Chesapeake Energy Corp., Oklahoma City, Okla., (NYSE: CHK) reports the 28th consecutive quarter of sequential U.S. production growth. Over these 28 quarters, Chesapeake’s U.S. production has increased 488%, for an average compound quarterly growth rate of 6.5% and an average compound annual growth rate of 29%.

The company continues its surge in the Barnett, Haynesville, Fayetteville and Marcellus shales.

In the Barnett, Chesapeake has leases in Tarrant, Johnson and western Dallas counties. During the 2008 second quarter, Chesapeake’s average daily net production of 466 million cubic feet equivalent in the play increased about 125% over the 2007 second quarter and approximately 13% over this year’s first quarter. The company reports it is currently producing approximately 500 million net cubic feet per day from the play and anticipates reaching at least 675 million net per day by the end of the year.

Chesapeake is currently using 45 rigs on its 280,000 net acres, of which 240,000 acres are in its prime leaseholds.

In the Haynesville, Chesapeake is producing about 35 million net per day (45 million gross) from the play and anticipates reaching at least 75 million by the end of the year. Chesapeake is currently using eight rigs to further develop its 450,000 net acres and will be operating at least 12 by the end of the year. The company continues to acquire leasehold in the play with its 20% partner, Plains Exploration & Production Co.

During the second quarter in the Fayetteville, Chesapeake’s average daily net production of 136 million net cubic feet increased approximately 475% during the 2007 second quarter and approximately 20% over this year’s first quarter. Chesapeake is producing approximately 150 million net per day from the play and anticipates reaching at least 200 million net per day by year-end 2008. Chesapeake is currently using 17 rigs on its 550,000 net acres and anticipates operating up to 21 by the end of the year.

Chesapeake is the largest leasehold owner in the Marcellus play that spans from West Virginia to southern New York with 1.6 million net acres. During the quarter, two horizontal Marcellus wells in West Virginia were completed that together are producing approximately 7 million per day gross and have combined estimated gross proved reserves of approximately 11 billion cubic feet equivalent.

Daily production for the quarter averaged 2.328 billion, an increase of 84 million cubic feet equivalent, or 4%, over the 2.244 billion produced per day in this year’s first quarter and an increase of 460 million, or 25%, over the 1.868 billion produced per day in the second quarter last year.

Chesapeake’s average daily production for the 2008 second quarter consisted of 2.143 billion cubic feet of gas and 30,945 barrels of oil and gas liquids. The company’s 2008 second quarter production 92% gas and the remainder oil and gas liquids.

The company reports its leasehold and 3-D seismic inventories increased to 20.8 million acres (14.9 million net) while risked unproved reserves in the company’s inventory have reached 48 trillion cubic feet equivalent while unrisked, unproved reserves reach 147 trillion. JAS