Aurora Oil & Gas Reports Third Quarter 2011 Financial Results

PERTH, Western Australia, Nov. 14, 2011 /CNW/ - Aurora Oil & Gas Limited (TSX: AEF) (ASX: AUT) today released financial results for the third quarter ended September 30, 2011 and the nine months to September 30, 2011. All figures are reported in US dollars unless otherwise noted.

Financial highlights for the 3rd quarter compared to the 2nd quarter:

  • Revenue up 32% to $23 million
  • Funds from operations up 33% to $13 million
  • Production up 43% to 3,580 boe/d
  • Entered into secured reserves based revolving credit facility, with an initial amount of $85m available
  • As at August 31, Aurora gross proved reserves increased by 99% to 28.8 mmboe and gross proved plus probable reserves increased by 90% to 56.8 mmboe, compared to as at December 31, 2010

  Three months ended   Nine
Months
  Sept 30,
2011
June 30,
2011
Increase % Sept 30,
2011
Financial        
($ thousands unless otherwise stated)        
         
Production Revenue - Pre royalty 23,121 17,416 32% 47,258
Funds from operations (net)(1) 13,306 10,006 33% 26,307
  Per share - basic (cents per share)(1) 3.24 2.44 33% 6.45
Net earnings before tax 10,437 8,045 30% 22,165
Net earnings after tax 9,850 12,518 (21%) 26,051
  Per share - basic (cents per share) 2.40 3.05 (21%) 6.39
Net earnings ($/boe) 29.91 55.05 (46%) 39.99
Net capital expenditures 39,912 26,005 54% 77,373
         
Weighted average common shares outstanding (millions):        
  Basic 410.3 406.1 1% 407.6
  Diluted 414.1 413.0 0.3% 414.1
         
Operating        
Production - Pre Royalties        
  Natural gas (mcf/d) 5,181 3,611 43% 3,674
  Oil (bbls/d) 2,303 1,536 50% 1,514
  NGL (bbls/d) 414 361 15% 260
    Total oil equivalent (boe/d) 3,580 2,499 43% 2,386
         
Average Product prices - Pre royalties        
  Natural gas ($/mcf) 4.80 4.04 19% 4.53
  Oil ($/bbl) 87.26 102.87 (15%) 93.52
  NGL ($/bbl) 61.61 51.91 19% 57.11
         
Production revenue ($/boe) 70.20 76.57 (8%) 72.54
Royalties ($/boe) 18.94 20.98 (10%) 19.63
Operating expenses ($/boe) 5.98 5.59 7% 5.66
Operating netback 45.28 50.00 (9%) 47.25
         
General and administrative expenses ($/boe) 5.08 9.15 (44%) 8.04
         

(1) These financial measures are identified and defined below under "Non-GAAP Measures".
(2) Comparative financial and operational results for the three months ended September 30, 2010 are not presented in this table, as Aurora did not have any production or revenues in that prior period.

The selected financial and operational information outlined above should be read in conjunction with Aurora's unaudited interim financial report and related Management's Discussion and Analysis for the reporting period, which have been filed on SEDAR and will be available for review at www.sedar.com and on our website at www.auroraoag.com.au. Aurora's unaudited interim financial report and the financial information contained in this announcement were prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures compliance with International Financial Reporting Standards (IFRS).

Briefing Conference Call

Aurora will host a third quarter 2011 results briefing conference call on the following date:

November 15, 2011 at 6 p.m. Eastern Time (Canada)
November 16, 2011 at 10 a.m. Eastern Time (Australia)

To access the briefing conference call, dial (888) 231-8191 (from the US) or (647) 427-7450 (from Canada and internationally). A recording of the conference call will be available on Aurora's website following the briefing at www.auroraoag.com.au.

About Aurora

Aurora is an Australian and Toronto listed oil and gas company active exclusively 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 over 76,600 highly contiguous gross acres in the heart of the trend, including over 16,230 net acres within the liquids rich zones of the Eagle Ford

Cautionary and Forward Looking Statements

Statements in this press release 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" 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 estimates being inherently uncertain; 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.

The Company 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.

In this release, all estimates of reserves are presented on a gross basis, before deduction for royalty interests.

Non-GAAP Measures

References are made herein to certain terms that do not have any standardized meanings prescribed by IFRS and, therefore, are considered Non-GAAP measures. Although Non-GAAP measures are commonly used in the oil and gas industry and the Company, given the lack of standardized meaning such measures may not be comparable with the calculation of similar measures by other companies.

Funds from operations is commonly used in the oil and gas industry. It represents funds provided by operating activities before changes in non-cash working capital. The Company considers it a key measure as it demonstrates the ability of the business to generate the cash flow necessary to fund future growth through capital investment. Funds from operations should not be considered as an alternative to, or more meaningful than cash provided by operating activities as an indicator of the Company's performance.

Management uses certain industry benchmarks such as operating netback to analyse financial and operating performance. Operating netback, as presented, represents revenue from production less royalties, state taxes, transportation and operating expenses calculated on a boe basis. Management considers operating netback an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.

Defined Reserves and Resource Terms

  • "bbl" means barrel.
  • "boe" means barrels of oil equivalent, determined using a ratio of 6 Mcf of raw natural gas to 1 bbl of condensate or crude oil, unless otherwise stated.
  • "scf" means standard cubic feet.
  • "btu" means British thermal units.
  • "m" or "M" prefix means thousand.
  • "mm" prefix means million.
  • "b" or "B" prefix means billion.
  • "/d" suffix means per day.

 

SOURCE Aurora Oil

For further information:

Level 20, 77 St. Georges Terrace Perth, Western Australia 6000
GPO Box 2530 Perth, Western Australia 6001
T+61 8 9440 2626 F +61 8 9440 2699
info@auroraoag.com.au W www.auroraoag.com.au

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Aurora Oil & Gas Limited

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