An investment group that raised $100 million and asked shale pioneer Aubrey McClendon to tell them how to spend it has cut ties with the former Chesapeake Energy Corp. CEO seven weeks after his death.
Energy 11 LP terminated the management agreement with an entity created by McClendon in 2014 to oversee acquisitions and drilling in exchange for a monthly fee, according to a public filing on Monday. McClendon died in an Oklahoma City car accident on March 2.
Energy 11 began raising money from investors two years ago as a so-called blind pool investment, a speculative vehicle with no assets or profits that offered backers a chance to bankroll oil and gas wells. Two McClendon proteges from his quarter-century tenure at Chesapeake were top executives at Energy 11.
The investment vehicle raised about $100 million from a common shares offering, according to the filing. Energy 11’s primary holding is an 11 percent interest in 215 oil wells and 262 drilling sites in the Sanish field in North Dakota’s Bakken shale region. Whiting Petroleum Corp. is operator of those wells, according to the filing.