XTO, American Energy Utica in deal for 30K acres of Utica acreage

http://www.reuters.com/article/2014/02/03/us-americanenergy-utica-i...

http://ca.finance.yahoo.com/news/american-energy-utica-llc-agrees-1...

CEO Aubrey McClendon's American Energy Partners said on Monday that it had struck three deals in Ohio's Utica shale region, doubling its holdings there.

The company said it would buy about 130,000 acres in the southern part of the Utica shale from Hess Corp (HES.N), Exxon Mobil Corp (XOM.N) and privately held Paloma Partners. It said the three deals would bring its total acreage in the region to about 260,000 acres.

American Energy did not disclose how much it is paying for the acreage, but Hess said previously that it sold its 74,000 acres in the Utica for $924 million.

McClendon co-founded Chesapeake, the No. 2 U.S. natural gas producer, in 1989.

But he left his post of chief executive officer in April after clashes with the board over spending and a series of Reuters investigations that led to civil and criminal probes at the company.

An internal investigation by Chesapeake's board last year cleared McClendon of intentional wrongdoing.

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Permalink Reply by Harry E. Rose on February 4, 2014 at 7:19am
Since royalty buyers are paying landowners 7,000 to 10,000/acre, it appears they are paying roughly 25 to 30% of the value of the royalty.
Permalink Reply by Busy Bee on February 3, 2014 at 12:47pm
This article says the acreage is in Belmont , Harrison and Jefferson.http://finance.yahoo.com/news/exxonmobil-increases-permian-basin-ac...
Permalink Reply by searcherone on February 3, 2014 at 1:35pm

Thanks Busy Bee for this article.   Am I reading it correctly that with the money from the sale of the 30,000 acres XTO will use that to develop their remaining acreage in the southern Utica/Marcellus?

Permalink Reply by TM on February 3, 2014 at 1:52pm
American Energy-Utica LLC, after what Exxon cited as competitive bidding, will fund 100 percent of XTO’s near-term development costs in a core area of about 55,000 net acres in the Utica. ExxonMobil isn't selling the acreage outright, but the AEU unit would help fund near-term development for an undisclosed amount of money. In return, American Energy will gain ownership in about 30,000 net acres of XTO’s holdings in three Ohio counties.

XTO would continue to operate in a core area of about 55,000 net acres, optimizing development by using transaction proceeds to fund all of the near-term development costs.
Permalink Reply by searcherone on February 3, 2014 at 2:39pm

TM, any idea as to what AEU may have to do to "earn" the acreage?  

Permalink Reply by TM on February 3, 2014 at 3:18pm
Not real sure yet Searcher. Do you have any idea?
Permalink Reply by Renee E. Dorsey on February 4, 2014 at 7:53am

Does anyone know if XTO sold the Kaldor area to AEP Utica, or is that part of what they are holding on to?   

Permalink Reply by TM on February 4, 2014 at 8:50am

Maybe news will come out on which townships the acreage is located in the future. If AEU did buy your acreage I am sure you will get something in the mail notifying you of the sale.

Permalink Reply by Renee E. Dorsey on February 4, 2014 at 8:59am

I am with Paloma but that XTO well is close to us - more curious than anything!   Supposedly it is a gusher.  Well gusher isn't the right word but you know what I mean....

Permalink Reply by TM on February 4, 2014 at 9:06am

AEU bought land from Paloma as well. Between XTO and Paloma Partners the acreage leases AEU bought was 56,000 acres.

Permalink Reply by TM on February 4, 2014 at 9:31am

We just initiated development in the Utica and are encouraged by results from our initial well that is producing at a peak 30-day rate of about 15 million cubic feet of dry gas per day.

They must be talking about the XTO Kaldor well in Mead Township Belmont County ? Must be dry gas acreage AEU bought in Belmont.

Permalink Reply by TM on February 4, 2014 at 10:02am

Jay the XTO acreage sale to AEU was in Harrison, Jefferson and Belmont Counties. XTO still retains 55,000 core acres in the Utica that they will operate on.

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