SAN ANTONIO, Texas, March 10, 2011 (GLOBE NEWSWIRE) -- Cross Border Resources, Corp. (OTCBB:XBOR), ("Cross Border" or "the Company"), announced today that is has acquired a 10% non-operated interest in approximately 825 gross acres ("the Tres Amigos Project") targeting the Wolfberry trend in Dawson and Border counties, Texas.
The Tres Amigos Project consists of approximately 825 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 targeted depth for each well is 10,825' focusing on the Wolfberry Trend which encompasses the Sprayberry/Dean, Wolfcamp, Canyon, Strawn, and Mississippian formation. Drilling of the initial well commenced on March 7, 2011 on the Shortes 6, #1 located in Sec 6, Blk 33, T3N of Borden County, Texas and has already reached a drilling depth of 3,242'. The Company intends to fund these activities from existing cash flow and availability under its senior credit facility.
Management Comments
Mr. E.W. Gray II, Chairman and CEO, stated, "Cross Border Resources, in furtherance of its business plan, has diligently focused its efforts to expand its Permian Basin operations into the Wolfberry Trend in West Texas. We are pleased to acquire an inaugural interest in the Tres Amigos Project and look forward to developing this prospective acreage in the immediate future." Mr. Gray further adds, "The Company is currently seeking additional opportunities within the Wolfberry Trend, and others that will complement its already existing Bone Spring and Yeso, Abo acreage. With a strong footprint in the two major emerging resource plays located within the Permian Basin, the Company is positioning itself to ultimately achieve the objective of becoming the recognized name of non-operated assets for the Bone Spring, Wolfberry and other Permian Basin targets."
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 30,000 net mineral and lease acres within Southeastern New Mexico targeting various emerging plays including the 1st & 2nd Bone Spring, and more conventional plays such as the Abo, Yeso, and San Andres as well as an additional 270,000 net acres in Western New Mexico. Additionally, Cross Border Resources is actively participating in drilling opportunities within the Wolfberry Trend located within West Texas.
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.