Cross Border Resources, Inc. (XBOR)

[Ed Ajootian]

Bobw, Wolfberry wells are vertical not horizontal, see e.g. last column of slide 8 of the XBOR presentation.

The name "Wolfberry" gets its name because folks are drilling a single, fairly cheap, vertical hole for something like $2.5M completed, and they are getting at least 2 bites at the apple -- a shot at the Spraberry and a shot at the Wolfcamp. Some (as what I believe what happened here) also go even deeper shooting for the Fuselman, but what happened here is that that zone was water saturated. So the solution was to set a bridge plug at right around the top of that zone but below the other goodies found by the logs.

I'm not looking for much of a ramp up in production for 3Q since they didn't get this problem solved until the quarter was almost over. So they are nearly certain to come up short to RedChip's call for 325 bopd average production for the quarter. But hopefully by the time they announce 3Q (i.e. mid-November) they would be in a position to report some new wells coming online after the end of 3Q.