Update on acreage, production and its dual listing on the Toronto SE Aurora Oil & Gas (ASX: AUT), Executive Chairman, Jon Stewart explains it drilling program, additional working interest in acreage acquired as a result of its $120M capital raising in December and January and its decision to dual list on the Toronto Stock Exchange.
Additional acreage and productionThe additional acreage in the Sugarkane field and an adjoining area added 26M BoE to reserves and were acquired at less than US $5 per barrel and are highly accretive to the company. The increased acreage and extensive drilling program mean that Aurora should exit 2011 with net 5,000 BoE per day in production up from 1,700 BoE per day at the end of April. For the year production net of royalties will average 3,000 BoE per day.
Toronto ListingAurora took the decision to dual list on Toronto in February to gain ready access to North American investors familiar with oil shale investments. JP Morgan, Canadian based Harbour Investments and the Stewart family are the company’s three largest shareholders.
Profitability & Balance SheetThe Sugarkane project is expected to become self funding by mid 2012. Aurora Oil & Gas has a market cap of $1B with $75M in cash, no debt and carry value of assets of $170M
