We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Cross Border Resources Inc (CE) | USOTC:XBOR | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.000001 | 0.00 | 01:00:00 |
x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended March 31, 2013
|
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from _______________ to _______________
|
Nevada
|
98-0555508
|
(State or Other Jurisdiction of Incorporation or
Organization) |
(I.R.S. Employer Identification No.)
|
75201
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
x
|
PART I. FINANCIAL INFORMATION | |||
1 | |||
3 | |||
4 | |||
Unaudited Notes to Financial Statements | 5 | ||
17 | |||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
||
25 | |||
26 | |||
26 | |||
26 | |||
26 | |||
26 | |||
26 | |||
Item 6.
|
Exhibits
|
|
March 31,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and Cash Equivalents
|
$
|
327,903
|
$
|
241,561
|
||||
Accounts Receivable – Oil and Natural Gas Sales
|
3,760,468
|
3,194,725
|
||||||
Prepaid Expenses & Other Current Assets
|
261,667
|
465,223
|
||||||
Derivative Asset - Current Portion
|
62,910
|
235,825
|
||||||
Current Tax Asset
|
19,600
|
21,737
|
||||||
Total Current Assets
|
4,432,548
|
4,159,071
|
||||||
Oil and Gas Properties
|
51,660,687
|
48,248,378
|
||||||
Less: Accumulated Depletion, Amortization, and Impairment
|
(17,129,734
|
)
|
(16,018,892
|
)
|
||||
Net Oil and Gas Properties
|
34,530,953
|
32,229,486
|
||||||
Other Assets
|
||||||||
Other Property and Equipment, net of Accumulated Depreciation of $81,850 and $77,190 in 2013 and 2012, respectively
|
48,620
|
53,280
|
||||||
Deferred financing costs, net of accumulated amortization of $0 and $113,581 in 2013 and 2012, respectively
|
26,227
|
101,045
|
||||||
Derivative Asset, net of Current Portion
|
17,124
|
54,963
|
||||||
Other Assets
|
54,324
|
54,324
|
||||||
Total Other Assets
|
146,295
|
263,612
|
||||||
TOTAL ASSETS
|
$
|
39,109,796
|
$
|
36,652,169
|
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts Payable - Trade
|
$
|
4,365,991
|
$
|
4,226,547
|
||||
Accounts Payable – Related Party
|
75,752
|
215,495
|
||||||
Interest Payable
|
—
|
130,929
|
||||||
Accrued Expenses & Other Payables
|
63,391
|
61,065
|
||||||
Notes Payable - Current
|
—
|
764,278
|
||||||
Creditors Payable - Current Portion
|
—
|
758,167
|
||||||
Environmental Liability – Current Portion
|
1,145,880
|
860,000
|
||||||
Asset Retirement Obligation – Current Portion
|
539,921
|
452,013
|
||||||
Deferred Tax Liability
|
19,600
|
21,737
|
||||||
Total Current Liabilities
|
6,210,535
|
7,490,231
|
||||||
Non-Current Liabilities
|
||||||||
Asset Retirement Obligations
|
2,822,452
|
2,865,345
|
||||||
Deferred Income Tax Liability
|
—
|
—
|
||||||
Environmental Liability, Net of Current Portion
|
954,120
|
1,240,000
|
||||||
Line of Credit
|
10,900,000
|
8,750,000
|
||||||
Derivative Liability, Net of Current Portion
|
—
|
—
|
||||||
Creditors Payable, Net of Current Portion
|
—
|
594,616
|
||||||
Total Non-Current Liabilities
|
14,676,572
|
13,449,961
|
||||||
Total Liabilities
|
20,887,107
|
20,940,192
|
||||||
Commitments & Contingencies (Note 10)
|
||||||||
Stockholders’ Equity
|
||||||||
Common Stock ($0.001 par value; 99,000,000 shares authorized and 17,336,226 issued and outstanding as of March 31, 2013 and 16,301,946 as of December 31, 2012)
|
17,336
|
16,302
|
||||||
Additional Paid in Capital
|
33,462,473
|
32,770,540
|
||||||
Accumulated Deficit
|
(15,257,120
|
)
|
(17,074,865
|
)
|
||||
Total Stockholders’ Equity
|
18,222,689
|
15,711,977
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
39,109,796
|
$
|
36,652,169
|
|
Three Months Ended March 31,
|
|||||||
|
2013
|
2012
|
||||||
Revenues
|
||||||||
Oil and gas sales
|
$
|
3,332,797
|
$
|
3,573,746
|
||||
Other – deferred revenue
|
—
|
32,479
|
||||||
Total revenues
|
3,332,797
|
3,606,225
|
||||||
Expenses:
|
||||||||
Operating costs
|
450,826
|
736,383
|
||||||
Production taxes
|
134,013
|
160,371
|
||||||
Depreciation, depletion, amortization, and Impairment
|
1,115,502
|
544,117
|
||||||
Accretion expense
|
34,979
|
4,889
|
||||||
General and administrative
|
322,825
|
671,070
|
||||||
Total expense
|
2,058,145
|
2,116,830
|
||||||
Gain from operations
|
1,274,652
|
1,489,395
|
||||||
Other income (expense):
|
||||||||
Bond issuance amortization
|
—
|
(159,553
|
)
|
|||||
Gain (loss) on derivatives
|
(130,192)
|
(473,913)
|
||||||
Gain on settlement of debt
|
858,452
|
—
|
||||||
Interest expense
|
(185,169
|
)
|
(131,758
|
)
|
||||
Miscellaneous other income
|
(—)
|
3,478
|
||||||
Total other income (expense)
|
543,091
|
(761,746)
|
||||||
Income before income taxes
|
1,817,743
|
727,649
|
||||||
Current tax benefit
|
(618,033
|
)
|
(247,816)
|
|||||
Deferred tax expense
|
618,033
|
247,816
|
||||||
Income tax expense
|
—
|
—
|
||||||
Net income
|
$
|
1,817,743
|
$
|
727,649
|
||||
Net income per share:
|
||||||||
Basic
|
$
|
0.11
|
$
|
0.05
|
||||
Fully diluted
|
$
|
0.09
|
$
|
0.04
|
||||
Weighted average shares outstanding:
|
||||||||
Basic
|
16,658,198
|
16,151,946
|
||||||
Fully diluted
|
20,345,698
|
19,839,446
|
1.
|
Organization
|
2.
|
Going Concern
|
3.
|
Summary of Significant Accounting Policies
|
March 31,
|
December 31,
|
|||||||
|
2013
|
2012
|
||||||
Asset retirement obligations at beginning of year
|
$
|
3,317,358
|
$
|
1,186,260
|
||||
Disposal of assets
|
—
|
(88,650)
|
||||||
Settlement of liabilities
|
—
|
(55,915)
|
||||||
Revision of previous estimates
|
—
|
1,797,626
|
||||||
Accretion expense
|
34,979
|
94,556
|
||||||
Additions
|
10,036
|
383,481
|
||||||
Asset retirement obligations at end of period
|
$
|
3,362,373
|
$
|
3,317,358
|
||||
Less: current portion
|
539,921
|
452,013
|
||||||
Long-term portion
|
$
|
2,822,452
|
$
|
2,865,345
|
March 31,
|
December 31,
|
|||||||
|
|
2013
|
2012
|
|||||
Oil and natural gas properties
|
|
$
|
51,660,687
|
|
$
|
34,986,566
|
|
|
Less accumulated depletion and impairment
|
|
|
(17,129,734)
|
|
(9,667,031)
|
|
||
Net oil and natural gas properties capitalized costs
|
|
$
|
34,530,953
|
|
$
|
25,319,535
|
|
March 31,
|
December 31,
|
|||||||
|
|
2013
|
2012
|
|||||
Other property and equipment
|
|
$
|
130,470
|
|
$
|
130,470
|
|
|
Less accumulated depreciation
|
|
|
(81,850)
|
|
(77,190)
|
|
||
Net property and equipment
|
|
$
|
48,260
|
|
$
|
53,280
|
|
Weighted-
|
||||||||||||
average
|
||||||||||||
Weighted-
|
Remaining
|
|||||||||||
average
|
Contractual
|
|||||||||||
Number of
|
Exercise
|
Term
|
||||||||||
Shares
|
Price
|
(years)
|
||||||||||
Outstanding at December 31, 2011
|
87,500 | $ | 4.80 | 5.08 | ||||||||
Granted
|
— | — | — | |||||||||
Cancelled
|
— | — | — | |||||||||
Exercised
|
— | — | — | |||||||||
Forfeited
|
— | — | — | |||||||||
Expired
|
— | — | — | |||||||||
Outstanding and exercisable at December 31, 2012
|
87,500 | 4.80 | 4.08 | |||||||||
Granted
|
— | — | — | |||||||||
Cancelled
|
— | — | — | |||||||||
Exercised
|
— | — | — | |||||||||
Forfeited
|
— | — | — | |||||||||
Expired
|
— | — | — | |||||||||
Outstanding and exercisable at March 31, 2013
|
87,500 | $ | 4.80 | 3.83 |
Closing market price of stock on grant date
|
$ | 3.11 | ||
Risk-free interest rate
|
2.43 | % | ||
Dividend yield
|
0.00 | % | ||
Volatility factor
|
50 | % | ||
Expected life
|
2.5 years
|
Price
|
Volumes
|
Fair Value of Outstanding
Derivative Contracts
(1)
as of
|
||||||||||||||||||||
Transaction
|
Per
|
Per
|
March 31,
|
December
|
||||||||||||||||||
Date
|
Type
(2)
|
Beginning
|
Ending
|
Unit
|
Month
|
2013
|
31, 2012 | |||||||||||||||
March 2011
|
Swap
|
04/01/2011
|
02/28/2013
|
$ | 104.55 | 1,000 | $ | — | $ | 41,019 | ||||||||||||
November 2011
|
Swap
|
12/01/2011
|
11/30/2014
|
$ | 93.50 | 2,000 | — | 44,942 | ||||||||||||||
February 2012
|
Swap
|
03/01/2012
|
02/28/2014
|
$ | 106.50 | 1,000 | — | 204,827 | ||||||||||||||
February 2013
|
Swap
|
03/01/2013
|
11/01/2014
|
$ | 93.50 | 2,000 | (44,936 | ) | — | |||||||||||||
February 2013
|
Swap
|
03/01/2013
|
02/01/2014
|
$ | 106.50 | 1,000 | 124,970 | — | ||||||||||||||
$ | 80,034 | $ | 290,788 |
(1) The fair value of the Company’s outstanding transactions is presented on the balance sheet by counterparty. Currently all of our derivatives are with the same counterparty. The balance is shown as current or long-term based on our estimate of the amounts that will be due in the relevant time periods at currently predicted price levels. Amounts in parentheses indicate liabilities.
|
(2) These crude oil hedges were entered into on a per barrel delivered price basis, using the NYMEX - West Texas Intermediate Index, with settlement for each calendar month occurring following the expiration date, as determined by the contracts.
|
Level 1 –
|
quoted prices for identical assets or liabilities in active markets.
|
Level 2 –
|
quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means.
|
Level 3 –
|
unobservable inputs for the asset or liability.
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1) |
Significant or Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
Fair Value at
March 31, 2013 |
|||||||||||||
Assets:
|
|
|
|
|
||||||||||||
Commodities derivatives
|
$
|
—
|
$
|
80,034
|
$
|
—
|
$
|
80,034
|
||||||||
Total
|
$
|
—
|
$
|
80,034
|
$
|
—
|
$
|
80,034
|
||||||||
Liabilities
|
||||||||||||||||
Environmental liability
|
$
|
—
|
$
|
—
|
$
|
(2,100,000
|
) |
$
|
(2,100,000
|
) | ||||||
Asset retirement obligations (non-recurring)
|
$
|
—
|
$
|
—
|
$
|
(3,362,373
|
) |
$
|
(3,362,373
|
) | ||||||
Total
|
$
|
—
|
$
|
—
|
$
|
(5,462,373
|
) |
$
|
(5,462,373
|
) |
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
(in thousands)
|
Quoted Prices in Active Markets for Identical Assets or Liabilities
(Level 1) |
Significant or Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
Fair Value at
December 31, 2012 |
||||||||||||
Assets:
|
|
|
|
|
||||||||||||
Commodities derivatives
|
$
|
—
|
$
|
290,788
|
$
|
—
|
$
|
290,788
|
||||||||
Total
|
$
|
—
|
$
|
290,788
|
$
|
—
|
$
|
290,788
|
||||||||
Liabilities:
|
||||||||||||||||
Environmental liability
|
$
|
—
|
$
|
—
|
$
|
(2,100,000
|
) |
$
|
(2,100,000
|
) | ||||||
Asset retirement obligations (non-recurring)
|
—
|
—
|
(3,317,358
|
) |
(3,317,358
|
) | ||||||||||
Total
|
$
|
—
|
$
|
—
|
$
|
(5,417,358
|
) |
$
|
(5,417,358
|
) |
Environmental Liability
|
||||
Balance, December 31, 2012
|
$ | 2,100,000 | ||
Acquisitions
|
— | |||
Settlement of liabilities
|
— | |||
Revisions of previous estimates
|
— | |||
Balance, March 31, 2013
|
$ | 2,100,000 |
Three Months Ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(dollars in thousands, except per unit prices)
|
||||||||
Revenue
|
||||||||
Oil and natural gas sales
|
$ | 3,332,797 | $ | 3,606,255 | ||||
Net Production sold
|
||||||||
Oil (Bbl)
|
26,321 | 32,415 | ||||||
Natural gas (Mcf)
|
77,067 | 54,370 | ||||||
Total (Boe)
|
39,166 | 41,477 | ||||||
Total (Boe/d) (1)
|
435 | 456 | ||||||
Average sales prices
|
||||||||
Oil ($/Bbl)
|
$ | 94.64 | $ | 98.46 | ||||
Natural gas ($/Mcf)
|
4.74 | 5.86 | ||||||
Total average price ($/Boe)
|
$ | 72.93 | $ | 84.64 | ||||
Costs and expenses (per Boe)
|
||||||||
Operating costs
|
$ | 11.52 | $ | 16.59 | ||||
Production taxes
|
3.42 | 3.86 | ||||||
Depreciation, depletion, and amortization
|
28.49 | 15.94 | ||||||
Accretion of discount on asset retirement obligation
|
0.89 | 0.12 | ||||||
General and administrative expense
|
8.25 | 16.17 |
|
●
|
our ability to raise additional capital to fund future capital expenditures;
|
|
●
|
our ability to generate sufficient cash flow from operations, borrowings or other sources to enable us to fully develop and produce our oil and natural gas properties;
|
|
●
|
declines or volatility in the prices we receive for our oil and natural gas;
|
|
●
|
general economic conditions, whether internationally, nationally or in the regional and local market areas in which we do business;
|
|
●
|
risks associated with drilling, including completion risks, cost overruns and the drilling of non-economic wells or dry holes;
|
|
●
|
uncertainties associated with estimates of proved oil and natural gas reserves;
|
|
●
|
the presence or recoverability of estimated oil and natural gas reserves and the actual future production rates and associated costs;
|
|
●
|
risks and liabilities associated with acquired companies and properties;
|
|
●
|
risks related to integration of acquired companies and properties;
|
|
●
|
potential defects in title to our properties;
|
|
●
|
cost and availability of drilling rigs, equipment, supplies, personnel and oilfield services;
|
|
●
|
geological concentration of our reserves;
|
|
●
|
environmental or other governmental regulations, including legislation of hydraulic fracture stimulation;
|
|
●
|
our ability to secure firm transportation for oil and natural gas we produce and to sell the oil and natural gas at market prices;
|
|
●
|
exploration and development risks;
|
|
●
|
management’s ability to execute our plans to meet our goals;
|
|
●
|
our ability to retain key members of our management team;
|
|
●
|
weather conditions;
|
|
●
|
actions or inactions of third-party operators of our properties;
|
|
●
|
costs and liabilities associated with environmental, health and safety laws;
|
|
●
|
our ability to find and retain highly skilled personnel;
|
|
●
|
operating hazards attendant to the oil and natural gas business;
|
|
●
|
competition in the oil and natural gas industry; and
|
|
●
|
the other factors discussed under Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Controls and Procedures
|
Exhibit No.
|
Name of Exhibit
|
10.1 |
Senior First Lien Secured Credit Agreement, dated February 5, 2013, among the Company, Red Mountain Resources, Inc., Black Rock Capital, Inc. and RMR Operating, LLC, as borrowers, and Independent Bank, as lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the SEC on February 11, 2013).
|
10.2 |
Inter-Borrower Agreement, dated February 5, 2013, among the Company, Red Mountain Resources, Inc., Black Rock Capital, Inc. and RMR Operating, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed with the SEC on February 11, 2013).
|
10.3 |
Letter Agreement between the Company and Frank James, dated February 28, 2013 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the SEC on March 6, 2013).
|
10.4 |
Letter Agreement between the Company and Ralph Perry, dated February 28, 2013 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed with the SEC on March 6, 2013).
|
31.1
|
|
31.2
|
|
32.1
|
101.INS**
|
XBRL Instance Document
|
101.SCH**
|
XBRL Taxonomy Extension Schema Document
|
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
**
|
As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections.
|
Dated: May 20, 2013 | ||
By: | /s/ Earl M. Sebring | |
Earl M. Sebring | ||
Interim President | ||
By: | /s/ Kenneth S. Lamb | |
Kenneth S. Lamb | ||
Chief Accounting Officer, Secretary, and Treasurer |
1 Year Cross Border Resources (CE) Chart |
1 Month Cross Border Resources (CE) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions