The Flour Bluff Gas Project is a substantial gas project involving the redevelopment of an old giant gas field complex at Flour Bluff, on the outskirts of Corpus Christi, Gulf Coast Texas on 10,400 acres of leasehold land. This field has seen in excess of 1.3 TCF of production from 40 separate reservoirs at shallow and moderate depths above 2,400 metres. These shallow reservoirs are now largely depleted, but significant reserves are present in virtually undeveloped deeper reservoirs between 2,750 to 3,600 metres depth. It is these reserves that are being targeted in the redevelopment of Flour Bluff. Existing extensive project infrastructure can be used for immediate delivery of production to customers.

Project Interest
Aurora Oil & Gas’ interests in the various fields comprising the project are;

Reserves & Resources
Independent reserve estimates for the project in late 2005 put 3P (Proved, Probable, Possible) reserves at 99 BCFe gas (of which 53 BCFe is 1P) with further additional potential of up to 113 BCFe gas.

Field Development Program
Future field development activities are likely to include both the development of existing reserve base as well as the testing of potential reserves upside.

The project participants are considering plans for additional field Development activities focusing on the deep Frio J and K sands in both East and West Flour Bluff Gas Fields with a number of new wells aimed at significantly increasing production. It is in these sands that the bulk of reserves lie in the fields.

The program may include the acquisition of 3D seismic over the West Flour Bluff field to further identify reserve potential and optimise future infill drilling locations.

The Potential reserves upside will be tested when wells are drilled on the northern lobe of the West Flour Bluff Gas Field where the bulk of the Potential upside lies.