Gateway Energy & Resource Holdings announces direct investment in US shale oil play and additions to board

Source: Gateway Energy & Resource Holdings

Gateway Energy & Resource Holdings, a company focused on investments in global energy, resources and related infrastructure, announced the closing of a direct investment in preferred shares of CHK Utica, a subsidiary of Chesapeake Energy Corporation (NYSE: CHK), that owns approximately 700,000 net leasehold acres within an area of mutual interest in the Utica Shale play in Ohio and Pennsylvania . The CHK Utica preferred shares are entitled to receive a distribution of 7% per annum plus a 3% overriding royalty interest in the first 1,500 net wells drilled on CHK Utica's leasehold. The total transaction size was $1.25 billion with Gateway purchasing $15 million directly, EIG managed funds and accounts purchasing $816.5 million in total and third party investors purchasing the balance.

The company also announced the additions of both Gordon Clancy and Wallace Henderson to the Board of Directors of the company. Mr. Clancy was a founding partner and Managing Director of Citi Venture Capital International (CVCI), a leader in global emerging markets private equity investing. Mr. Clancy led CVCI's Asian activities and was the Chief Executive Officer of Citi Venture Capital International Asia Limited ( Hong Kong ) prior to his retirement in 2009. Mr. Henderson, President of Gateway, was promoted to Chief Executive Officer of the company and also appointed to the Board of Directors. R. Blair Thomas , Chairman of Gateway said: "The addition of Gordon and Wallace to the Board positions Gateway well for the next phase of our development. Gordon's insights into emerging market private equity, coupled with his experience in Hong Kong , are in sync with the recent opening of our Hong Kong office and supplement the strong energy and investment capabilities currently represented on the Board. Wallace's elevation to CEO now fills-out our senior management team and positions Gateway for growth. That growth is further supported by the strong investment pipeline we enjoy as evidenced by our proprietary deal with Chesapeake involving the Utica shale."

Sign up for PennEnergy's eNewsletters
For Email Newsletters you can trust

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs