By Dow Jones Business News,
January 02, 2014, 07:02:00 PM EDT
Aurora Oil & Gas Expects 47% Jump in 2014 Output
By Rhiannon Hoyle
SYDNEY--Australia'sAurora Oil & Gas Ltd. (AUT.AU) forecast a sharp jump in production for the year ahead as the
company reaps the benefits from a spending drive on new wells and infrastructure in South Texas.
The Perth-based company said it expects oil-and-gas output to rise around 47% to between 10.6 million and 11.7 million
barrels of oil equivalent in 2014.
Aurora holds stakes in four joint ventures in the Sugarkane field, which sits in the core of the Eagle Ford shale
The company "expects this strong growth to continue through 2015 and beyond through the development of our significant
remaining well inventory," Chief Executive Douglas Brooks said in a statement to Australia's stock exchange.
Smaller energy firms like Aurora and ConocoPhillips ( COP ) have thrived in the oil-and-gas-rich region of Eagle Ford in
South Texas where, thanks to new drilling techniques and hydraulic fracturing, shale formations have become productive
sources of oil and gas.
The Eagle Ford is now the fifth largest field for U.S. shale gas production, Aurora says on its website.
Mr. Brooks said Aurora planned to scale back capital expenditure in 2014, while still adding more new wells than the
Directors have approved a capital expenditure budget of US$455 million-US$495 million for the year, down from an
estimated US$490 million-US$510 million in 2013. Still, Aurora expects to add up to a net 53 new wells, up around 13%
Aurora shares briefly rose as much as 7.4% in Sydney trading, before slipping to be last up 0.7% compared to a 0.5%
fall in the broader index.
Write to Rhiannon Hoyle at firstname.lastname@example.org
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