Cobra Completes Purchase of Interest in Utah Oil Sands Project
Cobra Oil & Gas has finalized the deal to purchase a 40% working interest (WI) on the Utah Oil Sands Project in Uintah County, Utah from Enercor, Inc. (Enercor). These leases comprise 33,632 acres in entirety and total 23 Federal Leases, approximately 15% of the entire P.R. Spring deposit. It is estimated the P.R. Spring deposit to contain 4.0 to 4.5 billion barrels of oil on Cobra's leases, according to the US Bureau of Mines.
"We are excited to have this deal finalized, raising our pre-determined working interest from 20% to 40%," stated Max Pozzoni, President of Cobra Oil & Gas. "We look forward to continuing a working relationship with Enercor on a prospect with massive potential in an untapped area."
The contract stipulates that Cobra will pay $4,000,000 in common stock on the initial closing date along with $100,000 in cash. Each 30 days thereafter Cobra will be required to pay $100,000 in cash until the obligated payments have been covered. The total obligated and option of payments is $5,000,000 for the entire 40% WI.
The closing date is 10 days hereof a subject to notification of satisfaction of the conditions within the contract being met.