Aurora Oil & Gas Limited Investor Presentation 2 May 2012
Regarding disclosure of reserves The reserves shown in this presentation are estimates only and should not be construed as exact quantities. Proved reserves are those reserves which can be estimated with a high degree of certainty to be…
Unsaved Document / 15/08/2011 / 15:28 Company overview 4
Introduction to Aurora Oil & Gas Aurora, founded in 2005, is a Perth, Australia based exploration and production company with its operational office in Houston, Texas The Company is listed on both the ASX and the TSX Solely focused on…
Corporate summary Key Facts millions Fully Paid Ordinary Shares 411 Options on issue (varied prices) 6 Executive Performance Shares 2.4 Fully diluted Capital 420 Cash at 31 March 2012 210 Senior Unsecured Notes Due February 2017…
The business plan Founding principles Founders are shareholders USA asset base Identify assets with significant size and growth potential Initial Execution strategy Partner with local US companies that had done regional exploration…
Regional exploration led to 2006 discovery 2005 - TCEI Geologist Doug OBrien 15 year exploration effort generated large farm in prospects ready to drill Extensive old 2D no 3D Re-mapping shows large regional structure Sugarkane…
Execution history Successful 2009 farm-out to Hilcorp Energy delivered a portfolio of producing wells with outstanding results. Successful farm-out Exciting exploration/appraisal project was transitioned to a large low risk…
Marathon: Experienced partner committed to development The Eagle Ford is the top basin we have in the world todaywe love the geology. Q4 11 Marathon Oil Conference Call Auroras Sugarkane acreage is operated by Marathon, a S&P 500 energy…
one of the fastest growing shale plays in North America The Texas Eagle Ford shale is one of the most active oil and gas A&D markets in the USA US26+ billion of deals since 2010 260 rigs now operating in the Trend Estimated 25…
A&D and M&A opportunities Capacity A strong balance sheet with additional debt capacity, no reliance on gas prices and strong support from shareholders and international investment banks offers significant flexibility. US Market…
A&D and M&A opportunities (cont.) Eureka Energy Limited Eureka is a small ASX listed company with 6,742 net acres in the Eagle Ford trend including and of particular interest, a 6.25% WI (or 1,521 net acres) in the 24,000 acre…
A source rock with oil, wet gas (condensate) & dry gas windows Sugarkane is entirely within the sweet spot of the Eagle Ford shale Sugarkane is within the gas-condensate and volatile (gas rich) oil windows Very high liquids content and…
Drilling is focussed in the condensate and volatile oil windows Gross Net AMI WI Acres Acres Sugarloaf 15.8% 24,033 3,792 Aurora AMIs Longhorn 31.9% 28,487 9,075 Ipanema 36.4% 4,627 1,684 Excelsior 9.1% 19,842 1,814 Total…
Value driver - high liquids yields and productivity Value of production from Sugarkane rich gas condensate wells (US) Example revenue generated from each 1mmcf Assumes a condensate yield 35,000 of 230 bbls/mmscf (the 28,763 30,000…
Operational update During Q1 2012, there were 9 - 11 of 14 rigs operating on Auroras AMIs. Marathon recently advised that they now have 17 rigs operating in the Eagle Ford and are guiding to 18+ on their Eagle Ford acreage during Q3…
Well testing pilot program Pilot program is being carried out in three areas across the Sugarkane Field to capture different hydrocarbon windows. Initial pilot program has 11 horizontal wells and 4 vertical observation wells.…
Pad drilling will generate further efficiencies Pad drilling where multiple wells are drilled from the same surface location will commence during Q2. Opportunities for reduced capex and opex via development and operating efficiencies…
Transformational uplift in production and reserves underway Production growth summary(1) Reserve growth (boe/d, pre-royalties) (mmboe, pre-royalties) 18,000 1P 2P PDP: Increase of 3.3 mmboe (235%) Proved and probable: Increase of 62.3…
Accessible routes to market via existing infrastructure All oil production expected to be transported by pipeline by end of Q1 2012 (some oil presently trucked to refinery) Centralized processing facilities being installed 6…
Reserve Engineer Report overview Significant growth in certified proved and probable reserves Reserve Engineer projections PV-10 value (USm)(1) Year end reserve report prepared by Ryder Scott, as of 1P 2P December 31, 2011 PDP PDP 14%…
Significant upside potential for reserves Higher well EURs. Current reserve estimates based on 80 acre spacing result in 5% recoveries of in place volumes in the volatile oil window and 10% in the gas condensate window. With our…
Improved recoveries 2012 well spacing pilot programs 80 acre spacing/drainage assumes 5,000 ft horizontals, 660 ft wide and up to 350 ft thick Fracs designed…
Financial policy Prudent Maintain a disciplined approach to financial management with prudent use of leverage capital March 31, 2012 cash balance US210 million, with undrawn borrowing base of US35 million currently structure subject to…
Financial summary Selected financial data Historical EBITDAX Selected financial data (US in thousands) /boe (1) 12,550 (US in thousands) Quarter ending 12 months to 11,828 Mar-11 Jun-11 Sep-11 Dec-11 Dec-11 Production: 8,437 Total…
Sources and uses of funds 2012 Sources USmillion Cash on hand 31 December 2011 net of debt drawn 40 Drawn senior secured revolving credit facility on hand 30 New senior unsecured notes (net) 192 Funds from operations 2012…
Hedging and cash flow sensitivity summaries Hedging summary Volume Price % of Est. Production Bbls/day US/bbl WTI 2012 452…
Key highlights 1 Established position in the Eagle Ford shale 2 Strong management team and experienced partner 3 Rapid production and reserve growth 4 Attractive well economics 5 Significant asset value with potential for…
Year end reserve summary Revised reserves report issued 20 March, 2012 L/M Oil (Mbbls) NGL/CND (Mbbls) Gas (MMscf) Total (Mboe) PV-10 Category Gross Net Gross Net Gross Net Gross Net (USm) (1) PDP 2,126 1,531 1,516 1,102 6,325 4,586…
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