Aurora Oil & Gas Limited - Quarterly activities summary for the quarter ended 30 June 2013

Aurora Oil & Gas Limited - Quarterly activities summary for the quarter ended 
30 June 2013 
PERTH, Western Australia, July 31, 2013 /CNW/ - Aurora Oil & Gas Ltd 
("Aurora") (ASX:AUT TSX:AEF) is pleased to provide an update on corporate 
activities and the progress of the development program of its Eagle Ford 
assets in the Sugarkane Field in South Texas, in accordance with ASX listing 
On a quarter-on-quarter basis Aurora is pleased to report: 

    --  a 5% increase in revenue and a 134% increase compared to Q2
    --  a 9% increase in production volume and a 144% increase compared
        to Q2 2012
    --  that 8.0 new net wells were put on production
    --  that production and revenues were booked from a further 11
        existing wells in the recently acquired 100% operated acreage
    --  an additional 12.1 net wells spudded during the quarter which
        includes 2.0 new net wells on 100% operated acreage.

Activities during the quarter ended June 30, 2013 have led to the following 
corporate, operational and production highlights:
    --  Revenue from oil and gas sales was US$134 million for the
        quarter (US$98 million after royalties) of which 86% was
        generated from oil and condensate sales and a further 7% from
        natural-gas liquids (NGLs).
    --  Aurora's estimated total gross quarterly production was 1.85
        mmboe (80% liquids on a boe basis). Net to Aurora, after
        royalties, total quarterly production was 1.37 mmboe. Quarterly
        production increased by 9% compared to the previous quarter and
        approximately 144% on the corresponding quarter in 2012.
    --  The average gross Aurora production rate during the quarter was
        approximately 20,380 boe/d. Net to Aurora, after royalties,
        average production was approximately 15,040 boe/d, which again
        equates to a 9% increase on the previous quarter
    --  The cash balance at the end of the quarter was US$165 million
        and the revolving credit facility, with a borrowing base of
        US$200 million, was undrawn.
    --  A total of 32 gross new wells (8.0 net) were put on production
    --  Aurora commenced booking production from 11 existing wells in
        the recently acquired operated acreage at the beginning of the
    --  A total of 45 gross (12.1 net) new wells were spudded during
        the quarter, which includes 2.0 wells in the Aurora 100%
        operated acreage.
    --  The number of new wells spudded was ahead of the guidance (4.0
        net wells) due to higher activity levels than anticipated on
        the non-operated acreage and early commencement of activity on
        Aurora operated acreage.
    --  At the end of the quarter, drilling operations were underway on
        9 wells, 21 wells were awaiting fracture stimulation and 10
        wells were being stimulated or were being prepared for test. In
        total there were 295 gross wells on production (77.5 net wells
        to Aurora).
    --  Aurora commenced drilling activity on its operated acreage
        during the quarter with the F-08 drilling rig from Nabors
        Drilling starting on the JP Heard Bower #19H and #20H wells
        within the Heard Ranch.  Subsequent to the reporting quarter,
        but prior to the issue of this report, the F-30 drilling rig
        from Nabors commenced operations on the Julie Beck #12H and
        #13H, located on the Axle Tree Ranch.  Aurora anticipates
        operating two rigs in the Eagle Ford for the remainder of
        2013.  The start-up operations have been completed safely and
        without any reportable incidents.

Sugarkane Field - Eagle Ford Shale

Aurora's primary asset is its interest in the Sugarkane Field in South Texas, 
which is located in the core area of the Eagle Ford shale. Aurora participates 
in approximately 79,900 highly contiguous gross acres that make up the field. 
The operator of 77,200 gross acres is Marathon Oil EF LLC, a wholly-owned 
subsidiary of Marathon Oil Corporation (NYSE: MRO) ("Marathon") and Aurora is 
the largest non-operating working interest partner in this area. In 
addition, Aurora has 100% working interest and is Operator of 2700 acres 
within the two areas, Axle Tree Ranch and Heard Ranch within the Sugarkane 
Field, as shown in figure 1.

At the end of the reporting period, Aurora had a net position of approximately 
22,000 acres within four adjacent non operated Areas of Mutual Interest 
("AMIs") and two operated areas in the Sugarkane Field. The varying levels of 
participation are outlined in the table below and the AMIs are shown on figure 
1 above.

|         AMI    |Working Interest|Gross Acreage|Net Acreage|
|     Sugarloaf  |        28.0%   |     24,000  |    6,700  |
|      Longhorn  |        31.9%   |     28,400  |    9,000  |
|      Ipanema   |        36.4%   |      4,700  |    1,700  |
|     Excelsior  |         9.1%   |     20,100  |    1,800  |
|Operated acreage|         100%   |      2,700  |    2,700  |
|        Total   |                |    *79,900  |   *22,000 |

*Totals may not sum due to rounding


There were between 7 and 11 rigs drilling at any one time on Aurora's 
non-operated Sugarkane acreage during the reporting quarter and one rig on 
Aurora's operated acreage. A total of 45 gross (12.1 net) wells were spudded, 
two of which were on the operated acreage. Due to higher activity levels on 
the non-operated Sugarkane acreage and early commencement of activities on 
operated acreage this level was greater than the 4 net wells guided to for Q2 

During the reporting quarter 32 gross (8.0 net) wells were put on production. 
In addition, Aurora booked first revenue from 11 net producing wells that were 
part of the acquisition of the Axle Tree and Heard Ranch acreage in March, 
2013. Aurora has an inventory of 21 gross non-operated wells which, at the 
end of the quarter, have been fully constructed and are awaiting commencement 
of fracture and stimulation operations.

The following table details activity status within the Sugarkane Field as at 
June 30, 2013.

|Well Status|         |        |       |         |Axle|Heard|     |
|           |Sugarloaf|Longhorn|Ipanema|Excelsior|Tree|     |Total|
| Q2,  2013 |         |        |       |         |    |Ranch|     |
| Producing |     74  |   134  |    7  |     69  |  6 |   5 | 295 |
|  Workover |      0  |     0  |    0  |      0  |  0 |   0 |   0 |
|  Flowback |      0  |     0  |    0  |      0  |    |     |   0 |
| Fracture  |      3  |     3  |    0  |      2  |  0 |   0 |   8 |
|Stimulation|         |        |       |         |    |     |     |
|Completions|      4  |    12  |    0  |      5  |  0 |   0 |  21 |
|  Drilling |      6  |     3  |    0  |      0  |  0 |   2 |  11 |
|   *Total  |     87  |   152  |    7  |     76  |  6 |   7 | 335 |

* Not including 5 farmout wells

In addition, a variety of well intervention operations have taken place across 
a number of wells in which Aurora has an interest. Artificial lift 
installations took place in 43 wells across Aurora's non-operated acreage. 
This is a routine planned operation that is implemented as individual well 
reservoir pressures drop.

As anticipated, the majority of drilling activity during Q2 2013 within the 
non-operated Sugarkane Field utilised multiple wells 'pads', where between 2 
to 5 wells are drilled from the same surface location.

This pad drilling allows cost and efficiency savings by sharing infrastructure 
and avoiding lengthy rig and fracture stimulation equipment moves. Further 
efficiencies are expected with several pads undergoing batch drilling, whereby 
the vertical surface hole section of wells at a particular pad location are 
all drilled first, then all of the horizontal sections are drilled 
thereafter. This batch approach allows equipment and operations to be 
configured for a particular repeatable phase of operations resulting in 
efficiency gains.

Operated Acreage

Significant activity has taken place across Aurora's recently acquired 100% 
operated acreage. The first operated well in the Heard Ranch area, the JP 
Heard Bowers #19H, was successfully spudded, ahead of schedule, by the Nabors 
F-08 drilling rig on May 31, 2013. This well was partially batch drilled, 
surface casing was run and operations temporarily suspended while the rig 
skidded to the surface location of the next well in sequence (#20H), located 
on the same drill pad.

JP Heard Bower #20H was spudded on June 7, 2013 and has been drilled and 
logged, reaching the Target Depth of 19,396 ft. including a horizontal length 
of over 7,500 ft. Production casing has been run and cemented in place in 
preparation for completion operations. The rig has now skidded back to JP 
Heard Bowers #19H and drilling operations from surface casing depth are now 

Aurora's second rig, the Nabors F-30 is currently on location in the Axle Tree 
ranch. The rig is batch drilling from a single surface pad and surface 
casing has been run and set at the Julie Beck #12H well. The rig has 
subsequently skidded to the Julie Beck #13H and the surface hole at this 
location is presently underway.

In addition to drilling operations, installation of pipelines, central 
gathering infrastructure and facilities is underway as is the construction of 
new access roads and pad drilling sites.

Down spacing Pilot Program Update

During the reporting quarter Aurora released preliminary results from the 
down-spacing pilot program underway within the Sugarkane Field. A summary of 
these preliminary results includes:
    --  A total of 13 wells drilled within the pilot study had at least
        6 months of production history. It was also noted that over 25%
        of all wells drilled to date at Sugarkane are at less than 80
        acre spacing across parts of the field, albeit with less than 6
        months production data.
    --  The 13 wells showed statistically comparable performance to the
        80 acre type curves used by the independent engineers to
        generate the Aurora 2012 year end reserves report.
    --  The program has been extended to other parts of the Sugarkane
        Field including the Austin Chalk horizon.
    --  Aurora is planning 40 acre development spacing on its recently
        acquired operated Sugarkane acreage.
    --  Aurora will provide a further update on the program and its
        results during Q4 2013.

During the reporting quarter the first Austin Chalk pilot wells commenced 
production. The program consists of two sets of wells, the first within the 
Weston production unit where the Weston #1H Austin Chalk well has been on 
production since February 2010 and the second updip within the Longhorn AMI, 
close to the Axle Tree operated acreage.

The Weston program consists of two Austin Chalk wells and one Eagle Ford 
well. The horizontal wellbores in the Austin Chalk wells are 500 ft. apart 
(60 acre nominal spacing) and the third well is located equidistant in plan 
view but approximately 180 ft. deeper within the Eagle Ford horizon.

The second program has two Austin Chalk wells and three Eagle Ford wells. 
Again each is spaced 500ft apart (60 acre nominal spacing) and with a similar 
vertical offset to the two layers of wells.

The pilot program is intended to investigate the impact of a second layer of 
wells in the Austin Chalk and to understand compositional variation of 
produced hydrocarbons within the Austin Chalk and see if it varies in a 
similar fashion to the underlying Eagle Ford.


During the reporting period, a total of 32 gross (8.0 net) wells were brought 
on production. In addition, Aurora commenced booking production from a further 
11 existing wells on the recently acquired operated acreage. For the 
majority of the period there were between 1 and 3 frac crews active on 
Aurora's Sugarkane acreage. The following table provides details of the Aurora 
production during Q2 2013 which comprised 80% liquids on a boe basis.

Non-operated Production

|       |                   Aurora Gross (WI)       |                    Aurora Net (NRI)       |
| Qtr 2 |___________________________________________|___________________________________________|
|       |  Oil  | Cond  |    Gas  |  NGL  |   BOE*  |  Oil  | Cond  |    Gas  |  NGL  |   BOE*  |
| Prod  |       |       |         |       |         |       |       |         |       |         |
|       |(bbls) |(bbls) |  (mscf) |(bbls) |  (bbls) |(bbls) |(bbls) |  (mscf) |(bbls) |  (bbls) |
| April |194,200|152,100| 660,450 |94,200 | 550,600 |143,000|112,300| 487,900 |69,550 | 406,150 |
|   May |241,900|143,800| 728,300 |103,600| 610,700 |178,200|106,200| 538,200 |76,550 | 450,700 |
|  June |207,450|143,050| 765,200 |106,200| 584,250 |152,700|105,180| 563,100 |78,100 | 429,800 |
| Total |643,500|439,000|2,153,950|304,050|1,745,500|473,900|323,650|1,589,250|224,250|1,286,650|
|Average|       |       |         |       |         |       |       |         |       |         |
|       |       |       |         |       |         |       |       |         |       |         |
| Daily | 7,100 | 4,800 |  23,700 | 3,350 |  19,180 | 5,200 | 3,550 |  17,450 | 2,450 |  14,150 |
|       |       |       |         |       |         |       |       |         |       |         |
| Rate  |       |       |         |       |         |       |       |         |       |         |

Operated Production

|       |              Aurora Gross (WI)     |             Aurora Net (NRI)     |
| Qtr 2 |____________________________________|__________________________________|
|       | Oil  | Cond |  Gas  | NGL  | BOE*  | Oil  | Cond | Gas  | NGL  | BOE* |
| Prod  |      |      |       |      |       |      |      |      |      |      |
|       |(bbls)|(bbls)|(mscf) |(bbls)|(bbls) |(bbls)|(bbls)|(mscf)|(bbls)|(bbls)|
| April |29,960|   -  |30,270 |2,500 |37,500 |22,470|   -  |22,700|1,880 |28,120|
|   May |28,390|   -  |30,720 |2,420 |35,920 |21,290|   -  |23,040|1,810 |26,940|
|  June |23,740|   -  |48,640 |3,530 |35,380 |17,810|   -  |36,480|2,650 |26,540|
| Total |82,090|   -  |109,630|8,450 |108,810|61,570|   -  |82,220|6,340 |81,600|
|Average|      |      |       |      |       |      |      |      |      |      |
|       |      |      |       |      |       |      |      |      |      |      |
| Daily |  900 |   -  | 1,210 |   90 | 1,200 |  680 |   -  |  900 |   70 |  900 |
|       |      |      |       |      |       |      |      |      |      |      |
| Rate  |      |      |       |      |       |      |      |      |      |      |

Note totals may not sum due to rounding
*The oil equivalent barrels per day production rate has been calculated on a 
6:1 ratio of gas to oil.

The graph below shows the quarterly production profile since Q2 2012. The 
figures shown at the base of each production bar show the incremental net 
wells added during that period. As indicated in the Company's 2013 guidance, 
Aurora anticipates activities to be weighted to the second half of the year 
and its production growth profile will reflect this bias.

Regional Eagle Ford Shale activity

The Eagle Ford shale is recognised by the industry as the one of the premier 
shale plays in the US. High liquids content, strong well performance 
(particularly in the core of the trend) and significant regional 
infrastructure drive attractive economics.

As a result activity levels have remained high, with 233 rigs reported as 
currently operating within the trend. Development is increasingly focused on 
the core areas of the trend. The Sugarkane Field lies within the core area. 
The local regulatory body, the Texas Railroad Commission, reported April 2013 
oil production rates of 546,000 bbl/d from the Eagle Ford.

Quarterly Revenue and Capital Expenditure

Aurora's revenue from oil and gas sales for the second quarter of 2013 
totalled US$134 million (US$98 million after royalties).

Total development capital expenditure including accruals for the quarter 
totalled US$106 million representing development undertaken at the Sugarkane 
Field and at the adjacent Axle Tree and Heard Ranch acreage during the quarter.

At June 30, 2013 Aurora's cash balance was US$165 million with a working 
capital balance of US$46 million.

In addition, the Company currently has a further US$200 million of liquidity 
available from its undrawn revolving credit facility.

Aurora anticipates the second quarter unaudited Interim Financial Report and 
Management's Discussion and Analysis, prepared in accordance with Canadian 
securities legislation requirements, will be filed on or about August 8, 2013.

About Aurora
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 79,900 highly contiguous gross 
acres in the heart of the trend, including approximately 22,000 net acres 
within the Sugarkane Field in the overpressured and liquids core of the Eagle 

|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 20 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 and Forward Looking Statements

Aurora 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 

Numbers in the tables above may not add due to rounding.

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.

Statements in this press release 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. 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.

SOURCE  Aurora Oil & Gas Limited 
Jon Stewart Aurora Executive Chairman +61 8 9380 2700  Douglas E Brooks Group 
Chief Executive Officer +1 713 402 1920  Jane Munday FTI Consulting +61 8 
9485 8888 +61 488 400 248 
Aurora Oil & Gas LimitedABN 90 008 787 988 
HEAD OFFICE Level 20, 77 St. Georges Terrace, Perth, WA 6000, Australia GPO 
Box 2530 Perth, WA 6001, Australia t+61 8 9440 2626,f+61 8 9440 
HOUSTON Aurora USA Oil & Gas, Inc. a subsidiary of Aurora Oil & Gas Limited 
1111 Louisiana, Suite 4550, Houston, TX 77002 USA t+1 713 402 1920,f+1 
713 357 9674  
Image with caption: "Figure 1 (CNW Group/Aurora Oil & Gas Limited)". Image 
available at: 
Image with caption: "Aurora Quarterly Net and Gross Daily Production 2012 / 
2013 (CNW Group/Aurora Oil & Gas Limited)". Image available at: 
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