SAN ANTONIO, Feb. 1, 2012 /PRNewswire/ --Cross Border Resources, Inc. (OTCQX: XBOR) ("Cross Border" or "the Company"), a San Antonio-based oil and gas exploration and production company, today announced that it exited January 2012 producing 500 barrels of oil equivalent per day ("BOEPD"). This is a new company mark for production. The Company presently has four wells in various stages of completion and hook-up, which are expected to have a further positive impact on daily production.
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2011 Operational Highlights
- Cross Border's average production rate on December 31, 2011 was 420 BOEPD, a 55% increase from the January 3, 2011 production rate of 271 BOEPD.
- Cross Border participated in 16 gross (1.9 net) wells, four of which are awaiting completion and hook-up. Drilling success was 83% in 2011.
- The Company's daily production mix was approximately 63% oil and liquids.
"We are extremely pleased with the 83% success rate to date from our low- to moderate-risk drilling opportunities on our asset base," stated Larry Risley, President and COO of Cross Border. "This success increased our production by nearly 55% in 2011 even without the addition of four of our wells awaiting completion. Also in 2011, we expanded our holdings beyond the Southeastern New Mexico area of the Permian Basin into the Texas Wolfberry play of the Permian. At year end, the Wolfberry represented nearly 11% of our daily average production."
Operations in 2011 provided Cross Border with an asset base and financial structure to grow future production and reserves. In addition, during 2011, Cross Border completed the business combination of Doral Energy Corp. and Pure Energy Group, increased Pure's existing credit facility to $25 million (with a current borrowing base of $4,500,000), completed a $5.4 million private offering at a share price of $1.50, and filed an S-1 registration statement with the U.S. Securities and Exchange Commission on behalf of the selling shareholders who purchased shares in the private offering.
Shares of Cross Border began trading on the OTCQX Premier, the OTC market's highest tier, in June of 2011. Additionally, the Company has taken steps to protect its shareholders' interests by forming audit, compensation, and corporate governance committees made up of its three independent directors, as well as planning to hold an annual shareholder meeting on or before May 15, 2012.
2012 Production and Financial Guidance
- The Company's 2012 budget for capital expenditures is approximately $11.9 million. Cross Border expects that 100% of this amount will be used to grow production through drilling wells and covering anticipated authorizations for expenditure ("AFEs") by the Company's operating partners.
- Cross Border plans to participate in approximately 24 gross (3.2 net) wells in 2012.
- The Company forecasts it will exit 2012 with an average production rate of 750 BOEPD, a 50% increase over the current production rate.
Cross Border is currently working with its senior secured lender to increase its borrowing capacity based on preliminary 2011 year-end PDP and PDNP reserve estimates. The Company is also negotiating with an additional lender to provide subordinate financing to ensure ample liquidity to fund the 2012 capital budget.
Everett "Will" Gray II, CEO and Chairman of Cross Border, said: "Both management and the board of directors do not believe the Company's net asset value is reflected in its current share price. We have achieved our targeted exit rate of 500 BOEPD for January 2012 and believe we are on track to grow production and reserves in 2012 and beyond. We will continue to provide shareholders with operational updates focusing on our 2nd Bone Spring drilling and completion activity as they become available and will continue to work diligently to produce positive results for the Company in 2012."
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 changes in the lending markets, 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.
