UPDATE 1.05pm: Aurora Oil and Gas has again lifted its landholding in the Eagle Ford shale gas region in Texas with a $117.5 million acquisition.
The deal will give it a 100 per cent working interest in approximately 2700 net acres adjacent to the Sugarkane Field, expanding its landholding in the area by 14 per cent to more than 21,800 net acres.
The assets include average December 2012 production of about 1620 boe/d net of royalties from 11 wells and associated interests in field infrastructure and related assets.
The production comprises 84 per cent liquids (70 per cent oil), and represents a 12 per cent increase to Aurora's 2012 exit production.
Aurora said the acquisition would be funded through existing and new debt facilities including a new $US125 million bridge debt facility, which was in addition to its announcement yesterday of a $US125 million boost to its senior secured revolving credit facility to $US275 million.
Aurora executive chairman Jon Stewart said Aurora was extremely selective about acquisition opportunities and firmly believed the purchase would provide significant value and upside to the company's portfolio.
"We have ensured maintenance of a conservatively geared balance sheet, facilitated by our increased 2012 earnings," he said.
Yesterday Aurora announced a 92 per cent surge in annual profit to $US59 million and forecast further growth in production, revenue and profitability in the year ahead.Aurora shares were off three cents to $3.84 shortly before the close of trade.
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