Ann: AGM Presentation , page-26

cliff mentioned there are plenty of different oil producing formations in unconventional oil thats well worthy of exploration

an example of what can be achieved in going to another formation is demonstrated by chesapeakes latest announcement, they have been struggling with gas and want to focus on oil now and discover as much as they can

June 1 (Bloomberg) -- Chesapeake Energy Corp. said it drilled the largest oil gusher in the company's 23-year history at a "significant" discovery in the Anadarko Basin of Texas and Oklahoma.

The Thurman Horn 406H well in the Hogshooter formation produced 5,400 barrels of crude a day during its first eight days of operation, Chesapeake said today in a statement. The output was more than twice that of some of the best performing wells in the Eagle Ford shale of south Texas, which Chesapeake counts as its most valuable holding, said Michael Kelly, an analyst at Global Hunter Securities LLC in Houston.

"It's pretty massive," Kelly said in a telephone interview. "In the Eagle Ford or the Bakken shale, you'd be ecstatic if you got initial production anywhere close to 2,000 barrels a day, so this is really remarkable."

The discovery will accelerate the second-largest U.S. natural-gas supplier's shift to more profitable crude production, Chief Executive Officer Aubrey McClendon said in the statement. Chesapeake shares have dropped 28 percent this year as gas prices hit a 10-year low and probes began of McClendon's personal finances. Gas comprises more than 80 percent of the Oklahoma City-based company's output.

Chesapeake is seeking to sell $20.5 billion in assets by the end of 2013 to fill a cash-flow shortfall. The Hogshooter wells aren't among the assets for sale, Jim Gipson, a Chesapeake spokesman, said today in a separate e-mailed statement

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