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Former Chesapeake CEO McClendon launches new company, report saysSeptember 30, 2013
Former Chesapeake Energy Corp. CEO Aubrey McClendon is back — and apparently pinning his hopes on a different shale play than North Texas’ Barnett Shale.
According to CNBC.com, the outspoken executive is set to close on $1.8 billion in equity and debt financing for a new exploration and production company called American Energy Utica, news that CNBC said it received from investors in the company.
The new company is expected to purchase and develop acreage in the southern Utica Shale area, located in the northeastern United States and known for abundant natural gas and natural gas liquids.
According to the CNBC story, the new company is expected to close on the purchase of 80,000 acres in the Utica Shale in three transactions. With $1.35 billion in equity, along with $450 million in debt that CNBC said has been raised, about 12 rigs are expected to reach operation within two to three years.