McClendon Company Raises $1.7B to Explore Utica
OKLAHOMA CITY -- American Energy-Utica LLC, an affiliate of American Energy Partners LP, announced Wednesday that it has raised some $1.7 billion to fund oil and gas exploration across the Utica shale in eastern Ohio.
The company, founded by former Chesapeake Energy Corp. chairman and CEO Aubrey McClendon, said that The Energy & Minerals Group is lead equity investor in the venture. First Reserve Corp. and AEU management provided additional equity financing.
Proceeds initially would be used to acquire 110,000 leasehold acres in the southern tier of the Utica shale, finance drilling operations there, and to acquire and develop additional acreage across the play.
AEU will begin drilling operations with a single rig during the fourth quarter and plans to increase the rig count to at least 12 over the next two to three years.
MarkWest Utica EMG, a joint venture between MarkWest Energy Partners and EMG, will supply 80% of the development's midstream, fractionation and processing services, while UEO Buckeye -- a partnership between M3 Midstream, Access Midstream and EV Energy Partners that has constructed a processing plant in Columbiana County – will provide the same services for the remaining 20% of AEU's acreage.
Published by The Business Journal, Youngstown, Ohio.
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