SUGARLOAF AMI OPERATIONS AND PRODUCTION UPDATE

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, May 12 /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.

Aurora also participates as a Working Interest holder in a larger area made up of an additional ~ 51,300 acres within the Sugarkane Field adjacent to the Sugarloaf AMI. Aurora is the only listed participant in these areas and currently has two other rigs operating in that acreage. Aurora provides separate updates on those operations.

Production Data

The following wells have been on production for a period of either 30 or 60 days and Aurora is pleased to provide the market with an update on produced volumes during that period:-

    <<
    -------------------------------------------------------------------------
                              Working   Total        Total        Average
                              Interest  Gas          Condensate   Daily
                                        Production   Production   Equivalent
                                        (mmscf)      (bbls)       Oil Rate
                                                                  (boe/d)*
    -------------------------------------------------------------------------
    Hollman No.1H - 60 day    15.78%    114.7        31,006       850
    -------------------------------------------------------------------------
    Buehring No.1H - 30 day   15.78%    21.84        17,406       726
    -------------------------------------------------------------------------
    >>

*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.

Operations

PMT No.1H (28.7% WI)

This PMT well location lies across the Ipanema and Sugarloaf AMI areas. As such Aurora holds a blended working interest of 28.7% in this well. This well has been fracture stimulated and for operational reasons production tubing was run prior to unloading the well. The well is now cleaning up to flare.

Buehring No.1H (15.78% WI)

Production commenced on this well on 8/4/11 and the 30 day production figures are provided above.

Davenport No.1H (24.31% WI)

The Davenport No.1H well location lies across the Sugarloaf and Longhorn AMI boundaries and as such Aurora holds a 24.31% blended working interest in the well. The well reached a total depth of 18,220 ft on the 23/04/11. The well will be fracture stimulated shortly.

Best Fenner No.1H (15.78% WI)

The Best Fenner No.1H well has been drilled within the Sugarloaf AMI and reached a total depth of 18,020 ft on the 27/04/11. This well has been successfully cased and will be fracture stimulated in due course.

Best Huth No.1H (28.73% WI)

The Best Huth No.1H well location lies across the Sugarloaf and Longhorn AMI boundaries and as a result Aurora holds a 28.73% blended working interest in the well. The well is presently being drilled having been spudded on 02/05/11.

ASX participants in the Sugarloaf AMI are:

Aurora (ASX:AUT and TSX:AEF) - 15.7%

AWE (ASX:AWE) - 10%

Eureka (ASX:EKA) - 6.25%

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 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.

Technical information contained in this report in relation to the Sugarkane field was compiled by Aurora from information provided by the project operator and reviewed by I L Lusted, BSc (Hons), SPE, a Director of Aurora who has had more than 15 years' experience in the practice of petroleum engineering. Mr. Lusted consents to the inclusion in this report of the information in the form and context in which it appears.

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

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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