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Chesapeake in partnership to develop Ohio Shale

by Claire Poole  |  Published March 20, 2012 at 1:31 PM
Chesapeake-boosts-divestiture-range.jpgOklahoma City oil and gas explorer Chesapeake Energy Corp. said March 13 that its Chesapeake Midstream Development LP unit entered into a partnership with Ridgemont Equity Partners-backed M3 Midstream LLC and EV Energy Partners LP to build the largest integrated midstream service complex in eastern Ohio's hot Utica Shale oil and gas play.

The partnership plans to invest $900 million in the complex over the next five years. Chesapeake will own 59%, M3 33% and EV Energy 8%. Total SA unit Total E&P USA Inc., Chesapeake's 25% partner in its Utica Shale properties, has an option to participate in the project, which may cut Chesapeake's ownership to 44% and EV Energy's to 6%.

The complex will provide infrastructure to process natural gas and natural gas liquids, or NGL's, including gathering and compression facilities constructed and operated by Chesapeake and processing, NGL fractionation, loading and terminal facilities constructed and operated by M3. The cyrogenic processing and fractionation plants are set to be running by the second quarter of 2013.

Vinson & Elkins LLP advised M3, including Doug Bland, Elizabeth Radack, Sara Hurt and Elizabeth Bellows. Hall, Estill, Hardwick, Gable, Golden & Nelson PC assisted EV Energy, including Jim Satrom, Kyle Freeman and Del Gustafson. Jackson Walker LLP's Randy Young, Michael Wood and Marisela Pena counseled Chesapeake.

Regina Gregory is lead counsel at Chesapeake Midstream, and Fabené Welch is general counsel at EV Energy.
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Tags: Chesapeake Energy Corp. | Chesapeake Midstream Development LP | Del Gustafson | Elizabeth Radack | EV Energy Partners LP | Fabené Welch | Hall Estill Hardwick Gable Golden & Nelson PC | Jackson Walker LLP | Kyle Freeman | Regina Gregory | Ridgemont Equity Partners | Total E&P USA Inc. | Total SA | Vinson & Elkins LLP

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