Current AEF:CA Stock Info

Aurora Oil & Gas Limited (ASX: AUT, TSX: AEF) is a Perth- and Houston-based oil and liquids company with operations solely in the Eagle Ford Shale trend of South Texas. Aurora has 79,700 gross (21,800 net) acres in the “tri-county” area of Karnes, Live Oak and Atascosa Counties, Texas. The company exited 2012 producing approximately 13,850 net BOEPD.

Traditionally, Aurora has been a non-operator in the Eagle Ford participating in more than 298 wells with Marathon Oil (ticker: MRO). However, during February 2013, Aurora made its first foray into operatorship by purchasing 100% working interest in 2,700 net HBP acres for $117.5 million in the tri-county area.

Operating Program Ahead of Development Schedule 

The Nabors (ticker: NBR) F08 drilling rig spud Aurora’s JP Heard Bower #19H operated well on May 31, 2013 ahead of the company’s initial Q3’13 target. Two adjacent wells will be drilled on the same pad location on 40-acre spacing with 7,000 foot laterals. Zipper fracs will be used to improve frac efficiency. The same surface well pad will be used for two more drilling locations later in the development schedule. Aurora still plans to add a second operated drilling rig focused on the company’s operated acreage during Q3 2013.

Aurora will spud 45 to 50 net wells during 2013, 14 to 19 of those wells being operated, and 30 to 32 of those wells being non-operated. The company allocated between $430 million and $465 million to its 2013 plans in hopes of achieving 2013 average net production between 14,500 BOEPD to 16,200 BOEPD.

Aurora’s Acreage Position in the Eagle Ford

Aurora’s entire Eagle Ford position is highlighted below in yellow. The two call outs, Heard Ranch and Axle Tree, are the company’s two operated positions.


Final Thoughts on Aurora

Hypothetically, if Aurora hits the midpoint of its stated 2013 average net production guidance, the company will have essentially doubled production when compared to its 2012 net average production level of 7,860 BOEPD. The growth trend continues at Aurora Oil & Gas Limited. Here is a recent write-up highlighting Aurora’s key operational metrics and future upside potential in the Eagle Ford shale.

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