Aurora Oil & Gas secures US$300 million debt facility

PERTH, Western Australia, Sept. 25, 2011 /CNW/ - Aurora Oil & Gas Limited (TSX: AEF) (ASX: AUT) today announced it has signed a Commitment Letter from a syndicate of banks for a US$300 million senior secured revolving credit facility, with an initial $85 million available, to fund its drilling program at the Sugarkane Field Eagle Ford project in Texas and for general corporate purposes.  This facility has been arranged and underwritten by BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and UBS Loan Finance LLC.

The banking commitment letter attaching a detailed term sheet has been credit approved by all lenders and the facility is subject to customary condition precedents, including settlement of definitive documentation, and to the delivery of an updated report regarding Aurora's proved and proved plus probable reserves estimate as at August 31, 2011 which is to be completed shortly by Netherland Sewell Associates Inc.

The funding under the commitment will be provided by way of a five year revolving credit facility with availability determined relative to a Borrowing Base, which will be determined on the basis of proved reserves. This facility is a typical US based E & P reserves based funding arrangement and is designed for the Borrowing Base to increase with increased reserves, subject to lender approval.  The Initial Borrowing Base is to be set at an amount of US$85 million on the execution of the facility agreement. Aurora's accelerated drilling program through to the end of 2012 will continue to transition reserves to the proved category.

The interest rate will be equal to LIBOR plus a margin, which will vary, depending on the amount of the Borrowing Base drawn, from LIBOR plus to 2.0 per cent up to a maximum of LIBOR plus 4.0 per cent. Hedging of crude oil production, based on current Proved Developed Producing Reserves is required through to 2014 but represents a low percentage of expected production through that period.

Commenting on the signing of the debt financing facility Aurora Chairman and CEO Jon Stewart stated, "Aurora is very pleased to have put in place an attractive, flexible debt facility of a size that correlates with our significant ramp up in development drilling during the balance of 2011 and through 2012 and beyond. The banking syndicate underwriting this facility have proven both responsive to our requirements and committed to a long term relationship with the Company."

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.  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.

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 info@auroraoag.com.au, W www.auroraoag.com.au

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Aurora Oil & Gas Limited

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