Cobra Venture Corporation

Cobra Venture Corporation

November 14, 2005 16:42 ET

Cobra Venture Corporation Announces Participation Agreement in Alternate 3 Well Drill Program and 7 Section Prospect Area Earnin, Pembina Area, Alberta

CALGARY, ALBERTA--(CCNMatthews - Nov. 14, 2005) - Cobra Venture Corporation (the "Company") (TSX VENTURE:CBV) is pleased to announce that it has entered into a Participation Agreement with an operating industry partner to participate in the drilling of an initial three (3) exploration wells and earn a working interest in 7 sections in the Pembina area, Alberta. The program will target multiple natural gas prospective zones. The Company has the right to earn a 27% working interest by paying 45% of all costs associated with the drilling program and will earn a 40% working interest in the prospect area comprised of 7 sections or approximately 4,480 acres on which an additional 9 target locations have been identified. The participants have agreed to an Area of Mutual Interest of approximately 34,560 acres in which the Company's respective working interest will be 40%. There is a finder's fee payable on the transaction of 100,000 common shares at a deemed issue price of $0.15 per share, subject to regulatory body approval.

Due to timing related issues, the Company will not be proceeding with the four (4) development well program in the Cessford area of Alberta which was previously announced in the Corporation's news release of October 25, 2005.

The previously announced private placements are expected to close before November 30, 2005. In addition, the Company has agreed to pay a participating brokerage firm a fee of 8% cash and to issue an agent's option equal to 10% of the funds raised by the firm. The Agent's option shall entitle the holder to purchase one (1) common share of the Company for each option held at an exercise price of $0.20 per common share on or before twelve (12) months from the date of issuance.

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.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cobra Venture Corporation
    Daniel B. Evans, President and CEO
    (604) 922-2030
    Toll Free: 1-888-888-9122 (Canada) 1-888-888-9123 (US)
    (604) 922-2037 (FAX)