OKLAHOMA CITY, FEBRUARY 17, 2015: American Energy – Utica, LLC (AEU) and The Energy & Minerals Group (EMG) today responded to a meritless lawsuit commenced against AEU by Chesapeake Energy Corporation (NYSE:CHK).
Chesapeake has erroneously included AEU and certain yet to be named investors in a lawsuit it filed today against certain entities owned or controlled by Aubrey K. McClendon including American Energy Partners, LP, based on a dispute it has with Mr. McClendon in which Chesapeake alleges Mr. McClendon misappropriated certain Chesapeake trade secrets upon his separation from Chesapeake in 2013. Chesapeake clearly does not understand the ownership or structure of AEU, which is controlled by EMG, and Chesapeake has made no attempt to understand the ownership structure prior to carelessly and erroneously naming AEU as a party to its lawsuit.
The allegations in the Chesapeake lawsuit against AEU are meritless given that all information used by AEU in connection with the acquisition of its assets was either publicly available, provided by the sellers of those assets or independently developed by The Energy & Minerals Group (EMG) or W.D. Von Gonten & Co, a widely regarded independent petroleum engineering and geological firm with whom EMG has a long standing relationship. EMG is the largest equity investor in AEU followed by First Reserve (FR). Both EMG and FR have been involved with AEU since the initial acquisition of its assets in October, 2013 yet neither was contacted by Chesapeake prior to the filing of this lawsuit.
AEU will immediately respond to and vigorously defend this lawsuit and expects to be removed as a defendant as quickly as possible. Additionally, AEU and EMG intend to bring any and all appropriate counterclaims against Chesapeake for the filing of such a meritless case without conducting any reasonable investigation into the factual and legal basis for the claim and for any damages that are incurred by any of such parties as a result.
About American Energy – Utica, LLC:
American Energy – Utica, LLC is an independent oil and natural gas company affiliated with American Energy Partners, LP focused on the acquisition, development and production of unconventional oil, natural gas liquids and natural gas resources in the Utica Shale play in eastern Ohio.
About The Energy & Minerals Group:
EMG is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $17.1 billion of regulatory assets under management (RAUM) and approximately $8.1 billion in commitments have been allocated across the energy sector since inception. For additional information, please visit www.emgtx.com.
About First Reserve:
First Reserve is the largest global private equity investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised more than USD $30 billion of aggregate capital since inception. Putting these to work, First Reserve has completed more than 550 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. For additional information, please visit www.firstreserve.com.