Aurora Oil & Gas Limited has agreed to acquire a 100% operated working interest in approximately 2,700 net acres in South Texas for a consideration of US$117.5 million.

The assets include average December 2012 production of approximately 1,620 boe/d net of royalties from 11 wells and associated interests in field infrastructure and related assets. The production comprises 84% liquids (70% oil), and represents a 12% increase to Aurora's 2012 exit production.

The assets consist of two consolidated blocks located within the liquids-rich zone of the Eagle Ford shale trend and are either adjacent to or very proximate to Aurora's existing Sugarkane Field acreage.

The acquisition will increase Aurora's net core Eagle Ford shale acreage by approximately 14% to over 21,800 net acres. The acreage includes potential additional reserves in Austin Chalk and Pearsall formations.

Tags: Aurora Oil & Gas Corporation