Cobra O&G Inks LOI for Lease Assignment on Utah Oil Sands Prospect
Cobra Oil & Gas entered into a Letter Of Intent (LOI) with Enercor, Inc. (Enercor) to purchase 20% lease assignment upon completion of financing activities. Enercor holds a contract with Exxon Mobil Corporation regarding the conversion of certain of Exxon Mobil's leases covering approximately 26,000 acres of land owned by the BLM (Bureau of Land Management) in the State of Utah purported to hold an estimated potential of up to 1.4 billion barrels of oil in place in its tar sands. That contract provides that the Company use its resources to convert those leases into Combined Hydrocarbon Leases and then it will have the right to exploit the tar sands on those leases at its expense, paying a 1/16 royalty to Exxon Mobil on top of the 8% royalty that is due to the BLM.
Max Pozzoni, President of Cobra Oil & Gas, stated, "We look forward to establishing a working relationship with our new partners, as we aim to work together in what is the largest measured oil sands concentration in America."
The final agreement is expected to be signed on or before September 15th 2009.
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