SAN ANTONIO, Oct. 20, 2011 /PRNewswire/ -- Cross Border Resources, Inc. (OTCQX: XBOR), a San Antonio-based oil and gas exploration and production company, today provided an operations update on its Permian Basin interests in New Mexico and West Texas.
(Logo: http://photos.prnewswire.com/prnh/20110523/AQ07208LOGO)
The Company expects to participate in 20 gross wells, or 2 approximate net wells, this year, including 15 wells in the second half. Two wells initially scheduled for the fourth quarter of 2011 have been rescheduled to spud in early 2012. Twelve wells are scheduled to spud during the current quarter:
WELL NAME |
COUNTY |
OPERATOR |
FORMATION |
WORKING INTEREST |
D&C |
V=Vertical H=Horizontal |
|
SE Lusk 33 #2H |
Lea, NM |
Cimarex |
2nd Bone Spring |
37.50% |
$1,883,000 |
H |
|
SE Lusk 33 #3H |
Lea, NM |
Cimarex |
2nd Bone Spring |
37.50% |
$1,883,000 |
H |
|
Ocelot 34 Fed Com #1H |
Lea, NM |
Mewbourne |
2nd Bone Spring |
14.90% |
$ 623,000 |
H |
|
Zircon 2 #1H |
Eddy, NM |
Mewbourne |
2nd Bone Spring |
12.50% |
$ 399,000 |
H |
|
Fecta 33 Fed Com #1H |
Lea, NM |
Occidental |
2nd Bone Spring |
12.50% |
$ 578,000 |
H |
|
Mewbourne Bradley 30 St. Com #1H |
Eddy, NM |
Mewbourne |
2nd Bone Spring |
5.17% |
$ 220,000 |
H |
|
Tres Amigos PH |
Borden, TX |
Big Star |
Wolfberry |
10.00% |
$ 183,000 |
V |
|
Coleman 1002 |
Dawson, TX |
Big Star |
Wolfberry |
10.00% |
$ 193,000 |
V |
|
Santa Elena 19 Fed #1H |
Eddy, NM |
Apache |
Abo |
12.50% |
$ 560,000 |
H |
|
Leo 3 Fed Com. #2H |
Chaves, NM |
Concho Resources |
Abo |
6.25% |
$ 318,000 |
H |
|
Grave Digger #3H |
Eddy, NM |
Concho Resources |
Yeso |
5.64% |
$ 139,000 |
H |
|
Brown Bear 14 St Com #1 |
Lea, NM |
Devon |
Delaware |
3.00% |
$ 120,000 |
H |
|
"Looking at the fourth-quarter schedule, we're particularly excited about five significant wells, with a working interest greater than 12%, targeting the 2nd Bone Spring operated by Cimarex, Occidental, and Mewbourne," said Everett "Will" Gray II, CEO and Chairman of Cross Border. "We believe these wells have the greatest potential to positively impact our production, immediately providing momentum for future production growth heading into 2012.
"Meanwhile, three wells spud in the third quarter, Buck Baker 15 1, Hefley 24 1 and High Lonesome 26 Com 2H, recently finished drilling and await completion," he added. "We expect to have initial test results shortly and will report them accordingly."
Cross Border expects to fund all remaining 2011 drilling commitments using cash-on-hand, cash flow and its existing credit facility. Current availability under its existing credit facility is approximately $4 million.
The Company currently estimates third-quarter production to average approximately 308 barrels of oil equivalent per day (boed) with an increasing oil ratio. Production is on target to meet the Company's goal of a year-end 2011 exit rate of approximately 500 boed.
RedChip Virtual Conference
Mr. Gray will participate in the RedChip Small-Cap Equities Virtual Conference and is scheduled to present at 11:15 a.m., Eastern time, today. The presentation will be available at http://www.redchip.com/virtualconference and will be archived for a minimum of 30 days.
About Cross Border Resources
Cross Border Resources is an oil and gas exploration company, headquartered in San Antonio, Texas, focusing on non-operated opportunities with proven operators within the Permian Basin. Cross Border consists of over 800,000 gross (approximately 300,000 net) mineral and lease acres within the state of New Mexico targeting various emerging plays including the 1st & 2nd Bone Spring, and more conventional plays such as the Abo, Yeso, San Andres, as well as our Wolfberry acreage located in West Texas. Cross Border Resources currently owns approximately 31,000 net acres within the Permian Basin.
Additional information about the Company is available on its website, www.xbres.com, and news updates are available via Twitter, @CrossBorderRes.
Forward-Looking Statements
This news release contains forward-looking statements that are not historical facts and are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom the Company has contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.
Contacts:
Investor Relations Contact:
Jon Cunningham
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 107
[email protected]
http://www.redchip.com
Company Contact:
Cross Border Resources, Inc.
Everett Willard "Will" Gray II
[email protected]
SOURCE Cross Border Resources, Inc.
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