4 Jan 2014

Aurora intends to lift shale production

7:22 am on 4 January 2014

Aurora Oil & Gas of Perth is committing up to $US495 million in spending this year to obtain a 47% rise in production from its shale assets in the United States.

The company has forecast production of 10.6 million - 11.7 million barrels of oil.

AAP reports Aurora's assets are located in the Eagle Ford shale region in southern Texas, where BHP Billiton also produces oil and gas.

It has forecast capital expenditure of between $US455 - $US495 million in 2014, which would be less than in 2013.

Aurora expects to drill 13 per cent more wells in 2014, which will be funded from existing finance facilities, the company said.

More of its spending will go to joint ventures operated by Marathon Oil.

Chief executive Douglas Brooks said Aurora was now in a low risk, high margin and repetitive development programme.

"Well costs have been dramatically reduced while well performance has increased even with tighter well spacing," he said.

AAP reprots shares in the company, which has a market value of $A1.4 billion, were steady at $A2.98 on Friday.