AEW raises $680m to acquire US Woodford shale acreage

American Energy – Woodford (AEW) has raised approximately $500m in equity commitments and received approximately $180m in bank borrowings to acquire a leasehold position in the Woodford shale or Mississippi Lime combination play in central northern Oklahoma, US.

The Energy & Minerals Group (EMG) is AEW’s exclusive private equity investor, while additional equity commitments have been provided by AEW management and others.

EMG has over $8.4bn of assets under management. It manages funds which are invested in the energy and minerals sectors.

The company plans to use the financing proceeds to acquire around 120,000 net acres of leasehold and around 6,000 net barrels of oil equivalent daily production in the central northern Oklahoma play.

AEW said that it aims to establish a leasehold position of up to 200,000 net acres in the area.

The firm will acquire assets from four sellers, which include Calyx Energy, Calyx Energy II, Liberty Energy and Truevine Operating.
Kayne Anderson Energy Funds supported Calyx Energy and Calyx Energy II, while Old Ironsides Energy managed Liberty Energy.

American Energy Partners is engaged in the development of onshore unconventional resource plays in the US.