Cross Border Resources, the oil and gas exploration firm with a robust footprint in the Permian Basin, owning some 31k net acres, and which has another 800k gross acres in emerging plays in the State of New Mexico, offered an updated report today on operations at the Company’s Concho Resources Leo 3 Fed Com #1H in Chaves County, NM.
The Com #1H is a horizontal well targeting the basal Abo/Wolfcamp and has reached a total depth of some 13k feet. With a 6.25% working interest in the well (4.69% net royalty interest), XBOR is very pleased to see good oil and gas levels coming back from Com #1H in the mud log data.
Chairman and CEO of XBOR, E. Will Gray II, underscored the 200-250 MBOE range for total recovery typical in Abo wells and pointed out that the Company holds identical interests in three potential offsets to Com #1H. The Company listed all four wells in the last reserve report as possible reserves and with a such sizeable basket of other holdings in nearby Eddy, Lea, and Roosevelt counties, XBOR has become a rising production star in the region.
Gray expressed his great pleasure at the success of operations in New Mexico as a whole, pointing to the progress made with San Andres, Yeso and especially Abo targets as leading indicators of XBOR’s ability to tackle the massive acreage within the Company’s purview. Gray explained that the Company’s work in the Bone Spring play, which while unconventional, holds great promise, really rounds out XBOR’s holdings in the region, making for an attractive portfolio emphasizing non-operated opportunities.
Gray concluded by pointing out the two direct offsets to the Company’s acreage being run by Cimarex, which are now in production at an average output rate of 369 bopd, with 242 mcfd of gas and 230 bopd, with 163 mcfd respectively. Expectations and confidence are quite high for the Com #1H and its offsets moving forward and XBOR anticipates offerings another update as soon as possible regarding this and other ongoing developments in New Mexico.
For more information, or to find out more about Cross Border Resources, Inc., please visit the Company’s website at: www.xbres.com