- Agreement to acquire 6% non-operated working interest in Sugarloaf AMI for US$95 million, increasing Aurora's working interest to 21.8%
- Sugarloaf AMI is located within the Sugarkane Field, onshore United States, in the liquids rich area of the Eagle Ford shale trend
- Acquisition to provide approximately 1,440 additional net acres, increasing Aurora's Sugarkane Field net acreage by 9% to over 17,800 net acres
- Acquisition to be funded from existing cash on hand, with planned equity raising to supplement existing cash and debt facilities
Aurora Oil & Gas Limited (ASX:AUT, TSX:AEF) ("Aurora") is pleased to announce that it has agreed to acquire an additional 6% non-operated working interest in the Sugarloaf Area of Mutual Interest ("AMI") for US$95 million cash, subject to customary post-closing adjustments. The Sugarloaf AMI is located within the Sugarkane Field, onshore United States, in the liquids rich area of the Eagle Ford shale trend. Aurora already participates in the Sugarloaf AMI and upon completion of the acquisition its working interest will increase from 15.8% to 21.8%. The acquisition will provide approximately 1,440 additional net acres, resulting in Aurora's net acreage in the Sugarkane Field increasing by approximately 9% to over 17,800 net acres. The additional acreage is operated by Marathon Oil EF LLC. The acquisition is expected to close on or about June 29, 2012, subject to the satisfaction of customary sale conditions, and is expected to be funded from existing cash on hand and existing credit facilities to the extent required.
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