Cross Border Resources Reports Net Daily Production Rate of Approximately 750 Boepd for March 2012; Provides Operations Update
SAN ANTONIO, May 3, 2012 /PRNewswire/ — Cross Border Resources, Inc. (OTCQX: XBOR) (“Cross Border” or “the Company”), a San Antonio-based oil and gas exploration and production company, is pleased to announce that average daily production for the month of March was approximately 750 barrels of oil equivalent per day (“boepd”), of which 82% was oil. This increase in daily production was aided by recent 2nd Bone Spring completions, including the Cimarex SE Lusk 33 #2H and #3H, which have cumulatively produced approximately 82,306 gross barrels of oil and approximately 69,609 thousand gross cubic feet (“mcf”) since February 1, 2012. Cross Border’s working interest in these two wells is 37.5%.
Successful 2nd Bone Spring completions during 2011 and the first quarter of 2012 were instrumental in increasing the net daily production from approximately 300 boepd on January 4, 2011 to a net daily production rate of approximately 750 boepd for March 2012. This represents a 150% production increase over 15 months.
Additional development is underway on the Company’s Abo, Yeso, and Wolfberry acreage with its other working interest partners, Concho Resources, Big Star and Occidental. Cross Border currently has a drilling inventory across these formations with varying non-operated working interests ranging from 1.05% to 20%.
During the first three months of 2012, the Company participated in seven gross (one net) new wells. As of April 30, 2012, three of the seven new wells had been placed on production, while four are awaiting completion. Additionally, three of the four wells begun during 2011 that were awaiting completion at year-end 2011 were successfully completed during the first quarter of 2012. No new leasehold acquisitions were made during the first quarter of 2012.
Permian Basin Drilling Activity
WELL NAME COUNTY OPERATOR FORMATION WORKING INTEREST STATUS Ocelot 34 Lea, NM Mewbourne 2nd Bone Spring 12.55% Producing 285 boepd gross as of March Fed Com #1H 31 Fecta 33 Fed Com #1H Lea, NM Occidental 2nd Bone Spring 12.50% Currently flowing back frac load Buck Baker 15 #3 Martin, TX Big Star Wolfberry 20.00% Currently flowing back frac load Posh Unit 1701 Borden, TX Big Star Wolfberry 12.50% Recompleting in Canyon Interval Delhi "B" St #3 Eddy, NM Alamo Grayburg/San Andres 6.25% Producing 37 bopd gross Hefley 24 #2 Howard, TX Big Star Wolfberry 20.00% At TD awaiting completion Coleman 9 #3 Martin, TX Big Star Wolfberry 10.00% Currently drilling Holliday 1H Eddy, NM Marshall & Winston Yeso 6.25% Currently drilling Zircon "2" LI St #1H Eddy, NM Mewbourne 2nd Bone Spring 12.50% Currently drilling Roo 22 St. #3 Eddy, NM Occidental Yeso 3.13% Frac'd/awaiting flowback Roo 22 St. #4 Eddy, NM Occidental Yeso 3.13% Frac'd/awaiting flowback Roo 22 St. #5 Eddy, NM Occidental Yeso 3.13% Frac'd/awaiting flowback
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.
Information about the Company is available on its website, http://www.xbres.com.
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, successful completion of development programs on all aforementioned prospects and leases and general economic and business conditions. Additional information risks for the Company can be found in the Company’s filings with the U.S. Securities and Exchange Commission.
SOURCE Cross Border Resources, Inc.