Chesapeake Energy plans aggressive move into oil

OKLAHOMA CITY (AP) - Chesapeake Energy Corp. CEO Aubrey
McClendon says the company is aggressively moving into oil and
natural gas liquids as part of a plan developed two years ago.

During a conference call Wednesday, McClendon says the decision
to reduce Chesapeake's natural gas drilling and focus on increasing
its oil production is the company's "single largest strategy
shift" ever.

Even with the recent strategy change, natural gas still accounts
for 90 percent of Chesapeake's total production. But the company
now says it expects to increase its liquids production to about 25
percent of total production by the end of 2015.

McClendon thinks oil prices will outperform natural gas prices
"for a long time to come." He says Chesapeake began acquiring
leaseholds for its move into oil two years ago but that the results
of those efforts only now are becoming evident.

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