Aurora Oil & Gas — Investor Presentation (March 2007)
29 slides from Aurora Oil & Gas's investor presentation, Mar 8, 2007
Slide 1: Exploiting Unconventional Gas Reservoirs in the Antrim and New Albany Shales
y AURORA JA Oil & Gas Corporation Exploiting Unconventional Gas Reservoirs in the Antrim and New Albany Shales AOG Investor Presentation March 8, 2007
Slide 2: Disclaimer
Vin. Disclaimer In this slide presentation, statements regarding our goals and objectives, our expected methods of operation and development strategies, our expected and potential production volumes, the amount of potential reserves and drilling locations, the timing of drilling activities, when wel
Slide 3: Key Investment Highlights
Wi. Key Investment Highlights = Focused on two onshore unconventional shale plays = Established play — Antrim Shale m Early-stage play — New Albany Shale = Over 689,000 net acres assembled m= Multi-year drilling inventory m Resource potential exceeds 2.5 Tcfe ® Acreage aggregation complete... “Let’s
Slide 4: Map of Operations
Map of Operations = The Antrim Shale provides 820 Bcfe in potential reserve = Characterized by low development risk Shallow, blanket formation (depth of 300-1,800’) . = Primarily biogenic, water-laden shale . Extensively drilled (nearly 9,000 wells currently in production) with an average historical
Slide 5: Aurora Overview
&. Aurora Overview = Total Net Acres: 689,891 = Total Proved Reserves: 153.45 Bcfe other, 896 ™ % Proved Developed: 69% nti Sate, m= Resource Potential: 2.6 Tefe 20% = Net Average Daily Prod. (Q4.06): 7,300 mefe/d = 2007 Targets: Newanan’ 1m Net Wells to Drill: 228 Shale, 72% © % of Net Wells to Ope
Slide 6: Experienced Leadership
Vi. Experienced Leadership William Deneau CEO & President 23 Years John Miller Thomas Tucker John Guoynes Ron Huff Vice President Vice President Director Chief Financial Business Development Exploration Production Officer 19 Years 26 Years 26 Years 28 Years = Operational managers have an average of
Slide 7: Antrim Shale — Development Stage
Wi. Antrim Shale — Development Stage Portas Hahah = Net Acreage: 154,643 = Total Proved Reserves: 150 Befe — j ; 1 % Proved Developed: 70% . a 4 Michigan -antiin’ m= Net Average Daily Prod. (Q406) 6,448 mcfe/d o Shale Play = 2007 Targets: Net Wells to Drill 168 ee tm Net Proved Reserves to Add: 89 B
Slide 8: Targeted Antrim Shale Economics
bb. Targeted Antrim Shale Economics = Antrim Shale is the focus of AOG 2007/2008 drilling program to provide low-risk source of reserve, production and cash flow growth m= At$6.00 gas we generate an IRR of 34% (excluding impact of hedges) Parameter Value Well Cost 325,000 ‘Antrim Shale ~530 MMCF Gas
Slide 9: Antrim Shale Type Curve
TZ Antrim Shale Type Curve x ° Al z 3 3 2 Anti shae Type cuve bs rs 530 MNCF EUR g é = a: 8 a I = — = a tt . Ts a = wLitititititititititititititi tits | irr oti rte lig
Slide 10: Portfolio Highlights
LA Portfolio Highlights m= Net Acreage: 441,351 = Total Proved Reserves: 2.3 Befe ™ % Proved Developed: 33% m= Net Average Daily Prod. (Q4 06) 130 mefe/d = 2007 Targets: 1 Net Wells to Drill: 4B m Net Proved Reserves to Add: 52 Befe m Projected F&D Cost): $0.80 New Albany Shale — Development Stage N
Slide 11: Targeted Economics
&». Targeted New Albany Shale Economics m= 1998 Report by Gas Research Institute: “Horizontal drilling is the key...” = Economic assumptions validated by Schlumberger Data and Consulting Services and supported by 14 producing horizontal wells to date. = At $6.00 gas we generate an IRR of 25% (exclud
Slide 12: Type Curve
dM. New Albany Shale Type Curve v oO 3 = 2 Now Albany Shale Type Curve ¢ g 4,210 MMIC EUR = i) 2 2 IM m ahi 1 1 1 \ 1 1 1 1 1 o7 n 16 19 Pay a 31 6 38 a 12
Slide 13: A closer look at AOG's New Albany Shale projects
A closer look at AOG’s New A&lbany Shale projects... [4 a HI 13
Slide 14: Net acreage in fractured bacterial gas fairway
&. Net acreage in fractured bacterial gas fairway accounts for over 1 Tefe in resource potential Test wells have been drilled by Aurora in 12 counties in the fairway Aurora has used historical test data to target horizontal drilling in good fractured areas Aurora has secured significant leasehold in
Slide 15: The "Center Play"
The “Center Play” > 1a. of the New Albany Shale El Paso — “We've been positively surprised. Acres: 174,000 gross / 8,700 net Operator: El Paso AOG working interest: 5% Resource potential: 35 Bcfe Operator Activity to Date m@ Wells drilled: 24 horizontal, 14 producing ™ Gross production: 2-3 Mmcfe/da
Slide 16: The "North Play"
The “North Play” > ia. of the New Albany Shale Historical New Albany Discoveries m Acres: 183,000 gross / 116,000 net ™ Operator: AOG AOG working interest: 48.75 - 100% m@ Resource potential: 440 Befe Operator Activity to Date = 4 horizontal wells drilled — 1 tested = 3 vertical wells drilled — 1 te
Slide 17: The "South Play"
The “South Play” > &. of the New Albany Shale Shale is Deeper and Thicker m Acres: 58,000 gross / 58,000 net ™ Operator; AOG m= AOG working interest: 100% m Resource potential: 220 Befe Operator Activity to Date m1 deviated vertical well drilled m@ Encouraged with first well logs > Shale is thicker
Slide 18: The "East Play"
The “East Play” > &. of the New Albany Shale Geologically Tested Acres: 73,000 gross / 71,000 net Operator: AOG AOG working interest: 50 - 100% Resource potential: 269 Bcfe Mt. Carmel Fault adds tectonic influence NAS vertical test wells validate gas presence Operator Activity to Date m None Plans f
Slide 19: The "West Play"
The “West Play” > &. of the New Albany Shale Activity Accelerating ™ Acres: 82,500 gross / 39,500 net m= Operators: > Rex Energy - North Knox » AOG - South Knox = AOG working interests: » 45% - North Knox » 75% - South Knox m Resource potential: 150 Befe @ Production: Facility in place and river bor
Slide 20: Serendipity for Free
&. Serendipity for Free m= Reserve growth may be greater than projected due to benefit from Proven Undeveloped (PUD) property offsets = Antrim Shale acreage offers opportunity for Niagaran development = New Albany Shale acreage offers opportunity for other formations with history of production, as w
Slide 21: Key Operational Metrics
&. Key Operational Metrics 800,000 600,000 400,000 200,000 ot Net Acres Net Wells Drilled Net Proved Reserves (Bcfe) Net Production (Mmcfe) 2006 2006 *CAGR = Compound annual growth rate, and is defined as "The year-over-year growth rate of an investment over a specified period of time. 21
Slide 22: Investment Summary
IZ Investment Summary m= Substantial Acreage Position m 596,000 net acres assembled in 2 high-return, low-risk plays = Aggressive Drilling Schedule = AOG activity will double in 2007 = 20 other operators at work throughout New Albany Shale = AOG working to validate at least 4 of 5 major NAS areas of
Slide 23: Questions?
db. Questions? Contact: Jeffrey W. Deneau - Investor Relations Aurora Oil & Gas Corp. 4110 Copper Ridge Drive, Suite 100 Traverse City, MI 49684 WWwW.auroraoge.com T: 231-941-0073 E: jdeneau@auroraoge.com 23
Slide 24: Appendix
Appendix m= New Albany Shale historical perspective ® Drilling techniques used in New Albany Shale operations = Antrim dewatering perspectives 24
Slide 25: NAS Historical Perspective
y 7 1995-97 NAS Historical Perspective Drilled 80 vertical test wells across 6 counties Successfully put a 20 vertical well pilot into production Most wells less than 1,000 feet 1998 Worked with Gas Research Institute to organize a consortium of companies to study the New Albany Shale Drilled the fi
Slide 26: NAS Historical Perspective (cont'd)
NAS Historical Perspective (cont'd) Recruited El Paso as a partner to target development of approx. 100,000 acres in heart of the deeper fractured shale gas trend (Phoenix Project); transaction completed in Jan. 2005 for $7.5MM to Aurora Energy 2004-06 Participated with El Paso in 20 horizontal well
Slide 27: Drilling Techniques Used in NAS Operations
bb. Drilling Techniques Used in NAS Operations ‘Short Radius Horizontal Medium Radlus Horizontal Vertical pit Hole / Short Radius Curve / Open Hole Lateral curved Plot Hole / Medium Radius Curve / Open Hole Lateral Water flows t heel of intra Water tlows to heel of otra + Fluid below pump impedes ga
Slide 28: Antrim Dewatering Perspectives
I 7 Antrim Dewatering Perspectives m Several AOG projects are along the northern rim of the Antrim Shale play and extend the play further than most thought was possible. ® Like any new productive area in the Antrim Shale play, these projects have been found to generate above-average amounts of water
Slide 29: Antrim Dewatering Perspectives (cont'd)
Vi. Antrim Dewatering Perspectives (cont'd) There are many stories of new Antrim | CHEaoYGAN Mex oduction from fields that had not previously Thc n produced. These fields produced water ae for months before natural gas appeared. E ISLE PRESQU runsavarnsasararavenrey Fontinalls Project (KWK) One exam
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