UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported): July 14, 2006


                          AURORA OIL & GAS CORPORATION
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             (Exact name of registrant as specified in its charter)


           UTAH                          0-25170                  87-0306609
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(State or other jurisdiction           (Commission              (IRS Employer
     of incorporation)                 File Number)          Identification No.)


     4110 Copper Ridge Drive, Suite 100, Traverse City, MI         49684
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           (Address of principal executive offices)             (Zip Code)


       Registrant's telephone number, including area code: (231) 941-0073



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         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
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|_|   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
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      Exchange Act (17 CFR 240.14d-2(b))

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      Exchange Act (17 CFR 240.13e-4(c))



Item 1.01 Entry into a Material Definitive Agreement

         On July 10, 2006, we entered into a binding letter of intent pursuant
to which we agreed to purchase all of the assets of Bach Enterprises, Inc.,
certain assets owned by Bach Energy, LLC and a limited liability company known
as Kingsley Development LLC (together "Bach"). The letter of intent contemplates
a 60 day due diligence period followed by notice and a 30 day cure period if
material issues are identified in the due diligence process. Closing is expected
to occur within 90 days.

         Assets to be acquired include operating assets, intellectual property,
certain oil and natural gas assets, and an office building. The purchase price
will include cash and common stock. The shares issued to the sellers will be
subject to a one year lock-up period.

         The principals of Bach are Rob Bach and Rick Bach. The letter of intent
provides that we will enter into 5 year employment agreements with each of them,
and they will agree not to compete during their employment and for a period of
one year following termination of their employment.

         Bach is primarily an oil and gas service company. We have been working
exclusively with Bach for our service business in Michigan for several years.
Services they have provided for us include building compressors, CO2 removal,
pipelining, and facility construction. Bach has become an industry leader
through the development of cutting edge technologies. Low pressure CO2 removal,
electric componentized compression, tankless water disposal, and water evacuated
sump inflow lines are examples of innovations that were introduced to us by
Bach.

         We expect to put the service company assets into a wholly owned
subsidiary that will continue to operate separately from our main corporate
offices, with the level of operational integration to be determined at a later
date.


                                   SIGNATURES

According to the requirements of the Securities Exchange Act of 1939, the
Registrant had duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized on July 14, 2006.


                                            AURORA OIL & GAS CORPORATION


Date:  July 14, 2006                        /s/ William W. Deneau
                                            ---------------------------
                                            By: William W. Deneau
                                            Its: President