Cobra Venture Corporation
TSX VENTURE : CBV

Cobra Venture Corporation

December 20, 2006 18:35 ET

Cobra Venture Corporation Announces Results of Drilling Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 20, 2006) - Cobra Venture Corporation ("Cobra") (TSX VENTURE:CBV) -

Cobra is pleased to announce that the first well in a three well drilling program in the Viewfield area of south Saskatchewan, being carried out under a previously announced farm-out arrangement with a private Alberta company, has been cased and completed as an oil well. Cobra owns 100% of the freehold mineral rights on the lands where this first well was drilled and has retained a non-convertible sixteen percent (16%) gross overriding royalty, without further commitment of capital for any additional development. Cobra's royalty is not subjected to any deductions other than its crown obligations.

The first well was drilled horizontally on a structural feature and the results from the well suggest that a second well can be located on the adjacent spacing unit on Cobra land. The initiation of a second well would be subject to further reservoir evaluation over the next three months. The single horizontal leg well encountered approximately 400 meters of high quality limestone porosity and initial production has yielded a sweet 30.3 degree API gravity oil with a very low water cut. Production rates for the well have been as high as 240 bbls of oil per day since completion of the well in the early part of December, but the operator anticipates reducing the rate of production to approximately 200 bbls of oil per day while the reservoir is being evaluated. If warranted, the rate could be increased in the future since a good production practice order has been obtained for the well. The operator has informed Cobra that it intends to construct a battery facility in the immediate area complete with water disposal to accommodate any future water production. Currently the well is being tank treated and shipped directly to sales.

The operator has informed Cobra that it has now licensed the second well for the drilling program and will survey the third well location in early January, 2007. Cobra looks forward to continued success on both of the remaining earning wells and the subsequent drilling which will materialize with that success.

CAUTIONARY STATEMENT:

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 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.

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

Contact Information

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