Canadian-based Baytex Energy agreed to buy Australian-based Aurora Oil and Gas for ~$2.6 billion dollars in early February 2014.

Aurora has approximately 22,000 net contiguous acres in the Sugarkane Field, located in the heart of the Eagle Ford Shale., with 97% held by production.

In March of 2013, Aurora purchased 27 net acres near the Sugarkane Field for $117 million.

Read more: Aurora Oil and Gas Buys Eagle Ford Acreage for $117 million

The Sugarkane Field

Aurora’s fourth-quarter 2013 gross production was 24,678boe/d (82% liquids) of mostly light, high-quality crude oil from the Sugarkane Field.

In addition to sustainable infrastructure, the deal was also appealing to Baytex because of reserves upside potential from well downspacing, improving completion techniques and new development targets in additional zones.

Marathon is the majority operator of the Eagle Ford acreage.

Baytex Added Reserves and 2014 Outlook

The deal adds proved reserves to Baytex of 106.7 million boe and proved plus probable reserves of 166.6 million boe. The company sees reserve upsides in other horizons such as the Austin Chalk and Upper Eagle Ford formations, through downspacing and improving completion techniques.

Prior to the purchase agreement, Aurora's forecasted production for 2014 was 29,000 boe/d to 32,000 boe/d. That's a 43% increase in production over 2013.

Baytex-Aurora Deal at a Glance

• Early February 2014, Baytex agrees to buy Aurora for ~$2.6 billion
• Aurora Oil acreage assets include 22,000 net contiguous acres in Eagle Ford
• 97% of Aurora acreage is held by production
• Aurora's Q4 2013 gross production was 24,678boe/d (82% liquids)
• Marathon is primary operator of acreage in the Eagle Ford
• Forecasted production for 2014 is 29,000 boe/d - 32,000 boe/d

Read more at Baytex.com