Aurora Oil & Gas Limited
(ASX:AUT) has secured $US300 million of debt funding as it gears up to boost production.
The oil and gas producer says an initial $85 million will be made available to fund its drilling program at the Sugarkane Field Eagle Ford project in Texas, and for general corporate purposes.
The funding under the commitment will be provided by way of a five year revolving credit facility, which will be determined on the basis of proved reserves.
Aurora says its accelerated drilling program through to the end of 2012 will continue to transition reserves to the proved category.
Chairman and CEO, Jon Stewart, says the attractive and flexible debt facility is of a size that matches with its planned ramp up of drilling.
In the 2011 financial year Aurora Oil & Gas swung from a loss to an annual profit of $15 million.
