/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, May 13 /CNW/ - Aurora Oil & Gas Limited (TSX: AEF) (ASX: AUT) today released financial results and key operational highlights for the three months ended March 31, 2011. All figures are reported in US dollars unless otherwise noted.
- Average net production for the quarter increased to 1,050 boe/d (787
boe/d after royalties).
- Production as at April 24, 2011 had increased to approximately 2,200
boe/d (1,660 boe/d after royalties).
- Revenue increased to $7 million.
- Net income increased to $3.7 million.
- 14 wells drilled of which 3 wells completed, 4 wells being drilled at
- 18 wells on production at quarter end of which 9 are post farmout
Three months ended March 31
($ thousands unless otherwise stated)
Production Revenue - Pre royalty 6,961 -
Funds from operations (net)(1) 362 (29)
Per share - basic (cents per share)(1) 0.09 (0.01)
Net earnings 3,683 (408)
Per share - basic (cents per share) 0.92 (0.20)
Net earnings ($/boe) 52.00 -
Net capital expenditures 11,454 959
As at As at
March 31, 2011 Dec 31, 2010
Weighted average common shares
Basic 401,859 293,768
Diluted 408,299 293,768
Three months ended March 31
(boe conversion - 6:1 basis)
Production - Post Royalties
Natural gas (mcf/d) 1,644 -
Oil (bbls/d) 513 -
Total oil equivalent (boe/d) 787 -
Average Product prices - Pre royalties
Natural gas ($/mcf) 4.23 -
Oil ($/bbl) 91.18 -
Net production revenue - post royalties
($/boe) 69.73 -
Operating expenses ($/boe) 6.28 -
General and administrative expenses ($/boe) 20.96 -
Operating netback(2) 42.49 -
(1) Funds from operations (net) are equal to the net cash inflow /
(outflow) from operations as shown as a separate line on Aurora's
Consolidated Statement of Cashflows for the quarter ended March 31,
2011. This only includes actual receipts from operations during the
(2) Operating netback is not defined by the generally accepted accounting
principles applicable to Aurora. Operating netback equates to revenue
from production less royalties, transportation, operating expenses
and general and administrative expenses calculated on a boe basis.
During the reporting period there were a number of operational highlights:
- Aurora's net production and sales income have started to increase
rapidly as a result of its busy 2011 drilling schedule. Average
production for the quarter increased to 1,050 boe/d (787 boe/d net of
royalties) and sales increased to approximately US$7 million. These
results will continue to grow rapidly during the year as the well
count grows and farmin wells drilled by Hilcorp Energy (the
"Operator") in 2010 that are burdened with initial infrastructure
costs, pay out.
- Aurora's production on April 24, 2011 had increased to approximately
2,200 boe/d (1,660 boe/d net of royalties).
- The number of rigs operating across Aurora's acreage increased from 2
to 4 during the month of January. Drilling times have continued to
improve with the average time taken per well of approximately 27 days
expected to reduce further during the year. Aurora now participates in
at least 4 new wells each month.
- A total of 11 new wells were drilled and cased during the period and 3
wells were stimulated and put on production. At the end of the
reporting period there were 18 wells on production, 9 ready for
stimulation, 4 wells being drilled and 2 wells being stimulated.
- There are currently a further 7 wells that have been fracced and were
on production by the end of April 2011. The current inventory of
drilled and cased wells is expected to be addressed by the end of May
giving a significantly increased total of approximately 35 wells on
production by that time (9 of which are farmout wells).
- During the reporting period, gross volumes produced from Aurora's
joint venture areas within the Sugarkane Field increased
- Gas production increased 44% to 2.12 Bcf gas (previous quarter
1.47 Bcf gas)
- Oil and condensate production increased 64% to 524,700 bbls
(previous quarter 320,600 bbls)
- Field development is consistent with plans to complete a 60 well
drilling program this year for a total well count of approximately 80
by 2011 year end.
- A detailed review of operations for the first quarter 2011 can be
found in the Quarterly Update that was lodged on SEDAR on April 29,
2011. A copy of the Quarterly Update can be found on the Company's
website at www.auroraoag.com.au and at www.sedar.com.
The selected financial and operational information outlined above should be read in conjunction with Aurora's unaudited interim financial statements 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 statements and the financial information contained in this announcement were prepared in accordance with Australian Accounting Standards and in accordance with International Financial Reporting Standards.
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 74,800 highly contiguous gross acres in the heart of the trend, including over 15,760 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 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 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.
References to certain terms that do not have any standardized meanings prescribed generally accepted accounting principles ('GAAP') and therefore may not be comparable with the calculation of similar measures by other companies. Field netback, as presented, represents revenue from production less royalties, state taxes, transportation and operating expenses. Operating netback represents field netback less general and administrative expenses.
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
- "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, E firstname.lastname@example.org, W www.auroraoag.com.au