Overview
The 2011 year was a period of considerable value consolidation as we commenced the process of delivery of the development of the Sugarkane Field in South Texas. During 2010 Aurora participated in what we consider to be have been Stage 1 of the development program which resulted in 18 wells having been drilled by year end. Our then operator Hilcorp Energy (“Hilcorp”), who in late 2010 completed their farm in workscope into the acreage, had two rigs operating in the field by the end of 2010.
Our busy 2011 development program represents much of Stage 2 of the development whereby we are focussed on drilling sufficient wells across our acreage position to ensure that we hold it in its entirety in perpetuity while we produce from it and also put in place the infrastructure required to handle our significantly growing production volumes.
During 2011 Hilcorp added to their Eagle Ford rig count and for most of the 2011 calendar year, there were 4 to 5 rigs active within the field. The full time fracture stimulation spreads were increased from 1 to 2 in mid-2011 to keep pace with drilling. A total of 65 gross wells were drilled and 57 put on production in 2011. Aurora’s gross production levels increased from an average of 550 boe/d in December 2010 to an average of 4,800 boe/d in December 2011.
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