EXHIBIT 99.1
                                                                   ------------


                     CHESAPEAKE ENERGY CORPORATION ANNOUNCES
                               PRIVATE OFFERING OF
               $255 MILLION CUMULATIVE CONVERTIBLE PREFERRED STOCK


OKLAHOMA  CITY,  OKLAHOMA,  MARCH  23,  2004  -  Chesapeake  Energy  Corporation
(NYSE:CHK)  today  announced  that it  intends to  commence a private  placement
offering  to  eligible  purchasers  of  $255  million  of a new  series  of  its
cumulative  convertible preferred stock with a stated value of $1,000 per share.
The offering is expected to be eligible for resale under Rule 144A.  The private
offering,  which is subject to market and other conditions,  will be made within
the United States only to qualified institutional buyers, and outside the United
States only to non-U.S. investors.

Chesapeake  intends to use the net  proceeds of the offering to repay debt under
its bank  credit  facility  and to fund  approximately  $100  million of pending
acquisitions of oil and gas properties, or in the event the acquisitions are not
consummated,  excess  proceeds  will  be used  for  general  corporate  purposes
including possible future acquisitions.

The chief executive  officer and chief operating officer of Chesapeake intend to
purchase at the  offering  price an  aggregate  of $20 million  stated  value in
additional shares of the preferred stock directly from the Company at closing of
the  offering.  The company also intends to grant a 30-day  option to purchase a
maximum of $38.25  million  stated  value in  additional  shares of  convertible
preferred stock to cover any over-allotments in the offering.

The preferred stock has not been registered  under the Securities Act of 1933 or
applicable  state  securities laws, and may not be offered or sold in the United
States absent  registration  or an applicable  exemption  from the  registration
requirements of the Securities Act and applicable state laws. This  announcement
shall not constitute an offer to sell or a  solicitation  of an offer to buy the
preferred stock.


THIS DOCUMENT CONTAINS FORWARD-LOOKING  STATEMENTS WITHIN THE MEANING OF SECTION
27A OF THE SECURITIES ACT OF 1933 AND SECTION 21E OF THE SECURITIES EXCHANGE ACT
OF 1934.  FORWARD-LOOKING  STATEMENTS  INCLUDE  ESTIMATES  AND GIVE OUR  CURRENT
EXPECTATIONS   OR   FORECASTS  OF  FUTURE   EVENTS.   ALTHOUGH  WE  BELIEVE  OUR
FORWARD-LOOKING  STATEMENTS ARE  REASONABLE,  THEY CAN BE AFFECTED BY INACCURATE
ASSUMPTIONS OR BY KNOWN OR UNKNOWN RISKS AND UNCERTAINTIES.

CHESAPEAKE ENERGY CORPORATION IS ONE OF THE FIVE LARGEST INDEPENDENT NATURAL GAS
PRODUCERS IN THE U.S.  HEADQUARTERED IN OKLAHOMA CITY, THE COMPANY'S  OPERATIONS
ARE FOCUSED ON EXPLORATORY  AND  DEVELOPMENTAL  DRILLING AND PRODUCING  PROPERTY
ACQUISITIONS  IN THE  MID-CONTINENT,  PERMIAN BASIN,  SOUTH TEXAS AND TEXAS GULF
COAST REGIONS OF THE UNITED STATES.