AOG Aurora Oil & Gas Corp.

TRAVERSE CITY, Mich., Nov. 14 /PRNewswire-FirstCall/ -- Aurora Oil & Gas Corporation (AMEX:AOG) today reported revenues of $7.2 million for the quarter ended September 30, 2007, representing a 36% increase from the same period in 2006. Oil and natural gas production revenues totaled nearly $7 million on sales of 842 million cubic feet of natural gas equivalent (mmcfe) for the quarter. This equates to an average of 9.1 mmcfe per day, an increase of approximately 9% over the previous quarter ended June 30, 2007. The weighted average sales price of $8.27 for the period includes $1.5 million in realized gains on financial hedges which covered 7,000 mmbtu per day during the third quarter of this year. Expenses totaled $10.5 million, a 42% increase from the second quarter of 2006. A one-time expense of $3.4 million was recognized as a result of the early termination of the Company's mezzanine debt. Excluding the one-time expense item, expenses totaled $7 million, a slight decrease from the third quarter of 2006. This improvement is primarily the result of the Company's change in estimating capitalized interest. Production and lease operating expenses decreased from $2.2 million in the second quarter to $2.1 million in the third quarter. On a per mcfe basis, this equates to a 17% improvement quarter-over-quarter. In addition, Aurora's ability to operate properties provides incremental cost savings. During the third quarter, the Company experienced approximately 20% less cost per mcfe on operated properties than on non-operated properties. These results highlight the benefit provided by economies of scale and cost controls in the Company's growing production portfolio. Excluding the one-time expense item, the net income for the third quarter of 2007 was $0.2 million or $0.00 per basic and diluted share, as compared to a net loss of $2 million, or ($0.03) per basic and diluted share during the same period in 2006. Including all items, the net loss for the third quarter of 2007 totaled $3.3 million or ($0.03) per basic and diluted share. William W. Deneau, Chairman and Chief Executive Officer, commented, "This was an important quarter for the Company. Our operations team put over 22 net wells online, exceeded our exit rate target and delivered some exciting drilling results in the New Albany Shale. Meanwhile, our financial team successfully replaced our mezzanine debt line and increased our borrowing base. Our success in these business activities is very encouraging." Additional detail on the financial and operational results can be found in the Company's Form 10-Q filed November 14, 2007. This form can be retrieved from the Securities and Exchange Commission or via the Company website at http://www.auroraogc.com/SEC_Filings.htm. Selected historical financial data is provided for reference below. Conference Call Details On September 19, 2007, the Company announced that its board of directors had retained Johnson Rice & Company L.L.C. ("JRCO") to evaluate the Company's strategic alternatives. In light of this ongoing process and at the recommendation of its advisors, the Company will not be hosting a quarterly conference call. All questions may be directed to the Investor Relations contact below. Selected Financial Data The following table sets forth our selected historical financial data as of and for each of the periods indicated. The data for the year ended December 31, 2006, is derived from our historical audited consolidated financial statements for the period indicated. The data as of and for the nine months ended September 30, 2007, and 2006, is derived from our historical unaudited condensed consolidated financial statements for the interim periods indicated. The interim unaudited information was prepared on a basis consistent with that used in preparing our audited consolidated financial statements and includes all adjustments, consisting only of normal and recurring items, that we consider necessary for a fair presentation of the financial position, results of operations and cash flows for the unaudited periods. Operating results for the nine months ended September 30, 2007, are not necessarily indicative of results that may be expected for the entire year 2007 or any future periods. You should review this information together with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated historical financial statements and related notes included in our Form 10-Q for the period ending September 30, 2007. Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Statement of operations data Revenues Oil and natural gas sales $6,957,069 $5,175,635 $19,489,074 $16,116,855 Pipeline transportation and marketing 181,441 137,626 468,373 379,926 Field service and sales 66,878 - 316,480 - Interest and other income 28,655 12,803 503,413 194,434 Total revenue 7,234,043 5,326,064 20,777,340 16,691,215 Expenses Production taxes 262,127 210,435 829,096 656,261 Production and lease operating expenses 2,091,066 1,373,180 6,217,766 4,226,553 Pipeline and processing operating expenses 82,986 70,042 260,788 207,527 Field services expense 58,000 - 258,096 - General and administrative expenses 1,834,718 2,046,497 6,068,419 5,289,210 Oil and natural gas depletion and amortization 721,585 896,920 2,245,045 2,907,303 Other assets depreciation and amortization 628,983 509,091 1,771,087 1,522,874 Interest expense 1,244,363 2,279,760 3,294,766 5,843,914 Loss on debt extinguishment 3,448,520 - 3,448,520 - Taxes, other 95,773 9,928 95,720 39,289 Total expenses 10,468,121 7,395,853 24,489,303 20,692,931 Loss before minority interest (3,234,078) (2,069,789) (3,711,963) (4,001,716) Minority interest in income of subsidiaries (20,216) (16,445) (53,173) (34,364) Net loss $(3,254,294) $(2,086,234) $(3,765,136)$(4,036,080) Net loss per common share - basic and diluted $(0.03) $(0.03) $(0.04) $(0.05) Weighted average common shares outstanding - basic and diluted 101,629,673 82,042,049 101,611,357 78,043,518 As of Sept. 30, As of Dec. 31 2007 2006 Balance sheet data Cash and cash equivalents $646,200 $1,735,396 Other current assets 8,321,453 12,728,588 Oil and gas properties, net (using full cost accounting) 202,403,407 161,294,155 Other property and equipment, net 11,267,686 9,221,228 Other assets 25,582,298 27,407,825 Total assets $248,221,044 $212,387,192 Current liabilities $9,996,313 $18,040,082 Long-term debt, net of current maturities 101,183,457 54,538,138 Minority interest in net assets of subsidiaries 97,993 77,873 Shareholders' equity 136,943,281 139,731,099 Total liabilities and shareholders' equity $248,221,044 $212,387,192 Nine Months Ended September 30, 2007 2006 Cash flow data Cash provided by operating activities $9,281,886 $2,858,170 Cash used by investing activities (52,123,646) (69,636,130) Cash provided by financing activities 41,752,564 57,796,627 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. Cautionary Note on Forward-Looking Statements Statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results, including a strategic evaluation, anticipated capital expenditures, drilling results, and plans for future growth through drilling and production are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although we believe that the forward-looking statements described are based on reasonable assumptions, we can give no assurance that they will prove accurate. Important factors that could cause our actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, drilling and operating risks, the availability of drilling rigs, changes in laws or government regulations, unforeseen engineering and mechanical or technological difficulties in drilling the wells, operating hazards, weather-related delays, the loss of existing credit facilities, availability of capital, and other risks more fully described in our filings with the Securities and Exchange Commission. All forward-looking statements contained in this release, including any forecasts and estimates, are based on management's outlook only as of the date of this release and we undertake no obligation to update or revise these forward-looking statements, whether as a result of subsequent developments or otherwise. 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/ http://www.auroraogc.com/SEC_Filings.htm

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