Cobra Oil & Gas Updates on Starbuck Prospect's 260 BCF Potential

Cobra Oil & Gas Company has provided a property update on its Starbuck Prospects, located within the Willston Basin in Valley County, Montana. The leases comprise 82,000 acres within multiple zone shallow gas trends (Judith River and Eagle) and multiple zone deeper oil trends (primarily Mission Canyon, Lodgepole and Bakken).

Property Overview

The USGS released a report in April 2008 stating the US portion of the Bakken contains up to 4.3 billion barrels of recoverable oil (BBO), and up to 3.0 trillion cubic feet of natural gas (TCF). On Cobra's Starbuck Prospect within the Bakken formation, geological analysis has estimated the potential for the shallow gas structures could be 260 BCF of natural gas. At $4/MCF this could translate to over $1 billion, if the gas was fully realized.

Cobra's Starbuck Prospect has many similarities to the major producing Tiger Ridge field, which has produced over 300 BCF to date. The Tiger Ridge field lies in close proximity to the Starbuck prospect and also encompasses a comparable size. "Having analog fields with similar characteristics and substantial production allow us to see the potential of our Starbuck Prospect in Montana," said Cobra's President, Max Pozzoni. "These shallow gas trends offer the possibility of short term production and cash flow."

Neighboring Cobra's Starbuck Prospect and within the same formation is the Elm Coulee field in Richland County, estimated by the Energy Information Administration as the 16th largest onshore, Lower-48 field in the US ranked by liquid proved reserves. Production in the Elm Coulee field has more than doubled the oil output of the State of Montana.

Cobra currently has an option to buy a 50% interest, with 100% working interest (WI) and approximately 80% net revenue interest (NRI) on 82,000 net acres in the Willston Basin, Valley County, Montana.