AEP forms private-equity partnership for unconventional exploration in Mexico
EIM Capital, a private equity fund in Mexico City, announced a long-term partnership with an affiliate of American Energy Partners LP (AEP) of Oklahoma City to explore for unconventional resources in Mexico although financial terms were not disclosed.
The US Energy Information Administration reported in January 2014 that Mexico ranked eighth in the world in terms of oil and condensate technically recoverable from shale, estimated at 13.1 billion bbl.
Regarding natural gas, EIA reported Mexico holds 545 tcf of technically recoverable shale resources (UOGR, March-April 2014). Energy reform in Mexico has opened its oil and gas resources to outside exploration and production companies and outside investors.
The greatest unconventional potential exists in the part of the Eagle Ford shale that extends into Mexico’s Burgos basin from South Texas.
EIM Capital is led by Chief Executive Officer Franco C. Hamdan and former Mexican President Vicente Fox. AEP is led by Aubrey K. McClendon, former Chesapeake Energy Corp. cofounder and chief executive officer.
AEP and EIM Capital agreed AEP will invest in EIM Capital to jointly pursue investments in Mexico’s energy industry and explore unconventional oil and gas development. No specifics were outlined.
Hamdan, EIM Capital founder and chief executive officer, said, “Mexico’s proximity to the US 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.”
AEP Chairman and Chief Executive Officer McClendon said, “EIM’s knowledge of and investments in Mexican infrastructure coupled with [AEP’s] knowledge of and operation within the unconventional energy industry will produce unparalleled opportunities.”
Contact Paula Dittrick at [email protected].
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.
