Aurora Oil & Gas Corporation Completes Exchange of New Albany Shale Acreage

Wednesday, Aug 27, 2008

TRAVERSE CITY, Mich., Aug. 26 /PRNewswire-FirstCall/ -- Aurora Oil & Gas Corporation (AMEX:AOG) today announced that it has successfully completed a cashless exchange of various New Albany shale properties in a "net acre for net acre" transaction with an undisclosed operator. The exchange is more fully described as follows:

North Knox County Project Area

This project area is found on the western edge of southern Indiana and was formerly operated by Rex Operating Company. Aurora owned approximately 19,240 net acres in this project, and had not reported any proved reserves associated with its ownership. Aurora's entire stake in this project has been divested.

Eastern New Albany Shale Project Area

This project area is found toward the eastern side of Aurora's identified core New Albany shale play. The exchange resets Aurora's acreage position, creating a new 100% owned and operated project encompassing approximately 46,560 acres in the eastern portion of the related acreage block. To date, Aurora has not drilled any wells in this project area.

Wabash Project Area

This project area is found in southern central Indiana and has been one of the primary areas of Aurora's operated drilling activity. In this project area, Aurora has increased its working interest ownership in the leases and wells an additional 15.68% interest, effectively increasing its interest in this project to 64.43%. With the increase in interest, Aurora now owns approximately 79,051 net acres in this project area and has recorded an additional 1.23 billion cubic feet (bcf) in proved non-producing and proved undeveloped (PDNP and PUD) reserves.

Mr. William W. Deneau, Chief Executive Officer, commented, "This transaction is a great example of our ongoing asset optimization strategy, in which we are consistently working to improve our asset portfolio by consolidating positions, creating new partnerships in our project areas, and selling assets when appropriate. In the future, we expect to execute more transactions such as this which will help Aurora to unlock opportunities for creating value."

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, the New Albany shale of Indiana and Kentucky, and the Woodford shale of Oklahoma.

Source: PR Newswire