Attached files
| file | filename |
|---|---|
| 8-K - CROSS BORDER RESOURCES, INC. | v210310_8k.htm |
| EX-10.1 - CROSS BORDER RESOURCES, INC. | v210310_ex10-1.htm |
CROSS
BORDER RESOURCES, CORP. ANNOUNCES NEW
AMENDED
$25,000,000 CREDIT FACILITY
San
Antonio, Texas –February 1, 2011 – Cross Border Resources, Corp.
(OTCBB:XBOR), (“Cross Border” or “the Company”), today announced it
has executed, amended and restated its Credit Facility with Texas Capital Bank,
Dallas, Texas (“Bank”) providing for up to US $25,000,000 in development
financing for its oil and gas properties located in Southeastern New Mexico. The
newly amended Credit Facility provides an initial borrowing base of US $4.0
million, an increase of $1.4 million. In addition, the facility
provides for a new maximum borrowing allowance of up to $25 million, subject to
certain approvals required under the Company’s Senior Subordinated Bonds. The
new facility, which will have a three year term, bears interest at rate of the
Bank’s Base Rate plus 0.50%, but no less than 4.00 percent per
annum. In addition to the newly amended Credit Facility, the Company
will enter into Hedging Agreements with an approved counterparty for hedges of a
portion of its share of projected production. The Company will hedge
approximately 1,000 net barrels of crude oil per month for two years at a strike
price to be determined in the near future.
Proceeds
of the Credit Facility may be used to provide working capital, to fund oil and
gas property acquisitions, developmental drilling expenditures and to fund other
expenditures for general corporate purposes. The Credit Facility contains
certain mandatory covenants, including minimum current ratio and cash flow
requirements, limitations on indebtedness, limitations on dispositions, hedging
limitations, and other standard business operating covenants.
The
Company's Chairman and CEO, E. Will Gray II stated "Management has worked
diligently with Texas Capital Bank during our merger process to amend the terms
of Pure’s existing Credit Facility to better reflect Cross Border’s current
asset base. We are pleased with the Bank’s commitment to Cross Border
Resources as one of our strategic financial partners. The newly amended
Credit Facility will allow the Company to maintain its active drilling
schedule in the Bone Spring as well as other conventional targets located
within Southeastern New Mexico. Management expects to disseminate
information on our current drilling program as results are generated by our
working interest partners.”
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, and San
Andres.
Contacts:
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
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.