Drilling Update - Four New 30-day Rates, One New 60-day Rate
Event
Aurora Oil & Gas Ltd. (AEF-T) last night released additional Ipanema and Longhorn drilling results. The update included the release of one new 60-day rate and four new 30-day rates.
Impact
MILD POSITIVE
The update was highlighted by a better-than-expected month-over-month decline at Foster #1H with slight positives on new 30-day results (namely higher-than-average liquids contributions although it is important to note that some were trending towards the oil window).
In addition, AEF a) remains ahead of schedule with respect to the completion of the planned gross 60-well drilling program, and b) is guiding to a further acceleration of the development plan in 2012 (but expected post Marathon Oil Corp.’s (MRO-N) acquisition of Hilcorp’s (private) Eagle Ford acreage).
We are maintaining our Spec. BUY recommendation and $4.25/share target.
For further information please download PDF below:
