Chesapeake Energy tenders for 8 1/8%, 9% notes

New York, June 7 - Chesapeake Energy Corp. said it has begun cash tender offers and consent solicitations for its $245.407 million principal amount of 8 1/8% senior notes due 2011 and $300 million principal amount of 9% senior notes due 2012.

For the 8 1/8% notes, Chesapeake will pay an amount based on the $1,040.63 per $1,000 principal amount redemption price on the notes' first call date of April 1, 2006 discounted using 50 basis points over the yield to maturity of the 1.5% Treasury note due March 31, 2006, calculated at 11 a.m. ET on the 11th business day before the expiration date.

For the 9% notes, the amount will be based on the $1,045.00 per $1,000 principal amount redemption price on the notes' first call date of Aug. 15, 2007 discounted using 50 basis points over the yield to maturity of the 2.75% Treasury note due Aug. 15, 2007, calculated at 11 a.m. ET on the 11th business day before the expiration date.

Holders who tender by the consent deadline of 5 p.m. ET on June 20 will receive the total amount, which includes a $20.00 per $1,000 principal amount consent payment. Holders who tender after that time will not receive the consent payment.

The tenders end at 5 p.m. ET on July 6.

Chesapeake will also pay accrued interest up to but excluding the date of payment.

The Oklahoma City-based independent oil and gas exploration and production company is also soliciting consents to amend the note indentures to eliminate substantially all of the restrictive covenants and events of default.

Holders may not tender without delivering consents or deliver consents without tendering.

The tender offers are subject to conditions, including Chesapeake receiving tenders of a majority of the notes in each offer. The two offers are independent.

Bear, Stearns & Co. Inc. (contact global liability management group at 877 696-BEAR or call collect 212 272-5112) and Wachovia Securities (contact liability management group at 866 309-6316 or call collect 704 715-8341) are dealer managers and solicitation agents.

MacKenzie Partners, Inc. is information agent (800 322-2885 or call collect 212 929-5500).

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