Aurora increases notes offering to $US300m

Aurora Oil & Gas has expanded its convertible notes offering, initially announced to market yesterday, to $US300 million.

Aurora said yesterday it would offer $US250 million in unsecured notes, due in 2020, to fund the development of its recently acquired onshore acreage in South Texas.

The company announced today the notes would be issued at par and bear interest at 7.5 per cent per year, with the principal amount being increased to $US300 million.

Aurora said yesterday it planned to drill between 45 and 50 wells before the end of the year, at a cost of between $US430 million and $US465 million.

The company announced earlier this month the $US117.5 million acquisition of 2,700 acres of highly-prospective oil and gas acreage adjacent to the Sugarkane oil and gas fields, part of the world class Eagle Ford Trend.

At close of trade today, Aurora shares were up 3.6 per cent, trading at $3.72.