SAN ANTONIO, May 18, 2011 (GLOBE NEWSWIRE) -- Cross Border Resources (OTCBB:XBOR), ("Cross Border" or "the Company") management comments on details of the results of operations for the first quarter of 2011 which is the first full quarter of operations for the Company. More detailed financial statements and discussions may be found within the Company's Form 10-Q, filed on Monday, May 16, 2011 and may be found at .
Cross Border Resources, Inc. is an oil and gas exploration and production company resulting in the business combination of Doral Energy Corporation and Pure Energy which was effective January 3, 2011. The Company's assets include over 270,000 net mineral and lease acres in New Mexico and West Texas. Of this acreage total, 31,000 acres (net) are within the prolific Permian Basin. The majority (99%) of this acreage consists of either owned mineral rights or leases that are held by production. The Company is focused on development of its prospective Bone Springs acreage located in Eddy and Lea Counties, New Mexico. In addition, the Company is working to further develop acreage that is producing oil from the Abo, Yeso, San Andres, and Wolfberry/Missberry formations in New Mexico and West Texas.
Highlights
- The Company recognized a 65% increase in revenue for the three months ending March 31, 2011. This was due primarily to increased production due to new wells added, increased production brought on by the merger and an increase in price received for oil.
- Total shareholder equity increased 158% to $12.9 million and the value of our oil and gas properties increased 88% to $22.8 million due primarily to the increase in total oil and gas reserves as a result of the merger, which increased the value of those reserves, as well as CAPEX deployed during Q-1.
The Company did show a significant increase in total operating expenses. General & Administrative (G&A) costs were $873,149 for the period ending March 31, 2011 compared to $228,899 from the period ending March 31, 2010, recorded by the predecessor entity. In addition, the current period costs include $255,000 in non-recurring expenses that are a result of the merger and $30,492 of share-based compensation.
Adjusted EBITDA
In addition to reporting net earnings (loss) as defined by GAAP, the Company also reports net earnings before interest, income taxes, depreciation, depletion and amortization (adjusted EBITDA) which is a non-GAAP performance measure. Adjusted EBITDA of $507,404 was calculated as follows:
A complete reconciliation of EBITDA to GAAP accounting standards can be found in the SEC Form 10(Q) at .
Management Comments
Mr. Everett "Will" Gray II, CEO and Chairman, said: "I am very pleased with the results of our first full quarter operating as Cross Border Resources. Although the expenses related to the merger inflated our total operating expenses, they were somewhat offset by the increase in revenue that was the result of an increase in production and higher oil prices. Most importantly, with the integration of the two companies into Cross Border Resources substantially complete, the management team at Cross Border has worked tirelessly to provide our shareholders with a platform that offers substantial growth. We are positioned to capitalize on the Bone Spring trend which is one of the newest and hottest plays in the domestic oil and gas industry alongside the development of more traditional producing formations such as the Abo, Yeso, San Andres and Wolfberry/Missberry. Our portfolio of opportunities provides exposure to both low-risk, low-cost, predictable growth along with the more impactful results that come from successful Bone Spring wells." Mr. Gray went on to say: "We continue to seek more non-operated opportunities in the Permian Basin, which remains the most prolific hydrocarbon producing basin in the U.S., and we believe the Company is uniquely positioned to provide our shareholders with both near and long-term growth in production, reserves, revenue and cash flow."
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 U.S. 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