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Aurora Oil & Gas Sugarkane Field update


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.

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.

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

Media Contact: Shaun Duffy F T I Consulting Tel: +61 8 9485 8888 Shaun.Duffy@fticonsulting.com

Executive Management Contact: Jonathan Stewart      Executive Chairman     Tel: +61 8 9380 2700    

Douglas E. Brooks Chief Executive Officer Tel: +1 713 402 1920

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/December2013/12/c4147.html

CO: Aurora Oil & Gas Limited NI: OIL FIELD

-0- Dec/12/2013 20:08 GMT

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