April 21: Cross Border Resources (XBOR)

[dan_s]

XBOR will be hosting our next luncheon at the HESS Club. Their goals are to increase market awareness and also to spread the word that they are seeking joint venture partners to help develop their acreage. Based on my discussions with management and the oily nature of their assets, IMO this is a micro-cap worth taking a hard look at. I encourage you to attend the luncheon our listen to the webcast. - Dan

Cross Border Resources, Inc. (XBOR.OB) is an oil and gas exploration company resulting from the business combination of Doral Energy Corp and Pure Energy, effective January 3, 2011. Cross Border Resources, Inc. assets consist of over 800,000 gross (approximately 300,000 net) mineral and lease acres within the state of New Mexico. Over 31,000 of these net acres exist within the prolific Permian Basin. Unlike most E&P organizations, 99% of their acreage consists of either owned mineral rights or leases held by production.

Current development of Cross Border Resources Inc.’s acreage is focused on their prospective Bone Spring acreage. This play encompasses approximately 4,390 square miles across both New Mexico and Texas. Cross Border currently owns varying, non-operated working interest in both Eddy and Lea counties, New Mexico, along with their working interest partners that include Cimarex, Apache, and Mewbourne, who all have significant footprints within this play.

Additional development is currently underway on their Abo, Yeso, and San Andres acreage with Concho Resources and Sweet 16 Growth Portfolio member Cimarex (XEC). Cross Border Resources, Inc. currently has a robust drilling inventory across these formations with varying non-operated working interests ranging from 3%-90%.

The company’s experienced management team has worked diligently to provide Cross Border Resources, Inc. shareholders a platform to capitalize on the current Bone Spring trend and will seek additional non-operated opportunities within the Permian Basin that will produce accretive value to shareholders. Ultimately, Cross Border Resources, Inc. will seek to become the premier non-operated working interest owner in the various emerging plays within the Permian Basin, in addition to participating in more conventional plays to provide a balanced oil and gas portfolio to shareholders.

[dan_s]

Here is the company website: http://www.xbres.com/

[dan_s]

Like all micro-caps this one has more risk than most stocks I recommend. However, I'm very bullish on what Sweet 16 member Cimarex (XEC) has going in the Bone Spring Play in SE New Mexico and XBOR is in a joint venture with XEC. XBOR has a ~28% working interest in the JV with XEC.

You are going to hear a lot about the Bone Spring Play this year. Cimarex, Devon, Chesapeake, Anadarko, EOG, Apache and Concho are all very active in the play.

[ajootian]

Great to see you get this company in for a luncheon Dan. I believe they have a great play going and although I realize that they have an uphill battle to get some financing I believe their story is so compelling that they should be able to get money without causing too much dilution to their upside.

Can't wait until the link to the recorded webinar is made available, I had a previous commitment which prevented me from seeing the webinar live. Just curious, how many folks showed up and can you share any of the post-talk discussion/feedback?

[dan_s]

We had 81 at the luncheon. There was good Q&A after the presentation. It was all recorded on the webcast which Kim should have up on the website soon.

Our next lunchoen is now set for Tuesday, May 10. NiMin Energy is hosting and we are expecting over 100 attendees.

Both Members and Guests are asked to register on the website.