CGCA’s Announces 20% Lease Assignment on Utah Oil Sands Prospect

June 21st, 2009 at 6:21 pm Posted by The Dean

CGCA issued a news release on Friday after the closing bell about a LOI (letter of intent) for the purchase of a 20% lease assignment on Utah Oil Sands prospect located on Exxon Mobil Corp. (XOM) leases.

I asked that all students do all their homework on CGCA this weekend and Fridays news release is a good place to start. Therefore I’ve copied/pasted the full announcement below for all students to read:

Cobra Oil & Gas Co. Enters Into Letter Of Intent With Enercor, Inc. For Purchase Of 20% Lease Assignment On Utah Oil Sands Prospect Located On Exxon Mobil Corp’s Leases.

HOUSTON—-Cobra Oil & Gas Co. (CGCA), an independent oil and gas exploration and production company headquartered in Houston, Texas, and focused on the strategic exploration and development of domestic energy projects, has entered into a Letter Of Intent (LOI) with Enercor, Inc. (Enercor) to purchase 20% lease assignment upon completion of financing activities. Enercor holds a contract with Exxon Mobil Corporation regarding the conversion of certain of Exxon Mobil’s leases covering approximately 26,000 acres of land owned by the BLM (Bureau of Land Management) in the State of Utah purported to hold an estimated potential of up to 1.4 billion barrels of oil in place in its tar sands. That contract provides that the Company use its resources to convert those leases into Combined Hydrocarbon Leases and then it will have the right to exploit the tar sands on those leases at its expense, paying a 1/16 royalty to Exxon Mobil on top of the 8% royalty that is due to the BLM.

Max Pozzoni, President of Cobra Oil & Gas, stated, “We look forward to establishing a working relationship with our new partners, as we aim to work together in what is the largest measured oil sands concentration in America.”

The final agreement is expected to be signed on or before September 15th 2009.