June 20, 2007
Vancouver, British Columbia – Cobra Venture Corporation ("Cobra") (TSX Venture : CBV)
Cobra is pleased to announce the successful drilling of the third well in the Viewfield area, in Southeast Saskatchewan. The well has been cased and will be completed as a Bakken light oil well. It is the first well in the exploration program to be completed in the Bakken formation and Cobra will receive a 16% GORR on the new well based on 50% of production. Production is expected to commence in early July, 2007 at rates still to be determined.
Cobra has achieved 100% drilling success in its first three wells in the Viewfield area under a farm-out agreement with Acero Energy Inc. Due to the successful drilling in both the Frobisher and Bakken formations, the joint venture partners have identified up to an additional 8 locations for horizontal drilling. The fourth Viewfield well targeting the Bakken formation has been surveyed and is slated for drilling in mid-July, 2007.
At Pembina, Alberta, Cobra and its joint venture partner have drilled, cased, and completed four wells with three producing as Belly River and Edmonton Sand natural gas wells and one as a potential Belly River oil well. The new wells are expected to add incremental production of approximately 30 boepd. Cobra has earned a 40% working interest in 6 sections of land in the Pembina area, where up to 8 to 10 additional drilling locations have been identified.
Management of Cobra is very pleased with its drilling success to-date in 2007 and expects continued production growth as the new wells are brought on-stream. The success of the initial drilling programs has provided the foundation for an expanded drilling program throughout the remainder of 2007 and into 2008.
Cobra currently has no debt, a low cost structure, and significant cash flow leverage with rising production. Management anticipates a significant increase in reserves, production, and meaningful cash flow during 2007.
BOE’s may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead.
The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of economic conditions in Canada, industry conditions, increased competition, the lack of available qualified personnel or management, equipment failures, fluctuations in product prices and in foreign exchange or interest rates and stock market volatility. Cobra’s actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be give that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Cobra will derive therefrom.
About Cobra Venture Corporation
Cobra is an oil and natural gas production and exploration company 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.
Common shares of Cobra trade on the TSX Venture Exchange under the symbol CBV.
FOR FURTHER INFORMATION PLEASE CONTACT:
|Cobra Venture Corporation
Daniel B. Evans
President and CEO
Canadian Toll Free (888) 888-9122
US Toll Free (888) 888-9123
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