COBRA VENTURE CORPORATION ANNOUNCES PROJECT UPDATE
December 1, 2008
Vancouver, British Columbia – Cobra Venture Corporation ("Cobra") (TSX Venture : CBV)
Willesden Green, Alberta
The first of two locations has now been drilled in the Willesden Green area. The wellbore encountered 5 meters of net oil pay including 1 meter of conglomerate. The well has now been cased, perforated and fracture stimulated. Following the fracing, the well flowed oil to surface from 2100 meters, however, the well has now been shut in to allow for pressure build-up data to be acquired. Following this acquisition of data, it is anticipated that the well will be tied into a nearby pipeline and put into production. Until further testing is completed following the pipeline tie in, no production rate can be accurately established at this time.
Offset wells in proximity with very similar oil pay sections have produced over 100,000 barrels of oil and are continuing to produce between approximately 20 and 50 barrels of oil per day. The Corporation has acquired an 80% working interest ownership in this oil well, subject to applicable royalties.
The surface audit of the existing well site has been completed by the current owner of the wellbore. Cobra has vetted this environmental audit and is fully satisfied that no environmental liabilities exist with the old well site and it is anticipated that the Corporation will now be proceeding with taking over the existing wellbore from the current owners. The potential re-entry is anticipated to re-establish the production of approximately 20-30 barrels of light oil per day that existed when the well was abandoned in the 1980’s. Cobra owns a 20% working interest but may earn additional percentages by farm-in from the current owners.
The proposed 3D program has been completed by a 3rd party at no cost to Cobra. The evaluation by this 3D seismic seems to indicate the presence of a large high anomaly, which has the potential for a new oil pool. The anomaly is offset by a smaller anomaly that produced 98,000 barrels from depths of only 900 meters. Cobra holds a 25% working interest in the existing lands and 3D seismic.
The 3D program that had been scheduled to be shot this fall over the Westlock lands, to earn a working interest of 30%, has been delayed due to access problems. The surface problems have now been removed and it is anticipated that the seismic data will be acquired in the next few months. It is anticipated that a drilling location will be determined similar to the offset natural gas well that has produced close to 1 bcf of natural gas and is still flowing at 800 mcf/day from a reservoir at only 950 meters depth.
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 SE Saskatchewan, Pembina, 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 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.
Cobra Venture Corporation is an emerging energy corporation focused on the acquisition and development of strategic oil and natural gas reserves in the Western Canada. 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 news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any sate securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances had changed, except as required by applicable law.
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.