Aurora Oil & Gas Limited (ticker: AEF and AUT) is a Perth- and Houston-based oil and liquids company with operations in the Eagle Ford Shale trend of South Texas. Aurora has 88,800 gross (22,000 net) acres in the “tri-county” area of Karnes, Live Oak and Atascosa Counties, Texas.
Douglas E. Brooks, Chief Executive Officer of Aurora, recently presented at EnerCom’s The Oil and Gas Conference® 18. Click here for the web cast.
Increased Reserves Lead to Increased Borrowing Base
Aurora announced on September 8, 2013, a 50% increase to its borrowing base to $300 million available under its revolving credit facility and provided investors a mid-year reserves update. Additionally, Aurora reported a 28% increase in PDP reserves, an 18% increase in gross total proved reserves, and a 21% increase in gross proved plus probable plus possible reserves. The company now holds a gross total of 101.4 million barrels of oil equivalent (MMBOE).
This increase in proved, developed, and producing (PDP) reserves during the first half of 2013 allowed for the significant increase in the amount available under the facility, which remains undrawn.
OAG360 Comments:
The increase in Aurora’s borrowing base is very timely as the company initiates its operated program, and that the majority of its CAPEX and drilling plan is weighted to the back half of 2013. AEF plans to participate in 18 net non-operated wells and drill 19 net operated wells in Q3’13 and Q4’14 combined.
This rapid increase in wells is expected to boost Aurora’s 2013 net exit production forecast to range between 17,000 BOEPD and 19,000 BOEPD – representing an approximate 45% increase from the 2012 exit rate.
The growth in reserves and the borrowing base follows a 191% year over year rise in net profit for the six months ended June 2013, according to Aurora’s Q2’13 release on August 7, 2013. Other recent highlights include AEF acquiring an additional 12.25% working interest in the Sugarloaf project, and adding a 100% working interest in the Axel Tree and Heard Ranches blocks. The blocks, acquired in March 2013, are located near the company’s existing Sugarkane asset.
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