July 8, 2008
Vancouver, B.C. – Cobra Venture Corporation (“Cobra” or the “Corporation”) (TSX Venture: CBV) is pleased to provide a progress update in respect for the first half of 2008 regarding a number of Cobra’s oil and natural gas properties. Cobra is planning an active capital expenditure program over the balance of the year.
Monthly revenues from production continue from 8 producing wells on Cobra lands in the area. Cobra has negotiated several 2 year leases with companies actively exploring in the area, where the gross overriding royalty ranges from 16% to 18% on all current and future production from the lands. Currently, Cobra has a 2 well commitment and 2 additional development wells planned on existing production lands. Cobra believes there are 26 possible locations within the land base (1 well per quarter section). Cobra holds an overall average of 69% fee simple title on the remaining land base in the Viewfield, Saskatchewan area comprising of 1600 gross acres and 1096 net acres.
Cobra is currently participating in the recompletion of a producing natural gas well at LSD 5-19-48-8W4M in the Edmonton Sands. Cobra has targeted four natural gas zones in which to recomplete the well and an AFE and drilling program are being compiled. This would be the third Edmonton Sands natural gas well in the Pembina program. Cobra has earned a 27% interest in the well and a 40% working interest in 4200 acres, subject to applicable royalties.
Willesden Green, Alberta
Cobra has applied for and has been granted a holding in the Willesden Green area which is anticipated to allow two oil well locations to be drilled immediately adjacent to the Cardium U pool. Cobra is currently surveying the first location. Pending the successful completion of the first well, a second location will be drilled offsetting the first well. Offset wells in the area have exhibited total production rates of 60,000 to 109,000 barrels of oil. Cobra holds a 40% working interest in the 160 acres, subject to applicable royalties.
Cobra has acquired the oil and natural gas rights to the Nisku zone and plans to re-enter an oil well that was abandoned in the 1980’s with historical production of between 20 and 30 bbls/d of light oil. A surface audit of the existing well site is currently proceeding, following which a new licence for re-entry will then be applied for. Cobra holds a 20% working interest in the 160 acres, subject to applicable royalties.
Cobra is preparing to shoot a 3D seismic program as soon as government approval is received. Two quarter sections of land have been acquired with a single offset well having produced 98,000 barrels of oil. It is anticipated that three to four oil locations will be delineated by the 3D seismic data with drilling depths of 900 metres. The offset oil well is located on the northern edge of the property while an abandoned well on the south end previously indicated an oil water contact and production of 755 barrels of oil/day. Cobra has acquired the land sitting between the two wells. Drilling is expected to commence upon interpretation of the 3D seismic. Cobra holds a 50% working interest in the 320 acres, subject to applicable royalties.
A 3D program is being initiated in the Westlock area to evaluate the immediate offset sections to a well producing at approximately 900 mcf/d. The well has produced three-quarters of a bcf with no significant decline in production. It is anticipated that similiar sand will be located on the offset lands. By shooting the 3D seismic, Cobra earns a 20% interest in the lands and has the option to earn an additional 25% interest by drilling any location of its choice. The 3D seismic is currently out to tender and shooting of seismic is anticipated to proceed in the next few months. Offset lands may also be prospective for additional drilling.
Cobra has entered into an agreement to acquire a 20% working interest in lands in the Valhalla area. The section shows several interesting sands that have high natural gas readings on the lithology gas detector during drilling of an old abandoned well. Cobra has identified several natural gas zones which correlate to nearby natural gas wells drilled to the Bluesky-Gething formation that produced between 1 Bcf and 2.5 Bcf in offset wells. Also of interest is the shallower Paddy-Cadotte sand package that produced over 3.8 Bcf in a nearby wellbore. This land acquisition is anticipated to close within the next two weeks. Once acquired, a location has been identified for winter drilling in this year’s budget. Cobra will also have the option to earn an additional 30% interest for a total 50% working interest in the section of land. Initial production rates for the offset Bluesky well were 1.5 mmcf/d, while the Paddy production rates were over 4 mmcf/d for the first year in a well 2 miles to the south of these lands.
Cobra is awaiting results from some Montney horizontal wells drilled in the immediate vicinity of it Inga play. Upon analysis of same the decision to drill a vertical or horizontal Montney natural gas well will be made along with the conclusion of current efforts to increase the land base in the offsetting acreage. Three Montney wells are to be released in July of 2008 and a land sale is taking place prior to that release. Once data on the wells is available Cobra will decide on the depth to be drilled and the type of completion to be used. Cobra is in discussion with other landholders in the area for pooling and participation in a possible Montney well. Cobra holds a 75% working interest in the 640 acres, subject to applicable royalties.
About Cobra Venture Corporation
Cobra Venture Corporation is an emerging energy corporation focused on the acquisition and development of strategic oil and natural gas reserves in Western Canada. Cobra is currently exploring and developing oil and natural gas interests in SE Saskatchewan, Central Alberta and NE British Columbia. Cobra is actively involved in prospect generation, and secures working interests at an early stage through farm out and royalty agreements. Cobra retains key ownership positions in multiple projects and employs this strategy to minimize shareholder dilution and maximize shareholder asset value.
The common shares of the Corporation 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
This press release contains “forward looking statements” within the meaning of applicable Canadian securities legislation. The words “could”, “plan”, “expect”, “estimate”, “anticipate”, “project”, “predict”, “intend”, “may”, “potential”, “believe” and similar expressions and variations thereof are forward-looking statements. These include, but are not limited to, statements respecting anticipated business activities, planned expenditures, corporate strategies, and participation in projects and financing and any other statements that are not historical facts. Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading “Risk Factors” and elsewhere in the Corporation's periodic filings with Canadian securities regulators. Although the Corporation believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The reader is cautioned not to place undue reliance on forward-looking statements. You should carefully review the cautionary statements and risk factors contained in this and other documents that we file from time to time with the Canadian securities regulators.
Barrels of Oil Equivalent
The calculations of barrels of oil equivalent (“boe”) are based on a conversation rate of six thousand cubic feet (“mcf”) of natural gas to one barrel of crude oil. Boe’s may be misleading, particularly if used in isolation. A boe conversion ration of 6mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.