Aurora Oil & Gas Limited - Quarterly Activities Summary for the Quarter Ended December 31, 2013

Aurora Oil & Gas Limited - Quarterly Activities Summary for the Quarter Ended 
December 31, 2013 
PERTH, Western Australia, Jan. 22, 2014 /CNW/ - Aurora Oil & Gas Limited 
("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. 
Key quarter-on-quarter results: 


        --  9% increase in revenue from Q3 2013 (40% increase from Q4
            2012).
        --  15% increase in production volume (46% increase from Q4 2012).
        --  15.6 new net wells were placed on production, including six
            Aurora operated wells.
        --  11.8 net wells were spudded, including three wells on Aurora
            operated acreage.

Corporate, operational and production highlights
        --  Revenue:Revenue from oil and gas sales was US$157 million for
            the quarter (US$116 million after royalties), comprising 85%
            oil and condensate, 9% natural-gas liquids (NGLs), and 6%
            natural gas.
        --  Total production:  Gross quarterly production was 2.27 mmboe
            (82% liquids on a boe basis). Net to Aurora, after royalties,
            production was 1.68 mmboe. This represented an increase of 15%
            on the previous quarter and approximately 46% on the
            corresponding quarter in 2012. Gross production for 2013 was
            7.78 mmboe (5.74 mmboe net), a 100% increase year on year.
        --  Average production:  Average gross production during the
            quarter was approximately 24,600 boe/d. Net to Aurora, after
            royalties, average production was approximately 18,200 boe/d,
            an increase of 15% on the previous quarter.
        --  Cash and funding: Available liquidity of US$342 million at the
            end of the quarter, comprising US$42 million in cash and US$300
            million available from the existing undrawn revolving credit
            facility.
        --  Capital expenditure:  Total development capital expenditure,
            including accruals, for the quarter totalled US$141 million. 
            This represented development undertaken at both operated and
            non-operated acreage during the quarter.
        --  Well activity:  55 gross wells (15.6 net) were placed on
            production. 50 gross wells (11.8 net) were spudded during the
            quarter, which includes three wells on Aurora's operated
            acreage. In total, there were 387 gross wells (103.2 net wells
            to Aurora) on production on Aurora's acreage at quarter end.
        --  Drilling status:  At the end of the quarter, drilling
            operations were underway on nine gross wells, 27 gross wells
            were awaiting fracture stimulation and two gross wells were
            being stimulated or were being prepared for test.
        --  Operated acreage: Since the acquisition of a 100% working
            interest in Heard Ranch and Axle Tree in March 2013, Aurora has
            spud 12 wells. During the quarter six of these wells were
            placed on production which, together with the two wells brought
            on in the third quarter and those on production at the
            acquisition date, brings Aurora's operated well count to 19
            producing wells at year end. A further two wells were brought
            on production in early January 2014 at Heard Ranch. The first
            two wells brought on production at Heard Ranch in September,
            2013 reported average 30-day IP rates of 821 boe/d.  During Q4,
            2013 two wells in the Axle Tree area logged 30-day average
            rates of 745 boe/d per well.  In late December a three-well pad
            came on production at Axle Tree as well as a three-well pad at
            Heard Ranch.
        --  Exploration: Aurora has secured a position in the Eaglebine
            play in East Texas which is regionally on trend with the Eagle
            Ford shale comprising approximately 14,000 net acres to date.

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 80,200 highly contiguous gross acres (22,200 net) that make 
up the field with four adjacent non-operated Areas of Mutual Interest ("AMIs") 
and two operated areas.

Within the Sugarkane Field, Marathon Oil EF LLC, a wholly-owned subsidiary of 
Marathon Oil Corporation (NYSE: MRO) ("Marathon"), operates approximately 
77,400 gross acres (19,400 net) and Aurora is its largest non-operating 
working interest partner in this area. In addition, Aurora has a 100% working 
interest in, and is the operator of, ~2,800 acres within the Axle Tree Ranch 
and Heard Ranch areas in the Sugarkane Field.

Eaglebine Prospect

Aurora has secured a position in the Eaglebine play regionally on trend with 
the Eagle Ford shale.  At year end Aurora had approximately 14,000 net acres 
in the play and continues to look to consolidate its position.  This position 
has been acquired at modest cost reported within past capital expenditures and 
is not planned to represent a material component of 2014 expenditure. Over the 
past year the activity level in the Eaglebine play has increased, and 
consistent with the strategy for de-risking the Sugarkane Field and bringing 
it to development, Aurora is evaluating various alternatives for its Eaglebine 
acreage, including potentially acquiring partners to participate in the next 
stages of project evaluation. Other companies with disclosed interests in the 
Eaglebine include EOG Resources Inc. and SM Energy Company.

Land and ownership interests

The varying levels of participation in the Sugarkane Field and Eaglebine 
prospect are outlined in the table below:
     _____________________________________________________________
    |          Area    |Working Interest|Gross Acreage|Net Acreage|
    |__________________|________________|_____________|___________|
    |Sugarloaf AMI     |        28.0%   |     24,000  |    6,750  |
    |__________________|________________|_____________|___________|
    |Longhorn AMI      |        31.9%   |     28,500  |    9,100  |
    |__________________|________________|_____________|___________|
    |Ipanema AMI       |        36.4%   |      4,800  |    1,750  |
    |__________________|________________|_____________|___________|
    |Excelsior AMI     |         9.1%   |     20,100  |    1,800  |
    |__________________|________________|_____________|___________|
    |Operated Acreage  |         100%   |      2,800  |    2,800  |
    |__________________|________________|_____________|___________|
    |Total Sugarkane   |                |     80,200  |   22,200  |
    |__________________|________________|_____________|___________|
    |Eaglebine Operated|        91.1%   |     15,000  |   14,000  |
    |__________________|________________|_____________|___________|
    |Grand Total       |                |     95,200  |   36,200  |
    |__________________|________________|_____________|___________|

Operations

There were between 5 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 50 gross (11.8 net) wells were 
spudded, three of which were on operated acreage.

During the reporting quarter 55 gross (15.6 net) wells were placed on 
production including six Aurora operated wells. Aurora had an inventory of 29 
gross wells at the end of the quarter awaiting commencement and/or completion 
of stimulation operations.

Two new wells on the Axle Tree Ranch have reached 30 day cumulative production 
averaging 745 boepd / well.  An additional six wells from two pads drilled 
during the quarter have come on stream with 24 hour rates as indicated below:
     _____________________________________________________________________
    |                |Average 24 Hour Test|Approximate Lateral|Frac Stages|
    | Three Well Pad |     BOE/D/Well     |      Length       | Per Well  |
    |________________|____________________|___________________|___________|
    |   Heard Pad 6  |           1,403    |          7,707    |      29   |
    |________________|____________________|___________________|___________|
    |Axle Tree Pad 3W|            854     |          5,285    |      20   |
    |________________|____________________|___________________|___________|

These initial production rates are encouraging but Aurora considers 30-day 
rates to be a better reflection of early production and these will be released 
in the normal course.

The following table details activity status within the Sugarkane Field as at 
December 31, 2013:
     _________________________________________________________________
    |           |Sugarloaf|Longhorn|Ipanema|Excelsior|Axle|Heard|Total|
    |           |         |        |       |         |Tree|Ranch|     |
    |___________|_________|________|_______|_________|____|_____|_____|
    |Producing  |     97  |   178  |    7  |     86  | 11 |   8 | 387 |
    |___________|_________|________|_______|_________|____|_____|_____|
    |Workover   |      -  |     -  |    -  |      -  |  - |   - |   - |
    |___________|_________|________|_______|_________|____|_____|_____|
    |Fracture   |      -  |     -  |    -  |      -  |  - |   2 |   2 |
    |Stimulation|         |        |       |         |    |     |     |
    |___________|_________|________|_______|_________|____|_____|_____|
    |Completions|      3  |    13  |    -  |     10  |  - |   1 |  27 |
    |___________|_________|________|_______|_________|____|_____|_____|
    |Drilling   |      2  |     4  |    -  |      2  |  - |   1 |   9 |
    |___________|_________|________|_______|_________|____|_____|_____|
    |*Total     |    102  |   195  |    7  |     98  | 11 |  12 | 425 |
    |___________|_________|________|_______|_________|____|_____|_____|

* 8 rigs active at 12/31/2013

A variety of planned well intervention operations have taken place across a 
number of wells in which Aurora has an interest. Artificial lift installations 
took place in 29 wells across Aurora's non-operated acreage. These are routine 
planned operations implemented as individual well reservoir pressures drop. In 
addition, Aurora has commenced a workover program on its operated properties 
with the installation of artificial lift on three wells as of year-end.

Multi well pad drilling has increased throughout the 2013 development of 
Sugarkane Field.  During the fourth quarter 81% of wells were drilled in 
sequence from the same surface pad location at various locations including 
Aurora's operated wells. Multi well pad drilling offers cost and efficiency 
savings as a result of shared infrastructure and avoidance of potentially 
lengthy rig and fracture stimulation equipment moves. Further efficiencies are 
being delivered 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.

Down Spacing and Austin Chalk Update

During December the operator of Aurora's non-operated Sugarkane Field acreage 
presented successful results of downspacing pilots. These pilots indicated 
that downspacing will continue to add value across the acreage held by Aurora 
as a result of observed reservoir performance, together with continued cost 
reductions and completion optimization. Aurora expects most of its 
non-operated Sugarkane acreage to be developed on 40 acre spacing based on 
these results. The operator is now initiating 30 acre spacing pilot programs 
which, if successful, would add further value to the development of the 
Sugarkane Field. Aurora is continuing to develop its operated Sugarkane 
acreage under a 40 acre development plan.

Aurora continues to evaluate several previously announced pilot studies being 
undertaken by the operator in both the Eagle Ford and Austin Chalk reservoirs. 
These pilot programs will consider multiple lateral placements within the two 
reservoirs.

Production

The following table provides details of Aurora's production during the 
quarter, which comprised 82% liquids on a boe basis.

4(th) Quarter 2013 Production
     _______________________________________________________________________________________________
    |          |                       Non-operated        |                Operated      |   Total |
    |          |___________________________________________|______________________________|_________|
    |          |  Oil  | Cond  |    Gas  |  NGL  |   BOE*  |  Oil  |  Gas  | NGL  | BOE*  |    BOE  |
    |          |(bbls) |(bbls) |  (mscf) |(bbls) |  (bbls) |(bbls) |(mscf) |(bbls)|(bbls) |  (bbls) |
    |__________|_______|_______|_________|_______|_________|_______|_______|______|_______|_________|
    |    WI    |814,988|433,855|2,340,509|397,595|2,036,523|188,259|175,879|16,244|233,816|2,270,339|
    |Production|       |       |         |       |         |       |       |      |       |         |
    |__________|_______|_______|_________|_______|_________|_______|_______|______|_______|_________|
    | Average  | 8,859 | 4,716 |  25,440 | 4,322 |  22,136 | 2,046 | 1,912 |  177 | 2,541 |  24,678 |
    |Daily Rate|       |       |         |       |         |       |       |      |       |         |
    |__________|_______|_______|_________|_______|_________|_______|_______|______|_______|_________|
    |   NRI    |598,895|320,160|1,728,443|293,299|1,500,427|141,195|131,909|12,184|175,363|1,675,790|
    |Production|       |       |         |       |         |       |       |      |       |         |
    |__________|_______|_______|_________|_______|_________|_______|_______|______|_______|_________|
    | Average  | 6,510 | 3,480 |  18,787 | 3,188 |  16,309 | 1,535 | 1,434 |  132 | 1,906 |  18,215 |
    |Daily Rate|       |       |         |       |         |       |       |      |       |         |
    |__________|_______|_______|_________|_______|_________|_______|_______|______|_______|_________|

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

Aurora exited 2013 with estimated average daily gross production in December 
of 26,450 boe/d (19,500 boe/d net), an increase of 41% from the average 
production rate in December 2012.

The graph at the top 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 were weighted to the second half of the year and 
production has increased accordingly.

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

Quarterly Revenue and Capital Expenditure

Aurora's revenue from oil and gas sales for the fourth quarter of 2013 
totalled US$157 million (US$116 million after royalties) and US$562 million 
for the 12 months ended December 31, 2013.

Total development capital expenditure, including accruals for the quarter 
totalled US$141 million representing development undertaken at the 
non-operated acreage within the Sugarkane Field and at the adjacent operated 
Axle Tree and Heard Ranch acreage. For the 12 months ended December 31, 2013 
development capital expenditure, excluding acquisitions, totalled US$494 
million.

At December 31, 2013, Aurora had available liquidity of US$342 million, 
comprising US$42 million in cash and US$300 million available from the 
existing undrawn revolving credit facility.

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 80,200 highly contiguous gross 
acres in the heart of the trend, including approximately 22,200 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 of      |
    |Aurora. 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.

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.

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 
Jon Stewart 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 
Image with caption: "Sugarkane Field (CNW Group/Aurora Oil & Gas Limited)". 
Image available at:  
http://photos.newswire.ca/images/download/20140121_C9950_PHOTO_EN_35716.jpg 
Image with caption: "Aurora Quarterly Net and Gross Daily Production 2012 / 
2013 (CNW Group/Aurora Oil & Gas Limited)". Image available at:  
http://photos.newswire.ca/images/download/20140121_C9950_PHOTO_EN_35715.jpg 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2014/21/c9950.html 
CO: Aurora Oil & Gas Limited
NI: OIL ERN  
-0- Jan/21/2014 22:28 GMT