Aurora Oil & Gas Limited - Eagleford Shale - Sugarkane Field Operations and Production Update

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

PERTH, Western Australia, Sept. 12, 2011 /CNW/ - Aurora Oil & Gas Limited ("Aurora") is pleased to provide the following update on operations and production within the Sugarkane Gas & Condensate Field, Texas.

Aurora participates in 4 separate Areas of Mutual Interest ("AMI") within the Sugarkane Field and has different working interest and net acreage positions in each of these areas as detailed below.

AMI	Working Interest	Gross Acreage	Net Acreage
Sugarloaf	15.7%	23,550	3,700
Longhorn	31.9%	28,280	9,020
Ipanema	36.4%	4,600	1,670
Excelsior	9.1%	20,180	1,840
Total		76,600	16,230

Key status points:-

• There are presently 51 wells on production, 8 wells waiting on or being stimulated and 5 wells being drilled in which Aurora holds an interest.  Of the 51 wells on production the split by AMI is as follows:-
• Sugarloaf - 18.5 wells
• Longhorn - 13.5 wells
• Ipanema - 4 wells
• Excelsior - 15 wells
• Net production to Aurora during August is estimated at 86,000 boe, a 16% increase on July.
• Aurora net production is presently 2,970 boe/d (78% oil and NGL).

Production Data

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

Well	Days	Working Interest	Total Gas Production (mmscf)	Total Condensate Production (bbls)	Average Daily Equivalent Oil Rate (boe/d)*
Best Huth #1H	60	28.73%	39,707	35,810	707
Jordan #1H	60	15.78%	64,630	39,036	831
Davenport #1H	60	24.31%	53,026	35,607	740
Kellner Jonas #1H	60	9.14%	17,656	19,019	356^
Esse Smith B #1H	30	9.14%	16,385	22,096	828
Turnbull #5H	30	31.9%	18,020	15,891	637
Turnbull #6H	30	26.4%	29,026	18,097	764
Best Fenner #1H	30	15.8%	38,725	20,437	896
Hollub #1H	30	9.14%	7,863	7,674	300
Chapman Schroeder #1H	30	4.52%	16,004	20,369	768
Carpenter Thompson #1H	30	9.14%	11,669	9,711	388
Pfiefer #1H	30	21.64%	16,983	20,019	761

*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.

^Intermittent production during the second 30 day period.

Analysis continues on the HiWay fracced wells, all four wells in the pilot program have now been on production for over 90 days.  The table below shows consecutive 30 day averages for the four wells and cumulative totals after 90 days.

Well	Frac Design	1st 30 day (boe/d)	2nd 30 day (boe/d)	3rd 30 day (boe/d)	Cumulative production (boe)
Hierholzer Seewald #1H	Conventional	450	444	357	37,684
Hierholzer Retzloff #1H	Conventional	373	384	264	30,222
Chapman Pfiel #1H	HiWay	538	457	376	42,443
Chapman Rothe #1H	HiWay	551	460	422	44,043

Operations

The following wells have commenced production since the last operational update and Aurora will provide further details when the wells have achieved 30 and 60 day production milestones.

Well	Working Interest	Date of 1st Production
Yosko Borgfield #1H	23.76%	14/08/11
Scheele #1H	31.86%	30/08/11
Brysch Jonas #1H	15.78%	10/08/11
DeAtley May A #1H	9.14%	25/08/11
DeAtley May B #1H	9.14%	25/08/11
Kellner McMahon #1H	9.14%	25/08/11

In addition the following operations have taken place

Rippstein Mikkelson #1H (31.9% WI) - The Rippstein Mikkelson #1H well has been fracture stimulated and is presently cleaning up to sales.

Chapman Rogers #1H (31.9% WI) - The Chapman Rogers #1H well reached a total depth of 17,270 ft and casing was run and cemented in place.  This well is presently being fracture stimulated.

Scheele Huth A #1H (31.9% WI) - The Scheele Huth A #1H well has been drilled to total depth and casing has been run and cemented in place.  This well will be fracture stimulated in due course.

Scheele Huth B #1H (31.9% WI) - The Scheele Huth B #1H well has been drilled to total depth  of 16,818 ft and casing has been run and cemented in place.  This well will be fracture stimulated in due course.

Yosko Kinkler #1H (31.9% WI) - The Yosko Kinkler #1H well has been drilled to a total depth of 17,220 ft and is awaiting stimulation.

Holland Opiela #1H (29.97% WI) - The Holland Opiela #1H well has been drilled to a total depth of 16,847 ft and casing has been run and is presently being cemented in place.

Holland Brown #1H (31.31% WI) - The Holland Brown #1H well has been spudded and drilling operations are underway.

Griffin DeAtley A #1H (9.14% WI) - The Griffin DeAtley A #1H well well has been drilled to a total depth of 15,116 ft and casing has been run and cemented in place.

Griffin DeAtley B #1H (9.14% WI) - The Griffin DeAtley B #1H well has been drilled to a total depth of 15,140 ft and casing has been run and cemented in place.

Stuart Giese #1H (9.14% WI) - The Stuart Giese #1H well has been drilled to a total depth of 15,400 ft and casing has been run and cemented in place.  This well is presently being fracture stimulated.

Retzloff May #1H (9.14% WI) - The Retzloff May #1H well spudded on 31^st August 2011 and is presently drilling ahead.

Mauch Krueger #1H (9.14% WI) - The Mauch Krueger #1H well spudded on 2^nd September 2011 and is presently drilling ahead.

DeAtley Hollub #1H (9.14% WI) - The Griffin DeAtley #1H well spudded on 7^th September 2011 and is presently drilling ahead.

Other ASX participants in the Sugarloaf AMI only are:

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 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.

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 19 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