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

                     CHESAPEAKE ENERGY CORPORATION ANNOUNCES
             AGREEMENT TO PARTICIPATE IN THE OIL AND GAS ACTIVITIES
                           OF GREYSTONE OIL & GAS LLP

          MANAGEMENT TEAM OF GREYSTONE PETROLEUM LLC FORMS NEW COMPANY
          AFTER MAY 2004 SALE TO CHESAPEAKE; NEW COMPANY WILL CONTINUE
                         FOCUS IN THE ARK-LA-TEX REGION


OKLAHOMA CITY, OKLAHOMA, OCTOBER 26, 2004 - Chesapeake Energy Corporation (NYSE:
CHK) announced  today the signing of a three-year  joint  development  agreement
with Greystone Oil & Gas LLP (Greystone), a privately-held partnership of Joe M.
Bridges and Michael A.  Geffert,  formerly  the senior  executives  of Greystone
Petroleum LLC, a company purchased by Chesapeake in May 2004 for $425 million.

The agreement affords  Chesapeake the exclusive right to acquire a fifty percent
(50%)  interest in any of  Greystone's  future oil and gas projects.  During the
term of the agreement,  Greystone's management will devote all of its efforts to
the evaluation and development of oil and gas projects in North Louisiana,  East
Texas,  Southern  Arkansas and Mississippi  (Ark-La-Tex),  a region in which Mr.
Bridges and Mr.  Geffert  have devoted  much of their  professional  careers and
where they have a long history of  successful  development,  including the Sligo
Field in Bossier Parish, Louisiana, the principal asset in Chesapeake's May 2004
acquisition.  Chesapeake will provide financial support for Greystone's  project
efforts and  staffing  needs in exchange for the right to acquire a 50% interest
in Greystone's projects.

Aubrey K. McClendon,  Chesapeake's Chief Executive Officer,  commented,  "We are
very pleased to announce this  participation  agreement with Greystone.  Through
the course of discussing and completing the Sligo acquisition earlier this year,
we realized  that Joe and Mike were highly  talented  oil and gas finders in the
Ark-La-Tex  region, an area that Chesapeake has targeted for further  expansion.
We knew that after the sale of Greystone Petroleum, Joe and Mike would be a very
attractive  management  team for private  equity  providers to invest with for a
second  time.  We  therefore  decided to pitch them on the idea of forming a new
Greystone  with  Chesapeake as their  partner,  rather than have private  equity
backing again.

We believe the deal structure is mutually  beneficial - Joe and Mike are able to
keep 100% of the equity in their company while  Chesapeake  obtains ground floor
50%  participation  in new projects in exchange for a G&A  contribution  that we
consider to be  reasonable.  This is definitely a win-win for both companies and
we look  forward to a mutually  beneficial  relationship  with  Greystone in the
years ahead."

Michael A. Geffert,  one of Greystone's two managing partners,  commented,  "Joe
and I are quite  pleased with the  opportunity  to find new oil and gas reserves
afforded by this joint  development  agreement  with  Chesapeake.  We admire the
manner in which Chesapeake is managed and directed.  Chesapeake is a technically
driven,  seasoned  developer of oil and gas reserves.  They are versatile in all
aspects  of  exploration  and  production  and should be the  perfect  match for
Greystone.  This agreement  allows us to hit the ground running and aggressively
pursue our business plan across the  Ark-La-Tex  region,  an area where Joe, our
staff and I have  explored and  developed  for many years.  We are quite excited
about our new relationship with Chesapeake."

Joe M. Bridges, also a managing partner of Greystone,  added, "Mike and I regard
this agreement with Chesapeake as an  extraordinary  opportunity.  Chesapeake is
the country's  most active driller of new wells,  is one of the industry's  most
active acquirers of natural gas properties and pursues a business  strategy that
fits very nicely with the types of projects we like to develop."


CHESAPEAKE  ENERGY  CORPORATION  IS THE FOURTH LARGEST  INDEPENDENT  PRODUCER OF
NATURAL GAS 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,  ONSHORE GULF
COAST AND  ARK-LA-TEX  REGIONS  OF THE UNITED  STATES.  THE  COMPANY'S  INTERNET
ADDRESS IS WWW.CHKENERGY.COM.