Aurora Oil & Gas inks $300 million facility via UBS, Credit Suisse

By Susanna Moon

Chicago, Nov. 7 - Aurora Oil & Gas Ltd. said it closed a $300 million five-year senior secured revolving credit facility to fund its drilling program at the Sugarkane Field Eagle Ford project in Texas.

The initial borrowing base has been set at $85 million. The borrowing base will be based on proved reserves, and the facility is designed for the borrowing base to grow with Aurora's increased reserves, according to a company press release.

Proceeds also will be used for general corporate purposes.

For 2012, the company expects a total of 123 new wells along with the installation and completion of nine central processing facilities with associated gathering pipelines. The facility provides financial flexibility for the company in this regard, the release said.

UBS Securities LLC and Credit Suisse Securities (USA) LLC are co-lead arrangers and joint bookrunners. Commonwealth Bank of Australia is the arranger and joint bookrunner.

UBS AG, Stamford Branch is the administration agent and Credit Suisse AG is the syndication agent.

The company secured a commitment from the bank syndicate on Sept. 26 and, since then, BNP Paribas Securities Corp has been replaced by Commonwealth Bank of Australia.

Aurora is an oil and gas company based in Perth, Australia.

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