Cobra Venture Expands Bakken Oil Play
Cobra has entered into a second farm out arrangement with Acero Energy of Calgary, Alberta, whereby Acero has agreed to drill a test well on Cobra held lands in the Viewfield area, to test the Frobisher/Bakken formations, on or before December 1, 2007.
In addition, Acero has advised Cobra of its intention to drill 2 new development wells on Cobra lands, in the Viewfield area. Under the terms of all agreements with Acero, Cobra receives a 16% gross override and no deduction royalty on all production.
In the Viewfield area, Cobra has interests in over 2000 gross acres of which, Acero has 1120 gross acres under exploration and development agreements. Cobra's overall gross acreage will allow as many as 44 potential wells to be drilled under the current 40-acre well spacing guidelines.
On an annualized basis Cobra's net production income from the Viewfield assets is currently $1 million dollars. This net production income is anticipated to increase in the third quarter as a previously drilled well is brought into production. Positive results from the current drilling program are anticipated to result in an increase in net production income as early as the first quarter of 2008.
Cobra is an oil and natural gas production and exploration corporation currently producing, exploring and developing oil and natural gas interests in Pembina, Alberta, NE British Columbia and SE Saskatchewan. Cobra is actively involved in prospect generation, and secures working interests at an early stage. Through farm out and royalty agreements Cobra joint ventures with third parties to operate and develop the prospects. Cobra retains key ownership positions in multiple projects and Cobra employs this strategy to minimize shareholder dilution and maximize shareholder asset value.