PERTH, Western Australia, Sept. 8, 2013
PERTH, Western Australia, Sept. 8, 2013 /CNW/ - Aurora Oil & Gas Limited ("Aurora") (ASX:AUT, TSX:AEF) is pleased to announce a 50% increase in the borrowing base to US$300 million available under its revolving credit facility ('Facility") and to provide a mid-year reserves update of a 28% increase in proved, developed and producing (PDP) reserves. This increase in PDP reserves during the first half of 2013 has allowed for the significant increase in the amount available under the Facility, which remains undrawn.
The estimates ("Reserves Estimates") were internally generated for the semi-annual borrowing base redetermination under the Facility. The Reserve Estimates include contributions from both the recently acquired operated acreage and existing non-operated acreage within the Sugarkane Field.
The updated gross (before royalties) Reserve Estimates are summarised in the table below:
|Aurora Gross Reserves|
as at June 30, 2013
|mmboe|| Increase on |
|Proved Developed Producing (PDP)||27.6||28%|
|Proved plus Probable (2P)||132.7||29%|
|Proved plus Probable plus Possible (3P)1||203.3||21%|
1 Possible reserves are those reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will be equal or exceed the sum of the proved plus probable plus possible reserves.
Additional upside anticipated in 2013 year end reserves report
Additional reserves are anticipated to be captured in the 2013 year end reserves report in relation to the non-operated acreage (19,300 net acres) within the Sugarkane Field once development plans for infill drilling of the Eagle Ford have been agreed with the operator. Further upside is also anticipated once conclusions from the ongoing downspacing pilot programs can be applied to the development of the Austin Chalk.
The following key points should be noted when reviewing the information provided with the Reserve Estimates:
The table below summarizes Aurora's Reserve Estimates generated using the forecast price and costs assumptions summarized below. See also "Cautionary and Forward Looking Statements".
Aurora reserves summary as at June 30, 2013
|Aurora Gross Reserves|
(before royalty interests)
|Aurora Net Reserves|
(after royalty interests)
| L/M Oil |
| NGL and |
| Natural |
| L/M Oil |
| NGL and |
| Natural Gas |
|Proved Developed Producing||10,243||11,282||36,547||27,617||7,557||8,336||27,009||20,395|
|Total Proved (1P)||38,624||47,108||157,615||112,000||28,487||34,836||116,539||82,748|
|Proved + Probable (2P)||47,020||54,048||189,970||132,730||34,771||39,984||140,573||98,186|
|Proved + Probable + Possible (3P)2||47,020||94,989||367,993||203,341||34,771||70,323||272,683||150,542|
2 Possible reserves are those reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will be equal or exceed the sum of the proved plus probable plus possible reserves.
Aurora is an Australian and Toronto listed oil and gas company active in the over-pressured liquids rich region of the Eagle Ford shale in Texas, United States. The Company is engaged in the development and production of oil, condensate and natural gas in Karnes, Live Oak and Atascosa counties in South Texas. Aurora participates in approximately 79,900 highly contiguous gross acres in the heart of the trend, including approximately 22,000 net acres within the Sugarkane Field in the over-pressured and liquids core of the Eagle Ford.
|Technical information contained in this report in relation to the Sugarkane field was compiled by Aurora from information provided by the project operator and reviewed by Michael Verm, PE, Chief Operating Officer of Aurora, who has had more than 33 years of experience in the practice of petroleum engineering. Mr. Verm consents to the inclusion in this report of the information in the form and context in which it appears.|
Reserves Update Methodology and Assumptions
|Year||Oil Price (WTI)|
|Gas Price (Henry Hub)|
NGL pricing has been assumed at 30% of the WTI oil pricing above.
Cautionary and Forward Looking Statements
Aurora presents petroleum and natural gas production and reserve volumes in barrel of oil equivalent ("BOE") amounts. For purposes of computing such units, a conversion rate of 6,000 cubic feet of natural gas to one barrel of oil equivalent (6:1) is used. The conversion ratio of 6:1 is based on an energy equivalency conversion method which is primarily applicable at the burner tip and does not represent value equivalence at the wellhead. Readers are cautioned that BOE figures may be misleading, particularly if used in isolation.
References herein to "Sugarkane" or the "Sugarkane Field" are references to the Sugarkane natural gas and condensate field within the Eagle Ford and includes the two contiguous fields designated by the Texas Railroad Commission as the Sugarkane and Eagleville Fields.
Unless otherwise stated, all evaluations of future net revenue in this release are after deduction of royalties, development costs, production costs, local taxes and well abandonment costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses.
Our oil and gas reserves statement for the year ended December 31, 2012, which is based on the RS 2012 Report includes complete disclosure of our oil and gas reserves and other oil and gas information as at December 31, 2012 in accordance with NI 51-101, and is contained within our Annual Information Form available on our SEDAR profile at www.sedar.com.
Numbers in the tables above may not add due to rounding.
Statements in this press release which reflect management's expectations relating to, among other things, target dates, Aurora's expected drilling program and the ability to fund development are forward-looking statements, and can generally be identified by words such as "will", "expects", "intends", "believes", "estimates", "anticipates" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Statements relating to "reserves" and "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that some or all of the reserves described can be profitably produced in the future. These statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Although management believes the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include risks related to: exploration, development and production; oil and gas prices, markets and marketing; acquisitions and dispositions; competition; additional funding requirements; reserve and resource estimates being inherently uncertain; changes in the rate and/or location of future drilling programs on our acreage by our operator(s) incorrect assessments of the value of acquisitions and exploration and development programs; environmental concerns; availability of, and access to, drilling equipment; reliance on key personnel; title to assets; expiration of licences and leases; credit risk; hedging activities; litigation; government policy and legislative changes; unforeseen expenses; negative operating cash flow; contractual risk; and management of growth. In addition, if any of the assumptions or estimates made by management prove to be incorrect, actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this document. Such assumptions include, but are not limited to, general economic, market and business conditions and corporate strategy. Accordingly, investors are cautioned not to place undue reliance on such statements.
All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Forward-looking information contained herein is made as of the date of this document and Aurora disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law.
SOURCE Aurora Oil & Gas Limited
|Aurora Oil & Gas Limited - Quarterly activities summary for the quarter ended September 30, 2013 ()|
|Aurora Oil & Gas Limited - Proposed Issue of Options to a Director ()|
|Report on voting results of Aurora Oil & Gas Limited (2013/10/16)|
|Aurora Oil & Gas Limited - Second Quarter Presentation Material ()|
|Aurora Oil & Gas Limited - Company Presentation Material ()|
|Aurora Oil & Gas Limited - Notice of Meeting & Proxy Form ()|
|Aurora Oil & Gas Limited - Third Quarter Presentation Material (2013/11/8)|
|Aurora Oil & Gas reports second quarter 2013 financial results ()|
|Aurora Oil & Gas Reports Third Quarter 2013 Financial Results (2013/11/8)|
|Equal Energy Reports Second Quarter 2013 Results, Increases 2013 Drilling Program and Releases Mid-Year Reserve Report ()|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.