Increase in proven reserves and production leads to initial borrowing base increase to US$85 million

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

PERTH, Australia, May 11, 2012 /CNW/ - Aurora Oil & Gas Limited (TSX: AEF) (ASX: AUT) today announced the initial increase in available liquidity under the US$300 million senior secured revolving credit facility agreed with a lending syndicate in late 2011. The borrowing base increase to US$85 million provides the Company with further funding flexibility for its development program at the Sugarkane Field Eagle Ford project in Texas and for general corporate purposes.

No funds are currently drawn from this facilty.

The increase in the borrowing base flows from recent upgrades in the Company's proven and proven developed producing reserves and increasing production. Average gross production for the quarter ended March 31, 2012 was 4,800 boe/d which has increased for the month of April to 6,800 boe/d.

The Lending syndicate under the Company's senior secured credit facility comprises UBS Loan Finance LLC., Credit Suisse Securities (USA) LLC, Toronto Dominion (New York) LLC and Commonwealth Bank of Australia.



For further information:

Level 20, 77 St. Georges Terrace, Perth, Western Australia 6000, GPO Box 2530 Perth, Western Australia 6001, T+61 8 9440 2626, F +61 8 9440 2699, E info@auroraoag.com.au, W www.auroraoag.com.au