Published By : 03 Jan 2014 | Published By : QYRESEARCH
In an effort to realize a 47% spike in the output from its US shale assets, Aurora Oil and Gas has announced a commitment of up to USD 495 million in 2014. The company that features on Australia’s list of top 100 is looking to aggressively draw better production from its American assets.
Aurora Oil and Gas has forecast that production could likely touch 11.7 million barrels of oil equivalent (BOE), with the post-royalty figure expected to be up to 8.6 million BOE.
The Perth-based company’s assets are primarily situated in the shale region Eagle Ford in the south of Texas that is known to be rich in liquids. This is also the location where mining and petroleum major BHP Billiton is engaged in the production of gas and oil.
In an official statement, the company said that it was positive about earnings growing in the second half of the current year. These estimates are based on the prices of oil being considered at USD 90/ barrel and the price of natural gas being considered at USD 3.5/ barrel.
The company also anticipates that its capex could be somewhere between USD 455 million and USD 495 million. These figures, however, are lower than the 2013 figures. This is despite the company’s plan to drill as many as 13% more oil wells in the year 2014.
In addition to its core drilling and production activities, the company would also be spending significant amounts of money on Marathon Oil, its partner that operates joint ventures. This spending is likely more than what the company is anticipated to spend on its oil wells.