Aurora raises $A8m for US projects

PERTH-based Aurora Oil & Gas has announced it is raising $A8 million for its existing United States oil and gas assets and the acquisition of new projects, including a four-well exploration and development program.
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Aurora told the ASX this morning that the $A8 million would be raised by offering about 15 million new fully paid ordinary shares at $A0.53 each.

On receipt of the proceeds of the latest share issue, Aurora said it would have roughly $A10 million available for additional development activity across its existing portfolio of US projects and to pursue new opportunities in the US.

Aurora executive chairman Jon Stewart said these funds were expected to be augmented by the recently announced bank credit committee approval of up to $US10 million project finance for the commercial Flour Bluff gas project in Texas.

The new drilling program is scheduled to start this week, with the spudding of the first development well at the North Belridge oil discovery in California. The second well is expected to spud in August.

Then, in mid-June, the first development well into the Texas West Black Lake gas discovery is scheduled to spud. This would be followed, in July or August, by an exploration well into the Texas Sugarloaf gas target, one of the largest onshore gas targets in the US.

In September, development drilling is set to resume at the Flour Bluff gas project.

“We are very pleased with the continued support for Aurora as we enter a period of significant activity at each of our US oil and gas projects,” said Stewart.