Red Mountain Resources provides operations update
Red Mountain Resources, Inc. (OTCQB: RDMP)(the “Company” or “RMR”), a Dallas-based oil and gas exploration and production company, is providing an operations update for its subsidiaries, Cross Border Resources, Inc. (XBOR.OB) ( "Cross Border"), of which RMR owns approximately 81%, and RMR’s wholly-owned subsidiaries Black Rock Capital, Inc. and RMR Operating, LLC.
2013 Capital Expenditure Program
RMR
| Prospect | Projects* | Net Capex ($MM) |
| Madera | Madera 24-3H (33%WI)Madera 25-2H (30% WI)Madera 25-1 SWD (25% WI) | $4.6 |
| Cowden | Cowden F (100% WI)Cowden D (100% WI) | $1.6 |
CROSS BORDER |
||
| Prospect | Projects* | Net Capex ($MM) |
| Tom Tom | Workover Program10 wells and Infrastructure (75% average WI) | $2.0 |
| Non-operated | Grave Digger 4H (6% WI)Grave Digger 5H (6% WI)Lusk 34 1H (29% WI)Lusk 34 2H (29% WI)Roo 22 1 (3% WI)Bradley 30 4H (4% WI)KSI 22 2H (2% WI)Zircon 2 DA 1H (13% WI)Delhi B St 4 (6% WI)Grave Digger 6H (6% WI)Grave Digger 7H (6% WI)Horseshoe St 1 (3% WI) | $5.7 |
* Working Interest subject to change
The following chart provides a well-by-well update of activity for RMR and Cross Border:
| RMR | ||||||
| WELL NAME | COUNTY | OPERATOR | WELL TYPE | FORMATION | WORKING INTEREST |
STATUS |
| Madera 24 Fed 3H | Lea, NM | RMR Operating | Horizontal | Brushy Canyon | 32% | Drilled. Completion in progress. |
| Madera 25 Fed 1 SWD | Lea, NM | RMR Operating | Disposal | Cherry Canyon | 25% | SWD conversion completed.Surface facilities under construction. |
CROSS BORDER |
||||||
| WELL NAME | COUNTY | OPERATOR | WELL TYPE | FORMATION | WORKING INTEREST |
STATUS |
| Tom Tom Area | Chavez, NM | Cross Border | Vertical Workovers | San Andres | 75% | Commence operations by 04/22/13. Includes 10 well workover program and area wide remediation plan(75% WI is the field average) |
Lusk 34 Fed 1H |
Eddy, NM | Apache | Horizontal | Bone Springs | 29% | Drilled and Completed.Awaiting flowback results |
| Lusk 34 Fed 2H | Eddy, NM | Apache | Horizontal | Bone Springs | 29% | Drilled and Completed.Awaiting flowback results |
| Zircon 2 DA State 1H | Eddy, NM | Mewbourne | Horizontal | Bone Springs | 13% | Drilled. Completion in progress |
| Bradley 30 Fed Com 4H | Eddy, NM | Mewbourne | Horizontal | Bone Springs | 6% | Drilled and Completed.Awaiting flowback results |
| Grave Digger 4H | Eddy, NM | Concho | Horizontal | Yeso | 6% | Drilled and completed.First production January 2013 |
| Grave Digger 5H | Eddy, NM | Concho | Horizontal | Yeso | 6% | Drilled and completed.First production January 2013 |
| Grave Digger 6H | Eddy, NM | Concho | Horizontal | Yeso | 6% | AFE signed 01/08/2013 |
| Grave Digger 7H | Eddy, NM | Concho | Horizontal | Yeso | 6% | AFE signed 01/08/2013 |
| Delhi B State 4 | Eddy, NM | Alamo | Vertical | Queen Grayburg San Andres | 6% | Drilled and Completed.Awaiting flowback results |
| Horseshoe 30 State 1 | Eddy, NM | Lime Rock | Vertical | Yeso | 3% | Drilling |
| Roo 22 State 9 | Eddy, NM | Oxy | Vertical | Yeso | 3% | AFE signed 4/4/2013 |
| Roo 22 State 10 | Eddy, NM | Oxy | Vertical | Yeso | 3% | AFE signed 4/4/2013 |
| KSI 22 Fed 2H | Lea, NM | Devon | Horizontal | Bone Springs | 2% | Drilled. Completion in progress. |
Stephen Evans
Red Mountain Resources, Inc.
214.871.0400
stephen@redmountainresources.com
About Red Mountain Resources
Information about Red Mountain Resources is available on its website, www.redmountainresources.com.
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 risks for the Company can be found in the Company's filings with the U.S. Securities and Exchange Commission.
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