Cross Border Resources, Inc. (XBOR)

[downsideup]

Thus far... ???

I'd guess it might take them another three to five years to make much of anything in the least bit interesting happen. In that time, if they survive and are smart, if they pinch some pennies pretty hard and demonstrate a knack for timing, they might be able to convert the resources they have identified into enough short term cash that they'd be able to bring the maintenance on the field back up to snuff... which has to happen prior to it being worthwhile for anyone to look at the tertiary... which is where it seems the future potential value is...

The larger problem, as I see it, is the history of "asset shrinkage"... so that you might hang out here for all of those three to five years, drifting... either with no news at all (best case)... or else with a PR smoke and mirrors campaign funded by dilution (worst case)... and, in the end, see the "asset" minus the value of current "primary" recovery end up being owned by someone else who has the $$$, horsepower and skills to make the tertiary happen. Still have questions about the LAST deal... obviously... that need to be dissected before you can properly "risk" any of that.

Maybe they have more cash than I think they do... and thus still might have some potential to come up with some other "plan"... with some bit of some larger potential inherent in it. As it is, I seriously question their ability, based only on the current asset, to have the project fund itself through to completion of the work that needs to be done just to get the "primary" recovery... and then, it doesn't appear to have anything like the kind of potential that would be required to fund the tertiary ?

If I've got any of that wrong... I'll be happy to look at the numbers anyone else comes up with... showing that they can get even close... or, even close to proving that mine "might" be off... ???

So... what will it cost them to drill and operate 50 new wells... where will that $$$ come from, and what will be the cost of bringing the long list of those dead wells that are not viable now... back into shape good enough that they might pass a state inspection ? Looks like that is the "bottom line" requirement ?
If they succeeded in all of that... then... what is the likely "pay off"... after costs ?

Still looks to me, at best, like a "kicking the can down the road" play... intending only to try to "survive" and hold onto their assets, while calling that a success that is good enough... at least until oil prices move high enough to make anything else feasible.

The plan it seems they have... still requires a fair amount of management: focus, skills, experience... which I've not seen demonstrated in their recent history. It appears they do have the requisite patience. If the rest were there in their resumes I assume we'd have heard that by now ? I do still need to see the Q to see what the $$$ in hand now might enable... before making any stab at projecting some set of expectations...

If they don't have enough $$$ to let them also play in doing something else that, with luck, might generate funds required for this project... then I think investors might want to exercise patience at least equal to that required of management.

JMHO