American Energy – Utica, LLC (“AEU”), an affiliate of American Energy Partners, LP, raised approximately $1.7 billion in private equity commitments and term loan proceeds to pursue a business plan focused on the Utica Shale. AEU’s lead equity investor is The Energy & Minerals Group based in Houston, and additional equity was provided by First Reserve Corporation based in Greenwich, CT and others. The term loan facility was led by GSO Capital Partners based in New York and additional debt investors, including Magnetar Capital and BlackRock, Inc.
Proceeds from these financings will be used to acquire approximately 105,000 net leasehold acres in the southern portion of the Utica Shale play in eastern Ohio, to finance drilling operations on this acreage and to acquire and develop additional acreage in the Utica Shale. AEU plans to start drilling operations with one rig in the fourth quarter of 2013 and plans to increase drilling activity to at least 12 rigs over the next 2-3 years.
Baker Botts represented The Energy & Minerals Group in this transaction.
