Aurora, Adelphi, Eureka: Sugarkane field production [AUT] Sydney...

Aurora, Adelphi, Eureka: Sugarkane field production [AUT]


Sydney - Tuesday - June 8: (RWE Australian Business News) -
Aurora Oil & Gas Ltd (ASX:AUT) reports the Rancho Grande #1H well,
within the Sugarloaf Area of Mutual Interest (AMI) which is part of the
Sugarkane Gas and Condensate Field in Texas, commenced flow-back on June
1 and has been flowing on a reduced choke setting.
The maximum production rate over a consecutive 24-hour period
has been 3.19 mmscf/d of gas and 1170 bbls/d of condensate for an
average daily equivalent gas rate of 18.00 mmscfe/d.

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The intention of producing the well on a reduced choke setting
is to investigate whether a limited reservoir drawdown can improve
decline rates and the ultimate recovery from the wells.
Aurora notes the well is capable of flowing at a higher rate but
this investigation is part of ongoing efforts to optimise the
commerciality of the field.
The company also made the following comments:
* This is an initial production rate that has been observed
during clean-up and as such is not yet indicative of a short or
long-term production profile.
* The well still has considerable fluid to recover from the
fracture stimulation.
* The well is currently producing through the production casing.
A production tubing string will be installed in due course.

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ASX-listed participants in the Sugarloaf AMI are Aurora
(ASX:AUT) 10pc (post-farmout), Adelphi Energy Ltd (ASX:ADI) 10pc
(post-farmout) and Eureka Energy Ltd (ASX:EKA) 6.25pc (post-farmout).
Aurora also participates as a 50pc WI holder in a larger area
made up of an additional 27,000 acres within the Sugarkane Field
adjacent to Sugarloaf.
Aurora is the only listed participant in these areas, which are
also subject to farmout to Hilcorp for the drilling, stimulation and
tie-in of a further four new wells.
rx