Chesapeake Energy sues American Energy Partners over well costs

Chesapeake Energy Corp. on Friday sued a subsidiary of American Energy Partners LP, continuing the ongoing legal struggle between the companies currently and formerly run by Aubrey McClendon.

Filed in Oklahoma County District Court, the most recent lawsuit centers on a well Chesapeake drilled last year in Washita County. Chesapeake claims American Energy-NonOp LLC obtained a nonoperating interest in the well from Samson Resources and has not paid Chesapeake for its portion of the well costs, or more than $1.2 million.

American Energy-NonOp denied the claims Friday.

“The proposed farm out of an interest in the well by Samson to American Energy–NonOp, LLC (AENO) was never consummated and AENO is not liable to Chesapeake since it does not own an interest in the well,” the company said in a statement to The Oklahoman. “AENO will vigorously defend this case and pursue all claims AENO has against any other parties.”

In the legal filings, Chesapeake said it billed American Energy in August 2014 for its stake in the well. Two months later, the company confirmed its obligation to pay and said it would send the payment in the next week, Chesapeake said in the filing. A week later, American Energy promised to send the check the next day, Chesapeake said.

The payment did not arrive, according to the timeline Chesapeake laid out in the lawsuit. In December, American Energy said it would make the payment within the next few days, Chesapeake said. In January, the company said the payment “would be taken care of,” the lawsuit stated.

By then, the price of oil had collapsed to less than half its value just six months earlier. At that point, American Energy said it had rescinded the deal with Samson and asked Chesapeake to “please reverse and rebill Samson for the associated costs,” the lawsuit stated.

Chesapeake is suing for breach of contract and unjust enrichment and is seeking actual damages, restitution and attorneys’ fees.