North Dakota, Nebraska, New Mexico, West Virginia, Kentucky, Ohio, New York, Maryland, Michigan, Mississippi, Pennsylvania, Tennessee, Utah, Virginia and Wyoming.