Aubrey K. McClendon and American
Energy Partners, LP (AELP) responded today to the announcement by American
Energy – Utica, LLC (AEU) and The Energy & Minerals Group that Chesapeake
Energy Corporation (Chesapeake) has dismissed AEU and the John Doe Defendants
1-20 from the lawsuit filed by Chesapeake on February 17, 2015.
AEU apparently chose to settle with Chesapeake before any discovery was taken,
evidently for the business purpose of mitigating further damage that
Chesapeake's litigation has been having on AEU's business and financing
activities. AEU has the right to resolve the case in this fashion, but this
resolution should not be mistaken as reflecting an informed view of the merits
of Chesapeake's claims or a concession of any liability by any party to
Chesapeake.
Although Mr. McClendon is a director and the single largest non-institutional
shareholder in AEU, he did not approve the settlement and neither he nor AELP
were advised of the negotiated terms of this settlement. AELP and Mr.
McClendon will continue their efforts to have the dispute arbitrated as
required by Mr. McClendon's agreements with Chesapeake. As he will show in
the appropriate forum, Mr. McClendon rightfully possesses an extensive array
of information about more than 16,000 wells, and the related leasehold acreage
and future wells, he jointly owns with Chesapeake, including land, well,
title, accounting, geological, engineering, reservoir, operating, marketing,
and performance information. Mr. McClendon's well-documented agreements with
Chesapeake gave him the right to own and use this information for his own
purposes, including sharing it with his employees, contractors, advisors,
consultants and affiliated entities.
In December 2014, Mr. McClendon agreed to the appointment of his long-time
colleague Jeff Fisher as Chairman of the Board of AEU's parent company and Mr.
Fisher succeeded Mr. McClendon as CEO of AEU. Mr. McClendon remains a director
of AEU's parent company and is the Chairman of the Board or CEO of American
Energy – Permian Basin, LLC, American Energy - Woodford, LLC, American Energy
- NonOp, LLC, American Energy – Midstream, LLC and American Energy Minerals
Holdings, LLC.
Mr. McClendon and AELP have established a website (www.AELPvCHKLitigation.com)
on which copies of relevant documents concerning this dispute are located.
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