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Press Release

AURORA OIL AND GAS LIMITED - SUGARKANE FIELD OPERATIONS AND PRODUCTION UPDATE

Canada NewsWire

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, April 8 /CNW/ - Aurora Oil & Gas Limited ("Aurora") is pleased to provide the following update on operations and production at the Longhorn, Ipanema and Excelsior Areas of Mutual Interest ("AMI") within the Sugarkane Gas & Condensate Field, Texas. Across Aurora's gross acreage position of 73,000 acres there are presently 4 drilling rigs and 2 fracture stimulation crews operating. With drilling times averaging 26 days for each well, activity remains on target to complete approximately 60 wells within that area during the 2011 calendar year.

Production Data

The Sienkiewicz well has now been on production for a period of 60 days with pleasing results as outlined below:

    AMI   Working
Interest
  Total Gas
Production
(mmscf)
  Total
Condensate
Production
(bbls)
  Average Daily
Equivalent Oil
Rate (boe/d)*
Sienkiewicz
#1H
  Longhorn   25%   120.6   39,352   957

*The equivalent barrels per day production rate has been calculated on a simple 6:1 ratio in compliance with Canadian securities laws under National Instrument 51 - 101.

Additionally the Foster #1H well (Aurora 34.3% working interest), which is in the Ipanema AMI, has been fracture stimulated with 17 stages and commenced production to sales on 2nd April 2011 with the highest recorded flowing tubing head pressure observed to date. Aurora will provide the market with an update on the production from this well when the 30 day figures are available.

Operations

Longhorn

Yosko #1H (29.6% WI)

The fracture stimulation of this well is nearing completion with stage 17 having been pumped on the 5th April 2011. The Yosko #1H will be placed on production in the near future. Aurora will provide an update on the production from this well when it has cleaned up and produced for a period of 30 days.

Carter #1H (31.9% WI)

The Carter #1H well was drilled to a Total Depth ("TD") of 16,878ft on the 9th March 2011. The production casing has been run and cemented on this well and it is awaiting fracture stimulation.

Carter Salge #1H (31.9% WI)

The Carter Salge #1H well reached a TD of 18,002ft on the 1st April 2011. Production casing has been run and cemented on this well and it is awaiting fracture stimulation.

Davenport #1H (24.31% WI)

The Davenport #1H well location lies across the Longhorn and Sugarloaf AMI boundaries and as such Aurora holds a 24.31% working interest in the well. Preparations are presently underway to spud this well.

Ipanema

PMT #1H (28.7% WI)

This PMT well location lies across the Ipanema and Sugarloaf AMI areas. As such Aurora holds a blended working interest of 28.7% in this well. The well spudded on 14th February 2011 and reached TD of 18,200 ft on the 26th March 2011. Production casing has been run on this well and it is awaiting fracture stimulation.

Excelsior

Three wells have been drilled to TD within Excelsior and are currently awaiting fracture stimulation.  TD's on wells in Excelsior are less than deeper parts of the Sugarkane Complex, but have similar length horizontal sections through the target section.

Chapel Pfeil #1H (9.1% WI)

The Chapel Pfeil well was drilled to a TD of 15,239ft on 10th March 2011. Production casing has been run and cemented on this well and it is awaiting fracture stimulation.

Chapel Rothe #1H (9.1% WI)

The Chapel Rothe well was drilled to a TD of 15,502ft on 26th March 2011 in only 11 days from being spudded. Production casing has been run and cemented on this well and it is awaiting fracture stimulation.

Henke #1H (9.1% WI)

The Henke well was drilled to a TD of 15,761ft on 29th March 2011. Production casing has been run and cemented on this well and it will be fracture stimulated in due course.

Hierholzer Seewald #1H (9.1% WI)

This well is located within the Excelsior AMI and is presently being drilled at a depth of approximately 5,000ft having run surface casing. The well will be drilled with approximately 5,000ft of horizontal section in the Eagle Ford Shale and then cased.

Excelsior Production Facilities

As part of the Development plans for the field the first centralized processing facility will shortly be built. The first such facilty will be located in the Excelsior AMI and will lead to significant savings in well costs and reductions in operating costs. Other similar installations will be installed in due course across Aurora's four Sugarkane AMIs.

About Aurora

Aurora is an Australian and Toronto listed oil and gas company active exclusively in the over pressured liquids rich region of the Eagle Ford Shale in Texas, United States. The Company is engaged in the development and production of oil, condensate and natural gas in Karnes, De Witt and Atascosa counties in South Texas. Aurora participates in over 73,000 highly contiguous gross acres in the heart of the trend, including over 15,600 net acres within the liquids rich zones of the Eagle Ford. Aurora is funded for and expects to participate in approximately 60 new development wells during 2011.

Technical information contained in this report in relation to the Sugarkane field was compiled by Aurora from information provided by the project operator and reviewed by I L Lusted, BSc (Hons), SPE, a Director of Aurora who has had more than 15 years experience in the practice of petroleum engineering. Mr. Lusted consents to the inclusion in this report of the information in the form and context in which it appears.

Cautionary Statements

The Company may present petroleum and natural gas production and reserve volumes in barrel of oil equivalent ("boe") amounts. For purposes of computing such units, a conversion rate of 6,000 cubic feet of natural gas to one barrel of oil equivalent (6:1) is used. The conversion ratio of 6:1 is based on an energy equivalency conversion method which is primarily applicable at the burner tip and does not represent value equivalence at the wellhead. Readers are cautioned that boe figures may be misleading, particularly if used in isolation.

Statements in this press release regarding which reflect management's expectations relating to, among other things, target dates, Aurora's expected drilling program and the ability to fund development are forward-looking statements, and can generally be identified by words such as "will", "expects", "intends", "believes", "estimates", "anticipates" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events.

Although management believes the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. In addition, if any of the assumptions or estimates made by management prove to be incorrect, actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this document. Such assumptions include, but are not limited to, general economic, market and business conditions and corporate strategy. Accordingly, investors are cautioned not to place undue reliance on such statements.

All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Forward-looking information contained herein is made as of the date of this document and Aurora disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law.