Aurora Oil & Gas Limited provide the following update to its independent proved and probable reserves estimate for the Company's working interests in the Sugarkane Field with an effective date of 31 October 2011. The reserves estimate was completed by the Houston-based evaluation team at Ryder Scott Company L.P. in a report received today dated 19 December 2011. As the Reserve Report is intended to be used for a redetermination of the borrowing base under the Company's credit facility, only proved and probable reserve estimates were generated.

The following gross Aurora reserve allocations have been made by Ryder Scott:

■ Total proved reserves - 72.8 MMboe, which is comprised of 53.95 MMbbls of light oil, condensate and natural gas liquids and 112.91 Bscf of natural gas. On a post royalty basis this equates to 53.79 MMboe and an NPVof US$ 716 million1.

■ Total proved plus probable reserves - 79.7 MMboe, which is comprised of 59.49 MMbbls of light oil, condensate and NGLs and 121.01 Bscf of natural gas. On a post royalty basis this equates to 58.87 MMboe an NPVof US$ 768 million1.

■ On a BOE basis, these figures represent a 150% increase in the 1P reserves and a 40% increase to the 2P reserves since the last reserves update as at 31 August 2011, and a 400% increase in 1P reserves and 167% increase in 2P reserves from the reserves estimates as at 31 December 2010.

The results reflect a similarly conservative approach to that used in the Prior Report including similar recovery factors for each well location, the same assumption of 80 acre well spacing for the proved and probable reserve estimates, but does take a different view of the categorisation of reserves allocated to each future well location.

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