2011-03-11-2011-03-10

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
0MM
Description

Acquired 10% WI in approximately 825 gross acres targeting TX Wolfberry trend in Dawson and Border counties.

Cross Border Resources Corp. (OTCBB: XBOR) has acquired a 10% nonoperated interest in approximately 825 gross acres (the Tres Amigos Project) targeting the Wolfberry trend in Dawson and Border counties, Texas. The purchase price was not disclosed.

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 eight 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 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.

E.W. Gray II, chairman and CEO, says, "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."

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."