Big Oil's Flight Draws US Risk Takers to Australian Shale

Raymond’s Energy & Minerals, a key backer of McClendon’s post-Chesapeake activities, last week agreed to acquire an 18 percent stake in Australian shale rights held by closely held Pangaea. Raymond didn’t return a telephone message seeking comment. McClendon and Raymond are investing in the county’s Northern Territory region.

In his home country, McClendon’s efforts to build a new shale empire since his forced departure from Chesapeake have foundered. American Energy has struggled under low energy prices and heavy debts incurred to amass a portfolio that stretches from the Great Plains to Appalachia.

--With assistance from James Paton in Sydney.

To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Jim Efstathiou Jr.


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Anthony Skeryanc  |  August 24, 2015
Your lead-in statement in which you declare Aubrey McClendon as having pioneered the U.S. shale revolution is, in my opinion totally erroneous. The seeds of the U.S. shale revolution were planted by the Section 29 Tax credit, which stimulated extensive drilling in CBM, tight Devonian black shale and tight sands. This led to thousands of vertical wells. The pursuit of these unconventional reservoirs led to major progress in drilling and completion technology. A ground swell built and George Mitchell of Mitchell Energy demonstrated remarkable staying power in applying lateral drilling in the Barnett Shale in North Texas. He continued to experiment with completion techniques. Over a period of several years as Mitchells improved techniques and eventual success began to be disseminated, an industry feeding frenzy followed. Granted, McClendon was very aggressive as were others but if a single person is to be anointed as having pioneered the U.S. shale revolution, I believe that George Mitchell deserves that recognition. And no - I did not work for Mitchell but I have been involved with unconventional resources since 1989 and have watched as the industry has now become a victim of its success, but much to the good of the country and long term energy independence.


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