Aurora Oil & Gas signs credit agreement for US$300 million debt facility

PERTH, Western Australia, Nov. 8, 2011 /CNW/ - Aurora Oil & Gas Limited (TSX: AEF) (ASX: AUT) today announced that it and its subsidiaries have signed a credit agreement with a syndicate of banks providing for a US$300 million senior secured revolving credit facility to fund its drilling program at the Sugarkane Field Eagle Ford project in Texas and for general corporate purposes.

The funding under the revolving credit facility will be provided over the next five years with availability determined relative to a borrowing base calculated by reference to proved reserves. The facility is designed for the borrowing base to increase with Aurora's increased reserves, subject to and in accordance with the terms of the credit agreement. The initial borrowing base has been set at US$85 million and the drawdown of funds will be subject to certain customary conditions precedent, all of which are expected to be satisfied shortly.

As the drilling program on Aurora's Eagle Ford acreage accelerates through 2012, Aurora anticipates a continued transition of reserves to the proved category thereby increasing the Borrowing Base and the funding available under the facility.

As previously advised, the development activities for 2012 anticipates a total of 123 new wells drilled across Aurora's acreage together with the installation and completion of 9 central processing facilities with associated gathering pipelines. The funding available under the credit facility provides financial flexibility for the Company in this regard.

UBS Securities LLC and Credit Suisse Securities (USA) LLC acted as Co-lead Arrangers and Joint Bookrunners, and Commonwealth Bank of Australia acted as Arranger and Joint Bookrunner, in connection with the facility. UBS AG, Stamford Branch is the Administration Agent and Credit Suisse AG is the Syndication Agent under the facility.

Aurora announced the principal terms of the Facility on September 26, 2011 at the time a commitment letter was entered into with a syndicate of banks. Since that date, UBS AG, Stamford Branch was appointed Administrative Agent and BNP Paribas Securities Corp have been replaced by Commonwealth Bank of Australia.

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.


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
Einfo@auroraoag.com.au W www.auroraoag.com.au

Profil de l'entreprise

Aurora Oil & Gas Limited

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.