Cross Border Resources, Inc. (XBOR)

[Ed Ajootian]

This company is attempting to apply the non-operated model to the Permian Basin. The stigma that formerly applied to this model has been blown away by the dramatic successes from its utilization by the likes of Northern Oil & Gas (NOG) and Voyager Oil & Gas (VOG). The common theme with those companies seems to be, find a strong resource play and align yourself with top flight operators.

XBOR has found several great resource plays up in the Delaware Basin area (i.e. southeastern NM & northern TX). The feature article in the March Oil & Gas Investor discussed the main plays up there, primarily the Bone Spring plays, see copy of that article at http://www.investorvillage.com/smbd.asp?mb=4288&mn=70345&pt=msg&mid=10383757 . Also see a copy of a report on the Bone Spring put out last October by Wood McKenzie at http://www.xbres.com/documents/doralbonespring.pdf . They also farmed into a great Wolfberry project, down near Midland, where 3 wells are expected to be completed next month.

XBOR is working with some great operators, viz., Cimarex, Concho, and Mewbourne (a large privately held operator). See recent XBOR PR for latest drilling results and plans. XBOR does not have the funds in hand to finance this torrent of drilling that has been scheduled for the coming months, but I have a high degree of confidence that they will be able to raise the required funds for this without having to dilute current shareholders too much.

The stock is very thinly traded but the company is taking steps to get its story out in an effort to drum up interest in its stock. They sponsored a breakfast table at IPAA NYC and they are presenting at the monthly luncheon for Energy Prospectus Group this Thursday 4/21. EPG is the brainchild of Dan Steffens, a name many of you may recall as being the moderator of a former Yahoo group that shared the EPG name. Dan, with the able tech help of Kim Tran, has put together a great website, which I strongly recommend you take a look at, see www.energyprospectus.com . This group is much more than just another internet blog site or newsletter. As evidence of this, they offer monthly luncheons in Houston, which are webcast, for members only. Membership costs are quite nominal given the value of the benefits provided, see their website for more info.

For this one time, as a favor to me his good buddy <g>, Dan has been kind enough to allow anyone, including nonmembers, to view the XBOR webcast this Thursday, from 11:50 to 1:30 pm CDT. To register for the webcast either go to

https://www3.gotomeeting.com/register/855698638
or send an email to Kim Tran at [e-mail] .

I realize that many of you would probably not run right out and buy XBOR today due to its low trading volume, but IMO the stock merits at least being put on your radar screen, for consideration of purchasing at such time when the volume increases. I believe once they raise some cash and start putting out some more definitive drilling results the volume will pick up. The trading float is currently very low but most of the shares that are currently restricted from trading will become free-trading in early July.