Aurora Oil & Gas announced on Friday March 1st the company has acquired 2,700 net acres near the Sugarkane Field for $117 million.
Aurora will operate the acreage and now has over 21,800 net acres in the area. The company estimates the properties hold 6.7 mmboe of proved reserves of 14 mmboe of probable (2p) reserves. The Austin Chalk and Pearsall formations provide additional upside to those estimates.
The assets include average December 2012 production of approximately 1,620 boe/d net of royalties from 11 wells and associated interests in field infrastructure and related assets. The production comprises 84% liquids (70% oil), and represents a 12% increase to Aurora’s 2012 exit production.
Approximately 1,580 acres are located in the Heard Ranch in Atascosa County and a little more than 1,100 acres are part of the Axle Tree prospect that straddles Karnes and Live Oak counties.