2014 Guidance - Aurora to Deliver Continued Strong Production Growth

2014 Guidance - Aurora to Deliver Continued Strong Production Growth 
Aurora guides to an almost 50% increase in total 2014 production 

    --  Estimated 2014 production of 10.6-11.7 million boe (gross),
        7.8-8.6 million boe (net, after royalties), 80% liquids,
        delivering an expected increase of ~47%((1))
    --  49-53 net wells expected to be spud in 2014, up approximately
    --  December 2013 exit production rate estimated at ~26,450 boe/d
        (gross) / 19,500 boe/d (net), an increase of 41% year on year
    --  2014 Capital expenditures of US$455 - 495 million
    --  Operational efficiencies driving down costs per well
    --  Capital expenditure program fully funded by existing cash,
        operating cash flow and availability under the existing bank
        credit facility

PERTH, Western Australia, Jan. 2, 2014 /CNW/ -

Full Year 2014 Guidance

Aurora Oil & Gas Limited (ASX:AUT, TSX:AEF) ("Aurora") is pleased to announce 
its expected 2014 production of 10.6-11.7mmboe (gross) and 7.8-8.6mmboe (net), 
with an average daily production range of 29,000-32,000 boe/d (gross), or 
21,500-23,500 boe/d (net). This represents a forecast 47% increase over the 
mid-point of Aurora's guided 2013 production.

To achieve this growth, Aurora's board of directors has approved a 2014 
capital expenditure program of US$455-495mm, which represents a decrease on 
expected 2013 capital expenditures. The capital program anticipates US$47-49mm 
for operated drilling and completions, US$368-402mm for non-operated drilling 
and completions, and US$40-44mm for facilities, land, and other expenditures. 
The 2014 capital expenditure program includes budgeted expenditure for wells 
under drilling or completion operations at year end 2013. The 2014 capital 
expenditure program will be funded from existing cash, operating cash flows 
and availability under Aurora's existing bank credit facility.

Aurora forecasts between 49-53 net wells will be spud in 2014, up 
approximately 13% over 2013. Of that total, 3 net wells are expected to be 
spud on Aurora's operated acreage, and 46-50 net wells are anticipated to be 
spud on non-operated leases.

Aurora anticipates continued EBITDAX growth throughout 2014 and, during the 
second half of the year, EBITDAX should exceed capital expenditures for the 
same period based on the development plan reflected in today's guidance and 
conservative assumptions of realised commodity prices generated from a WTI oil 
price of $90/bbl, natural gas liquids pricing of $30/bbl per barrel and a 
natural gas price of $3.50/mmbtu.

((1))(As compared to the Company's most recent guidance - released 
on November 8, 2013)

Early 2014 Operations Outlook

Due to the increased development activity undertaken in the last quarter of 
2013, Aurora exited 2013 with estimated average daily production in December 
of approximately 26,450 boe/d (gross) / 19,500 boe/d (net), an increase of 41% 
from the average production rate in December 2012. This increase in 
development activity is expected to contribute to the continued strong growth 
in Aurora's production during 2014.
                           2014 Guidance Summary
                                             Full Year 2014


Average Daily Production - boe/d                       
    Gross                         29,000        -   32,000
    Net                           21,500        -   23,500

Total Volumes - mmboe                                  
    Gross                           10.6        -    11.7
    Net                              7.8        -     8.6

Capital Expenditures - US$mm                 

Drilling and completions                               
    Operated                        $47         -    $49 
    Non-operated                   $368         -    $402
     Total                                $415  -   $451

Facilities, land, and other         $40     -        $44
    Total                           $455        -    $495

Wells Spud - Net                                         

Operated                             3      -         3

Non-operated                        46      -        50
    Total                            49          -    53

Marathon Oil Corporation, whose subsidiary, Marathon Oil EF LLC is Aurora's 
operating partner in the majority of its Eagle Ford interests, recently 
advised of its forecast 2014 capital program along with other pertinent 
information. Aurora is pleased that the 2014 non-operated program will not 
only involve more rigs in the Sugarkane Field than in 2013, but also with the 
operational efficiencies that are being delivered, more net wells are forecast 
at a lower net cost per lateral foot per well. The planned activity levels 
are readily within Aurora's cash flow and liquidity capacities.

Aurora CEO Douglas E. Brooks said: "Aurora expects to deliver another year of 
disciplined growth and consistent returns from its Sugarkane assets, as it is 
now in a low risk, high margin and repetitive development program. Well 
costs have been dramatically reduced while well performance has increased even 
with tighter well spacing. As such, we are confident our 2014 development 
drilling programs, together with the results of our ongoing downspacing in the 
Eagle Ford shale and future development of the Austin Chalk and Upper Eagle 
Ford, will deliver strong production growth during 2014. With this being 
Aurora's largest non-operated well development program to date in the 
Sugarkane Field, we anticipate scaling back our operated activity during the 
year to maintain a strong balance sheet and financial flexibility while 
achieving significant growth. We expect this strong growth to continue through 
2015 and beyond through the development of our significant remaining well 

For more details on Aurora's 2014 guidance, please refer to the 2014 Outlook 
and Guidance presentation on the Company's website at 

Defined Reserves and Resource Terms
    --  "boe" means barrels of oil equivalent, and have been calculated
        using liquid volumes of oil, condensate and NGLs and treated
        volumes of gas converted using a ratio of 6 mscf to 1 bbl
        liquid equivalent, unless otherwise stated.
    --  "mm" prefix means million.
    --  "pd" or "/d" suffix means per day.
    --  "WTI" means West Texas Intermediate crude.

Cautionary and Forward Looking Statements

Statements in this press release reflect management's expectations relating 
to, among other things, expected annual and average daily production, 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 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.

Aurora presents 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 

EBITDAX is not a financial measure prescribed by International Financial 
Reporting Standards ("IFRS"). Such measure is not required by, nor calculated 
in accordance with IFRS, and therefore is considered a Non-IFRS financial 
measure. EBITDAX represents net income (loss) for the period before income tax 
expense or benefit, gains and losses attributable to the disposal of projects, 
finance costs, depletion, depreciation and amortization expense, other 
non-cash charges, expenses or income, one-off or non-recurring fees, expenses 
and charges and exploration and evaluation expenses.

SOURCE  Aurora Oil & Gas Limited 
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 
Douglas E. Brooks Chief Executive Officer +1 713 402 1920 
Jonathan Stewart Executive Chairman +61 8 9380 2700 
Shaun Duffy FTI Consulting +61 8 9485 8888 +61 404 094 384 
Image with caption: "2014 Estimated Drilling Program - Net Wells (based on the 
midpoint estimate of 51 net wells spud) (CNW Group/Aurora Oil & Gas Limited)". 
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