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AEPB acquires Permian leasehold for $2.5B

American Energy – Permian Basin LLC

American Energy – Permian Basin LLC (AEPB), an affiliate of American Energy Partners LP (AELP), has signed an agreement to acquire approximately 63,000 net acres of leasehold in the southern Permian Basin, primarily in Reagan and Irion Counties, Texas from affiliates of Denver-based Enduring Resources LLC for $2.5 billion. At closing, the properties are expected to have net production of approximately 16,000 barrels of oil equivalent per day.

Enduring Resources LLC ranked No. 94 in the latest installment of the OGFJ100P list of top privately held companies in April 2014.

The Enduring transaction marks AEPB’s entry into the Permian Basin and the company intends to increase its position in the Permian through additional acquisitions over time. Enduring is currently using four rigs to develop the acreage and AEPB plans to increase operated drilling activity to 6-8 rigs by year end 2015. AEPB plans to drill up to approximately 2,500 gross wells and 1,750 net wells on its acreage over the next decade.

AEPB’s lead equity investor is The Energy & Minerals Group (EMG), with additional equity provided by First Reserve Corp., AEPB’s management team and others. Goldman, Sachs & Co., Tudor, Pickering, Holt & Co. and Citi acted as financial advisors to AEPB. Financing for the acquisition was provided by Goldman Sachs Bank USA. Sullivan & Cromwell LLP, Commercial Law Group, PC and Porter Hedges LLP acted as legal advisors to AEPB. Jefferies LLC acted as financial advisor to Enduring and Latham & Watkins LLP acted as legal advisor to Enduring.

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