AOG Aurora Oil & Gas Corp.

TRAVERSE CITY, Mich., Aug. 22 /PRNewswire-FirstCall/ -- Aurora Oil & Gas Corporation (AMEX:AOG) today announced that it has entered into a new $50 million second lien term loan ("Term Loan"), effective August 20, 2007. The proceeds of this loan were used to fund the payoff of all outstanding amounts under the Company's project financing line provided by TCW, which has now been terminated. Members of the Term Loan syndicate, arranged by BNP Paribas, include Laminar Direct Capital L.P., a member of the D.E. Shaw group, CIT, Energy Components and BNP Paribas. In connection with the Term Loan, the Company agreed to the amendment and restatement of its existing senior secured credit facility with BNP Paribas, allowing the existing borrowing base under this senior line to be increased to $70 million. The combined senior secured and second lien facilities provide $120 million of available borrowing capacity. At this time, approximately $31 million of available borrowing capacity is remaining. Additionally, total potential credit capacity may increase up to $170 million under the existing agreements, based upon sufficient growth in the Company's proved reserves, production and cash flow to support those debt levels. On execution of the new Term Loan, the Company also entered into a 3-year interest rate swap to hedge its exposure to floating interest rate risk on its Term Loan debt. This hedge transaction on $50 million will yield an effective interest rate of 11.86% through August 23, 2010. Ronald E. Huff, President and Chief Financial Officer, commented, "The refinancing is a major accomplishment as it provides a stable foundation for our future. With the financial stability afforded by these transactions, we can now focus entirely on implementing our strategic business plan." 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 main operations in the Michigan Antrim Shale and New Albany Shale of Indiana and Kentucky. Join our email distribution list: http://www.b2i.us/irpass.asp?BzID=1419&to=ea&s=0 DATASOURCE: Aurora Oil & Gas Corporation CONTACT: Jeffrey W. Deneau, Investor Relations, Aurora Oil & Gas Corporation, +1-231-941-0073 Web site: http://www.auroraogc.com/

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