(Adds details of the deals, background)
June 9 Aubrey McClendon's firm American Energy
Partners LLP on Monday said it plans to buy shale oil and gas
assets for $4.25 billion, the former Chesapeake Energy Corp
CEO's biggest deal package yet in an aggressive bid to
build a new company.
McClendon, who co-founded Chesapeake in 1989 and built it
into the second largest U.S. producer of natural gas, was pushed
out of the company in April last year after he clashed with the
board over spending and a governance crisis.
Since then, his Oklahoma City, Oklahoma-based American
Energy Partners has secured commitments for $10 billion in
financing and its biggest equity investor is Energy & Minerals
Group, a Houston based private equity firm run by John Raymond,
the son of former Exxon Mobil Corp CEO Lee Raymond.
American Energy, which according to a regulatory filing has
about 200 employees including many that worked at Chesapeake,
has so far been most active in the Utica shale in Ohio where it
plans to drill thousands of wells, it said.
American Energy will enter Texas's Permian Basin by
acquiring about 63,000 net acres (25,500 hectares) of production
leases from Enduring Resources LLC for $2.5 billion.
The Permian properties are expected to have net production
of about 16,000 barrels of oil equivalent per day.
The deals in Ohio and West Virginia, due to close in 60
days, are worth $1.75 billion and include prospective acreage
American Energy will acquire about 27,000 acres of
production leases in Monroe County, Ohio, from East Resources
Inc and an unnamed private company.
The company is buying 48,000 acres of production leases in
West Virginia from East Resources and a private company.
In prior deals, American Energy has agreed to buy acreage
from Hess Corp, Exxon Mobil Corp and privately
held Paloma Partners this year.
Citigroup and Goldman Sachs were financial advisors to
McClendon's firms, while Sullivan & Cromwell LLP, Commercial Law
Group, P.C. and Porter Hedges LLP acted as legal advisors.
Jefferies LLC was the sellers banker and Baker Botts LLP acted
as legal advisor.
(Reporting by Anna Driver in Houston and Anannya Pramanick in
Bangalore; Editing by Don Sebastian and Marguerita Choy)