Cross Border Resources Inc Announces Positive Well Results on the SE LUSK 33 #3H Well
February 07, 2012 at 05:15 pm IST
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Cross Border Resources Inc. announced positive well results on the SE LUSK 33 #3H well, targeting the 2nd Bone Spring, and reported its oil focused strategy led to a significant increase in value to its year-end 2011 proved reserves. The company owns a 37.5% working interest and 29.1% net revenue interest in the Cimarex Energy Co. operated SE LUSK 33 #3H well that was successfully completed on January 24, 2012. The well recorded a peak 24-hour production rate of 1,173 barrels of oil equivalent per day (BOEPD), or 997 barrels of oil and 1,057,000 cubic feet of gas. The well has been producing for two weeks and is still cleaning up and flowing back the frac load at over 500 psi on a 34/64 choke, without the aid of artificial lift. Additionally, the company and Cimarex have reached total depth on the SE LUSK 33 Fed #2H, the immediate offset to the #3H well, and are now awaiting completion. Cross Border has a 37.5% working interest in this 2nd Bone Spring test with Cimarex acting as the operator. The company's estimated proved reserves at December 31, 2011, were 2.1 million barrels of oil equivalent (MMBOE) with an associated PV-10 value for its proved category of approximately $44.8 million. This represents a 261% increase from the company's previous PV-10 of $17.1 million as of the period ending July 31, 2010. The combined Proved, Probable and Possible reserves are estimated at 2.9 MMBOE with a combined resource PV-10 value of approximately $56.6 million. The reserves estimates were provided by Joe C. Neal & Associates, a third-party reservoir engineering firm based in Midland, Texas.
Cross Border Resources, Inc. an independent natural gas and oil company engaged in the exploration, development, exploitation, and acquisition of natural gas and oil reserves in North America. The Company primarily focuses on the area of the State of New Mexico, principally southeastern New Mexico. As of June 30, 2014, the Company owned over 865,893 gross (approximately 293,843 net) mineral and lease acres in New Mexico. The Companyâs producing oil and natural gas properties are concentrated in the Permian Basin. The Companyâs main area of focus is the Tom Tom/Tomahawk Prospect, where the Company would continue work on the field alongside the execution of its remediation plan. A significant majority of its acreage consists of either owned mineral rights or leases held by production.