News

November 23, 2009

Investors Hope For Early Christmas Present From The Eagle Ford Shale Play

For investors in Aurora Oil & Gas, 2009 has been a fairly quiet year, dominated by the ASX-company’s search for farm-in partners for its promising Sugarkane gas and condensate field in South Texas.That hunt concluded in September, when the company signed agreed farm-in terms with Hilcorp, the fourth largest private E&P in the US.

The deal, which signaled some much-needed uplift in the share price, means Aurora will now be free carried for the drilling, completion and tie in of up to seven new horizontal wells and the stimulation of the three existing horizontal wells on the field.  This will put ten wells into production across its three Areas of Mutual Interest: Sugarloaf (20 per cent pre-farm-out), Longhorn (50 per cent) and Ipanema (80 per cent).  In return, Hilcorp will earn up to 50 per cent of Aurora’s...