SUGARLOAF AMI OPERATIONS AND PRODUCTION UPDATE

TORONTO, Feb. 28 /CNW/ - Aurora Oil & Gas Limited ("Aurora") is pleased to provide the following update on operations and production at the Sugarloaf Area of Mutual Interest ("AMI") within the Sugarkane Gas & Condensate Field, Texas.

Production Data

The following wells have been on production for a period of 60 days and Aurora is pleased to provide the market with an update on the produced volumes during that period:

          Working
Interest
        Total Gas
Production
(mmscf)
        Total
Condensate
Production
(bbls)
        Average Daily
Equivalent Oil
Rate (boe/d)*
Urrutia #1H         10%         102.3         35,084         869
Kowalik #1R         11.65%         90.2         28,825         731

*The equivalent barrels per day production rate has been calculated on a simple 6:1 ratio in compliance with Canadian securities laws under National Instrument 51 - 101. This change in reporting standards was detailed in the Aurora Quarterly Report.

Remedial operations on Direct Assets #1H well were successful and the well commenced production on 27/01/11 on a restricted choke setting.  Over the most recently reported 5 day period the well averaged the following production rates.

        Working
Interest
      Average
Daily Gas
Production
(mmscf/d)
      Average Daily
Condensate
Production
(bbls/d)
      Average Daily
Equivalent Oil
Rate (boe/d)*
Direct Assets #1H       10%       1.48       479       726

*The equivalent barrels per day production rate has been calculated on a simple 6:1 ratio. 

Due to the length of time between the fracture stimulation of this well and it being unloaded to sales, some of the pressures created during the stimulation process had bled off into the formation; this is a likely explanation of the lower early production rates observed in this well.

Operations

Holman #1H (10% WI)

This well has been drilled and cased with a Total Depth of 17,570 ft.  The fracture stimulation of this well commenced on the 24th February 2011 and Aurora will update the market when stabilized flow has been achieved.

Jordan #1H (15.78% WI)

This well has been drilled and cased with a Total Depth of 16,472 ft.  This well will be fracture stimulated in due course and Aurora will update the market when stabilized flow has been achieved.

PMT #1H (28.7% WI)

This well location lies across the Sugarloaf and Ipanema AMI areas.  As such Aurora holds a blended working interest of 28.7% in this well.  The well spudded on 14/2/11 and Aurora will provide the market with an update once the drilling of this well has been completed.

Buehring #1H (15.78% WI)

Drilling operations commenced on the 18/02/11 and Aurora will provide the market with an update once the drilling of this well has been completed.

Update to Independent Reserves Report

As previously advised, an update to the 1 July 2010 Independent Reserves Report prepared by Netherland Sewell Associates is currently being generated and is expected to be completed and released in the next few weeks. This report will be prepared as of 31 December 2010 at which time a total of 15 wells were on production in which Aurora holds an effective interest as compared to 6 wells on production as at 1 July 2010.

The objective of commissioning this update report within only 6 months of the initial report is twofold; to bring reserves reporting in line with the Company's new reporting balance date of 31 December and secondly, to demonstrate the rapid manner in which Proven, Probable and Possible Reserves (3P) transition to Proven and Probable (2P) Reserves as a result of the drilling program under way. Due to the still relatively low number of wells on production for extended periods over the various parts of Aurora's extensive acreage, management do not expect to see material changes in Expected Ultimate Recoveries (EUR's) per well. The 2011 drilling program will see Aurora participate in approximately 60 new wells across its acreage.  The planned 2011 year end inventory of approximately 80 wells is expected to transition most of the 3P reserves base to 2P this year and to provide sufficient extended data points from which decline curves can be better determined and EUR forecasts reviewed.

ASX participants in the Sugarloaf AMI are:

        Aurora (ASX:AUT and TSX:AEF) - 15.7%
        AWE (ASX:AWE) - 10%
        Eureka (ASX:EKA) - 6.25%

Aurora also participates as a WI holder in a larger area made up of an additional ~ 49,500 acres within the Sugarkane Field adjacent to the Sugarloaf AMI.   Aurora is the only listed participant in these areas and has two other rigs operating in that acreage.  Aurora will provide separate updates on those operations.

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, De Witt and Atascosa counties in South Texas.  Aurora participates in over 73,000 highly contiguous gross acres in the heart of the trend, including over 15,600 net acres within the liquids rich zones of the Eagle Ford.  Aurora is funded for and expects to participate in approximately 60 new development wells during 2011.

Cautionary Statements

The Company may present 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.

Statements in this press release regarding 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. 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. 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 and Gas Limited

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 and 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.