Aurora Oil & Gas Ltd. (TO: AEF) has priced its private offering of US $300 million in aggregate principal amount of senior unsecured notes due in 2020.

The notes will be issued by its wholly owned subsidiary, Aurora USA Oil & Gas Inc., as senior unsecured obligations of the issuer, and will be guaranteed by Aurora and each of the subsidiaries of the issuer.

The notes will be issued at par and bear interest at 7.5% per annum, payable semi-annually in arrears, beginning Oct. 1. The company received proceeds of US $293 million.

Net proceeds will be used to fund its Eagle Ford acquisition for US $117.5 million. In addition, the net proceeds will be used, together with operational cashflow and funds available from the existing senior credit facility, to fund the development of Aurora’s holdings in the Eagle Ford shale trend and for general corporate purposes, including financing potential future acquisitions of oil and natural gas interests in its core areas.

Aurora is an Australian and Toronto listed oil and gas company active in the over pressured liquids rich region of the Eagle Ford shale in Texas. The company is headquartered in Perth, Western Australia.