In early 2006, Aurora Oil & Gas, in conjunction with a private operator based in Oklahoma, had identified a Woodford Shale target area. Together, the companies initiated the requisite administrative and leasing efforts required to assemble an acreage block of sufficient scale to offer competitive advantages and support exploration activities.
The identified target area is focused in central Oklahoma, which is experiencing a significant increase in leasing and drilling activity. It is positioned among geological provinces with active Woodford Shale development, with average depths over 5,000 feet and organic shale thickness up to 300 feet.
To date, AOG has expended approximately $6.5 million for an 89% working interest in over 35,000 gross acres in the play. Aurora's early leasing activities have allowed the Company to establish this competitive position in the targeted play area. Leasing activities are continuing.
AOG has targeted 2008 for a pilot program of 5 test wells in its project area. Since the Company's current capital expenditure budget has been dedicated to further development of the Antrim and New Albany Shales, AOG has been in discussions with potential financing and joint venture partners to facilitate aggressive development of this acreage.
William W. Deneau, Chief Executive Officer, remarked, "The Woodford Shale is very competitive, and we are pleased to have established a foothold in this exciting new play."
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