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

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


    --  a 7% increase in revenue from Q2 2013 (68% increase from Q3
        2012)
    --  a 6% increase in production volume (71% increase from Q3 2012)
    --  10 new net wells were placed on production
    --  the first two Aurora operated wells were placed on production
        in late September 2013
    --  13 net wells were spudded which includes 7 wells on Aurora
        operated acreage

Corporate, operational and production highlights for the third quarter 2013:
    --  Revenue:  Revenue from oil and gas sales was US$144 million for
        the quarter (US$105 million after royalties), comprising 86%
        oil and condensate sales, 8% natural-gas liquids (NGLs) , and
        6% natural gas.
    --  Total production:  Aurora's gross quarterly production was 1.97
        mmboe (80% liquids on a boe basis). Net to Aurora, after
        royalties, production was 1.45 mmboe. This represented an
        increase of 6% on the previous quarter and approximately 71% on
        the corresponding quarter in 2012.
    --  Average production:  Aurora's average gross production rate
        during the quarter was approximately 21,400 boe/d. Net to
        Aurora, after royalties, average production was approximately
        15,800 boe/d, an increase of 9% on the previous quarter.
    --  Cash and funding:  The cash balance at the end of the quarter
        was US$106 million, with a further US$300 million available
        from the existing undrawn revolving credit facility.
    --  Capital expenditure:  Total development capital expenditure,
        including accruals, for the quarter totalled US$140 million
        representing development undertaken at both operated and
        non-operated acreage during the quarter.
    --  Well activity:  37 gross wells (10 net) were placed on
        production. 38 gross wells (13.1 net) were spudded during the
        quarter, which includes 7 wells on Aurora operated acreage. In
        total, there were 332 gross wells (87.5 net wells to Aurora) on
        production at quarter end.
    --  Drilling status:  At the end of the quarter, drilling
        operations were underway on 12 gross wells, 21 gross wells were
        awaiting fracture stimulation and 10 gross wells were being
        stimulated or were being prepared for test.
    --  Operated acreage:  First production commenced from two Heard
        Ranch wells in late September on Aurora operated acreage.
        During October, production from these two wells posted a 30 day
        average rate of 821 boe/d per well. An additional two Axle Tree
        wells were drilled and multi-stage zipper fracced in the third
        quarter. During October these two wells were placed on
        production.

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 80,300 highly contiguous gross acres that make up the field. 
Marathon Oil EF LLC, a wholly-owned subsidiary of Marathon Oil Corporation 
(NYSE: MRO) ("Marathon"), operates approximately 77,600 gross acres and Aurora 
is the largest non-operating working interest partner in this area. In 
addition, Aurora has a 100% working interest and is the operator of 2,700 
acres within the two areas, Axle Tree Ranch and Heard Ranch, located in the 
Sugarkane Field as shown in Figure 1.

At the end of the reporting period, Aurora had a net position of approximately 
22,100 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 in Figure 
1 above.

 ___________________________________________________________
|AMI             |Working Interest|Gross Acreage|Net Acreage|
|________________|________________|_____________|___________|
|Sugarloaf       |        28.0%   |     24,000  |    6,750  |
|________________|________________|_____________|___________|
|Longhorn        |        31.9%   |     28,700  |    9,100  |
|________________|________________|_____________|___________|
|Ipanema         |        36.4%   |      4,800  |    1,750  |
|________________|________________|_____________|___________|
|Excelsior       |         9.1%   |     20,100  |    1,800  |
|________________|________________|_____________|___________|
|Operated acreage|       100.0%   |      2,700  |    2,700  |
|________________|________________|_____________|___________|
|Total           |                |     80,300  |   22,100  |
|________________|________________|_____________|___________|

Operations

There were between 7 and 11 rigs drilling at any one time on Aurora's 
non-operated Sugarkane acreage during the reporting quarter and up to two rigs 
on Aurora's operated acreage. A total of 38 gross (13.1 net) wells were 
spudded, 7 of which were on the operated acreage.

During the reporting quarter 37 gross (10 net) wells were placed on production 
including Aurora's first two operated wells. Aurora had an inventory of 31 
gross wells at the end of the quarter awaiting commencement of fracture and 
stimulation operations.

The following table details activity status within the Sugarkane Field as at 
September 30, 2013:

 _________________________________________________________________
|           |Sugarloaf|Longhorn|Ipanema|Excelsior|Axle|Heard|Total|
|           |         |        |       |         |Tree|Ranch|     |
|___________|_________|________|_______|_________|____|_____|_____|
|Producing  |     82  |   154  |    7  |     76  |  6 |   7 | 332 |
|___________|_________|________|_______|_________|____|_____|_____|
|Workover   |      -  |     -  |    -  |      -  |  - |   - |   - |
|___________|_________|________|_______|_________|____|_____|_____|
|Fracture   |      1  |     4  |    -  |      3  |  2 |   - |  10 |
|Stimulation|         |        |       |         |    |     |     |
|___________|_________|________|_______|_________|____|_____|_____|
|Completions|     11  |     6  |    -  |      4  |  - |   - |  21 |
|___________|_________|________|_______|_________|____|_____|_____|
|Drilling   |      -  |     4  |    -  |      3  |  1 |   1 |   9 |
|___________|_________|________|_______|_________|____|_____|_____|
|Suspended  |      -  |     -  |    -  |      -  |  1 |   2 |   3 |
|Drilling   |         |        |       |         |    |     |     |
|___________|_________|________|_______|_________|____|_____|_____|
|*Total     |     94  |   168  |    7  |     86  | 10 |  10 | 375 |
|___________|_________|________|_______|_________|____|_____|_____|

* Not including 5 farmout wells

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 68 wells across Aurora's non-operated acreage. These are routine 
planned operations which are implemented as individual well reservoir 
pressures drop.

Drilling activity during the quarter within the Sugarkane Field utilized 
multiple well pads, where between 2 to 6 wells were drilled from the same 
surface pad location. Such pad drilling offers cost and efficiency savings via 
sharing of 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, followed by all of the 
horizontal sections. This batch approach allows equipment and operations to be 
configured for a particular repeatable phase of operations resulting in 
efficiency gains.

Operated Acreage

On Heard Ranch, first production was established on Aurora operated acreage 
from two wells, the J.P. Bower-Heard 19H and 20H. Production from these two 
wells posted a 30 day average rate of 821 boe/d per well. These wells were pad 
drilled and cased at lateral lengths of 7,800'-7,900'. The wells were then 
zipper fracced using the Schlumberger HiWay frac system. The Nabors F08 rig 
then moved to a nearby pad and has spudded a three well pad program. These 
three wells are expected to be drilled and completed before year end.

At our Axle Tree Ranch, the Julie Beck #12H and #13H wells were drilled and 
multi-stage zipper fracced. After quarter end these two wells were placed on 
production.

In addition to drilling operations, installation of pipelines, central 
gathering infrastructure and facilities is well underway.

Down Spacing and Austin Chalk Update

Aurora continues to evaluate several pilot studies currently underway in both 
the Eagle Ford and Austin Chalk. Aurora anticipates developing its operated 
Eagle Ford acreage under a 40 acre development plan. On the non-operated 
acreage, more than 30% of the wells drilled to date have been on less than 80 
acre spacing. Aurora plans to provide details of the planned density pattern 
in the Eagle Ford formation across the non-operated acreage prior to calendar 
year end.

Pilot programs continue to evaluate possible co-development of the Austin 
Chalk and the Eagle Ford. These pilot programs will consider multiple lateral 
placements within the two reservoirs.

Production

The following table provides details of the Aurora production during the 
quarter, which comprised 80% liquids on a boe basis.

3rd Quarter 2013 Production

 __________________________________________________________________________________
|          |                       Non-operated        |              Operated     |
|          |___________________________________________|___________________________|
|          |  Oil  | Cond  |    Gas  |  NGL  |   BOE*  | Oil  | Gas  | NGL  | BOE* |
|          |       |       |         |       |         |      |      |      |      |
|          |(bbls) |(bbls) |  (mscf) |(bbls) |  (bbls) |(bbls)|(mscf)|(bbls)|(bbls)|
|__________|_______|_______|_________|_______|_________|______|______|______|______|
|    WI    |       |       |         |       |         |      |      |      |      |
|          |732,501|400,751|2,261,530|374,281|1,884,454|69,590|70,730|6,503 |87,881|
|Production|       |       |         |       |         |      |      |      |      |
|__________|_______|_______|_________|_______|_________|______|______|______|______|
| Average  |       |       |         |       |         |      |      |      |      |
|          | 7,962 | 4,356 |  24,582 | 4,068 |  20,483 |  756 |  769 |   71 |  955 |
|Daily Rate|       |       |         |       |         |      |      |      |      |
|__________|_______|_______|_________|_______|_________|______|______|______|______|
|   NRI    |       |       |         |       |         |      |      |      |      |
|          |537,946|294,671|1,667,387|275,803|1,386,318|52,193|53,044|4,878 |65,912|
|Production|       |       |         |       |         |      |      |      |      |
|__________|_______|_______|_________|_______|_________|______|______|______|______|
| Average  |       |       |         |       |         |      |      |      |      |
|          | 5,847 | 3,203 |  18,124 | 2,998 |  15,069 |  567 |  577 |   53 |  716 |
|Daily Rate|       |       |         |       |         |      |      |      |      |
|__________|_______|_______|_________|_______|_________|______|______|______|______|

*The oil equivalent barrels per day production rate has been calculated on a 
6:1 ratio of gas to oil.

Average daily production for the month of September 2013 from both 
non-operated and operated Sugarkane Field was 22,175 boe/d gross (16,310 boe/d 
net). Monthly average production rates will continue to be less linear as 
the majority of wells are now drilled in batches ("pad drilling") and are 
completed and placed on production in groups rather than individually.

The graph below shows the quarterly production profile for the past 5 
quarters. The figures shown at the base of each production bar reflect the 
incremental net wells added during that period. As indicated in Aurora's 2013 
guidance, activities will be weighted to the second half of the year and 
production is expected to increase accordingly.

*includes 11 existing producing wells acquired as part of the Heard Ranch/Axle 
Tree Acquisition in March, 2013

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 234 rigs reportedly 
currently operating within the trend which has increasingly focused on the 
core areas. The Sugarkane Field lies within the core area. The Texas Railroad 
Commission reported 2013 average oil production rate through July of over 
600,000 boe/d from the Eagle Ford.

Quarterly Revenue and Capital Expenditure

Aurora's revenue from oil and gas sales for the third quarter of 2013 totalled 
US$144 million (US$105 million after royalties).

Total development capital expenditure, including accruals for the quarter 
totalled US$140 million representing development undertaken at the 
non-operated acreage within the Sugarkane Field and at the adjacent operated 
Axle Tree and Heard Ranches during the quarter.

At September 30, 2013 the cash balance was US$106 million. In addition, the 
Company has further liquidity available from its revolving credit facility. At 
the end of the third quarter, this debt facility was undrawn with a balance of 
US$300 million available.

Aurora anticipates the third 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 November 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 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.

 _____________________________________________________________________
|Technical information contained in this report in relation to the    |
|Sugarkane Field was compiled by both Aurora and its operating partner|
|and was reviewed by Michael L. Verm, Chief Operating Officer and a   |
|Director of Aurora USA Oil and Gas, Inc. Mr. Verm has more than 30   |
|years' experience in the practice of petroleum engineering. Mr. Verm |
|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 
isolation.

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; 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 Chief 
Executive Officer +1 713 402 1920  Shaun Duffy FTI Consulting +61 8 9485 8888 
Head Office Level 1, 338 Barker Road, Subiaco, WA 6008, Australia PO Box 20, 
Subiaco, WA 6904 T +61 8 9380 2700, f + 61 8 9380 2799, 
einfo@auroraoag.com.au  Houston Aurora USA Oil & Gas, Inc. a subsidiary of 
Aurora Oil & Gas Limited 1200 Smith Street, Suite 2300, Houston TX 77002-5500 
T + 1 713 402 1920, f + 1 713 357 9674 
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CO: Aurora Oil & Gas Limited
NI: OIL FIELD  
-0- Oct/30/2013 21:37 GMT