When one thinks about the natural resources segment, that person often considers exploration and getting the commodity out of the ground. There are, however, other ways to go about profiting from the commodities. These methods often offer less exposure to price swings with the same general opportunity for profit. Most investors do not think in alternative options as they invest in natural resources companies. They can, however, profit if they do and can find a company that is working from a slightly different perspective.

Cobra Oil & Gas Corp., a development stage oil and gas operator, works to purchase and operate oil and gas properties primarily in North America. The company focuses on assembling geologic data and assembling partners for property development. It currently has operating properties in Alberta, Canada, British Columbia, Canada and several southern Midwestern/Southwestern United States locations.

From all appearances the company seems to be doing well on all fronts. Where the company had a net loss in 2007, it has turned a profit in 2008. First quarter 2009 looks to be another solid quarter as prices move higher. For the most part, the company’s overriding strategy, which is tied to royalty payments more than actual drilling, has yielded this result. Although there is quite a bit of work in this regard within the United States, the real profit seems to be coming from Alberta Canada. In this region, the company operates within six zones where there is a combination of operational activities and, more to the point, future prospects.

Although 2008 was a difficult year for most energy companies, Cobra Oil & Gas found an increase of 27% over 2007. Speculation to be sure, but it would appear that this royalty type business strategy has worked to advantage. As energy prices do not appear to be going anywhere, at the moment, and with an apparent low cost structure in place, Cobra Oil & Gas is a solid company to consider.