Texas Business reports: Doral Energy Corp. and Pure Energy Group completed a merger, forming Cross Border Resources Inc. of San Antonio.
The Pure Energy Group consisted of Pure Gas Partners II, L.P. (Pure LP) and Pure Energy Group Inc., a wholly owned subsidiary of Pure LP.
The combined entity changed its' name to Cross Border Resources Inc. and will continue to trade under the ticker symbol DRLYD until January 24, 2011, after which the Company expects FINRA to assign the Company a new ticker symbol to reflect the Company's new name.
Cross Border Resources will also maintain Pure Energy's existing credit facility with Texas Capital Bank and will seek to amend the terms of the facility in the near future in order to properly reflect the newly combined assets of the company.
Additionally, the company has relocated its' corporate offices to San Antonio, Texas while maintaining an operational field office in Midland.
To complete the combination of Doral and the Pure Energy Group, Pure LP. transferred all of its oil and gas assets to Pure Energy Group. Doral then acquired Pure Energy Group in exchange for the issuance to Pure LP of 9,981,536 shares of Doral common stock in addition to the assumption of $4,050,000 in subordinated debentures, as well as the assumption of the Pure Energy Group's existing senior debt of $1,600,000 held by Texas Capital Bank.
After closing, Cross Borders Resources has an authorized capital consisting of 36,363,637 shares of common stock, with 12,453,080 shares currently issued and outstanding.
Cross Border Resources owns rights to over 800,000 gross (270,000 net) mineral and lease acres within the state of New Mexico. Over 26,000 of these net acres exist within the Permian Basin.
Unlike most exploration and production entities, 99 percent the company's acreage consists of either owned mineral rights or leases held by production. Current net production to the company is approximately 300 BOEPD (Barrels of Oil Equivalent Per Day).
Current development of Cross Border Resources' acreage is focused on its prospective Bone Spring acreage located in the heart of the first and second Bone Spring play. This play encompasses approximately 4,390 square miles across both New Mexico and Texas. Cross Border Resources 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 having significant footprints within this play.
Additional development is currently underway on the well established Abo, Yeso, and San Andres plays within the company's acreage with the company's other working interest partners, Concho Resources and Cimarex. Cross Border Resources currently has a drilling inventory across these formations with varying non-operated working interests ranging from 3 percent to 90 percent.