McClendon’s American Energy Partners to pursue shale assets in Mexico

Map boundaries USA and Mexico
Source: DollarPhotoClub

Mexico’s EIM Capital – a private equity investment manager with offices in Mexico City and Dallas, Texas – and the Oklahoma-based American Energy Partners LP yesterday announced a new partnership to explore the vast exploration and development opportunities offered by Mexico’s abundant oil and gas energy resources.

Mexico currently holds some of the world’s largest unconventional oil and gas reserves – more than 60 billion barrels of shale resources, according to estimates by the Energy Information Administration. This would provide over 35 years of Mexican oil supply at current US production levels. These untapped unconventional energy resources could become highly economic for efficient developers and producers, and bolster a strong North American energy policy.

EIM Capital – dedicated solely to new investment in the Mexican energy sector, including power, upstream, midstream, and other energy-related infrastructure – is led by CEO Franco C. Hamdan and former Mexican President Vicente Fox. American Energy Partners, an oil and gas asset management platform and operator with a management team that has drilled more than 15,000 horizontal shale wells throughout the US, is led by former Chesapeake Energy Corporation Co-Founder and CEO Aubrey K. McClendon.

The two companies announced that they have entered into an agreement whereby, upon the completion of certain conditions, American Energy Partners will make a significant investment into EIM Capital to jointly pursue investments in Mexico’s energy industry and explore unconventional oil and gas development.  This is a significant vote of confidence in the Energy Reform program championed by current Mexican President Enrique Pena Nieto, and in the myriad possibilities offered by Mexico’s unconventional resources.

“We are excited to partner with one of the world´s most experienced and efficient unconventional producers, who under the right operating environment could help unlock Mexico´s unconventional energy resources and spur an energy boom which would be transformational for the Mexican economy,” said Franco C. Hamdan, founder and CEO of EIM Capital.

Mexico’s proximity to the U.S. market’s established infrastructure, service providers, and operators could help quickly scale the nascent Mexican shale industry and, with the right conditions, Mexico could rapidly emerge as a global leader in energy production. We are excited about this partnership’s potential to create these favorable conditions and benefit Mexico through job creation and technology.”

“This partnership will provide significant value to both companies and to the Mexican economy,” said Aubrey K. McClendon, Chairman and CEO of American Energy Partners. “EIM’s knowledge of and investments in Mexican infrastructure coupled with AELP’s knowledge of and operation within the unconventional energy industry will produce unparalleled opportunities as this exciting project progresses.”

Former President of Mexico Vicente Fox added, “This is a major opportunity for Mexican energy production. We look forward to working closely with the Mexican government to advance this monumental project and enhance Mexico’s current energy policy.”

The news of the partnership comes at the heels of the news that Aubrey McClendon is negotiating two acquisitions for Australian drilling rights marking his first move overseas, with the combined value of the deals at over $160million.

Article continues below this message

Have your opinion heard with Shale Gas International

We accept interesting, well-written opinion and analysis articles of up to 1,500 words, that offer unique insights into the shale industry. The articles cannot be overtly promotional in nature and need to fit into at least one of our content categories.

If accepted, the article must be exclusive to Shale Gas International website and cannot appear on any other websites, publications, etc. Each article may contain up to three links to external websites relevant to the content discussed in the piece.

If you would like to contribute to Shale Gas International website, please contact us at: editor[at]mw-ep.com