AUT - Aurora Oil and Gas

[Speculator]

Little bit frustrating but that comes with the territory.

Practicing patience is probably one of an investors most powerful assets.

At least youve still VIL to look forward to Condog, short time wise anyway.

 

[condog]

Little bit frustrating but that comes with the territory.

Practicing patience is probably one of an investors most powerful assets.

At least youve still VIL to look forward to Condog, short time wise anyway.

Yes and yes.....patience can make me so impatient at times.....

AUT has more in it and its more certain ....but TCEI have either been dead unlucky or need a solid kick in the #@#..... 2 out of 2 problems.....

I think they must have a ladder or black cat on site.... Looking forward to flow data though as it will be a partial early indicator.....

AUT must be questioning the credibility of the TCEI drilling team they have acquired though...

 

[condog]

I found this quote over on HC and think its a good summation of where we are at

" I am relieved that they have managed half. The early wells were experimental. The real test will be the new design wells. They will be designed for the multi-stage fracture stimulation. Kowalik was not designed for stimulation at all and, if you remember, Kennedy ended up in the Eagleford but there was no prior statement that the Eagleford was actually the target.

There is a clear statement by the company that the results to be produced will be representative of the potential. That must mean that they are satisfied with that bottom 2,200 ft. First we need to see what it does flow, then we need to see Easley flow about double that....

Then we need to see it replicated...

But don't kick the frac team for problems with the design and construction of these early wells.

We need to sweat it out a bit longer....there's no alternative.

However, think how ghastly this would have been had the jvps been stumbling onwards without the guaranteed funding of 3 new design wells. If Easley, Morgan + other prove to be good, that will be vindication of the farmout strategy."

Not a bad summation from someone who obviously has significant patience...

 

[condog]

A sensational piece of news...especially given on 8 stages of the horizontal where completed properly.....another 4000ft isolated and not contribuiting....so any fix, or supplental well flow should be fantastic....

KENNEDY #1H - OPERATIONS UPDATE
Aurora Oil & Gas (“Aurora”) is pleased to provide the market with the following update on operations at the Kennedy #1H well.
Aurora has been advised by the Operator, Texas Crude Energy Inc (“TCEI”), that the isolation plugs set as part of the fracture operations have been drilled out and the well commenced unloading at 0100 hrs on Thursday 28th 2010 (USCST). The initial production rate flowing to sales at 0700 hrs on Saturday 30th January (USCST) using a 22/64 choke was 4.39 mmscf/d gas and 1,132 bpd of condensate. The water production rate, from the recovery of frac fluids, was 408 bwpd.
Whilst these initial rates are very encouraging, the following points should be noted:-
• This is an initial production rate during clean up and is not yet indicative of a short or long
term production profile.
• The well still has considerable fluids to recover from the fracture stimulation operations.
• The well is flowing from approximately 2,200 ft of stimulated Eagle Ford Shale with the
remainder of the 4,000 ft horizontal liner isolated and not contributing.
• The well is currently producing through the 7" production casing, a production tubing string
will be installed in due course.
Aurora Executive Chairman Jon Stewart commented "It is early days but these initial flow rates are extremely encouraging including of course the expected high condensate ratio. We look forward to seeing how the well cleans up and to the imminent frac stimulation of our existing Weston well.
Further production performance data will also be gained as Hilcorp complete their farmin obligations across all three AMIs that Aurora participates in. We anticipate a very active year."
Aurora will continue to advise the market on production rates as part of our regular updates or as specifically required.
Yours sincerely
AURORA OIL & GAS LIMITED

 

[condog]

Agent in the ADI thread reckons once they run the tubing we can possibly expect significant increase in flows.....Additionally Im in total agreement that Hilcorp will now step it aup a massive notch....event the company says expect lots of action

murphy had a well doing this..

We are off to a great start with our Eagle Ford Shale program in south Texas. We recently announced the discovery at our first well, the George Miles number one drilled in McMullen County.

Initial rate of flow from the well was approximately 7.5 million cubic feet a day. This was increased to 11.7 million cubic feet a day once tubing was run.

once the production string is put in the well can perform a lot better again..

imho the result is exceptional. and hilcorp imho will go full steam ahead.. look out karnes county!!

 

[condog]

Lots of positive news in the last week on Eagleford....with quality and quantity of news reports dramatically rising.....its just a matter of time now till all the AMI comanies fall big time onto the Australian and international brokers radars....

Petrohawk Reserves Top Forecast
by Eric Chenoweth | 01 Feb 10

On Monday, Petrohawk Energy HK reported that year-end proved reserves were 2.75 trillion cubic feet equivalent (tcfe) (compared with 1.4 tcfe at year-end 2008). ................
The Eagle Ford Shale added 294 billion cubic feet equivalent (bcfe)........

UPDATE 1-Pioneer says Eagle Ford results top expectations
Oil and gas company Pioneer Natural Resources Inc (PXD.N) said initial production from its second well in the Eagle Ford shale in Texas beat its estimates and it is looking for a joint venture for the shale, with bids expected in the second quarter.

"With the highest gas rate reported to date in the play, the Crawley z1 exceeded our expectations and confirms that dry gas wells provide strong economics at today's prices," CEO Scott Sheffield said in a statement.

In October, the company said its Sinor z5 well in the Eagle Ford shale saw an initial rate of about 11.3 million cubic feet of natural gas equivalent per day (mmcfed).

ConocoPhillips Reports Fourth-Quarter Earnings of $1.2 Billion
HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE:COP):

..... the company continues to see good results from our Eagle Ford shale

Pioneer beefs up Eagle Ford shale efforts
HOUSTON, Jan. 20 -- Pioneer Natural Resources Co., Dallas, completed its second South Texas Eagle Ford shale well, formed an Eagle Ford asset team, and is pursuing a joint venture with bids expected in the second quarter.

The company turned to sales its Robert Crawley Gas Unit-1 well in Live Oak County which flowed 17 MMcfd of gas ......
The Eagle Ford shale at the Crawley location, 3 miles south of Pioneer’s liquids-rich Sinor-5 discovery well, is 1,000 ft deeper and has a 30% thicker pay zone than at the Sinor location.

The well’s goal was to test productivity towards the dry gas window in a deeper, thicker Eagle Ford shale section with a longer lateral and additional frac stages. With the highest gas rate reported to date in the play, Crawley-1 exceeded the company’s expectations and confirmed that dry gas wells provide strong economics at today’s prices

 

[Timmy]

Read this:

Posting rumours on ASF
https://www.aussiestockforums.com/forums/showthread.php?t=5917&highlight=rumours

Posting unverified rumours on ASF is simply not on.

If you are not prepared to identify your source or confirm a rumour with the company involved then please do not post it on the forums. Just for the record, anonymous forum chatter and unidentified 'friends' or 'associates' do not qualify as a legitimate source.

Some rumours, of course, do turn out to be accurate but many are simply made up and used to ramp stocks up or down. It is this aspect that troubles me and is the reason I do not want them posted here at ASF.

 

[condog]

Timmy how do you know for fact its a rumour???


Youve deleted this, and now casue my post is the last one makes me look like i started the rumour.....

Let me set the record straight...it was not me.....but i liked it and dont for a moment think it has no credibility....

Theres a fine line in here between what gets called rumour and what doesnt....

The fact an analyst with a vested interest or journalist says something does not make it any more fact then some punter in here saying it.... Often the punters know there stock far better then most journos and some analysts / brokers.... and often the first real thing we here is actually online...

 

[kurtneverdied]

Thanks condog for your PM. Can't reply due to post count <5.
I have been following your posts for a few weeks now and found them very informative. I hold AUT and UNS split into $2200 worth. I'm hoping I can hold these as an investment for at least a few years, but may have to get out in 6 months as these are my only savings.

 

[Timmy]

Youve deleted this, and now casue my post is the last one makes me look like i started the rumour.....

Let me set the record straight...it was not me.....

Sorry Condog - didn't want to leave that impression - for the record it was not Condog who started a rumour, the rumour posts have been deleted.

 

[condog]

WOW
The most reliable information provider on this forum, i know of on the Eagleford Shale came out with this this morning.....from the ADI thread

i think aut with its acreages are surely going to be temptation for many??

I totally cocnur, which is why Im in AUT 10 times bigger then my AZZ holdings... its low market cap and high acerage in this red hot area makes its possible upside potential huge...

 

[jancha]

Sorry Condog - didn't want to leave that impression - for the record it was not Condog who started a rumour, the rumour posts have been deleted.

Ah guess that was me.
Sorry about that even though what was said was what i was told & made sense to me.
I was merely asking if anyone knew of an American Company that had a previous take over bid on aut.

 

[condog]

Thats cool , i just didnt want it looking like it was me .....ta.... you bought yourself a lot of credibility with that honesty and integrity

 

[adobee]

not much available to but in this company at the moment ... could see a real break out if there is some market attention grabbing news. .. slowly picking some up today ...

 

[condog]

not much available to but in this company at the moment ... could see a real break out if there is some market attention grabbing news. .. slowly picking some up today ...

Yeh i reckon...if someone picks up a few at 0.38...off we go baby...
as long as this happens prior to the sellers creeping back in...

 

[tonudiki]

A nice write-up on Oilbarrel.com re Aurora and the initial Kennedy flow rates, the potential of the Hilcorp farm-in etc. etc.

February 02, 2010

Aurora Oil & Gas Encouraged By Initial Flow Rates From Kennedy-1H As The Sugarkane Project Gains Momentum





Having successfully inked farm-in terms for its promising Sugarkane project at the back end of last year, Aurora Oil & Gas can report an acceleration of activity across the South Texas gas and condensate field including the successful production test of an existing well and the spudding of a new well, Easley-1H. This will be a relief for investors, who have long awaited confirmation of the potential of this asset which has the potential to be transformational for the ASX company given the growing buzz surrounding the emerging Eagle Ford shale play.
September’s farm-in by Hilcorp, the fourth largest private E&P in the US, has put some real momentum behind this project, with ASX-listed Aurora now free carried for the drilling, completion and tie in of up to seven new horizontal wells and the stimulation of the three existing horizontal wells on the field. This work programme, which will be implemented over the next 20 months, will put ten wells into production across Aurora’s three Areas of Mutual Interest: Sugarloaf (20 per cent pre-farm-out), Longhorn (50 per cent) and Ipanema (80 per cent). In return, Hilcorp will earn up to 50 per cent of Aurora’s interest in the Sugarloaf and Longhorn Areas of Mutual Interest (AMI) and five/eights of the smaller Ipanema AMI.

Phase 1 of the work programme involves the hydraulic stimulation of the three existing wells, two of which, Kennedy-1H and Kowalik-1H, have been producing limited volumes: the unstimulated Kowalik well producing 10.3 million cubic feet of gas and 3,395 barrels of condensate over the September business quarter and the partially-stimulated Kennedy well producing just over 2 million cf of gas and 743 barrels of condensate for the three month period. A third horizontal well, Weston-1H, is not producing.

Fraccing operations to boost production from these three wells are now underway. Initial results have been mixed, indicating the complexity of the engineering task. At Kowalik-1H, an attempt to pull the slotted liner proved problematic and an alternative completion and stimulation plan was drawn up. This got underway at the end of 2009 but there were further operational complications and the well has still to be tested.

However, the results from Kennedy-1H have been much better. Initial production from the well started at the weekend from 2,200 feet of stimulated Eagle Ford Shale with the remaining 4,000 feet of horizontal liner still isolated and not contributing. The initial flow rate was 4.39 million cf/d of gas and 1,132 barrels per day of condensate. Water production, due to the recovery of frac fluids, was 408 bpd.

“It is early days but these initial flow rates are extremely encouraging including, of course, the expected high condensate ratio,” said Aurora’s executive chairman Jon Stewart.

Next up will be the stimulation of the Weston well, which should provide further data on the potential of this asset. And that potential could be significant, with talk of a multi-tcf condensate-rich resource within the prolific and well known Austin Chalk formation and the emerging over pressured Eagle Ford Shale trend. The field, discovered in 2006, lies some 20 km south of the main Texas Austin Chalk trend and is on trend with recent Eagle Ford Shale discoveries. The growing regional buzz surrounding the Eagle Ford shale trend has seen increased investment in land and drilling activity on neighbouring leases. But shale oil and gas plays only work if the right completion and production solutions can be found to economically extract the hydrocarbons from these tight rock formations.

Some local operators are getting it right. NYSE-listed Petrohawk Energy has 16-operated wells in production on its lands to the southeast of Aurora, with an average initial rate of 7.8 million cubic feet per day of gas and 143 bpd of condensate, while the Sinor-5 well, operated by Pioneer Natural Resources some 18 miles to the southwest of Sugarloaf-1, flowed 8.3 million cf/d of gas and 500 bpd of condensate. ConocoPhillips’ Bordovsky-1H well, 18 miles northeast of Sugarloaf-1, had initial production of 4 million cf/d of gas and 1,500 bpd of condensate - a high condensate ratio that is comparable to that observed in the Sugarloaf wells to date and one of the highest initial production rates in the trend seen to date . Aurora’s backers will be hoping that their slice of the Sugarkane pie can deliver similar results.

 

[condog]

Thanks tonudiki

An awesome day for AUT and the other AMI participants, a combination of a few bulls around, good oil price, recent news, anticipated news and finally some good recognition for the amazing assets that are IMO rapidly developing and escalating in value....

IMHO Its going to be a very big 12 months for all AMI companies (AUT, ADI, EKA)

Disc - yes own and will profit...DYOR Seek expert ind advice...

 

[Kremmen]

IMHO Its going to be a very big 12 months for all AMI companies (AUT, ADI, EKA)

ADI has less shares on issue than AUT and the same interest in the Sugarloaf AMI. It seems that if the AMI ends up worth a fortune and nothing else matters, AUT, at 38c vs ADI's 20c, is not worth buying. Does AUT have enough value elsewhere to be worth the premium?

 

[condog]

It has significantly more acerage....the cost of carrying such acerage is a problem if it goes undeveloped....but with every major oily now wanting a piece of the action the acerage is rapidly becoming an extremely valuable asset....

 

[Kremmen]

It has significantly more acerage....

I've read that, and presumably that is part of the reason for the greater stock value. It seems to me that with the AMI area being developed first, the first thing that happens, if things are great, is that all the AMI partners make money. Later, maybe some of AUT's surrounding areas will be worth something. So, surely the big payoff for AUT, if it comes, is further down the track? It seems to me that AUT may be the longer-term play, yet it's taking off sooner.