SAN ANTONIO, Texas, April 11, 2011 (GLOBE NEWSWIRE) -- Cross Border Resources, Inc. (OTCBB:XBOR), ("Cross Border" or "the Company"), today provided an operations update related to acreage and drilling activities in the Wolfberry Trend, and the Bone Spring, Yeso, Abo play.
Acreage Acquisition
During the first quarter of 2011, Cross Border has acquired a 10% working interest in 820 gross acres. The acreage is located in the active Wolfberry Trend of the Permian Basin.
Cross Border owns approximately 31,000 net acres targeting the Wolfberry, Bone Spring, San Andres, Yeso, Abo and other conventional plays located within Southeastern New Mexico and West Texas. The Company currently estimates that this acreage position will provide participation in approximately 25 gross wells in 2011.
Wolfberry Trend – Tres Amigos Project
The Tres Amigos Project consists of approximately 820 acres, targeting the Wolfberry Trend in both Dawson and Borden counties, Texas, with 11 possible drilling locations based on 80 acre spacing units. Cross Border will participate in the initial three wells on 1/3 for a 1/4 promoted basis with the remaining 8 wells to be drilled to each working interest partners' proportionate ownership. The proposed depth for each well is 10,825' targeting the Wolfberry Trend pay zones including the Sprayberry/Dean, Wolfcamp, Canyon, Strawn, and Mississippian formation.
Drilling of the initial well, the Shortes 6 #1, commenced on March 7, 2011 located in Sec 6, Blk 33, T3N of Borden County, Texas. As of present the Shortes 6 #1 has reached its targeted drilling depth of 10,800' and is currently awaiting completion scheduled for the first week of May. The second well is expected to reach its targeted depth of 10,800' this week with the expectation of pipe being set within the next several days. The rig will be moving to a third location the following week. It is anticipated that an additional six wells will be drilled prior to the end of the year.
Bone Spring Activity
To date, Cross Border has received 12 Authorization for Expenditures ("AFE") targeting the Bone Springs formation. The proposals represent a continuation of the drilling program at Turkey Track Field, also referred to as the "Parkway Area" by our working interest partner and operator, Cimarex Energy, in Eddy County. It is further anticipated that drilling will start at the Lusk Field in Lea County targeting the 2nd Bone Spring where Cross Border has an approximate average working interest of 28%.
A total of 8 horizontal 2nd Bone Spring wells are possible in the Lusk Field where Cross Border has received 8 AFE's from Cimarex and Mewbourne.
Abo and Yeso Activity
Cross Border has also received AFE's from operator, Concho Resources, for an additional 2 horizontal wells targeting the Abo formation in Eddy and Chaves County. If successful, an additional 10 offset wells could be developed. Cross Border's working interest ranges from 12.5% to 6.5% in this particular area.
Furthermore, it is expected that Concho will continue with Yeso development at the Cemetery project in Eddy County where the Company has an approximate 6% working interest. The first well in the program, the GraveDigger #1H, paid out in less than five months and the second well, the Grave Digger 2H continues to average nearly 200 barrels of oil per day. The Company believes that up to 4 additional offsets could be drilled in the next 12 months.
Other Assets
In addition, the Company has other assets where it may consider joint venture or divestment. Currently, the Company has entered into a Letter of Intent, with a Houston based private company, to divest 320 net acres of its non-core/non-producing, acreage for approximately $800,000. The anticipated closing is expected to close on or before May 31, 2011.
Management Comments
Mr. E. Will Gray II, Chairman and CEO, commented, "We are pleased with the level of activity taking place within our leasehold position. While most of the near term drilling activity is focused on the Wolfberry or Bone Spring, we believe that more of our existing mineral acreage will become prospective for the Abo as well as other conventional pays due to the current drilling efforts focused within the Delaware Basin. In addition to our New Mexico acreage, the Company is currently focusing its M&A activity within the Wolfberry Trend in West Texas." Commenting on specific drilling activities, Mr. Gray further stated, "Recently, the Company's Lusk acreage has been directly offset by the Concho Oil and Gas Magnum Pronto State Com #4H which tested the Bone Spring on 3/8/2011 for 1,417 barrels of oil and 1,381 mcf on a 24 hour test. Adjacent to the same section, Cimarex's Southern California 29 Federal 15 has cumulative production of 110,531 barrels of oil and 250,853 mcf since first production in April, 2010. In January, 2011 the well's production still averaged 200 bod and 327 mcfd. We are looking forward to continued drilling results and development of these respective plays."
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 on risks for the Company can be found in the Company's filings with the US Securities and Exchange Commission.
CONTACT: Cross Border Resources, Inc. Brad Holmes Nine Greenway Plaza, Suite 550 Houston, TX 77046 (713)654-4009 - office (713)304-6962 - cell b_holmes@att.net