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Aurora Oil & Gas Ltd, Disclosure and Exorbitant Eureka Debt Facility Concerns

Aurora Oil & Gas Limited (ASX:AUT, TSX:AEF) (“Aurora” or “the Company”) announces it has determined it will continue with its current A$0.45 per share on-market takeover offer (“Offer”) for Eureka Energy Limited (ASX:EKA) (“Eureka”). However, Aurora maintains serious concerns over the US$15 million debt facility (“Debt Facility”) that Eureka has agreed with Macquarie Bank (“Macquarie”) and the timing of the disclosure of terms including associated hidden costs.

In a letter to Eureka’s solicitors of 16 May 2012, amongst other queries regarding the Macquarie Debt Facility, Aurora raised the following queries in relation to the options proposed to be issued to Macquarie (the “Funding Queries”):

Given the option exercise price of $0.36 is below Aurora’s offer price of $0.45, one would assume that the exercise price of the options was agreed when the Committed Letter was signed, presumably on or about the time it was announced on 23 March 2012, or when the Indicative Terms Sheet was signed, presumably on or about the time it was announced on 21 February 2012.  Aurora queries:

- When the number of options and the exercise price of the options (and expiry date) were agreed?; and
- Why the number of options and the exercise price of the options (and expiry date) were not disclosed until the Target’s Statement?”


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