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Aubrey McClendon's new company secures $1.7 billion to drill in Ohio

American Energy Partners LP, the company founded by former Chesapeake Energy Corp. CEO Aubrey McClendon, has about $1.7 billion at its disposal to jump-start operations in Ohio's Utica Shale.
by Jay F. Marks Modified: October 9, 2013 at 8:31 pm •  Published: October 10, 2013

Aubrey McClendon's new company has lined up about $1.7 billion to hunt for oil and natural gas in Ohio's Utica Shale.

American Energy — Utica LLC, a subsidiary of McClendon's American Energy Partners LP, has raised a blend of private equity commitments and loans to fund operations in eastern Ohio, it announced Wednesday.

The company intends to use that money to acquire about 110,000 acres of leasehold in the southern part of the Utica Shale and fund drilling operations. It expects to have one rig operating there before the end of the year, with plans to increase drilling activity to include at least 12 rigs over the next couple of years.

Industry analyst Fadel Gheit said it was no surprise McClendon's new company is targeting the Utica Shale, which he touted as a major discovery in 2011 while he was CEO of Chesapeake Energy Corp.

“This is Aubrey's favorite child and the one he had always said will have the best economics among all plays, including the Eagle Ford (in south Texas) and the Bakken (in North Dakota),” said Gheit, an Oppenheimer analyst. “He is so convinced that he is putting his money where his mouth is.”

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by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
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