Subsequent Events

9 Months Ended

Sep. 30, 2014

12 – Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued and filed with the U.S. Securities and Exchange Commission.

On April 21, 2015, the Company entered into a purchase and sale agreement (the “PSA”) with RMR Operating, LLC (“RMR Operating”), Black Rock Capital, Inc. (“Black Rock”), RMR KS Holdings, LLC (“RMR KS”) and Black Shale Minerals, LLC (“Buyer”). Each of the Company, RMR Operating, Black Rock and RMR KS is an operating subsidiary (together, the “Operating Subsidiaries”) of Red Mountain Resources, Inc. (“RMR,” and together with the Operating Subsidiaries, the “Companies”).

Pursuant to the PSA the Operating Subsidiaries sold, assigned, transferred and conveyed to Buyer, effective as of April 1, 2015, fifty percent (50%) of their right, title, and interest in and to certain oil and natural gas assets and properties (the “Assets”), including their oil and natural gas leasehold interests, wells, contracts, and oil and natural gas produced after April 1, 2015 (the “Sale”). The aggregate purchase price for the Assets under the PSA was $25.0 million, subject to certain adjustments, including post-closing adjustments for any title or environmental benefits or title or environmental defects resulting from Buyer’s title and environmental reviews.

As of September 30, 2014, the carrying values of the Company’s ownership in half of its interest in its oil and gas properties, mineral interests, and leaseholds were included in assets and liabilities held for sale in the accompanying balance sheet and were comprised of the following (the Company had no assets held for sale as of September 30, 2013):

	September 30,
	2014
Composition of assets included in assets held for sale:
Oil and Gas Properties, Net	$	14,951,977
Composition of liabilities included in liabilities held for sale:
Asset Retirement Obligations	$	1,576,522

Non-current assets and liabilities held for sale are presented in current assets and current liabilities, respectively, within the balance sheet. Assets held for sale are not depreciated, depleted or amortized and they are measured at the lower of the fair value less costs to sell and their carrying amount. Comparative period balance sheets are not restated.

CROSS BORDER RESOURCES, INC. 10-Q