South of the Border for Aubrey McClendon’s OKC Company

Oklahoma City-based American Energy Partners, LP has reached out and signed an exploration agreement with YPF, an energy firm considered to be the main oil producer in Argentina. Under the agreement signed by Aubrey K. McClendon of American Energy and Miguel Gallucio, CEO OF YPF, the two will explore and develop the Vaca Muerta formation in the Neuquen Basin in the Province of Neuquen in Argentina.

The two firms agreed to make investments totaling more than $500 million over the next three years and to introduce American Energy Partners to Argentina. They agreed to launch a shale oil and gas development pilot in the Bajada de Anelo block which covers about 55,000 acres. Under the agreement, the first stage should be completed by mid-2018 then the project would enter into the full field development phase in the “U.S. style shale manufacturing” mode.

YPF has a 43 percent market share in Argentina, 75,000 employees and a network of more than 1,500 service stations. It will also work with American Energy in partnership with Pluspetrol and Gas y Petroleo de Neuquen in launching a second project to delineate shale gas resources inthe southern portion of the Cerro Arena block which covers nearly 93,000 acres.

The agreements were signed thursday by McClendon and Galuccio at YPF’s headquarters in Buenos Aires. The move allows American Energy to become a major player in Argentina, joining the likes of Chevron, Dow and Petronas. And it allows YPF to take advantage of the experience that American Energy has in shale gas exploration.