Aurora Oil & Gas Ltd.'s (ASX: AUT.AX, TO: AEF.TO) shareholders overwhelmingly approved selling the Eagle Ford-focused company to Baytex Energy Corp. (NYSE: BTE, TO: BTE.TO), the companies said May 21.
About 88% of Aurora shareholders said yes to selling to Baytex about a week after the company increased its offer for Aurora by $43 million cash, or 2.4%. Aurora’s total price tag, including debt, is about $2.35 billion.
Australia’s Aurora has developed the Eagle Ford’s Sugarkane Field, which is 97% held by production. The company holds 22,100 largely contiguous net acres, and in the third-quarter of 2013 produced 10 new net wells. The company’s acreage is located in Karnes, Atascosa and Live Oak counties, Texas.
Aurora’s first-quarter 2014 gross production was 28,671 barrels of oil equivalent per day (81% liquids) of predominantly light, high-quality crude oil.
The Sugarkane Field has been largely delineated with infrastructure in place. The assets have significant future reserves upside potential from well downspacing, improving completion techniques and new development targets in additional zones.
Aurora will now apply to the Federal Court of Australia for orders approving the transaction at a hearing set for May 26.
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