Thompson & Knight Assists EIG in $1.25 Billion Acquisition

Texas (January 4, 2012) – The global law firm of Thompson & Knight LLP has assisted EIG Global Energy Partners (“EIG”) in the purchase of $1.25 billion of perpetual preferred shares of CHK Utica, L.L.C. (“CHK Utica”), a subsidiary of Chesapeake Energy Corporation (“Chesapeake”).

Funds and co-investment vehicles managed by EIG acquired the CHK Utica preferred shares with GSO Capital Partners LP, an affiliate of the Blackstone Group, and Magnetar Capital, a private asset management firm. The investment was made in two closings on November 1, 2011 and December 1, 2011, respectively. EIG’s funds and investment vehicles will own more than 70% of the CHK Utica preferred shares and act as the representative for the investor group.

CHK Utica owns approximately 700,000 net leasehold acres within an area of mutual interest in the Utica Shale play in eastern Ohio, which were contributed by Chesapeake and its affiliates from their more than 1,000,000 leasehold acres that were owned by them. The investors in CHK Utica preferred shares will also receive overriding royalty interests. As part of the transaction, Chesapeake has committed to drill a minimum of 50 net wells per year through 2016. CHK Utica and other affiliates of Chesapeake are also entering into a joint venture with an unnamed investor to further provide funding and support for the development of properties owned by CHK Utica.

John W. Rain and Timothy T. Samson led the Thompson & Knight team of attorneys working on the transaction, which included Richard B. Hemingway, Jr. and Hunter H. White of the Oil and Gas Practice Group; John R. Cohn, R. David Wheat, and Sam L. Merrill of the Tax Practice Group; Amy R. Curtis, Sarah N. Furbee, and Julie A. Mediamolle of the Corporate and Securities Practice Group; and Gonzalo D. Castro of the International Energy Practice Group.

About Thompson & Knight

Established in 1887, Thompson & Knight is a full-service firm providing legal solutions to public and private companies, governments, and individuals in all areas, including energy, commercial and tort litigation, finance, banking, securities, mergers and acquisitions, taxation, intellectual property, corporate governance, creditors rights, labor, white collar defense, and environmental matters, among others. We are particularly recognized for our depth of experience and capabilities on behalf of clients in energy matters, both domestically and around the world. Thompson & Knight has approximately 350 attorneys with offices in Texas, New York, and Michigan and international offices and associations in the Americas, North Africa, and Europe.

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This release was published on openPR.