Cross Border Resources, Inc. Announces 2011 Second Quarter Results and Provides Operations Update
SAN ANTONIO, Texas, Aug. 15, 2011 /PRNewswire/ — Cross Border Resources, Inc. (OTCQX: XBOR), (“Cross Border” or “the Company”) today announced its financial results for the second quarter ended June 30, 2011, which is the second full quarter of operations for the Company. Cross Border is an oil and gas exploration and production company resulting from the business combination of Doral Energy Corp. and Pure Energy Group, which was effective January 3, 2011. The merger impacts all comparisons to the prior year. Summary financial data is provided below:
Second Quarter 2011 Financial and Operating Highlights
- Revenues increased by 119% year-over-year to $2.1 million, up from $957,307 in the second quarter of 2010.
- Production volume totaled 23,015 barrels of oil equivalent (“boe”), an increase of 33% compared to the second quarter of 2010.
- Adjusted EBITDA totaled $980,417, an increase of 195% compared to adjusted EBITDA of $332,525 in the second quarter of 2010.
- Leo 3 Fed Com #1H has a 24-hour initial production rate of 1,101 barrels of oil (“BO”), 520 barrels of water (“BW”) and 623 thousand cubic feet (“mcf”).
Six-Month Financial and Operating Highlights
- Revenues increased by 88% year-over-year to $3.7 million, up from $2.0 million in the six months ended June 30, 2010.
- Production volume totaled 44,786 boe, an increase of 26% compared to the first half of 2010.
- Adjusted EBITDA totaled $1.6 million, an increase of 41% compared to adjusted EBITDA of $1.1 million in the first half of 2010.
“Cross Border made excellent progress during the second quarter and first half of 2011,” said Everett “Will” Gray II, CEO and Chairman of Cross Border. “We’re still a new company, and as such, our bottom line was impacted by certain startup and merger-related costs. I expect these expenses to diminish going forward as we continue to grow.”
Mr. Gray continued, “Looking at our operations, our established footprint within the Permian Basin offers our shareholders the opportunity to participate in promising, low-risk plays with the potential for attractive returns. We expect increasing production volumes and important reserve adds as our active drilling program continues. Going forward, the Company should maintain its brisk drilling schedule for the rest of 2011, followed by an approximate 25 or more gross wells to be drilled during 2012. We now project Cross Border will participate in 23 gross wells this year. We continue to focus on the Bone Spring and Wolfberry Trend — two of the most active oil plays within the Permian Basin — as well as conventional plays such as the Abo, Yeso and Delaware.”
Results of Operations for the Three Months Ended June 30, 2011
Revenues
Revenues for the three months ended June 30, 2011 were $2.1 million, as compared to $957,307 for the three months ended June 30, 2010. The increase of $1.1 million, or 119%, was primarily due to increased production from wells added year-over-year, increased production due to the merger, and a year-over-year increase in the average sales prices for oil and natural gas. Oil and gas sales increased 59% year-over-year to $1.5 million as compared to $919,234 for the same period a year ago. The Company also recorded a $599,100 gain on the sale of oil and gas properties during the second quarter of 2011.
Production volumes for the three months ended June 30, 2011 were 23,015 boe, up 33% year-over-year and 6% sequentially. The increase was primarily due to a combination of increased production from wells added period-over-period and increased production brought on through the merger. Average daily production sold during the second quarter of 2011 was 253 barrels of oil equivalent per day (“boed”) compared to 190 boed for the second quarter of 2010. Cross Border’s definition of daily production represents only what volumes were sold in each respective quarter and does not account for stored inventory.
Cross Border’s average realized crude oil sales price for the second quarter of 2011 was $95.00 per barrel, compared to $76.99 in the second quarter of 2010. The Company’s average realized natural gas sales price during the second quarter of 2011 was $6.42 per mcf, compared to $6.16 per mcf in the second quarter of 2010.
Income from Operations
Operating loss for the three months ended June 30, 2011 amounted to $45,804 as compared to operating income of $297,571 for the three months ended June 30, 2010. Operating expenses for the three-month period totaled $2.1 million, an increase of 225% of as compared to $659,736. The increase was primarily due to increased expenses related to expanded production.
Net Income
Net loss for the three months ended June 30, 2011 was $66,597 as compared to a net loss of $1,143 for the three months ended June 30, 2010. Net income per diluted share was essentially break-even on a per-share basis.
Adjusted EBITDA
Adjusted EBITDA totaled $980,417, or $0.07 per fully diluted share, an increase of 195% compared to adjusted EBITDA of $332,525 in the year-ago period.
EBITDA is defined as net earnings before interest, income taxes, depreciation, depletion, and amortization (adjusted EBITDA), which is a non-GAAP performance measure. Adjusted EBITDA does not represent, and should not be considered an alternative to GAAP measurements, and Cross Border’s calculations thereof may not be comparable to similarly titled measures reported by other companies. Cross Border’s management does not view adjusted EBITDA in isolation and also uses other measurements, such as net earnings (loss) and revenues to measure operating performance. A complete reconciliation of EBITDA to GAAP accounting standards can be found in this press release under the financial table “Reconciliation to GAAP.”
Results of Operations for the Six Months Ended June 30, 2011
Revenues
Revenues for the six months ended June 30, 2011 were $3.7 million as compared to $2.0 million for the six months ended June 30, 2010. The increase of $1.7 million, or 88%, was primarily due to increased production from wells added year-over-year, increased production due to the merger, and a year-over-year increase in the average sales prices for oil and natural gas. Oil and gas sales increased 57% year-over-year to $3.0 million as compared to $2.0 million for the same period in 2010. The Company also recorded a $599,100 gain on the sale of oil and gas properties during the first half of 2011.
Production volume totaled 44,786 boe, an increase of 26% compared to 35,449 boe for the first half of 2010. The increase was due primarily to a combination of increased production from wells added period-over-period and increased production brought on through the merger. Average daily production for the six months ended June 30, 2011 was 247 boed compared to 196 boed for the first six months of 2010. Cross Border’s definition of daily production represent only what volumes were sold in each respective quarter and does not account for stored inventory.
Cross Border’s average realized crude oil sales price for the first six months of 2011 was $89.60 per barrel, compared to $74.86 in the first six months of 2010. The Company’s average realized natural gas sales price during the first half of 2011 was $6.19 per mcf, compared to $5.99 per mcf for the first half of 2010.
Income from Operations
Operating loss for the six months ended June 30, 2011 amounted to $188,883 as compared to operating income of $480,196 for the six months ended June 30, 2010. Operating expenses for the six months ended June 30, 2011 totaled $3.9 million, up 161% from $1.5 million in the same period a year ago. The increase was primarily due to expanded production.
Net Income
Net loss for the six months ended June 30, 2011 was $221,513 as compared to net income of $237,308 for the six months ended June 30, 2010. Net loss per diluted share was $0.02 for the first six months of 2011.
Adjusted EBITDA
Adjusted EBITDA totaled $1.6 million, an increase of 41% compared to adjusted EBITDA of $1.1 million in the year-ago period.
Liquidity and Capital Resources
As of June 30, 2011, the Company’s current assets were $2.6 million and current liabilities were $1.4 million. Cash and cash equivalents totaled $1.5 million as of June 30, 2011. The Company’s shareholders’ equity at June 30, 2011 was $18.3 million. The Company used $1.2 million for operating activities for the six months ended June 30, 2011, compared to a provision of $1.5 million for the same period in 2010. The Company used $1.1 million for investing activities for the six months ended June 30, 2011, compared to $1.0 million for the first half of 2010. The Company generated $2.9 million from financing activities for the six months ended June 30, 2011, compared to $477,895 used in financing activities during the first half of 2010.
Operations Update
Well County Operator Formation
New
Mexico
Leo 3
Fed
Com. Concho
#1H Chaves Resources Abo
Grave
Digger Concho
#2H Eddy Resources Yeso
Texas
Shortes Big
6 #1 Borden Star Wolfberry/
Tres
Amigos
Shortes Big
43 #1 Dawson Star Wolfberry/
Tres
Amigos
Coleman Big
9 #1 Borden Star Wolfberry/
Tres
Amigos
Simmons Big
27 #2 Dawson Star Wolfberry
Working
Well Status Interest
New
Mexico
Leo 3 24-hour IP
Fed Rate of 1,101
Com. BO, 520 BW &
#1H 623 mcf 6.25%
Averaging 125
bopd and
Grave 106.7 mcfd of
Digger gas, awaiting
#2H pay status. 5.64%
Texas
Recovered all
frac fluid,
monitoring
excess fluid
level in
well,
Shortes averaging 12
6 #1 bopd.(1) 10.00%
Flowing back
frac load,
averaging 27
bopd with 303
barrels of
load with
4,452 barrels
Shortes of load left
43 #1 to recover. 10.00%
Flowing back
frac load,
averaging 5
bopd with 325
barrels of
load with
4,202 barrels
Coleman of load left
9 #1 to recover. 10.00%
Drilling
completed,
preparing
2-stage Lower
Simmons Mississippian
27 #2 frac. 10.00%
2011 Business Outlook
Cross Border anticipates accelerated drilling activity in the second half of 2011 with a primary focus on its 2nd Bone Spring acreage located in both Eddy and Lea counties, New Mexico. Approximately $5.5 million has been allocated toward the 2nd Bone Spring development, representing approximately 51% of Cross Border’s 2011 CAPEX budget. Cross Border is witnessing increased permitting activity within its current footprint due to the success of emerging drilling and completion technologies that have provided significant rates of return for Permian Basin operators, further demonstrated by the number of active rigs currently drilling in the Permian Basin.
Cross Border expects to spud approximately 23 gross wells, or 3.6 net wells, in 2011, with drilling capital expenditures increasing to approximately $10.6 million for the year versus only $8.5 million as previously stated. The drilling schedule that was published in the Cross Border presentation dated August 2011 has been revised. Management has pushed back four wells that were expected to spud in 2011, which are now anticipated to spud in 2012, and has replaced them with the Cimarex SE Lusk 33 #2H and the Cimarex SE Lusk 33 #3H, both targeting the 2nd Bone Spring and both with a 37.5% working interest. This revision has increased capital expenditure for the second half of 2011 from $7.4 million to $9.6 million. Historically, Cross Border has been invoiced by its various operators over a three-month time frame with a net 30-day payment for each stage of the drilling and completions costs. If this remains the case, for the remainder of 2011, Cross Border would expect to fund approximately $5.7 million for its proportionate ownership costs with the remaining balance spilling over into Q1 of 2012. All wells listed in the revised drilling schedule are classified as developmental wells.
Cross Border expects to fund all remaining 2011 drilling commitments using cash-on-hand, cash flow and its existing credit facility. Current availability under the existing credit facility is approximately $4 million. The updated drilling schedule for the remainder of 2011 is provided in the chart below:
WELL
NAME COUNTY OPERATOR FORMATION
KSI 22 2nd Bone
Fed #1H Lea, NM Devon Spring
Zircon 2 2nd Bone
#1H Eddy, NM Mewbourne Spring
Leo 3
Fed
Com.
#2H Chaves, NM Cimarex Abo
Wasp 2
St #3H Chaves, NM Cimarex Abo
Santa
Elena
19 Fed
#1H Eddy, NM Apache Abo
Buck
Baker
15 #1 Martin, TX Big Star Wolfberry
Providence
A #1 Dawson, TX Big Star Wolfberry
Grave
Digger
#3H Eddy, NM Concho Yeso
Resources
Brown
Bear 14
St Com
#1 Lea, NM Devon Delaware
Fecta 33
Fed Com 2nd Bone
#1H Lea, NM Occidental Spring
Ocelot
34 Fed 2nd Bone
Com #1H Lea, NM Mewbourne Spring
Wasp 2
St #4H Chaves, NM Cimarex Abo
Staley
St 30
"K" #01 Eddy, NM Apache Yeso
Tres
Amigos
PH Borden, TX Big Star Wolfberry
Hefley
24 #1 Martin, TX Big Star Wolfberry
Stearns Cross
PH Chaves, NM Border San Andres
SE Lusk 2nd Bone
33 #2H Lea, NM Cimarex Spring
SE Lusk 2nd Bone
33 #3H Lea, NM Cimarex Spring
High
Lonesome
26 Com
#2H Eddy, NM Concho Abo
Resources
WELL WORKING V=Vertical
NAME SPUD INTEREST D&C H=Horizontal
DATE proportionate
to XBOR's
NRI
KSI 22
Fed #1H Q3 2011 3.00% $144,000 H
Zircon 2
#1H Q4 2011 12.50% $399,000 H
Leo 3
Fed
Com.
#2H Q4 2011 6.25% $318,000 H
Wasp 2
St #3H Q3 2011 6.25% $236,000 H
Santa
Elena
19 Fed
#1H Q4 2011 12.50% $560,000 H
Buck
Baker
15 #1 Q3 2011 20.00% $525,000 V
Providence
A #1 Q4 2011 10.00% $263,000 V
Grave
Digger
#3H Q3 2011 5.64% $139,000 H
Brown
Bear 14
St Com
#1 Q4 2011 3.00% $120,000 H
Fecta 33
Fed Com
#1H Q3 2011 12.50% $578,000 H
Ocelot
34 Fed
Com #1H Q4 2011 14.90% $623,000 H
Wasp 2
St #4H Q4 2011 6.25% $236,000 H
Staley
St 30
"K" #01 Q4 2011 12.50% $225,000 V
Tres
Amigos
PH Q4 2011 10.00% $183,000 V
Hefley
24 #1 Q4 2011 20.00% $525,000 V
Stearns
PH Q4 2011 100.00% $650,000 V
SE Lusk
33 #2H Q3 2011 37.50% $1,883,000 H
SE Lusk
33 #3H Q4 2011 37.50% $1,883,000 H
High
Lonesome
26 Com
#2H Q3 2011 3.13% $164,000 H
Please note that Cross Border reserves the right to adjust the drilling schedule on a quarterly basis. Management has derived this tentative drilling schedule based upon communication with current operators, identifying and mapping all approved drilling permits on Cross Border acreage, and approved AFEs (authorization for expenditure).
Conference Call and Webcast
Management will host a conference call to discuss these financial results Tuesday, August 16, at 11:00 a.m. Eastern time (8:00 a.m. Pacific).
To participate in the call please dial (877) 941-4778, or (480) 629-9715 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found via the Company’s website at http://www.xbres.com, or alternately at http://ViaVid.net.
A replay of the call will be available for two weeks from 2:00 p.m. EDT on August 17, 2011, until 11:59 p.m. EDT on August 31, 2011. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the passcode for the replay is 4465173. In addition, a recording of the call will be available via the company’s website at http://www.xbres.com for one year.
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.
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.
Cross Border Resources, Inc.
Condensed Balance Sheets
Predecessor
Entity
June 30, December 31,
2011 2010
---- ----
(Unaudited) (As Restated)
ASSETS
Current Assets
Cash $1,537,152 $975,123
Accounts Receivable - Production 497,430 512,624
Accounts Receivable -Related Party - 250,000
Prepaid Expenses 446,606 -
Derivative Asset 106,850
Current Tax Asset 49,737 -
------ ---
Total Current Assets 2,637,775 1,737,747
Oil and Gas Properties 31,971,832 19,421,621
Less: Accumulated Depletion (8,768,498) (7,328,326)
---------- ----------
Net Oil and Gas Properties 23,203,334 12,093,295
Other Assets
Other Property and Equipment, net of
Accumulated Depreciation of
$112,763 and $94,759 in 2011 and
2010, respectively 108,194 124,776
Deferred Bond Costs, net of
Accumulated Amortization of
$303,243 and $293,915 in 2011 and
2010, respectively 200,611 209,939
Deferred Bond Discount, net of
Accumulated Amortization of
$134,019 and $108,827 in 2011 and
2010, respectively 52,541 77,733
Other Assets 173,056 112,532
------- -------
Total Other Assets 534,402 524,980
------- -------
TOTAL ASSETS $26,375,511 $14,356,022
Predecessor
Entity
June 30, December 31,
2011 2010
---- ----
(Unaudited) (As Restated)
LIABILITIES AND PARTNERS'
CAPITAL
Current Liabilities
Accounts Payable - Trade $253,910 $875,881
Accounts Payable -Revenue
Distribution 76,000 49,880
Interest Payable 83,532 107,875
Accrued Expenses 19,968 28,460
Deferred Revenues 97,436 162,394
Bonds Payable -Current Portion 720,000 660,000
Creditors Payable -Current
Portion 180,000 150,000
------- -------
Total Current Liabilities 1,430,846 2,034,490
Non-Current Liabilities
Asset Retirement Obligations 1,191,919 508,588
Deferred Income Tax Liability 19,487 -
Line of Credit 1,000 1,582,426
Notes Payable 764,278 -
Bonds Payable, net of Current
Portion 3,305,000 3,555,000
Creditors Payable, net of
Current Portion 1,359,545 1,656,305
--------- ---------
Total Non-Current Liabilities 6,641,229 7,302,319
--------- ---------
Total Liabilities 8,072,075 9,336,809
Stockholders' Equity (Deficit)
Retained Earnings (Accumulated
Deficit) (1) (14,371,458) 5,019,213
Common Stock ($0.001 par value;
36,363,637 authorized and
16,151,946 shares issued and
outstanding at June 30, 2011) 16,152 -
Additional Paid in Capital 32,658,742 -
---------- ---
Total Stockholders' Equity 18,303,436 5,019,213
---------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $26,375,511 $14,356,022
(1) Retained Earnings as of December 31, 2010 (As Restated)
includes all equity accounts, including all Predecessor Entity
Partners' Capital accounts.
Cross Border Resources, Inc.
Condensed Statements of Operations
(Unaudited)
Three months ended June 30,
---------------------------
2011 2010
---- ----
Predecessor
Entity
------------
Revenues and Gains
Oil and gas sales $1,465,050 $919,234
Gain on sale of oil and gas
properties 599,100 --
Other 32,479 38,073
------ ------
Total revenues and gains $2,096,629 $957,307
Expenses:
Operating costs 362,161 87,375
Production taxes 165,108 100,440
Depreciation, depletion, and
amortization 488,601 222,538
Accretion expense 26,416 14,818
General and administrative 1,100,147 234,565
--------- -------
Total expense 2,142,433 659,736
--------- -------
Gain (loss) from operations (45,804) 297,571
------- -------
Other income (expense):
Bond issuance amortization (4,664) (4,664)
Gain (loss) on derivatives 75,857 -
Interest expense (142,438) (91,648)
Miscellaneous other income
(expense) 10,609 (202,402)
------ --------
Total other income (expense) (60,636) (298,714)
------- --------
Loss before income taxes (106,440) (1,143)
Current tax benefit (expense) 54,160 (7,862)
Deferred tax benefit (expense) (14,317) 7,862
------- -----
Income tax benefit (expense) 39,843 -
------ ---
Net income (loss) $(66,597) $(1,143)
Net loss per share:
Basic and diluted $(0.00) $ -
Weighted average shares
outstanding:
Basic and diluted 14,948,649 -
Cross Border Resources, Inc.
Condensed Statements of Operations
(Unaudited)
Six months ended June 30,
-------------------------
2011 2010
---- ----
Predecessor
Entity
------------
Revenues and Gains
Oil and gas sales $3,031,863 $1,926,964
Gain on sale of oil and gas
properties 599,100 --
Other 64,958 41,076
------ ------
Total revenues and gains $3,695,921 $1,968,040
Expenses:
Operating costs 515,225 183,624
Production taxes 270,564 186,286
Depreciation, depletion, and
amortization 1,072,891 624,835
Accretion expense 52,833 29,635
General and administrative 1,973,291 463,464
--------- -------
Total expense 3,884,804 1,487,844
--------- ---------
Gain (loss) from operations (188,883) 480,196
-------- -------
Other income (expense):
Bond issuance amortization (9,328) (9,328)
Gain (loss) on derivatives 106,123 -
Interest expense (247,594) (202,321)
Miscellaneous other income
(expense) 52,628 (31,239)
------ -------
Total other income (expense) (98,171) (242,888)
------- --------
Loss before income taxes (287,054) 237,308
Current tax benefit (expense) 85,028 (21,358)
Deferred tax benefit (expense) (19,487) 21,358
------- ------
Income tax benefit (expense) 65,541 -
------ ---
Net income (loss) $(221,513) $237,308
Net loss per share:
Basic and diluted $(0.02) $ -
Weighted average shares
outstanding:
Basic and diluted 13,719,626 -
Cross Border Resources, Inc.
Condensed Statements of Cash Flows
For the six months ended June 30, 2011 and 2010
(Unaudited)
Six Months Ended June 30,
-------------------------
2011 2010
---- ----
Predecessor
Entity
------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss) $(221,513) $237,308
Adjustments to reconcile net
income (loss) to cash used by
operating activities:
Depreciation, depletion,
amortization 1,047,697 624,835
Accretion 52,833 29,635
Gain on Disposition of Assets (583,766) -
Share-based Compensation 455,230 -
Amortization of debt discount
and deferred financing costs 34,520 34,521
Changes in operating assets and
liabilities:
Accounts receivable 15,194 265,168
Prepaid expenses and other
current assets (551,986) 6,714
Accounts payable - trade (1,064,664) 52,095
Accrued expenses (190,602) (27,801)
Deferred income tax (30,250) -
Deferred revenue (64,958) 227,352
Other current liabilities (105,074) 21,835
-------- ------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES (1,207,339) 1,471,662
---------- ---------
CASH FLOWS FROM INVESTING
ACTIVITIES
Capital expenditures -oil and
gas properties (1,856,805) (996,363)
Disposal of oil and gas
properties 799,100 -
Capital expenditures -other
assets (35,239) -
------- ---
NET CASH USED IN INVESTING
ACTIVITIES (1,092,944) (996,363)
---------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of
common stock, net of expenses 5,143,220 -
Net borrowings (payments) on
line of credit (1,581,426) (355,000)
Proceeds from renewing notes 139,359 -
Repayments of notes payable (382,081)
Repayments of bonds (190,000) -
Repayments to creditors (266,760) (122,895)
-------- --------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 2,862,312 (477,895)
--------- --------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 562,029 (2,596)
Cash and cash equivalents,
beginning of period 975,123 757,119
------- -------
Cash and cash equivalents, end
of period $1,537,152 $754,523
Supplemental disclosures of
cash flow information:
Interest paid $195,795 $185,493
Income taxes paid $ - $ -
The above changes in current assets and current liabilities differ from changes between amounts reflected in the June 30, 2011 balance sheet due to current assets and current liabilities acquired in connection with the Company’s reverse acquisition with Pure Energy Group, Inc. and Pure Gas Partners II, LP, as more fully described in Note 1 to the unaudited financial statements.
Cross Border Resources, Inc.
Summary Operating Statistics
(Unaudited)
Three Months Ended
June 30,
--------
2010
(Predecessor
2011 Entity)
---- -------------
Revenues & Sales
Oil & Gas Sales $1,465,050 919,234
Gain on Sale of Oil &
Gas Properties 599,100 -
Total revenue 2,096,629 957,307
Net Income (Loss) (66,597) (1,143)
Net Income Per Share
Basic & Diluted 0.00 n/a
Average Number of
Shares Outstanding
Basic & Diluted 14,948,649 -
Production Volumes
Oil (Bbls) 12,569 6,737
Gas (mcf) 62,672 63,474
Total Barrels of Oil
Equivalent (boe)* 23,015 17,316
Average Barrels of
Oil Equivalent per
day (boed) 253 190
Oil (Bbls) 54.6% 38.9%
Gas (mcf) 45.4% 61.1%
---- ----
Total Barrels of Oil
Equivalent (boe)* 100.0% 100.0%
===== =====
Average sales price:
Gas ($ per mcf) 6.42 $6.16
Oil ($ per bbl) 95.00 76.99
Average cost of
production:
Average production
cost ($/boe) 14.90 5.15
Average production
taxes ($/boe) 7.28 5.78
Depletion Expense 577,249 292,356.25
Depletion Expense
($/boe) 25.08 16.88
Non-GAAP Adjusted
EBITDA 980,417 332,525
Non GAAP Adjusted
EBITDA Per Share
Basic & Diluted 0.07 n/a
Six Months Ended
June 30,
--------
2010
(Predecessor
2011 Entity)
---- -------------
Revenues & Sales
Oil & Gas Sales $3,031,863 1,926,964
Gain on Sale of Oil &
Gas Properties 599,100
Total revenue 3,695,921 1,968,040
Net Income (Loss) (221,513) 237,308
Net Income Per Share
Basic & Diluted (0.02) n/a
Average Number of
Shares Outstanding
Basic & Diluted 13,719,626 -
Production Volumes
Oil (Bbls) 25,856 14,553
Gas (mcf) 113,583 125,376
Total Barrels of Oil
Equivalent (boe)* 44,786 35,449
Average Barrels of
Oil Equivalent per
day (boed) 247 196
Oil (Bbls) 57.7% 41.1%
Gas (mcf) 42.3% 58.9%
---- ----
Total Barrels of Oil
Equivalent (boe)* 100.0% 100.0%
===== =====
Average sales price:
Gas ($ per mcf) 6.19 $5.99
Oil ($ per bbl) 89.60 74.86
Average cost of
production:
Average production
cost ($/boe) 10.78 5.27
Average production
taxes ($/boe) 6.09 5.24
Depletion Expense 1,122,990.00 584,713
Depletion Expense
($/boe) 25.07 16.49
Non-GAAP Adjusted
EBITDA 1,550,822 1,103,427
Non GAAP Adjusted
EBITDA Per Share
Basic & Diluted 0.11 n/a
Cross Border Resources, Inc.
Reconciliation to GAAP
Three Months Ended
June 30,
--------
2011 2010
---- ----
Predecessor
Entity
Net income (loss) $(66,597) $(1,143)
Interest expense and
other 147,102 96,312
Income tax expense
(benefit) (39,843) --
Accretion of asset
retirement
obligations 26,416 14,818
Depreciation,
depletion, and
amortization 488,601 222,538
Stock-based
compensation 424,738 --
------- ---
Adjusted EBITDA $980,417 $332,525
======== ========
Six Months Ended
June 30,
--------
2011 2010
---- ----
Predecessor
Entity
------------
Net income
(loss) $(221,513) $237,308
Interest
expense
and other 256,922 211,649
Income tax
expense
(benefit) (65,541) --
Accretion
of asset
retirement
obligations 52,833 29,635
Depreciation,
depletion,
and
amortization 1,072,891 624,835
Stock-
based
compensation 455,230 --
------- ---
Adjusted
EBITDA $1,550,822 $1,103,427
========== ==========
SOURCE Cross Border Resources, Inc.
