Ex-Chesapeake CEO McClendon raises $1.7 billion to drill in Utica Shale

Wed Oct 9, 2013 10:32am EDT

Aubrey McClendon walks through the French Quarter in New Orleans, Louisiana March 26, 2012. REUTERS/Sean Gardner

Aubrey McClendon walks through the French Quarter in New Orleans, Louisiana March 26, 2012.

Credit: Reuters/Sean Gardner

(Reuters) - An energy firm run by Aubrey McClendon, the former Chesapeake Energy Corp (CHK.N) chief executive, has raised $1.7 billion to drill on shale acreage in Ohio's Utica Shale, the firm said on Wednesday.

Proceeds will initially be used to acquire and drill on about 110,000 acres in the southern portion of the Utica Shale.

Drilling operations will begin with one rig in the fourth quarter of 2013, and the firm plans to increase drilling activity to at least 12 rigs over the next 2 to 3 years, the firm said.

McClendon, who co-founded Chesapeake in 1989, left in April after clashes over spending with the company's board and a series of Reuters investigations led to civil and criminal probes of the company.

An internal investigation by Chesapeake's board has cleared McClendon of any intentional wrongdoing.

American Energy Utica LLC's (AEU) lead equity investor is private equity firm Energy & Minerals Group and additional equity was provided by First Reserve Corp and the energy firm's management.

AEU's debt investors include GSO Capital Partners, the credit investing division of Blackstone Group LP (BX.N), Magnetar Capital and BlackRock Inc (BLK.N).

(Reporting by Anna Driver; Editing by Jeffrey Benkoe)

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Comments (3)
AlkalineState wrote:
“Ex-Chesapeake CEO McClendon raises $1.7 billion to drill in Utica Shale.”

But uses the money instead to buy a new jet and luxury submarine. Sorry investors :)

Oct 09, 2013 11:03am EDT  --  Report as abuse
LillithMc wrote:
Too bad the Chesapeake Bay will be destroyed for export and profit for Mr. McClendon. My ancestors lived very well in the bountiful bay. Now it will be ruined forever. Like shooting the last buffalo. Guess the rich white men don’t know any better than to think they can eat their paper money.

Oct 09, 2013 11:15am EDT  --  Report as abuse
LillithMc wrote:
Too bad the Chesapeake Bay will be destroyed for export and profit for Mr. McClendon. My ancestors lived very well in the bountiful bay. Now it will be ruined forever. Like shooting the last buffalo. Guess the rich white men don’t know any better than to think they can eat their paper money.

Oct 09, 2013 11:16am EDT  --  Report as abuse
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