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Longhorn and Ipanema Operations and Production Update

LONGHORN IPANEMA AMI UPDATE Aurora Oil Gas Limited (Aurora) is pleased to provide the following update on production at the Longhorn Area of Mutual Interest (AMI) and operations at the Ipanema AMI within the Sugarkane Gas Condensate Field, Texas. Longhorn AMI As advised in previous announcements, the Turnbull 3 well is being stimulated in three phases. The second phase simulation has taken place and the well has now been on production for clean up. The most recent production data (03/09/10) from approximately the middle third of the horizontal wellbore was as follows Aurora considers these initial results to be very encouraging. Calculation of a whole of well initial production (IP) rate is however, not necessarily as straight forward as the sum of the IP of each phase due to interference and initial depletion. The final production rate when the whole horizontal length is allowed to contribute will be advised in due course. Ipanema AMI The first well within the Ipanema AMI, the Patino 1 well, is presently drilling the horizontal section of the wellbore at a measured depth of 15,470 ft. Prior to this a vertical pilot hole was drilled and logged as part of the evaluation process of the reservoir. This is the first activity within this AMI area which is situated adjacent and to the southwest of the Sugarloaf AMI. Aurora is carried by Hilcorp on this well under the terms of the farmout. Post farmout Aurora retains a 30% interest in this area. There is one additional well scheduled to be drilled within Ipanema, on a post farmout basis, before the end of this calendar year. Aurora is the only ASX participant in the Longhorn AMI and holds 25% working interest post farmout to Hilcorp (6,450 net acres). Aurora is the only ASX participant in the Ipanema AMI and holds a 30% working interest post farmout to Hilcorp (1,320 net acres).