Aurora Oil & Gas Corporation's year-end 2007 proved reserves increased from year-end 2006 by 14 Bcfe to 167 Bcfe. Of the 167 Bcfe, approximately 70% is considered proved developed, of which 9% is waiting on hook-up. The remaining 30% of total proved reserves is considered proved undeveloped.
Successful drilling activities during 2007 replaced 1,500% of proved reserves at a cost of less than $1 per Mcfe, adding 48 Bcfe in proved reserves -- 24 Bcfe in the Antrim shale and 24 Bcfe in the New Albany shale, respectively. The Company also recorded a downward revision of 34.5 Bcfe. This revision was primarily due to lower realized production levels from certain Antrim projects.
Oil and natural gas production revenues totaled nearly $27 million on sales of over 3.2 billion cubic feet of natural gas equivalent (Bcfe) for the year. This equates to an average of 8.8 million cubic feet of natural gas equivalent (Mmcfe) per day, an increase of approximately 21% over the previous year. The weighted average sales price of $8.33 for the period includes $3.9 million in realized gains on financial hedges which covered between 5,000 and 7,000 Mmbtu per day during the year. Over the past two years, the Company has achieved nearly $7 million in realized gains as a result of its natural gas hedging program.
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