Aurora Oil & Gas provided an operations update announcing it will participate in 11 wells testing tighter spacing across the company's acreage. Wells in the gas-condensate window of the play will be tested at 500 ft (~60-acre) spacing and wells in the volatile oil window will be tested at 350 ft (~40-acre) spacing. If successful, a 40-acre spacing test means there could be potential for as many as 16 wells drilled targeting the Eagle Ford on the best sections in the volatile oil window.

Ultimate recoveries normally fall when operators downspace in a field, but we're still in the early stages of determining optimal well design across the Eagle Ford. The best case scenario is that test proves successful without lowering per well recoveries significantly.

Highlights from Aurora's second quarter activity includes:

• Acquired an additional 6% working interest in the Sugarloaf AMI
• Acquired 75% of the outstanding shares of Eureka Energy
• Produced ~560,000 boe
• Construction began on three central processing plants in the Sugarloaf AMI
• 75% of Sugarkane Field acreage is now held by production
• Havest 3 Rivers Pipeline came into service and Aurora is selling crude and condensate at the equivalent price of WTI+$6

Marathon Oil operates the majority of Aurora's acreage. You can read more about Aurora at aurora.com.au

How low do you think Eagle Ford acreage spacing will go? Share your thoughts in the comment section below.