West Vancouver, British Columbia – June 29, 2015 - Cobra Venture Corporation (the “Company” or “Cobra”) is pleased to provide an update, primarily relating to its non-operated position in the multi-zone Gull Lake project area in southwestern Saskatchewan in which 7 vertical wells have been drilled. The wells are located in an area with three geologically and seismically identified formations (the Cantuar, Roseray and Upper Shaunavon Formations). Under the terms of a Participation Agreement that the Company entered into in July 2013, Taku Gas Limited (“Taku”) granted Cobra (and two other arm’s length companies) the right to participate with Taku in a Farmount Agreement, dated June 11, 2013, between Taku and Ceno Energy Limited (“Ceno”). Vital Energy Inc. (“Vital Energy”) is the operator of the drilling activity in the Gull Lake project area and maintains a 50% interest therein.
While production to this point has been derived primarily from the Roseary and Cantaur Formations, the Company believes that additional upside with horizontal drilling exists in both of these zones, as well as in the Upper Shaunavon Formation, and accordingly, more drilling and testing may be warranted.
The Company believes that the Gull Lake project property is optimally located at the northern end of the emerging medium oil Shaunavon trend that could have the potential to become one of the larger and more economic oil plays in Western Canada. In this regards, the Company believes that several junior and intermediate operators have established material land positions in this area, which area appears ideally suited for horizontal drilling and new, highly effective frac techniques.
Vital Energy (TSX-V: VUX) recently reported that the well, located in 6-5-14-19 W3M, has been converted into a water injection well. A multi well/disposal facility has been constructed at 13-32-13-19W3M. This facility, the water injection well and all associated pipelines, are currently been worked on in order to commence their operations. When completed, the Company believes that this should result in an increase in oil production (due to increased volumes) and a lowering of the operating costs. As the facility is brought into full operation, the Company understands that all of the following wells will be produced through it (13-32, 15-32, 11-32, 14-32, 3-5, 4-5 and 3-32). Production (flow rates and volumes) will be updated once stabilized rates have been established through the new facility (see Vital Energy’s news release dated June 12, 2015 for additional information and details).
Vital Energy has also reported that the recently drilled well, located in 3-32-13-19W3M, has been cased and that completion and equipping of the well for potential oil production from the Cantuar Formation is expected shortly.
Cobra maintains a 14.65% working interest in the Gull Lake project area. Management believes that the success of the vertical well program to date has established sufficient geological control over the acreage to form the basis for further vertical and potential horizontal development.
In the Davey Lake area, the 7-20 well has been set-up to produce seasonally. Cobra maintains a 13.5% working interest at Davey Lake. At the current time there are no immediate plans to drill more wells at Davey Lake, however, the area remains under review for such opportunities.
In the Williston Green area, the 1-4 well remains on production. Cobra maintains a 40.0% working interest at Williston Green. Though, at the current time, there are no immediate plans to drill more wells at Williston Green, the area remains under review for such opportunities.
In the Provost area, the 7-33 and 9-33 wells remain suspended. It is not expected these wells are capable of commercial production at current market oil prices. Cobra maintains a 33.34% working interest at Provost. Currently, there are no plans for further drilling in the Provost area.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030.
Cobra Venture Corporation
“Daniel B. Evans”
Daniel B. Evans, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “suspects”, “intends”, “estimates”, “projects”, “targets”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.