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Aurora Oil & Gas

By Dan Stratful

Thursday 8th December 2011 2 Comments

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Aurora Oil & Gas (ASX: AUT) has the potential to be a high growth oil and gas producer with significant onshore acreage in the Eagle Ford Shale – one of the world’s premier shale regions.

AUT is focused on oil and gas exploration at the Eagle Ford Shale formation in Texas, one of the most actively drilled targets for oil and gas in the USA. AUT participates in over 73,000 acres at Eagle Ford Shale and has an interest in the liquid rich Sugarkane shale gas field development which has shown robust early results. AUT works the area alongside international names such as ConocoPhillips, Apache, BP and Petrohawk.

Major oil and gas producers are reportedly scrambling for Eagle Ford acreage, seen recently by the BHP Billiton acquisition of Petrohawk Energy, and further M&A activity in the region is expected.

AUT has established an early foothold in the region, but the shares should still be treated as speculative, as there is plenty of development work left to complete as further wells are drilled.

During the first half ending 30 June 2011 AUT continued to ramp up within the Sugarkane Field in South Texas and it reported post royalty net production of 3,140 barrels of oil equivalent per day (boepd), while proved and probable (2P) reserves were upgraded by 90%.

Meanwhile, AUT continues to ramp up strongly and 2012 post royalty production is forecast at 14,000 boepd, with 24,000 of boepd expected by 2016.


Status: SPECULATIVE BUY

AUT’s  shares today traded at $3.24

For sharemarket and fixed income trading enquires contact:
Dan Stratful at Investment Research Group (IRG)
Authorised Financial Adviser (AFA)
0800 437 8489, 09 304 0232, dan.stratful@irg.co.nz
**A disclosure statement is available, on request and free of charge.


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Comments from our readers

On 10 December 2011 at 12:17 am timmy said:
Dan. Do you not think that it is a too early to be speculating on oil and gas stocks considering what is happening in the world. Or are you just trying to get brokerage? BTW the firm that I use have a neutral recommendation on AUT.
On 13 December 2011 at 2:55 pm DanStratful said:
Tim. Indeed. It’s a tough market and not one to be buying risky or speculative shares in. Still, we like to show the recommendations and preferred stocks in a particular sector. It’s then up to the investor to decide WHEN the right time to buy is. The research I source has 2 analysts covering the stock, and those 2 analysts rate the stock a buy.
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