SAN ANTONIO, April 24, 2012 /PRNewswire/ -- Cross Border
Resources, Inc. (OTCQX: XBOR) ("Cross Border" or "the Company"), a
San Antonio-based oil and gas
exploration and production company, and Red Mountain Resources,
Inc. ("Red Mountain") (OTC BB: RDMP.OB), a growth-oriented energy
company engaged in the acquisition, development, and exploration of
oil and natural gas properties, announced today that they have
reached a settlement agreement pursuant to which Red Mountain will
withdraw its complaint filed with the District Court for Clark
County, Nevada, and cause a dismissal of such lawsuit with
prejudice.
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As part of the settlement agreement, Everett Willard Gray II, Lawrence J. Risley, and Brad E. Heidelberg will resign from the Board of
Directors of Cross Border. Richard F.
LaRoche, Jr. and John W.
Hawkins will remain as board members, and the Board will
appoint three of Red Mountain's director nominees to fill the three
vacancies. These new Board members will be Alan W. Barksdale, Randell K. Ford, and Paul N. Vassilakos. Messrs. Ford,
Vassilakos, LaRoche and Hawkins are expected to be independent
directors going forward. Prior to these resignations from and
appointments to the Board, Cross Border will file an Information
Statement with the Securities and Exchange Commission (the "SEC")
and will mail the Information Statement to each stockholder of
Cross Border.
Also as part of the settlement agreement, Everett Willard Gray II, Chairman and CEO of
Cross Border, and Larry Risley,
President and Chief Operating Officer of Cross Border, will resign
from their positions effective May
31, 2012. It is anticipated that the newly constituted
Board of Cross Border will appoint a new Chief Executive Officer
simultaneous with the effectiveness of such resignations.
"We are pleased to have expeditiously resolved this matter
before further time and financial resources were spent," stated
Richard F. LaRoche, Jr., Cross
Border's lead independent director.
Alan W. Barksdale, newly
appointed Chairman of Cross Border Resources, added, "The
reconstituted Board will address over the next few weeks a revised
business strategy that will allow for a clear roadmap in order to
unlock the value of the Company's assets as well as update
shareholders on current operations. Cross Border's newly
formed Board of Directors will be fully aligned with shareholders
in its efforts to maximize shareholder value and will immediately
work to implement a plan that the new directors believe is
imperative to unlock the potential of Cross Border's oil and gas
assets."
Simultaneously herewith, Cross Border and Red Mountain are
filing Current Reports on Form 8-K with the SEC attaching the
Settlement Agreement in its entirety.
CROSS BORDER URGES INVESTORS TO READ THE INFORMATION STATEMENT
AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH
THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. Stockholders will be able to obtain,
free of charge, copies of the Information Statement and any other
documents filed by the Company with the SEC at the SEC's website at
http://www.sec.gov/ and at the Company's website at
http://www.xbres.com/.
About Cross Border Resources
Cross Border Resources is an oil and gas exploration company,
headquartered in
San Antonio,
Texas, focusing on non-operated opportunities with proven
operators within the Permian Basin.
Information about the Company is available on its website,
http://www.xbres.com/.
About Red Mountain Resources
Red Mountain Resources, Inc. is a growth-oriented, energy
company engaged in the acquisition, development and exploration of
oil and natural gas properties. The company's operations are
focused in the Permian Basin of West
Texas and Southeast New
Mexico and the onshore Gulf Coast of Texas. RMR
combines an experienced management and consulting team with a
fully-integrated strategy for growth and development. RMR
intends to grow production and reserves through development and
exploration activities on its existing properties and through
acquisitions that meet its long-term objectives for
production. For more information, please go to
www.RedMountainResources.com.
Forward-Looking Statements
This news release contains forward-looking statements that are not
historical facts and are subject to risks and uncertainties.
Forward-looking statements are based on current facts and analyses
and other information that are based on forecasts of future
results, estimates of amounts not yet determined, and assumptions
of management. Forward-looking statements are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "aims",
"potential", "goal", "objective", "prospective", and similar
expressions or that events or conditions "will", "would", "may",
"can", "could" or "should" occur. Information concerning oil or
natural gas reserve estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what
might be found to be present when and if a project is actually
developed.
Actual results may differ materially from those currently
anticipated due to a number of factors beyond the reasonable
control of the Company. It is important to note that actual
outcomes and the Company's actual results could differ materially
from those in such forward-looking statements. Factors that could
cause actual results to differ materially include the breach of or
failure to consummate the transaction contemplated by the
settlement agreement entered into with Red Mountain, the
misinterpretation of data, inaccurate estimates of oil and natural
gas reserves, the uncertainty of the requirements demanded by
environmental agencies, the Company's ability to raise financing
for operations, breach by parties with whom the Company has
contracted, inability to maintain qualified employees or
consultants because of compensation or other issues, competition
for equipment, inability to obtain drilling permits, potential
delays or obstacles in drilling operations and interpreting data,
the likelihood that no commercial quantities of oil or gas are
found or recoverable, and our ability to participate in the
exploration of, successful completion of development programs on
all aforementioned prospects and leases and general economic and
business conditions. Additional information risks for the Company
can be found in the Company's filings with the SEC.
Contacts:
Investor Relations Contact for Company:
Jon Cunningham
RedChip Companies, Inc.
Tel: +1-800-733-2447, Ext. 107
jon@redchip.com
http://www.redchip.com
Investor Relations Contact for Red Mountain:
Nevin Reilly
Sloane & Company
212-446-1893
nreilly@sloanepr.com
Company Contact:
Cross Border Resources, Inc.
Nancy S. Stephenson
nancys@xbres.com
SOURCE Cross Border Resources, Inc.