After building up an industry-leading position in Ohio’s Utica Shale, Aubrey McClendon’s American Energy Partners LP is turning its attention to a play closer to home.
Affiliate American Energy-Woodford announced Monday that it has secured $680 million in loans and equity commitments to buy into the Woodford Shale and Mississippi Lime in central and northern Oklahoma.
The company calls the combined play the “CNOW play.”
American Energy-Woodford intends to acquire about 120,000 net acres in the play, with an eye toward eventually building its leasehold to as much as 200,000 acres in Oklahoma.
It is acquiring acreage from four sellers: Calyx Energy LLC, Calyx Energy II LLC, Liberty Energy LLC and Truevine Operating LLC.
Terms of the deal were not disclosed.
American Energy-Woodford has lined up $500 million in equity commitments and another $180 million in bank borrowings.
Its exclusive primary equity investor is The Energy and Mineral Group, which also has been part of American Energy’s move into the Utica.
American Energy’s management and others also have committed money to the Woodford venture.
McClendon formed American Energy Partners last year after being forced out at Chesapeake Energy Corp., the company he co-founded with Tom Ward in 1989.