San Francisco

Stock Symbol: CDNR

Exchange: OTCBB

Basic Shares Outstanding: 59.3 million

http://www.auroraogc.com

Investor Relations Contact:

Lori King: (231) 941-0073

Disclaimer

            In this slide presentation, statements regarding our goals and objectives, our
expected methods of operation and development strategies, our expected and
potential production volumes, anticipated oil and gas prices, potential drilling
locations, the timing of drilling activities, when wells will begin producing, how many
wells will be drilled, potential new development theatres, the spacing of wells, drilling
and operating costs, and other statements that are not historical facts, contain
predictions, estimates and other Forward-Looking Statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934.  Although we believe that our expectations are based on reasonable
assumptions, we can give no assurance that our goals will be achieved.  Important
factors that could cause our actual results to differ materially from those included in
the Forward-Looking Statements include the timing and extent of changes in
commodity prices for oil and gas, drilling and operating risks, the availability of
drilling rigs, uncertainties about the estimates of reserves, the availability of
transportation pipelines, changes in laws or government regulations, unforeseen
engineering and mechanical or technological difficulties in drilling the wells,
operating hazards, weather related delays, the loss of existing credit facilities,
availability of capital, and other risks more fully described in our filings with the
Securities and Exchange Commission, including an amended Form SB-2 Registration
Statement filed on November 10, 2005.  We may also change our business focus as
new opportunities arise.  All Forward-Looking Statements contained in this
presentation, including any forecasts and estimates, are based on management’s
outlook only as of the date of this presentation and we undertake no obligation to
update or revise these Forward-Looking Statements, whether as a result of
subsequent developments or otherwise.

Executive Summary

Low-risk development of unconventional gas
reserves in the Antrim and New Albany Shale

Over 350,000 net acres with ~2,400 potential drilling
locations and ~2.1 Tcf in potential reserves

Rapidly growing proved reserves and production

~150 gross wells drilled in 2005 with ~95% success

2006 Outlook:

200 well drilling program

Proved reserves expected to reach 100 bcf by mid-year

Net production expected to reach 10 million cf/d in Q1’06
and 15 million cf/d in Q4’06

AMEX listing targeted in 1H’06

The Company

Cadence/Aurora - reverse merger October 31, 2005

~$467.8 million pro forma market capitalization ⁽¹⁾

Aurora has been actively acquiring acreage in the
Antrim Shale (Michigan) and New Albany Shale
(Indiana / Kentucky) for ~10 years

Rapidly accelerated drilling program with infusion of
$18.5 million from equity private placement in early
2005 ⁽²⁾

$50 million TCW Mezzanine drilling facility in place

(1)

Fully diluted using Treasury Stock Method.

(2)

Reflects proceeds raised by both Aurora Energy and Cadence Resources, which had not yet completed their merger.

Summary Acreage Position

The Company has ~2,400 potential drilling locations
with ~2.1 Tcf in estimated total potential reserves.

Acreage potential does not currently translate into Proved Reserves.

Generating Proved Reserves will require successful drilling.

GROSS

NET

GROSS

NET

GROSS

NET

Leasehold Position (acres)

(1)

202,854

78,163

594,022

271,891

796,876

350,054

Well Spacing (acres/well)

100

160

Implied Total Potential Wells

(2)

2,028

781

3,712

1,699

5,740

2,480

Est. Recoverable Reserves / Well (bcfe)

(3)

0.5

1.0

Implied Total Potential Reserves (bcfe)

1,014

390

3,712

1,699

4,726

2,089

(1)

As of Dec. 31, 2005.

(2)

Calculated as total acres divided by well spacing (acres/well).

(3)

Company estimates.

ANTRIM SHALE

NEW ALBANY SHALE

TOTAL

Antrim and New Albany Shale Plays

Relatively shallow
blanket shale formations

High-upside, lower-risk
development potential

Antrim and New Albany Shale Plays

Antrim Shale (~23% of net acreage)

Well-developed, low-risk “resource play”

~8,000 wells drilled to date in the play w/ ~95%
historical drilling success rate

Focus of 2005 / 2006 drilling program to provide low-
risk source of production / cash flow

New Albany Shale (~77% of net acreage)

Emerging shale play with significant upside potential

Horizontal drilling key to unlocking potential of NAS

5-well pilot program yielding encouraging results

Schlumberger Holditch reservoir engineering indicates
1bcf+ horizontal wells on 160-acre spacing

Antrim Shale Well Economics

Vertical Well Cost: ~ $300,000

Well Depth: 250 – 1,500 ft.

Reserves / Well: ~0.5 bcf (avg.)

Peak Production: ~ 150 mcf / day avg.

Time to Peak: 6-12 mo. (de-watering period)

Decline Rate: ~ 7% / yr.

Productive Life: ~ 40 years

Avg. W.I.: 46%

IRR: ~30%+ @ $5.00 gas

Antrim Shale Production Profile

~ 7% / yr.

Source: Schlumberger Holditch.

New Albany Shale Well Economics

Horizontal Well Cost: ~ $750,000

Well Depth: 500 – 2,500 ft.

Reserves / Well: ~0.7 – 1.2 bcf

Peak Production: ~ 200-300 mcf / day

Time to Peak: 6-12 mo. (de-watering period)

Decline Rate: ~ 5% / yr.

Productive Life: ~ 30 years

Average W.I.: 43%

IRR: ~45% @ $5.00 gas

New Albany Shale Production Profile

Source: Schlumberger Holditch.

1bcf+ wells, drilled and completed for $750,000.

Natural Gas Price Differentials

Source: Bloomberg.

Unconventional Gas Growth

Unconventional gas sources are expected to be the key
source of domestic production growth.

Source: JP Morgan.

Proved Reserves

Schlumberger reserve reports: Antrim only

48 bcf proved reserves as of 8/1/05

22 bcf additional proved reserves at close of O.I.L.
transaction

By 1H’06, a number of factors are expected to
increase proved reserves to ~100 bcf:

Continued drilling activity (200 gross wells targeted for
2006)

Increased average working interests in new properties

Proved reserves in New Albany Shale added

Production Profile

A large inventory of drilling prospects and an aggressive development
program have the potential to provide for years of strong production growth

Management Team

The 4 key members of Aurora’s management team each
have between 15 - 23 years of experience in oil & gas.

William Deneau (Chief Executive Officer)

21 yrs. experience in oil & gas industry

18 yrs. experience in Antrim shale

CEO of Aurora since 1997

John Miller (VP, Exploration & Production)

17 yrs. experience in oil & gas industry

Focused on Michigan / Indiana shale E&P since 1994

Current role at Aurora since 1997

Thomas Tucker (VP, Land & Development)

23 yrs. experience in oil & gas industry

Focused on Land Acquisition and Drilling

Current role at Aurora since 1997

Lori King (Chief Financial Officer)

Trained as CPA to oil & gas clients

15 years experience in the oil and gas industry

Current role at Aurora since 2001

Partners

Samson Resources - Tulsa, OK

El Paso Production Company –
Houston, TX

Rex Energy – College Park, PA

Aurora has a number of drilling joint ventures with
industry leaders that allow it to more effectively leverage
its asset base, spread development risks and cost:

Key Operating Statistics

Total Net Acres: 350,000

Total Net Wells (12/31/05): 187

Proved Reserves: 48 bcf + 22 bcf

Avg. Operating Cost (Q4’05): $2.25 / mcf

Average F&D Cost

$0.60 / mcf (Antrim)

$0.75 / mcf (New Albany)

Daily Production (Q4’05): 4076E mcf/d

Key Financial Statistics

Current Stock Price (01/19/06): $5.76

Common Shares (12/31/05): 59,338,761

Warrants: 17,876,500 ($1.71 exercise price ) ⁽²⁾

Options: 6,823,468 ($0.86 exercise price)

Pro Forma Net Debt: ~$30 million

(1)

Excludes approximately 6.8m shares pursuant to outstanding options.

(2)

Warrants issued in conjunction with equity private placements in early 2005.

Summary

Company Focus:

Develop Significant Acreage in Shales

Multi-year Drilling Inventory:

2 TCF potential

Proved Reserves Expected to Grow:

To 100 BCF in 2006

Rapid Production Growth:

15 million cf/d target by year end