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Last updated on April 23, 2014 at 20:10 EDT

Cross Border Resources Updates Operations, Enters Into Additional NYMEX WTI Oil Swaps

December 1, 2011

SAN ANTONIO, Dec. 1, 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 as well as information on additional NYMEX WTI oil swaps.

(Logo: http://photos.prnewswire.com/prnh/20110523/AQ07208LOGO)

Well Completions

                WELL NAME       COUNTY                   OPERATOR            FORMATION WORKING INTEREST                   STATUS
                ---------       ------                   --------            --------- ----------------                   ------
    Bradley 30 Fed        Eddy, NM              Mewbourne                   2nd Bone Spring             4.67%  Flowing back at rates above 500
     Com #1H                                                                                                                    bopd/ 400 mcfd
    --------------        --------              ---------                   ---------------             ----  --------------------------------
    Coleman 1002          Dawson, TX            Big Star                    Wolfberry                  10.00%           Drilled, awaiting frac
    --------------        ----------            --------                    ---------                  -----            ----------------------
    Bandit 15 Fed #2      Lea, NM               Three Rivers        Wolfcamp/2nd Bone Spring, 1st Bone
     (Work-over)                                                             Spring                    9.734%       Fracked, awaiting flowback
    ----------------                    -------       ------------ ----------------------------------- -----        --------------------------
    Buck Baker 15 #2      Martin, TX            Big Star                    Wolfberry                     20%         Flowing back at 150 bopd
    ----------------      ----------            --------                    ---------                    ---          ------------------------
    Hefley 24 #1          Howard, TX            Big Star                    Wolfberry                     20%   Fracked, awaiting flowing back
    ------------          ----------            --------                    ---------                    ---    ------------------------------
    High Lonesome 26
     Fed #2H              Eddy, NM              Concho Resources            Abo                        3.125% Flowing back at 300 bopd/500mcfd
    ----------------      --------              ----------------            ---                        -----  --------------------------------
    Simmons 27 #2         Dawson, TX            Big Star                     Wolfberry, producing from
                                                                             Mississippian             10.00%  Frac scheduled for mid December
    -------------                    ----------                    -------- -------------------------- -----   -------------------------------
    S L Deep Fed Com
     #2 (Work-over)       Lea, TX               Concho Resources            Bone Spring B Carbonate       25%               Producing 127 bopd
    ----------------      -------               ----------------            -----------------------      ---                ------------------

Current Drilling

            WELL
             NAME          COUNTY             OPERATOR             FORMATION   WORKING INTEREST           STATUS
            -----          ------             --------             ---------   ----------------           ------
    SE Lusk
     33 #3H       Lea, NM         Cimarex              2nd Bone Spring                         37.50%   Currently drilling
    -------       -------         -------              ---------------                         -----    ------------------
    Ocelot
     34 Fed
     Com
     #1H          Lea, NM         Mewbourne            2nd Bone Spring                         14.90%   Currently drilling
    -------       -------         ---------            ---------------                         -----    ------------------
    Zircon
     2 #1H        Eddy, NM        Mewbourne            2nd Bone Spring                         12.50%   Currently drilling
    ------        --------        ---------            ---------------                         -----    ------------------
    Fecta                                                                                              Expect to spud late
     33 Fed                                                                                                       December
     Com
     #1H          Lea, NM         Occidental           2nd Bone Spring                         12.50%
    -------       -------         ----------           ---------------                         -----  --------------------
    Grave                                                                                              Expect to spud late
     Digger                                                                                                       December
     #3H          Eddy, NM        Concho Resources     Yeso                                     5.64%
    -------       --------        ----------------     ----                                     ----  --------------------
    Alamo                                                                                              Expect to spud late
     Delhi                                                                                                        December
     "B" St
     #3           Eddy, NM        Alamo                Grayburg and San Andres                  6.25%
    -------       --------        -----                -----------------------                  ----  --------------------

“During the month of November, the Company added approximately 65 barrels of oil equivalent per day (“boepd”), during initial flow back rates, with expectations of bringing on an additional 35 boepd during the month of December,” stated Everett “Will” Gray II, CEO and Chairman of Cross Border. “Currently with these gains, we expect to exit 2011 with approximate daily production of 420 boe. Our expectation of exiting 2011 with approximate daily production of 500 boe has been revised downward by approximately 16% due to a 30-day delay of the spudding of the SE Lusk 33 #3H, Ocelot 34 Fed Com #1H, and the Zircon 2 #1H. All three of these wells are currently drilling with expectations of reaching total depth during the month of December. We expect completions of these three wells would take place during the month of January, assuming availability of service personnel. Once these wells provide initial production rates in January 2012, we expect approximate daily production to reach our previously guided 500 boepd.”

Hedge Agreement

On November 17, 2011, Cross Border entered into an additional fixed-price swap for 2,000 barrels of oil per month through November 30, 2014, at a NYMEX-WTI price of $93.50 per barrel for a total contracted volume of 72,000 barrels.

The new WTI oil fixed-price swaps are tabulated below.

         Time Period    Swap Volumes       WTI Average Price
         -----------    ------------       -----------------
     Calendar Contracts    (Bbls.)              ($/Bbl)

            2011                     2,000               $93.50
            2012                    24,000               $93.50
            2013                    24,000               $93.50
            2014                    22,000               $93.50
            ----                    ------               ------

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
jon@redchip.com
http://www.redchip.com

Company Contact:
Cross Border Resources, Inc.
Everett Willard “Will” Gray II
willg@xbres.com

SOURCE Cross Border Resources, Inc.


Source: PR Newswire