IN THIS ISSUE:

• Chief Heats Up Homes in Pennsylvania With $50,000 Donation
• First Gas Production in Lycoming County
• Chief Unveils New Horizontal Marcellus Shale Drilling Rig
• Chief Gathering's Pipeline Projects
• Look for Chief at These Upcoming Events

Chief Heats Up Homes in Pennsylvania With $50,000 Donation

Chief Oil & Gas this month donated $50,000 to help families struggling to pay their home heating bills this winter.  The donation will benefit families in Bradford, Cambria, Clearfield, Fayette, Lycoming, Somerset and Susquehanna Counties.  The funds will be distributed by nonprofit organizations responsible for home heating assistance in each county.

"We hope that this donation will make it a little easier for families to pay their energy bill this winter," said Kristi Gittins, Vice President of Chief Oil & Gas. "We understand many families are struggling and we welcome the opportunity to give back to the communities where we operate."

"On behalf of the many families in Pennsylvania that local United Ways serve, we wish to thank Chief for its generous donation," said Tony Ross, President of United Way of Pennsylvania. "This contribution comes at a crucial time and will go a long way in helping meet the needs of many families."

Through economic development, new jobs and giving back to the community, Chief Oil & Gas is committed to helping the Commonwealth of Pennsylvania realize the tremendous economic benefits of natural gas drilling in the Marcellus Shale.

Look for Chief at These Upcoming Events

Gas Industry Workshop for CCAP and the PA Township Supervisors
State College, PA, Feb. 26, 2009

Lycoming College Clean Water Institute and Trout Unlimited    Public Meeting
Williamsport, PA, March 11, 2009

Marcellus Shale Committee Legislative Event
Harrisburg, PA, March 16-17, 2009

Tri-County Oil & Gas Business-to-Business Expo
Greene Co. Fairgrounds, March 21, 2009

CCAP Spring Conference
Harrisburg, PA, March 29-30, 2009

Williamsport/Lycoming Chamber of Commerce PM Exchange
Williamsport, PA, May 7, 2009, 5pm

First Gas Production in Lycoming County

Chief is pleased to announce our first productive horizontal well.  The well, the Spotts Unit 2H horizontal well in Mifflin Township, Lycoming County, is the first natural gas well placed in production in the Lycoming County area.  The well will flow through Chief Gathering, a subsidiary of Chief Oil & Gas, and its Canoe Run compressor station to the Transco interstate pipeline.  Chief Gathering is building a pipeline infrastructure to move natural gas to needed markets.

Chief Unveils New Horizontal Marcellus Shale Drilling Rig

Chief Oil & Gas unveiled a first of its kind horizontal drilling rig in September 2008. The rig was built especially for drilling horizontal wells in the Marcellus Shale. The drilling rig is 1,600 horsepower, moves on skids to allow for drilling multiple wells on the same pad site and reduce our carbon footprint. Also, the drilling rig is quieter and gives off fewer emissions than a conventional drilling rig.

Chief Oil & Gas unveiled the rig by hosting a barbeque and giving tours of the new rig to local township officials and community leaders. It was a perfect time for people to come see first-hand how Chief operates and have their questions answered. The event took place in Lycoming County, Pennsylvania.

Bill Buckler, Senior Vice President of Operations presented a check to a Lycoming County official for $10,000 to be used to train emergency responders. Chief Oil & Gas understands its long-term responsibility to the public, its employees and contractors. We are proud of our long-standing record of safe operations at our drilling sites.

For more information about drilling, please click here.

Chief Gathering's Pipeline Projects

Chief Gathering's Barto compressor station on the east side of Lycoming County is almost complete.  The station will be tied to the Transco interstate pipeline.  This will be Chief Gathering's second tap to the Transco pipeline in Lycoming County.  The Canoe Run compressor station, located in Mifflin Township, gathers Chief's gas from the west side of Lycoming County.  Each station can compress and meter 150 MMcf (million cubic feet of gas) per day before tying into the Transco Pipeline.  Metering facilities and ancillary equipment monitor the flow of gas continuously from Chief to Transco.

Contacts

General Information
Wexford Office
724-933-5511

Williamsport Office
570-368-4490

Community Activities
Daria Fish
570-337-7142