News

February 02, 2010

Aurora Oil & Gas Encouraged By Initial Flow Rates From Kennedy-1H As The Sugarkane Project Gains Momentum

Having successfully inked farm-in terms for its promising Sugarkane project at the back end of last year, Aurora Oil & Gas can report an acceleration of activity across the South Texas gas and condensate field including the successful production test of an existing well and the spudding of a new well, Easley-1H. This will be a relief for investors, who have long awaited confirmation of the potential of this asset which has the potential to be transformational for the ASX company given the growing buzz surrounding the emerging Eagle Ford shale play.

September’s farm-in by Hilcorp, the fourth largest private E&P in the US, has put some real momentum behind this project, with ASX-listed Aurora now 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 work programme, which will be implemented over the next 20 months, will put ten wells into production across Aurora’s three Areas of Mutual Interest: Sugarloaf (20 per cent...