AUT - Aurora Oil and Gas

[Agentm]

nioka..

i see they have delayed again at AUT and suspended..

this is becoming an interesting affair, EKA has a day before it needs to do the same, or maybe a dual announcement?

interesting days ahead here..

 

[nioka]

Yes. They seem to be too slow coming up with the information. I doubt if it will be bad news. Getting information out of ADI & AUT is like pulling hens teeth. We get more info through ASF than ASX. This sure as hell has been a frustrating time with them, Hopefully the end result will justify the wait.

 

[nioka]

A non-renounounceable rights issue will allow elegible shareholders the opportunity to acquire additional shares at 53c per share on the basis of 1 new share for each 10 held on the record date of August 10.
The funds raised will be applied to financing " drilling, infrastructure, sesmic and land aquisition activities on the company's US oil and gas Projects and for general working capital".
Aurora Exec. chairman Jon Stewart also said: "We expect that shareholders will have the benefit of further results from operations ahead of making the decision of taking up their rights.
Remedial cementation of the Sugarloaf well has been completed without operational problems and tubing is presently being withdrawn in preperation for fracture stimulation and test program. The fracture stimulation of Sugarloaf 1 is presently expected to begin by mid August, subject to equipment availability.
The fracture stimulation of our North Bellridge 26-2H well is also expected to start in mid August.
The drilling of our Sugarloaf 2 horizontal well is presently expected to commence towards the end of August."
The rights issue at 53c adds value to the existing value with AUT SP today at 66.5c.

 

[nioka]

History is repeating itself here. The rights issue price of 53c looked good a few days ago but once again I will be able to increase my holding at a better price. Last time there was an issue at 53c I bought at 51c instead.
There should be no reason for the price to have dropped so much even in the present share market climate as Aut is on the verge of making exciting announcements if the drilling results are as per expectations. 45c has to be a bargain.

 

[sam76]

WOW there are sellers under 50 cents now.

We are so close to announcements and people are selling down????

I'm hoping they don't know something we should know.

EKAO's are looking cheap as well.

 

[Lucky_Country]

Maybe selling and buying into ADI as it has got more upside on a sucessfull discovery.
News must be close fracing I hope should have started all will be revealed tommorow on the weekly announcements.

 

[nioka]

It is hard to keep the faith in this one. With the new issue at 53c I can't see them getting too many applications. The money I had aside for that I put into AGM at 50c a few days ago, they are now 58.5c and I don't have enough faith to sell the AGM and buy the AUT. I'll sit on the AUT I have though and hope.

 

[wallave]

Lucky_Country...
I think that testing is due to start in the last week of Aug, possibly with the Hurriacne over that way, may be pushed back a few extra days also.
I'll be surprised if we see any news before the end of next week.. So still at least 2 weeks away is my guess. (love to be wrong though)

 

[sam76]

For those considering bailing....


Aurora Oil & Gas has a 20% interest in the large Sugarloaf Prospect, which has the potential to host several trillion cubic feet of gas.

The Sugarloaf Prospect is a world class exploration prospect. It is a robust four-way dip closure covering about 80 square kilometres at approximately 5,300m depth, which makes it one of the largest undrilled structures in the onshore US. The primary target reservoirs are thick sands of the Cretaceous age Hosston Formation which are major producers elsewhere in the Gulf Coast region.

The initial well to test this structure was successfully drilled to Total Depth (“TD”) of 20,896 feet (6,371 metres) in late 2006. As at 20 February 2007, the well participants are undertaking testing of the primary target and preparing for the commencement of fracture stimulation and flow testing operations.

Overlying the Sugarloaf Hosston formation growth structure, are several shallower targets that are considered prospective. These shallower targets, which include the Wilcox, Austin Chalk, Edwards and Sligo formations, will be evaluated as part of the initial farm-in well.

There have been many successful deep gas wells in the Gulf Coast region, where initial flow rates of up to 80 million cubic feet per day (average daily rate over one month) have been obtained from wells to comparable depths.

The Sugarloaf Prospect is unusual among the large number of onshore USA hydrocarbon prospects in that it is a giant prospect with multi-trillion cubic feet gas potential. Most similar prospects in onshore US were drilled long ago, even at this depth. The application of modern processing of 1970s and 1980s seismic revealed the presence of the major Sugarloaf anticline which was not evident from the original processing.
The Sugarloaf Prospect
The Sugarloaf prospect was identified by local Houston-based operator/explorer Texas Crude Energy Inc. during seismic reprocessing directed at shallower horizons. The reprocessed data showed that below the currently productive Wilcox, Edwards and Sligo Formations, there is a large “text-book” example of a growth fault in lower Cretaceous-aged clastic rocks setting up the Sugarloaf Hosston prospect.

The Sugarloaf prospect is surrounded by several shallower oil and gas fields within a 25 km radius. Most of these fields were discovered in the 1950s and 60s and contain total reserves of some 5 trillion cubic feet (“TCF”) gas and 100 million barrels (“mmbbls”) oil. The fields are a combination of structural and stratigraphic play types predominantly in carbonate rocks at shallower levels than the Sugarloaf prospect.

The Sugarloaf prospect is a large (80 sq km / 20,000 acre), deep (5,200m+) well developed, four way dip closure associated with an early Cretaceous growth fault in the prolific Gulf Coast Basin of Texas. The total depth of the farm-in well was approximately 6,400m (21,000 ft). The well is targeting a reservoir comprising an expanded section of Hosston Formation prograding delta wedge sandstones. The geological structure at Sugarloaf is clearly defined on seismic data, and the presence of source rock and seal is considered to be low risk.

The main technical risk to the Sugarloaf prospect is the preservation of porosity at a depth of greater than 5,200m (17,000 ft). At these depths in most basins of the world, reservoir quality porosity and permeability is usually too low to be productive. However, in the Gulf Coast Basin of the USA (especially Texas and Louisiana) there is abundant production from fields at these depths. Published data indicates that in excess of 21 TCF of gas has been produced to date from approximately 350 “deep” onshore fields in the Gulf Coast Basin area at an average well depth

 

[nioka]

Aurora presentation at the Good Oil Conference is certainly worth a read. Available today on the AUT company announcements. It looks like the interests in the Sugarkane are going to shadow the Sugarloaf results and with AUT's other interests in the area should boost the value of the shares to show healthy returns for it's followers. ADI holders are suggesting $5 as a value for ADI what then is the value of AUT. I'm not going to suggest a price but I suggest this is a good week to hold. To back that up I am buying again today. The offer at 53c for the current capital raising is good value with today's price.

 

[Broadside]

hi nioka, the shares are trading XE, does this mean they are ex the entitlement to subscribe at 53c? anyway it looks like good value with that acreage and Sugarkane looking great for all partners. Shares haven't run yet but I expect it will be happen in the near future when instos flick the switch and these companies come to the attention of more brokers.....seem to fly under the radar and then you see stocks like GDN fly...go figure

 

[nioka]

hi nioka, the shares are trading XE, does this mean they are ex the entitlement to subscribe at 53c? anyway it looks like good value with that acreage and Sugarkane looking great for all partners. Shares haven't run yet but I expect it will be happen in the near future when instos flick the switch and these companies come to the attention of more brokers.....seem to fly under the radar and then you see stocks like GDN fly...go figure

Yes, the shares now are ex entitlement which was a 1 for 10. We have until November 1st to apply for our allocation. Last time they were offered at 53c the price fell and I bought below that price instead of taking up the offer. I can't see that happening this time. By then some test results should be out and it seems, from the companies announcement today, that they will be good. I haven't spent the profit yet but I need a new boat so I live in hope that AUT will pay for it.

 

[resourceboom]

bought a couple today after the announcement, hoping longhorn and ipanema are good, as AUT have plenty of net acreage over the 3 areas.

.... nice addition to my ADI and EKAO !!

 

[nioka]

Aurora has advised that the fraccing of Sugarloaf 1 commenced yesterday and that the mobilisation of the drilling rig to the Kennedy#1H well site is scheduled for this week.
This is now the time when we will see if the wait has been worthwhile. Patience should finally be rewarded for those who have held on and rewards could be there for those prepared to invest now. DYOR.

 

[nioka]

When researching AUT it is important to differentiate between Aurora Oil and Gas Ltd ( ASX code AUT) and Aurora Oil and Gas Inc ( American stock exchange code AOG). I have noticed posts on some forums which confuse the two.
AUT is currently going through exciting times which are capable of making this a valuable company and the answer lies in the results of the current drilling and testing in Texas. There is plenty of information available for investors to examine, therefore it is easy to research and decide if an investment is warranted but do not confuse yourself with information regarding Aurora Oil and Gas Inc if you are considering investing in AUT. A google search will bring up both.

 

[nioka]

Looking at the quotes for ADI and AUT it is one of the few times that AUT is ahead. In the past I would have taken advantage of the situation to convert half my AUT to ADI. This time I,m not so sure. It may be a sign that there is something in the wind heading towards AUT. I think I'll sit and watch this one out.

 

[nioka]

Once again AUT is in trouble with it's share entitlement offer. The rights to the new issue at 53c is now above the selling price on todays market. The issue is underwritten so they will still raise the funds but there has to be some good news soon for interest to be maintained in this stock.

 

[Agentm]

RIGHTS ISSUE – NOTIFICATION OF SHORTFALL ​

Aurora Oil & Gas Limited (ASX:AUT, "Aurora") advises that acceptances under the Company’s 1 for 10 entitlement offer ( as first announced to the market on 23 July 2007, "Rights Issue" ) closed at 5pm (WST) on 1 November 2007.
Valid acceptances for 2,780,915 shares were received, representing a take-up of approximately 15.2%. The underwritten shortfall of 15,426,632 shares will now be placed by the underwriters of the Rights Issue.
[FONT=Arial,Arial]Aurora expects that, following allotment of the Rights Issue shares, holding statements will be despatched on or before 9 November 2007. [/FONT]

 

[nioka]

RIGHTS ISSUE – NOTIFICATION OF SHORTFALL ​

Aurora Oil & Gas Limited (ASX:AUT, "Aurora") advises that acceptances under the Company’s 1 for 10 entitlement offer ( as first announced to the market on 23 July 2007, "Rights Issue" ) closed at 5pm (WST) on 1 November 2007.
Valid acceptances for 2,780,915 shares were received, representing a take-up of approximately 15.2%. The underwritten shortfall of 15,426,632 shares will now be placed by the underwriters of the Rights Issue.
[FONT=Arial,Arial]Aurora expects that, following allotment of the Rights Issue shares, holding statements will be despatched on or before 9 November 2007. [/FONT]

Not surprising. I certainly could see no sense in paying 53c when the market allowed them to be purchased cheaper. This will hold the SP down as the underwriters will be looking for an opportunity to unload the shares they were obliged to take. AUT gambled on some good news coming from Sugarloaf before the due date. This has not happened as ADI, AUT & EKA holders know.
Where to from here? I'll wait a little longer but I am losing patience. I'm glad I traded in and out along the way, at least I'm ahead but it hasn't been a good year because of ADI and AUT. The lesson to be learnt, Don't send off a cheque for an entitlement until it is due. Once you pay, you are in regardless. I still have my cheque which I will now tear up. I did sell enough at 58c earlier on to cover my entitlement so there is a small consolation.

 

[nioka]

RIGHTS ISSUE – NOTIFICATION OF SHORTFALL ​

Aurora Oil & Gas Limited (ASX:AUT, "Aurora") advises that acceptances under the Company’s 1 for 10 entitlement offer ( as first announced to the market on 23 July 2007, "Rights Issue" ) closed at 5pm (WST) on 1 November 2007.
Valid acceptances for 2,780,915 shares were received, representing a take-up of approximately 15.2%. The underwritten shortfall of 15,426,632 shares will now be placed by the underwriters of the Rights Issue.
[FONT=Arial,Arial]Aurora expects that, following allotment of the Rights Issue shares, holding statements will be despatched on or before 9 November 2007. [/FONT]

Not surprising. I certainly could see no sense in paying 53c when the market allowed them to be purchased cheaper. This will hold the SP down as the underwriters will be looking for an opportunity to unload the shares they were obliged to take. AUT gambled on some good news coming from Sugarloaf before the due date. This has not happened as ADI, AUT & EKA holders know.
Where to from here? I'll wait a little longer but I am losing patience. I'm glad I traded in and out along the way, at least I'm ahead but it hasn't been a good year because of ADI and AUT. The lesson to be learnt, Don't send off a cheque for an entitlement until it is due. Once you pay, you are in regardless. I still have my cheque which I will now tear up. I did sell enough at 58c earlier on to cover my entitlement so there is a small consolation.