PERTH, Western Australia, Dec. 12, 2013 /CNW/ - Aurora Oil & Gas Limited
("Aurora") (ASX:AUT) (TSX:AEF) advises that Marathon Oil Corporation,
whose subsidiary Marathon Oil EF LLC is Aurora's operating partner in
the majority of its Eagle Ford interests, has provided updated 2014
guidance on its Eagle Ford operations at its scheduled analyst day
briefing in New York.
The full announcement can be found on Marathon's website at http://www.marathonoil.com.
Aurora is in final discussions with Marathon and concluding its analysis
regarding specific plans for 2014 on their jointly-owned Sugarkane
Field assets. The results of this analysis will have a materially
positive impact on Aurora's own guidance for 2014. Aurora will issue
2014 guidance by early January 2014.
Marathon Analyst Day Briefing
Marathon announced its 2014 capital program along with other pertinent
information regarding its progress in terms of value creation. Key
Accelerated Eagle Ford drilling activity: Approximately 40% of the total capital expenditure for Marathon will
be spent in the Eagle Ford. Aurora currently estimates more than 50%
of that will be inside the Sugarkane Field, suggesting a significant
increase in 2014 new well count over 2013. The associated capital
spend is well within Aurora's existing funding capacity.
Down spacing confirmed: Production data from the down spacing pilot program has demonstrated
that existing 40 and 60 acre spaced wells have delivered higher initial
results than wells at historic 80 acre and 160 acre spacing. Marathon
will focus developments on 40 to 60 acre spacing, and put in place a 30
acre spacing pilot in 2014 in the high GOR oil window.
Continued improvements in completion efficiency and well performance: drilling times continue to fall as do well costs.
Austin Chalk Potential: Marathon has confirmed two successful pilot programs in the Austin
Chalk on the acreage it partners with Aurora.
Initial implications for Aurora
Marathon's accelerated development program and move to tighter
development spacing is expected to have a materially positive impact on
Aurora's production and reserves growth. More wells are expected to be
developed in 2014 at lower capital costs resulting in a material
increase in production.
Aurora is preparing guidance for 2014 and will update the market in
early January 2014.
Aurora is an Australian and Toronto listed oil and gas company active in
the over-pressured liquids rich region of the Eagle Ford shale in
Texas, United States. Aurora 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 approximately
80,300 highly contiguous gross acres in the heart of the trend,
including approximately 22,100 net acres within the Sugarkane Field in
the over-pressured and liquids core 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;
changes in the rate and/or location of future drilling programs on our
acreage by our operator(s), 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.
References herein to "Sugarkane" or the "Sugarkane Field" are references
to the Sugarkane natural gas and condensate field within the Eagle Ford
and includes the two contiguous fields designated by the Texas Railroad
Commission as the Sugarkane and Eagleville Fields.
SOURCE: Aurora Oil & Gas Limited
For further information:
F T I Consulting
Tel: +61 8 9485 8888
Executive Management Contact:
Tel: +61 8 9380 2700
Douglas E. Brooks
Chief Executive Officer
Tel: +1 713 402 1920