(PR Newswire) Mexico’s EIM Capital and an affiliate of Oklahoma City, Oklahoma-based American Energy Partners, LP today announced a new, long-term, landmark partnership to explore the vast exploration and development opportunities offered by Mexico’s abundant oil and gas energy resources.
Mexico currently holds some of the world’s largest unconventional oil and gas reserves – more than 60 billion barrels of shale resources, according to estimates by the Energy Information Administration, which would provide over 35 years of Mexican oil supply at current US production levels. These untapped unconventional energy resources could become highly economic for efficient developers and producers, and bolster a strong North American energy policy.
EIM Capital, a Mexico City-based private equity fund dedicated solely to new investment in the Mexican energy sector, including power, upstream, midstream, and other energy-related infrastructure, is led by CEO Franco C. Hamdan and former Mexican President Vicente Fox. American Energy Partners, an oil and gas asset management platform and operator with a management team that has drilled more than 15,000 horizontal shale wells throughout the US, is led by former Chesapeake Energy Corporation Co-Founder and CEO Aubrey K. McClendon.
The two companies announced that American Energy Partners and EIM Capital have entered into an agreement whereby, upon the completion of certain conditions, American Energy Partners will make a significant investment into EIM Capital to jointly pursue investments in Mexico’s energy industry and explore unconventional oil and gas development. This is a significant vote of confidence in the Energy Reform program championed by current Mexican President Enrique Pena Nieto, and in the myriad possibilities offered by Mexico’s unconventional resources.
“We are excited to partner with one of the world´s most experienced and efficient unconventional producers, who under the right operating environment could help unlock Mexico´s unconventional energy resources and spur an energy boom which would be transformational for the Mexican economy,” said Franco C. Hamdan, founder and CEO of EIM Capital. “Mexico’s proximity to the U.S. 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. We are excited about this partnership’s potential to create these favorable conditions and benefit Mexico through job creation and technology.”
“This partnership will provide significant value to both companies and to the Mexican economy,” said Aubrey K. McClendon, Chairman and CEO of American Energy Partners. “EIM’s knowledge of and investments in Mexican infrastructure coupled with AELP’s knowledge of and operation within the unconventional energy industry will produce unparalleled opportunities as this exciting project progresses.”
Former President of Mexico Vicente Fox added, “This is a major opportunity for Mexican energy production. We look forward to working closely with the Mexican government to advance this monumental project and enhance Mexico’s current energy policy.”