Executive summary
Pure play Eagle Ford shale in sweet spots: AUT is a pure play on some of the best liquids rich shale gas in the Eagle Ford Shale (EFS) area of Texas, USA. AUT has 15,760 net acres (74,800 gross acres) in the Sugarkane field with four contiguous Areas of Mutual Interest (AMI): Sugarloaf, Longhorn, Ipanema and Excelsior. The areas sit across Live Oak, Karnes and Dewitt counties. Hilcorp Energy is the operator of the AMIs. AUT is listed on the ASX and TSX (AEF) with a market cap of A$1.1bn. Net 3P reserves of 82.9mmboe imply ~US$14.80/boe of 3P reserves. We estimate a well payback period of five to 14 months, and an estimated well life of more than 20 years.
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