Nonoperated interest in 1,700 producing Fayetteville and Moorefield shale wells, once owned by Aubrey McClendon, are being offered for sale by Warwick Energy Group.

McClendon acquired interest in the wells while he served as CEO of Chesapeake Energy Corp. (NYSE: CHK).

Eagle River Holdings LLCs is handling the sale. The assets, on 6,950 net acres, are 100% HBP and consist of 2.5% working interest. Average monthly net operating income in fourth-quarter 2016 was $267,000.

The assets are located in Cleburne, Conway, Faulkner, Independence, Jackson, Pope, Van Buren and White counties, Ark.

Other highlights:

  • December net production of 8.078 million cubic feet per day (MMcf/d);
  • March net production of 7.9 MMcf/d;
  • More than 1,400 forecast future horizontal well locations;
    • 87% in the Fayetteville;
    • 13% in Moorefield;
  • Gross recoverable gas of 5.3 Tcf; and
  • Net recoverable gas of 103 Bcf.

Operators include Southwestern Energy Co. (NYSE: SWN), BHP Billiton Ltd. (NYSE: BHP) and XTO Energy Inc.

Offers are due by 4 p.m. MT on April 25. The sale will have an effective date of March 1. For information about the assets, contact Brian Green, Eagle River founder and managing director, at 281-296-5708.

McClendon, who died in March 2016, purchased interests in the wells through Chesapeake’s Founder Well Participation Program (FWPP).

The FWPP allow McClendon a contractual right to participate and invested in new wells drilled by the company by buying a working interest of up to 2.5%.

Though shareholders approved the program, it grew controversial after the Securities and Exchange Commission began an investigation. Chesapeake eventually disclosed that McClendon had obtained $846 million in loans from third parties on his well interests.

The program contributed to McClendon’s eventual ouster as chairman and later CEO of Chesapeake.

Darren Barbee can be reached at