Cross Border Resources, the Permian Basin-focused oil and gas explorer with some 800k gross (300k net) mineral/lease acres in New Mexico/West Texas across various emerging plays (31k net acres in the Permian), has released new reserve estimates showing a solid jump to some 1.75 million BOE (78% crude, 22% gas), bringing the PV-10 Value of its proved category of reserves to $28.1M.
The new PV-10 (present value of estimated future reserve revenue, net estimated direct expense, at an annual discount rate of 10%), drawn from adjusted oil and gas prices (an increase for oil of $21.15/bbl and an increase for gas of $0.16/mcf), offers extremely positive momentum for XBOR’s Permian campaign.
This is big news for the San Antonio-based XBOR, whose tactical approach to regional development focuses on choice, non-operated targets and proven operators. Joe C. Neal & Associates, the well-known independent engineering firm over in the Permian Mecca, Midland, Texas prepared the estimates via standard SEC pricing methodology. Results look very good, with combined proved/probable/possible categories totaling a cool $42.2M PV-10, at some 2.57M BOE.
Chairman and CEO of XBOR, Everett “Will” Gray II, called the new estimates a confirmation of the Company’s growth strategy in the Permian, projecting “significant growth potential in increased production.” Gray pointed to the projected 2011 capital expenditures, noting that a significant amount were directed towards probable/possible reserves and reassured shareholders that management was laser-focused on conversion of these categories into “producing assets”.
XBOR is in a strong acreage position with some 99% of all holdings consisting of either owned mineral rights or leases held by production. Major items like the roughly 4,390 sq mi Bone Spring play are added to the force of working interest partners who also have substantial footprints in the various, non-operated WI held by XBOR in Eddy/Lea counties, NM resulting in an impressive portfolio position in this thriving domestic energy goldmine.
Cross Border Resources is offering a powerful platform to investors looking to capitalize on the future of the Permian Basin, as the Company strives to become the premier non-operated working interest owner in the various emerging plays of this massive resource base.
For more details on the new estimates, or on Cross Border Resources, Inc. please visit the Company’s website at: www.xbres.com
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