azz's operator big star buys acreage

US junior Cross Border Resources has agreed to sell its Permian assets in West Texas to Big Star Oil & Gas for $2.25 million in cash.
The deal includes all of Cross Border's Wolfberry assets in the "four corners" area near the intersection of Dawson, Howard, Martin and Borden counties.

Midland-based Big Star has been looking to add to its Wolfberry acreage in the four corners area. The company is currently running two rigs and plans to drill and hydraulically fracture at least 35 wells in the area, each to a depth of over 10,000 feet, according to its website.

For Cross Border, interim president Earl Sebring said the deal will allow the San Antonio-based company to focus attention on its producing properties in New Mexico.

In New Mexico, the company is "addressing problems" and is planning to do "substantial work" in the Tom Tom/Tomahawk area, Sebring said in a statement.

"Cross Border management is in the process of submitting a plan to the Bureau of Land Management to remedy the agency's concerns related to prior operator neglect in the Tom Tom/Tomahawk area," he said.

"While the work is complex, we believe this field has the potential for infill drilling and workovers in existing wellbores. The potential for water flood will also be evaluated, which could significantly improve production."

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