DRILLING RESULTS UPDATE
Vancouver, British Columbia – Cobra Venture Corporation . ("Cobra") (TSX Venture Exchange: CBV)
Cobra is pleased to announce that the second well of a three well drilling program in the Viewfield Area of South East Saskatchewan, has been cased and completed as a producing oil well. Production rates for the well, completed in early February, have averaged 250 bbls per day, of sweet 30.3 degree API gravity oil with negligible water. Cobra owns 25% of the freehold mineral rights on the lands where this second well was drilled and has retained a non-convertible sixteen percent (16%) gross overriding royalty net of crown obligations.
Cobra anticipates that a substantial increase in royalty revenues could be experienced from the Viewfield area where as many as 16 additional wells could be drilled on Cobra's remaining land base. Cobra has begun receiving revenue from the production of the first well, completed and announced December 2006, on lands where Cobra holds 100% of the freehold mineral rights and has retained a non-convertible sixteen percent (16%) gross overriding royalty.
The third well of the program is currently licensed on 640 acres of crown lands where Cobra holds a 50% ownership of the mineral rights and has retained a non-convertible sixteen percent (16%) gross overriding royalty. It is anticipated that drilling operations will commence after spring breakup in May 2007. Management of Cobra is pleased with the initial results achieved through the farm out agreement announced October 19, 2006 with Acero Energy Inc. of Calgary. Cobra looks forward to continued success on the remaining earning well and expects that additional wells will continue to be drilled on the balance of the Cobra lands throughout 2007.
Cobra's existing southeast Saskatchewan lands continue to produce monthly revenue on a royalty basis from 4 existing wells drilled in 2004-2005. Cobra owns 80% of the freehold mineral rights on these lands and has retained a non-convertible sixteen percent (16%) gross overriding royalty held under the terms of a previous lease agreement.
Pembina Area, Alberta
In early March, a third and final earning well in the Pembina Area, Alberta was drilled and cased and is currently being completed as an Edmonton Sands natural gas well. Cobra has participated in two previous wells resulting in a producing Belly River natural gas well and one standing as a potential Belly River oil well. Cobra has earned a 27% net working interest in these three wells and subsequently has earned a 40% working interest in 7 sections where up to 12 drilling locations have been identified. It is anticipated that additional wells will be drilled in the prospect area throughout 2007.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Daniel B. Evans, President and CEO
Cobra Venture Corporation
Canadian Toll Free (888) 888-9122
US Toll Free (888) 888-9123
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release may include certain "forward looking statements". All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding reserves, present value of future cash flow, exploration results, and future plans and objectives of Cobra, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Cobra's expectations are exploration risks, production risks and pricing risks detailed herein and from time to time in other filings made by Cobra with securities regulators.
Production information and reserves are reported in units of barrels of oil equivalent (“boe”). Disclosure provided in respect of boe units may be misleading particularly if used in isolation. Where amounts are stated on a boe basis, gas volumes have been converted to barrels of oil equivalent at a ratio of 6,000 cubic feet of natural gas to a barrel of oil equivalent. This conversion ratio is based upon an energy equivalent method primarily applicable at the burner tip and does not represent value equivalence at the wellhead.