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Aurora Oil & Gas Corp. (AOG) Continues to Develop Their Energy Assets

Trading on the American Stock Exchange and headquartered in Traverse, Michigan, Aurora Oil & Gas Corporation (AOG) is an independent energy company. Their focus is on natural gas and crude oil exploration, acquisition, development, and production. Their primary areas of operation are in the Michigan Antrim Shale and the New Albany Shale of Indiana and Kentucky. They also have projects in the Woodford Shale of Oklahoma.

Founded in 1997, they completed a reverse merger with Cadence Resources Corporation in 2005. This resulted in one enterprise focused on development of their existing acreage and on growth through acquiring properties. The company’s strategy is to pursue a continuous drilling program in the New Albany Shale. Here, they have one rig capable of drilling approximately twenty wells per year. Aurora Oil & Gas will drill, test, and immediately hook each well into their production system. They also plan to add another rig, and extend their drilling program further. Aurora’s total proved reserves, as of December 31, 2007 were approximately 166.6 billions of cubic feet equivalent (bcfe).

Aurora Oil & Gas Corporation has extensive leaseholds with many avenues for production. These leaseholds will allow them to create additional value for the company. They will do this by engaging in joint ventures, farm-outs, asset trades, purchases, or sales of these leaseholds. Their focus is to create maximum value while managing their risk profile. Their overall corporate goal is to create long-term value for their shareholders by aggressively pursuing production of natural gas from lower-risk unconventional reservoirs found in black shale, coal seams, and tight sands. The company is targeting areas where they can acquire large acreage blocks. They then engage in a series of low-cost test wells to evaluate the viability of commercial production before they proceed with further development.

The company’s Woodford Shale properties are in Oklahoma and their partner, West Star Operating Company, operates this project. As of December 31, 2007, Aurora had 33,219 net acres leased in this area, although none is developed. The Woodford shale underlies most of Oklahoma, which includes the Anadarko, Arkoma, and Ardmore basins.

On August 11, Aurora Oil & Gas Corporation reported revenues of $7.9 million for the quarter ended June 30, 2008. This represents an 8-percent increase from the same period in 2007. The net loss for the quarter totaled $0.7 million or ($0.01) per basic and diluted share, as compared to a net gain of $0.2 million or $0.00 per basic and diluted share in 2007.

Aurora Oil & Gas Corporation is working to further their energy assets. Their corporate focus will continue to be in the black shales of the Michigan, Illinois, and Indiana geologic basins. Their plan is to re-invest revenues generated from commercial oil and gas production to support their ongoing development of their acreage. Their mission is to energize the asset portfolios of their shareholders for many years to come.

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