Cobra Oil & Gas Company, a publicly traded independent oil and gas exploration and production company headquartered in Houston, Texas, recently announced that the company has finalized a transaction to purchase a 40 percent working interest on the Utah Oil Sands Project in Uintah County, Utah from Enercor, Inc. The initial letter of intent included only a 20 percent working interest for $4 million worth of common stock and $1 million in cash.
According to the terms of the deal, Cobra Oil & Gas Company will pay $4 million in common stock on the initial closing date, which is 10 days hereof a subject to notification of completion of the contract conditions, along with $100,000 in cash. Cobra will also be required to pay $100,000 in cash every 30 days until the obligated payments have been covered.
Max Pozzoni, president of Cobra Oil & Gas, stated, â€œWe are excited to have this deal finalized, raising our pre-determined working interest from 20 percent to 40 percent. We look forward to continuing a working relationship with Enercor on a prospect with massive potential in an untapped area.â€