2009-09-18-2009-08-01

Increased plans to acquire 20% WI in tar-sand leases involving 33,632 BLM acres in Uintah Co., UT, to 40% WI.

Cobra Oil & Gas Co., Houston, (OTCBB: CGCA) has increased its plans to acquire a 20% working interest on the Utah Oil Sands Project in Uintah County, Utah, from Enercor Inc. to a 40% working interest and will pay $5 million in cash, stock and drilling commitments. These deal involves 33,632 acres on 23 federal leases owned by the Bureau of Land Management and under lease by ExxonMobil Corp., Irving, Texas, (NYSE: XOM). Enercor holds a contract with ExxonMobil to convert those leases into combined hydrocarbon leases for the right to exploit the tar sands, paying a 1/16 royalty to ExxonMobil on top of the 8% royalty that is due to the BLM. The leases are in the central region of the P.R. Spring bituminous sandstone deposit in southern Uintah County. The tar sands have an estimated potential of 4 billion to 4.5 billion barrels of oil on Cobra's leases, according to the U.S. Bureau of Mines. The contract stipulates that Cobra will pay $4 million in stock and $100,000 in cash. Cobra will be required to pay $100,000 in cash every 30 days until the obligated payments have been covered.