TRAVERSE CITY, Mich., May 11 /PRNewswire-FirstCall/ -- Aurora Oil
& Gas Corporation (NYSE Alternext US: AOG) today reported a net
loss for the quarter ended March 31, 2009 of $58.2 million or
($0.56) per basic and diluted common share. The loss includes the
impact of a non-cash ceiling test write-down of oil and gas
properties in the amount of $53.6 million attributable to the
recent decline in natural gas prices. Excluding this one-time
charge, the net loss for the quarter totaled $4.6 million or
($0.04) per basic and diluted common share, as compared to a net
loss of $1.2 million or ($0.01) per basic and diluted common share
in the first quarter of 2008. Financial Review Oil and natural gas
production revenues totaled nearly $3.2 million on sales of 617
million cubic feet of natural gas equivalent (Mmcfe) for the
quarter. Compared to the fourth quarter of 2008, this represents a
26% decrease in revenues as a result of a 12% decrease in
production and the impact of current commodity prices. Declines in
market prices also impacted the Company's valuation of proved
reserves. At quarter end, an average price of $3.65 (as compared to
$6.07 used on December 31, 2008) was applied to Aurora's base of
proved reserves. As a result, the Company is required to reduce its
oil and gas properties by $53.6 million via a ceiling test
write-down under the full-cost accounting method. This reduces
Aurora's proved oil and natural gas properties balance to $35
million, and results in total shareholder's equity dropping to a
deficit of $30.9 million. Additional detail on the financial
results can be found in the Company's first quarter Form 10-Q filed
March 8, 2009. This form can be retrieved from the Securities and
Exchange Commission or via the Company website at
http://www.auroraogc.com/SEC_Filings.htm. Selected historical
financial data is provided for reference below. Drilling Activities
During the first quarter of 2009, drilling activities were reduced
as a result of limited capital availability and continued corporate
restructuring efforts. Six (1.0 net to Aurora) wells were drilled
by Aurora's partners, concentrated on conventional targets in
farmed-out properties in Indiana. Five of the six wells involved a
carried interest, resulting in no out-of-pocket cost for Aurora. A
summary of the Company's well inventory on March 31, 2009 is as
follows: Well Status as of March Antrim Antrim New Albany New
Albany 31, Operated Non-Operated Operated Non-Operated Other Total
2009 Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net
--------------------------------------------------------------------------
Produc- ing 179 170.07 405 96.75 0 0.00 25 1.25 37 18.45 646 286.52
Waiting on Hook-Up 0 0.00 9 1.80 6 6.00 0 0.00 6 1.00 21 8.80 Res.
Assess- ment 1 0.97 9 1.87 0 0.00 0 0.00 10 4.00 20 6.84
--------------------------------------------------------------------------
Total 180 171.04 423 100.42 6 6.00 25 1.25 53 23.45 687 302.16
Production Activities Total company production during the first
quarter of 2009 averaged 6,853 net Mcfe per day. This represents a
12% decline from the fourth quarter of 2008, as detailed in the
summary below: Q1 2009 Q4 2008 Estimated Production by Play/Trend
Daily Daily (net mcfe) Total Average Total Average
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Antrim Shale 567,144 6,302 667,754 7,258 New Albany Shale 16,484
183 18,913 205 Other 33,152 368 33,108 360
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Total 616,780 6,853 719,775 7,823
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Operated 370,996 4,122 433,523 4,712 Non-operated 245,786 2,731
286,252 3,111
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Total 616,780 6,853 719,775 7,823
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During the first quarter, Aurora personnel focused on containing
operating costs and developing a plan to enhance the performance of
its operated properties. This plan is being implemented in a
portion of the Company's properties, targeting opportunities for
improvement to compression systems and down-hole configuration, as
well as installation of improved processing and monitoring
equipment. The implementation of this plan is designed to optimize
return on investment with careful consideration for the current
corporate objective of cash conservation. Update on Acreage
Aurora's acreage portfolio has remained fairly constant from
December 31, 2008. Following is a summary of the Company's acreage
inventory on March 31, 2009. March 31, 2009 Acreage by Play/Trend
Gross Net -------------------------------------------------
Michigan Antrim shale 285,994 130,494 Indiana Antrim shale 15,773
15,773 New Albany shale 782,387 453,558 Other 74,561 51,698
------------------------------------------------- Total 1,158,715
651,523 ------------------------------------------------- Update on
Relationship with Creditors The forbearance agreement which was
executed between the Company and its first lien lenders
(administered by BNP Paribas) on February 12, 2009 expired on April
30, 2009. The Company continues to engage in discussions with its
first lien and second lien creditors and their respective
syndication participants to restructure Aurora's debt. Presently,
the Company is working to extend the referenced forbearance
agreement beyond April 30, 2009. There is no assurance that the
lenders or their syndications will not accelerate or demand
repayment of their debt, or that Aurora will be successful in
restructuring its debt, finding alternative financing arrangements,
or selling its assets. Update on De-listing Efforts On April 30,
2009, Aurora filed a Form 25 with the SEC, providing notification
of the Company's desire to remove its securities from being listed
on the NYSE Amex. Typically, 10 days after filing the Form 25, a
Company's securities will move to the over-the-counter ("OTC")
market. Aurora expects that its securities will move to be
accessible via the OTC marketplace on May 11, 2009. The Company has
received notice that its securities will be traded under the symbol
"AOGS". This action does not involve deregistration of securities
from the Securities and Exchange Commission ("SEC"). Aurora expects
to continue to comply with all SEC regulations, including timely
filing of required reports. As further information is available
with respect to this move to the OTC market, the Company will
publicly distribute that data, as deemed appropriate. Selected
Financial Data The following tables set forth Aurora's financial
information as of and for each of the periods indicated. You should
review this information together with "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and the
consolidated financial statements and related notes included in
Aurora's Form 10-Q for the quarter ended March 31, 2009 and/or the
consolidated financial statements and related notes included in
Aurora's Form 10-K for the year ended December 31, 2008. For 3
months ended Statement of Operations Data March 31, 2009 March 31,
2008 Revenues: Oil and natural gas sales $3,166,175 $6,442,558
Pipeline transportation and marketing 167,201 105,261 Field service
and sales 480,038 123,559 Interest and other 350,623 102,687
------- ------- Total revenues 4,164,037 6,774,065 ---------
--------- Expenses: Production taxes 110,410 339,314 Production and
lease operating expense 2,205,885 2,670,144 Pipeline and processing
operating expense 139,613 87,893 Field services expense 417,323
119,155 General and administrative expense 2,790,705 1,997,061 Oil
and natural gas depletion and amortization 595,501 979,908 Other
assets depreciation and amortization 342,807 355,773 Interest
expense 2,121,829 1,462,412 Ceiling write-down of oil and gas
properties 53,639,522 - Taxes (refunds), other 34,144 (71,292)
------ -------- Total expenses 62,397,739 7,940,368 ----------
--------- Net loss (58,233,702) (1,166,303) Net income attributable
to noncontrolling interest (7,400) (15,105) ------- Net loss
attributable to Aurora common shareholders $(58,241,102)
$(1,181,408) -------------- Net loss attributable to Aurora common
shareholders, per common share - basic and diluted $(0.56) $(0.01)
============= ============== Weighted average common shares
outstanding - basic and diluted 103,282,788 102,227,258 For 3
months ended Cash Flow Data March 31, 2009 March 31, 2008 Cash
provided by (used in) operating activities $(977,579) $3,212,111
Cash used in investing activities (1,332,817) (7,501,630) Cash
provided by financing activities (45,285) 9,189,959 As of March 31,
As of December 31, Balance Sheet Data 2009 2008 Cash and cash
equivalents $7,649,457 $10,005,138 Other current assets 5,407,161
6,439,387 Oil and natural gas properties, net (using full cost
accounting) 62,826,801 115,134,222 Other property and equipment,
net 14,106,876 14,451,523 Other assets 13,529,760 13,906,789 Total
assets $103,784,077 $160,201,081 Current liabilities $129,566,802
$127,312,547 Long-term liabilities, net of current maturities
4,830,160 5,265,459 Shareholders' (deficit) equity (30,602,885)
27,623,075 Total liabilities and (deficit) equity $103,784,077
$160,201,081 About Aurora Oil & Gas Corporation Aurora Oil
& Gas Corporation is an independent energy company focused on
unconventional natural gas exploration, acquisition, development
and production with its primary operations in the Antrim shale of
Michigan and the New Albany shale of Indiana and Kentucky.
Cautionary Note on Forward-Looking Statements Statements regarding
future events, occurrences, circumstances, activities, performance,
outcomes, beliefs and results, including future revenues and
production, relationship with its existing lenders, restructuring
of existing credit facilities, the procurement of new credit
facilities, anticipated capital availability, anticipated capital
expenditures, ability to remediate production shortfalls, the sale
or farmout of existing assets, future trading markets and SEC
filings are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although we believe that the
forward-looking statements described are based on reasonable
assumptions, we can give no assurance that they will prove
accurate. Important factors that could cause our actual results to
differ materially from those included in the forward-looking
statements include the timing and extent of changes in commodity
prices for oil and gas, drilling and operating risks, the
availability of drilling rigs, changes in laws or government
regulations, unforeseen engineering and mechanical or technological
difficulties in drilling the wells, operating hazards,
weather-related delays, the loss of existing credit facilities,
availability of capital, and other risks more fully described in
our filings with the Securities and Exchange Commission. All
forward-looking statements contained in this release, including any
forecasts and estimates, are based on management's outlook only as
of the date of this release and we undertake no obligation to
update or revise these forward-looking statements, whether as a
result of subsequent developments or otherwise. Join our email
distribution list:
http://www.b2i.us/irpass.asp?BzID=1419&to=ea&s=0 Contact:
Aurora Oil & Gas Corporation Jeffrey W. Deneau, Investor
Relations (231) 941-0073 http://www.auroraogc.com/ DATASOURCE:
Aurora Oil & Gas Corporation CONTACT: Jeffrey W. Deneau,
Investor Relations of Aurora Oil & Gas Corporation,
+1-231-941-0073 Web Site: http://www.auroraogc.com/
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