This week’s buyers: American Energy Partners, Magnum Hunter, Egdon Resources

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American Energy Partners, owned by the ousted Chesapeake’s founder Aubrey McClendon, agreed to buy oil and gas holdings from West Virginia to West Texas for $4.25 billion. (9 June)

So far, 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.

The company 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.

 

US shale company Magnum Hunter has announced it will acquire Australian driller Ambassador Oil and Gas for 5.1 million shares, or about $45.2 million. (10 June)

Ambassador Oil & Gas is an unconventional oil and gas exploration company, with assets in the South Australian portion of the Cooper basin, estimated to hold 20 trillion cubic feet of gas in place. The company also holds 12,000 net acres in Colorado.

The deal is priced to trump an agreed takeover by Drillsearch Energy, Ambassador’s neighbour in the onshore South Australian oil and gas fields valuing Ambassador shares at 34c,rather than 29c offered by Drillsearch.

Magnum Hunter plans to offer one of its shares for every 27.8 Ambassador shares.

 

Alkane Energy, the largest operator of coal mine methane in the UK, has become a significant shareholder in Egdon Resources, following the transfer of gas-shale licences. (11 June)

In a deal signed in May, Egdon purchased interests in ten UK shale exploration and development licences from Alkane in return for 40 million Egdon shares, but required the UK Department of Energy and Climate Change to approve the transfer of licences. This consent has now been obtained.

In a statement on the company’s website, Mark Abbott, Managing Director of Egdon commented:

“We are delighted to have obtained consent from DECC enabling the transfer of licences in Alkanes shale-gas interests. Following this transfer, Egdons prospective acreage in UK shale-gas will nearly double to 140,176 acres, creating a significant new UK shale-gas player.”

 

Today (13 June),Morocco’s state-run phosphate monopoly OCP has signed an agreement to buy a 10 percent stake in Brazil-based company Fertilizantes Heringer for 145 million Brazilian real ($65 million).

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