Cross Border Announces Production Adds of 2,063 BOEPD Gross/457 BOEPD Net from Recent 2nd Bone Spring Drilling Activity
SAN ANTONIO, March 15, 2012 /PRNewswire/ — Cross Border Resources, Inc. (OTCQX: XBOR) (“Cross Border” or “the Company”) today provided an operations update on its Permian Basin interests in New Mexico and West Texas.
2nd Bone Spring Drilling Activity, Eddy and Lea Counties, NM
Production rates for the Cimarex SE Lusk 33 #3H were approximately 855 barrels of oil equivalent per day (“boepd”) after more than 40 days of production, and approximately 578 boepd for the Cimarex 33 #2H after 12 days of production.
Additionally, the Company is pleased to report that the Mewbourne Zircon 2 #1H is producing nearly 500 boepd after its first 60 days of production. The Mewbourne Ocelot 34 Fed Com #1H was placed on production on March 13, 2012 after wellbore cleanout, with production results to be released within the next two weeks. The Occidental Fecta 33 Fed Com #1H has reached total depth and is currently awaiting completion. Open-hole data is very encouraging, and this well offsets Concho Resources’ Magnum Pronto St. Com #4H, which has produced cumulative 238 thousand barrels of oil equivalent (“mboe”) in 10 months. As of December 2011, the well averaged 425 boepd.
Production contributions net to Cross Border’s interest from the recent 2nd Bone Spring drilling activities are approximately 457 boepd. In addition to the above mentioned wells, Cross Border intends to participate in seven additional gross 2nd Bone Spring wells in 2012 with an average working interest of approximately 15%.
Other Permian Basin Drilling Activity
Cross Border is currently participating in either the drilling or completion of four gross wells targeting the Wolfberry, Yeso, and San Andres/Grayburg. Management expects to participate in one additional gross well during March with a primary focus on the Wolfberry. The Company expects to release, in a timely fashion, results of the wells that are currently awaiting completion. The results of all of the Company’s drilling activities are provided in the chart below:
WELL NAME COUNTY OPERATOR FORMATION WORKING INTEREST STATUS SE Lusk 33 Lea, NM Cimarex 2nd Bone Spring 37.50% Producing - 855 boepd #3H (online 40 days) SE Lusk 33 Lea, NM Cimarex 2nd Bone Spring 37.50% Producing - 578 boepd #2H (online 12 days) Ocelot 34 Lea, NM Mewbourne 2nd Bone Spring 12.55% Placed on production March Fed Com #1H 13, 2012 after wellbore cleanout Zircon 2 #1H Eddy, NM Mewbourne 2nd Bone Spring 12.50% Producing - 500 boepd (online 60 days) Fecta 33 Fed Com #1H Lea, NM Occidental 2nd Bone Spring 12.50% At TD awaiting frac Buck Baker 15 #3 Martin, TX Big Star Wolfberry 20.00% At TD awaiting frac Posh Unit 1701 Borden, TX Big Star Wolfberry 12.50% Flowing back frac load Coleman 1002 Dawson, TX Big Star Wolfberry 10.00% Producing - 100 bopd, 60 mcfpd (online 60 days) Grave Digger Eddy, NM Concho Resources Yeso 5.64% Producing -153 bopd, 52 #3H mcfpd, cleaning up frac load Alamo Delhi "B" St #3 Eddy, NM Alamo Grayburg and San Andres 6.25% At TD awaiting frac
Cross Border’s Chairman and CEO, Everett “Will” Gray II, stated, “We are extremely pleased with the recent success on our 2nd Bone Spring acreage in southeastern New Mexico. Our drilling activity has enabled us to prove up previously undeveloped reserves and significantly increase daily production and cash flow to the Company. We expect to further develop this acreage in 2012 alongside operators such as Apache, Occidental, Mewbourne and Cimarex. We will continue to work on behalf of shareholders, and we look forward to providing additional updates on the Company’s drilling activity.”
About Cross Border Resources
Information about the Company is available on its website, www.xbres.com, and news updates are available via Twitter, @CrossBorderRes.
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.
Cross Border Resources, Inc.
Everett Willard “Will” Gray II
SOURCE Cross Border Resources, Inc.