Aurora Oil & Gas Sugarkane Field update
Dec 12, 2013, 15:08 ET
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 highlights included:
- 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
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