West Vancouver, British Columbia – July 13, 2020 – Cobra Venture Corporation (the “Company” or “Cobra”), is pleased to provide an update on its non-operated joint venture projects, and as well, to confirm the appointment of its new Chief Financial Officer.
Gull Lake Project, Saskatchewan
Cobra currently has a 14.665% interest in the Gull Lake project, which consists of 11 wells. Due to low oil and gas commodity prices in late 2019 and early 2020, one of the Company’s operators, Taku Gas Ltd. (“Taku”), elected, as of April 1, 2020, to shut in or suspend all of its 7 wells, but such wells were subsequently brought back onstream on June 1, 2020. Additionally, the 4 wells operated by Vital Energy Ltd. (“Vital”) were shut in during the later part of April 2020, and during the shut down period, new pressure buildup data was collected by Vital to evaluate remaining reserves in the pool. The wells operated by Vital were subsequently brought back onstream on July 1, 2020.
As well, Cobra has also elected to participate in the drilling of two development well locations (at 4-29 and 9-29-13-19W3, respectively). These additional wells will target the Upper Shaunavon formation, which is the primary producing reservoir in the wells operated by Vital. Following the drilling of these two wells, and evaluation of the well results, Cobra has the option to elect to further participate in the drilling of a horizontal well targeting the Cantuar formation.
San Joaquin Basin Project, California
As initially discussed in August 2019 (see news release dated August 1, 2019), Cobra entered into a participation agreement (the “Agreement”) with Makk Energy Ltd., a private oil and gas company controlled by Murray Rodgers, a Director of Cobra and QC Energy LLC, a private oil and gas company based in Denver, Colorado. Pursuant to the Agreement, Cobra has a non-operating 25% working interest in the subject project. In early 2020, the joint venture group undertook an initiative to attract a strategic partner to fund leasing and drilling activity in the project area. While these initiatives were initially promising (with technical due diligence being concluded with favourable outcomes), the recent outbreak of Covid-19 pandemic, combined with the significant declines in the oil equity markets, has resulted in a pullback of interest in the project. The joint venture partners will continue to pursue new sources of capital for this project while working within the current global and local uncertainties surrounding oil and gas investments.
Covid-19 Global Pandemic
In March 2020, the World Health Organization declared a global pandemic related to the virus known as Covid-19. The expected impacts on global commerce are anticipated to be far reaching. To date there have been significant wide-spread stock market declines and the movement of people and goods has become restricted, affecting supply demand and pricing for many products. The oil and gas exploration sector is expected to be impacted significantly as many local and regional governments have issued public health orders in response to Covid-19, including restricting the movement of people, which could impact the Company’s ability to access its properties and complete exploration , development or production programs in the current year. Natural resource prices have declined since December 31, 2019 in the wake of the Covid-19 pandemic. Accordingly, going forward, the Company’s ability to fund the current level of operating costs in the face of an extended disruption may be affected. In order to minimize the loss from operations due to low crude oil prices, certain of the Company’s operators elected to shut in certain of their operating batteries which impacted the Company’s revenues during the shut-in period. Subsequently, certain of the operators have resumed production, however, should prices fall again, the Company and its joint venture partners may elect to shut in the operating batteries.
In light of the Covid pandemic, the Company has contacted certain of the operators of its projects and has thus far received confirmations from some, but not all of its operators, that they are following appropriate and required guidelines to ensure that the projects are being operated in a compliant manner. The Company will pursue similar compliance confirmations from all of its operators.
Appointment of Chief Financial Officer
Cobra is pleased to appoint Sead Hamzagic as its Chief Financial Office. In connection with Mr. Hamzagic’s appointment as CFO, Cyrus Driver has stepped down as an officer of the Company. The Company would like to Mr. Driver for his significant efforts and dedication to the Company while serving as its Chief Financial Officer. Mr. Driver remains a Director of the Company.
Mr. Hamzagic is a chartered professional accountant with 34 years of public practice and financial management experience. He has served, and continues to serve, as Chief Financial Officer for several TSX Venture Exchange and private companies, and is well versed in reporting requirements for public companies.
For further information visit the Company’s website at www.cobraventure.com.
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. 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.