Aurora Oil & Gas is continuing its quest to add acreage in the Sugarloaf field in South Texas. Just two weeks ago, Aurora made a bid for Eureka Energy, but Eureka’s board wasn’t excited about the proposal. This week, Aurora announced a deal that adds 1,440 net acres to the company’s AMI in the Sugarloaf at a price tag of US$95 million.
Marathon Oil operates the property. Aurora will have a 21.8% non-operated interest in the field when the deal closes. If the company is able to close the Eureka deal, they would add an additional 6.25% interest in the AMI.