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McClendon Affiliate Scoops Up Oklahoma Acreage

An affiliate of American Energy Partners LP (AELP) has completed a series of transactions that has built a portfolio in southern and central Oklahoma, better known as the South Central Oklahoma Oil Province, or SCOOP.

American Energy-NonOp LLC (AENO) spent a total of $251 million to acquire leaseholds from Double Eagle Energy Holdings LLC and from undisclosed parties, it said. The properties primarily are in Canadian, Carter, Garvin, Grady, Kingfisher, Love and Stephens counties.

All together, the assets now are producing about 1,800 boe/d net. There are 82 wells currently being drilled or waiting on completion. Also included are working interests in 543 existing or potential spacing units.

About one-third of the leases are held by production, with close to one-third "actively being unitized," the operator said. There are 38 horizontal rigs on the new AENO leasehold, which it said represents 48% of all the rigs now active in the play.

The purchase offers exposure to several stacked formations, said management, including the Woodford, Meramec, Goddard and Springer shales.

Lead equity investor in AELP is The Energy & Minerals Group, with additional equity provided by the management team, led by founder Aubrey McClendon. Double Eagle is owned by funds affiliated with Apollo Global Management.

AEP-LP affiliate American Energy-Woodford LLC in June dedicated acreage in central-northern Oklahoma to Tall Oak Midstream LLC, which plans to build a midstream system to serve producers targeting the Woodford Shale, Cleveland formation and the Mississippian Lime (see Shale DailyJune 25). The long-term dedication spans around one million acres in several Oklahoma counties.

McClendon's privately run production affiliates are growing. Late last month, the Permian Basin unit of AELP indicated it may go public within a year depending market conditions (see Shale DailyOct. 29).

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