Aurora to raise $41 in placement, SPP

Aurora Oil & Gas says it has raised $41 million in a placement and share purchase plan which will be used to fund drilling at its Sugarkane field in Texas.

In a statement the Aurora said that it would place 46.67 million shares at 75 cents per share to raise $35 million.

The placements will be made in two tranches subject to shareholder approval at a meeting on 26 July.

Aurora executive chairman Jon Stewart said, "We are appreciative of the very strong support for this Placement and welcome a number of new institutional shareholders. We are also hopeful that existing shareholders will support the SPP."

"This capital raising significantly strengthens our balance sheet and fully funds us for the drilling program we have outlined and further provides Aurora with the financial flexibility to meet further acceleration in drilling should that eventuate," he said.