New Albany due 100-well drilling program

Aurora Oil & Gas signed a nonbinding letter of intent to acquire private Acadian Energy, which is involved in Devonian New Albany shale exploration and production in the Illinois basin.

By OGJ editors
HOUSTON, Jan. 28 -- Aurora Oil & Gas Corp., Traverse City, Mich., signed a nonbinding letter of intent to acquire private Acadian Energy LLC, which is involved in Devonian New Albany shale exploration and production in the Illinois basin.

The planned $12.5 million acquisition would involve more than 10,000 acres of New Albany shale properties, four development wells, and 7 bcf of proved reserves.

John E. McDevitt, founder and president of Acadian Energy, agreed to join Aurora as president and chief operating officer.

McDevitt, in senior management with CDX Gas LLC in 2001-06, then formed Aurora and acquired all of CDX's New Albany shale assets. He raised financing for a 100-well drilling program to start in the second quarter of 2008.

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