01/03/2013 - 10:31

Aurora makes $US117.5m Eagle Ford acquisition

01/03/2013 - 10:31

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Aurora makes $US117.5m Eagle Ford acquisition
Aurora Oil & Gas chairman Jon Stewart.

Aurora Oil & Gas has acquired a large slice of highly-prospective oil and shale gas acreage in South Texas for $US117.5 million.

Aurora announced today it had reached agreement to purchase 2,700 acres near the Sugarkane field in South Texas, part of the liquids-rich Eagle Ford shale trend.

The acquisition covers approximately 6.7 million barrels of oil equivalent in proved reserves, comprising 84 per cent liquids.

The purchase adds to Aurora’s total of around 77,000 acres held in the Eagle Ford shale gas trend.

Aurora said it would become operator of the asset and had signed new and existing contractors to assist in the project’s development.

The purchase price will be financed through existing and new debt facilities, with Aurora also announcing today a new $US125 million bridge loan facility with Credit Suisse.

“This acquisition adds to our position in the highest quality liquids-rich part of the Eagle Ford play,” Aurora chairman Jon Stewart said.

Aurora is extremely selective around acquisition opportunities and we firmly believe the purchase of this acreage will provide significant value and upside to our portfolio through its current production capabilities and reserves base.

“We have ensured maintenance of a conservatively-geared balance sheet, facilitated by our 2012 earnings. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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