Cobra Venture Due Diligence Report - Information can be found on Sedar. TSXV: CBV // OTCQB: CBVTF Price: $0.285 CDN // $0.215 USD Common Shares: 15,903,748 Options: 1,390,000 Insider Holdings: 3,899,954 – 24.5% Website: http://www.cobraventure.com/ Recent News (March 23,2022): Cobra Venture Corp.'s board of directors has approved a special, one-time cash dividend of three cents per common share. The special dividend will be payable on May 4, 2022, to shareholders of record as of the close of business on April 6, 2022. The aggregate amount of the payment to be in connection with this special dividend will be approximately $477,113. Recent Financial Results (Audited) (Ending November 30, 2021) – Q1 2022 Results to be released in April, as per last year’s filings. ASSETS Cash & Equivalents: $2,157,331 - $0.136 per share Receivables: $215,661 Marketable Securities: $30,880 Prepaid Expenses: $29,098 Investments: $350,000 Property & Equipment: $672,183 Total Assets: $3,455,153 LIABILITIES Accounts Payable: $39,213 Decommissioning Liabilities: $84,676 Total Liabilities: $123,889 2021 Performance Oil/Gas Revenue: $1,589,972 Net Income: $113,322 2021 Management Discussion Highlights The following is a summary of the significant events and transactions that occurred during the year ended November 30, 2021, and up to March 15, 2022: Net earnings for the twelve-month period ended November 30, 2021, was $113,322 compared to a loss of $208,201. The earnings for the twelve-month period ended November 30, 2021, included non-cash Share-based payments of $110,294 on stock options issued during the period and is measured on the date of grant, using the Black-Scholes option pricing model. PETROLEUM AND NATURAL GAS INTERESTS Gull Lake, Saskatchewan During the year ended November 30, 2013, the Company entered into a Participation Agreement whereby the Company (and two other arm’s length companies) was granted the right to equally participate to drill and complete up to 4 initial test wells (each “Test Well”) located in Gull Lake, Saskatchewan. Under the agreement, the Company had to pay 29.33% of the drilling costs of each Test Well to earn a net working interest of 14.665% in each well. The Company currently maintains a 14.665% interest in the Gull Lake project area. The Company currently participates in 12 wells, 7 wells of which are operated by Taku Gas Ltd. ("Taku"), and 5 wells operated by Vital Energy Ltd. ("Vital"). As well, the Company has also elected to participate in the drilling of two development well locations. The additional wells will target the primary producing reservoir in the wells operated by Vital. Following the drilling of these two wells, and evaluation of the well results, Cobra has the option to elect to further participate in the drilling of a horizontal. During the year ended November 30, 2021, the Company recorded $1,589,972 (2020 - $976,326) in production revenue. MARKETABLE SECURITIES Investments are marketable securities comprised of 475,076 (November 30, 2020 – 475,076) common shares in Magnum Goldcorp Inc., a publicly traded company. The Company and Magnum Goldcorp Inc. have certain directors in common. INVESTMENT At November 30, 2021, the Company had 350,000 shares (November 30, 2020 - 350,000) of Star Valley Drilling Ltd, a privately-owned company, valued at $350,000 (November 30, 2020 - $350,000) classified as FVTPL. As there is no quoted market price in an active market for the investment, the investment was initially measured at fair value which was the price paid by the company. There are no indicators during the current and prior year that cost might not be representative of fair value.
I think the Q1 numbers for Cobra are going to be a lot better than the market expects. If you compare Q3 to Q4, the company had a $75k loss and then ended up with a $113k profit, call it $190k profit in Q4 with $75 oil average. Revenue went from $900k to $1.6 mil. Q1 is from December-February, so I would expect at least a $300k profit or 2 cents EPS. But if they got another well or two producing, it could be a lot more.
Cobra Venture Corporation Q1 2022 Financial Results ( Ending February 28, 2022 ) All information can be found on www.sedar.com TSXV: CBV | OTCQB: CBVTF Price: $0.25 CDN // $0.21 USD Common Shares: 15,903,748 Options: 1,390,000 Insider Holdings: 3,899,954 – 24.5% Market Cap: $3,975, 937 CDN | $3,339,787 Website: http://www.cobraventure.com/ Q1 2022 Balance Sheet ASSETS Cash & Equivalents: $2,281,124 - $0.143c per share Receivables: $174,432 Marketable Securities: $21,378 Prepaid Expenses: $37,651 Investments: $350,000 Property & Equipment: $644,787 Total Assets: $3,509,372 LIABILITIES Accounts Payable: $55,690 Decommissioning Liabilities: $87,206 Total Liabilities: $142,896 Q1-Q4 2021 Performance Oil/Gas Revenue: $1,589,972 Net Income: $113,322 Q1 2022 Performance Oil/Gas Revenue: $373,996 Net Income $35,212 *NOTE* - Cash from Q4 2021 to Q1 2022 increased by $123,793. However, funds were used to increased production. See MD&A production and operation costs. 2022 Q1 Management Discussion Highlights Direct costs for the three-month period ended February 28, 2022, were $211,391 compared to $157,055 in the comparative three-month period ended November 30, 2021. The costs increased in comparison to the comparative period due to increased production. The overall direct costs as a percentage of revenue has returned to pre-pandemic levels during the three months ended February 28, 2022, of 56.5% of sales compared to 73.5 during the period ended November 30, 2020. Gull Lake, Saskatchewan The Company currently participates in 12 wells, 7 wells of which are operated by Taku Gas Ltd. ("Taku"), and 5 wells operated by Vital Energy Ltd. ("Vital"). As well, the Company has also elected to participate in the drilling of two development well locations. The additional wells will target the primary producing reservoir in the wells operated by Vital. Following the drilling of these two wells, and evaluation of the well results, Cobra has the option to elect to further participate in the drilling of a horizontal well. San Joaquin Basin Project, California As initially discussed in August 2019, Cobra entered into a participation agreement (the “Agreement”) with Makk Energy Ltd., a private oil and gas company controlled by Murray Rodgers, a Director of Cobra and QC Energy LLC, a private oil and gas company based in Denver, Colorado. Pursuant to the Agreement, Cobra has a nonoperating 25% working interest in the subject project. In early 2020, the joint venture group undertook an initiative to attract a strategic partner to fund leasing and drilling activity in the project area. While these initiatives were initially promising (with technical due diligence being concluded with favourable outcomes), the recent outbreak of Covid-19 pandemic, combined with the significant declines in the oil equity markets, has resulted in a pullback of interest in the project. The joint venture partners will continue to pursue new sources of capital for this project while working within the current global and local uncertainties surrounding oil and gas investments. MARKETABLE SECURITIES Investments are marketable securities comprised of 475,076 (November 30, 2021 – 475,076) common shares in Magnum Goldcorp Inc., a publicly traded company. The Company and Magnum Goldcorp Inc. have certain directors in common. INVESTMENT At February 28, 2022, the Company had 350,000 shares (November 30, 2021 - 350,000) of Star Valley Drilling Ltd, a privately owned company, valued at $350,000 (November 30, 2021 - $350,000) classified as FVTPL. As there is no quoted market price in an active market for the investment, the investment was initially measured at fair value which was the price paid by the company. There are no indicators during the current and prior year that cost might not be representative of fair value.
Just to confirm the most recent MD&A, Cobra showed an $80k additional expense due to "increasing production" which has now been verified by Vital Energy's May 2022 company presentation. Gull Lake production doubled quarter over quarter, so CBV's cashflow should double as well. Still 2 locations to drill - http://www.vitalenergyoil.com/presentations/Vital Assets 2022 Presentation .pdf
Cobra Venture Corporation Q2 2022 Financial Results ( Ending February May 31, 2022 ) All information can be found on www.sedar.com TSXV:CBV - OTCQB:CBVTF Price: $0.20 CDN - $0.18 USD Common Shares: 16,003,748 Options: 1,290,000 @ $0.135 Insider Holdings: 3,899,954 – 24.5% Market Cap: $3.2M CDN | $2.9M USD Website: http://www.cobraventure.com/ Q2 2022 Balance Sheet (In Canadian Dollars) ASSETS Cash & Equivalents: $1,953,180 Receivables: $140,083 Marketable Securities: $18,643 Prepaid Expenses: $32,653 Investments: $350,000 Property & Equipment: $579,700 Total Assets: $3,074,259 LIABILITIES Accounts Payable: $22,230 Decommissioning Liabilities: $79,611 Total Liabilities: $111,966 Six Month Performance Production Revenue: $752,082 Gross Profit: $364,045 Net Income: $97,641 The Company's board of directors has approved a special, one-time cash dividend of three cents per common share. The special dividend was paid on May 4, 2022, to shareholders of record as of the close of business on April 6, 2022. The aggregate amount of the payment to be in connection with this special dividend of $477,112. MARKETABLE SECURITIES Marketable securities comprise of 475,076 (November 30, 2021 – 475,076) common shares in Magnum Goldcorp Inc., a publicly traded company. The Company and Magnum Goldcorp Inc. have certain directors in common. INVESTMENT At May 31, 2022, the Company had 350,000 shares (November 30, 2021 - 350,000) of Star Valley Drilling Ltd, a privately-owned company, valued at $350,000 (November 30, 2021 - $350,000) classified as FVTPL. As there is no quoted market price in an active market for the investment, the investment was initially measured at fair value which was the price paid by the company. There are no indicators during the current and prior year that cost might not be representative of fair value. *Additional Notes on Star Valley Drilling* Star Valley Website - https://starvalleydrilling.ca/ Star Valley Underwriting - https://www.bcsc.bc.ca/documents/view/P7I4E6C6U7M7L7J9B6YDP7HEM7L3 INCOME TAXES Subject to certain restrictions, the Company has resource expenditures of approximately $2,317,000 available to reduce taxable income in future years available to apply against future taxable income. Future tax benefits which may arise as a result of the net capital losses and resource deductions have not been recognized in these financial statements. 2022 Q2 Management Discussion Highlights Net earnings for the six-month period ended May 31, 2022, was $97,641 compared to a loss of $111,268. The net earnings for the six-month period ended May 31, 2021, increased by $208,909 Oil and gas revenue for the six-month period ended May 31, 2022 was $752,082 compared to $563,607 in the comparative sixmonth period ended May 31, 2021. The $188,475 increase in production revenue was primarily due to the return of production revenue from pre-pandemic Covid-19 levels where certain of the Company’s operators elected to shut-in certain of their operating batteries due to the Covid-19 outbreak in the November 2020 comparative period and increasing oil and gas prices. Gull Lake, Saskatchewan The Company currently participates in 12 wells, 7 wells of which are operated by Taku Gas Ltd. ("Taku"), and 5 wells operated by Vital Energy Ltd. ("Vital"). As well, the Company has also elected to participate in the drilling of two development well locations. The additional wells will target the primary producing reservoir in the wells operated by Vital. Following the drilling of these two wells, and evaluation of the well results, Cobra has the option to elect to further participate in the drilling of a horizontal well. San Joaquin Basin Project, California As initially discussed in August 2019, Cobra entered into a participation agreement (the “Agreement”) with Makk Energy Ltd., a private oil and gas company controlled by Murray Rodgers, a Director of Cobra and QC Energy LLC, a private oil and gas company based in Denver, Colorado. Pursuant to the Agreement, Cobra has a nonoperating 25% working interest in the subject project. In early 2020, the joint venture group undertook an initiative to attract a strategic partner to fund leasing and drilling activity in the project area. While these initiatives were initially promising (with technical due diligence being concluded with favourable outcomes), the recent outbreak of Covid-19 pandemic, combined with the significant declines in the oil equity markets, has resulted in a pullback of interest in the project. The joint venture partners will continue to pursue new sources of capital for this project while working within the current global and local uncertainties surrounding oil and gas investments. As May 31, 2022, the Company had working capital of $2,112,204 compared to $2,383,632 as at November 30, 2021. As at May 31, 2022, the Company had cash and cash equivalents of $1,953,180 compared to $2,157,331 as at November 30, 2021.
Cobra Ventures will be announcing their third quarter results in October and at the same time White Tundra investments will also be putting out a webinar in regards to the company tomorrow. See the Twitter link below for more information: https://twitter.com/i/spaces/1mrxmkVzLPWGy?s=20
Cobra Venture Corporation Q3 2022 Financial Results (Ending August 31, 2022) All information can be found on www.sedar.com TSXV:CBV | OTCQB:CBVTF Price: $0.17CAD - $0.126USD Common Shares: 16,053,748 Options: 1,240,000 @ $0.135 CAD Insider Holdings: 3,899,954 – 24.5% Market Cap: $2.73M CAD | $2.02M USD Website: http://www.cobraventure.com/ Q2 2022 Balance Sheet (Expressed In Canadian Dollars) ASSETS Cash: $2,273,478 Receivables: $174,870 Marketable Securities: $21,378 Prepaid Expenses: $30,613 Investment: $350,000 Property & Equipment: $521,731 Total Assets: $3,372,070 LIABILITIES Accounts Payable: $35,715 Current Decommissioning: $10,125 Non-Current Decommissioning: $82,141 Total Liabilities: $127,981 2022 Performance Over 9 Months Production Revenue: $1,428,917 Gross Profit: $760,583 Net Earnings: $372,687 Earnings Per Share: $0.023 Subject to certain restrictions, the Company has resource expenditures of approximately $2,317,000 available to reduce taxable income in future years available to apply against future taxable income. Future tax benefits which may arise as a result of the net capital losses and resource deductions have not been recognized in these financial statements. Management Discussion Highlights (MD&A) Net earnings for the nine-month period ended August 31, 2022, was $372,687 compared to a loss of $74,670. The net earnings for the nine-month period ended August 31, 2022, increased by 447,357 as noted below. Oil and gas revenue for the nine-month period ended August 31, 2022 was $1,428,917 compared to $908,208 in the comparative nine-month period ended August 31, 2021. The $520,709 increase in production revenue was primarily due to the return of production revenue from pre-pandemic Covid-19 levels where certain of the Company’s operators elected to shut-in certain of their operating batteries due to the Covid-19 outbreak in the November 2020 comparative period and increasing oil and gas prices. Gull Lake, Saskatchewan During the year ended November 30, 2013, the Company entered into a Participation Agreement whereby the Company (and two other arm’s length companies) was granted the right to equally participate to drill and complete up to 4 initial test wells (each “Test Well”) located in Gull Lake, Saskatchewan. Under the agreement, the Company had to pay 29.33% of the drilling costs of each Test Well to earn a net working interest of 14.665% in each well. The Company currently maintains a 14.665% interest in the Gull Lake project area. During the year ended November 30, 2015, the Company recorded an impairment charge of $664,978 on the property due to a sustained decline in forecasted crude oil prices. The impairment was determined using a value in use approach using estimated expected cash flow based on proved plus probable reserves using a pre-tax discount rate of 10%. During the year ended November 30, 2016, the Company recorded an impairment charge on the property of $98,917 due to a sustained decline in forecasted crude oil and natural gas prices. The Company currently participates in 12 wells, 7 wells of which are operated by Taku Gas Ltd. ("Taku"), and 5 wells operated by Vital Energy Ltd. ("Vital"). As well, the Company has also elected to participate in the drilling of two development well locations. The additional wells will target the primary producing reservoir in the wells operated by Vital. Following the drilling of these two wells, and evaluation of the well results, Cobra has the option to elect to further participate in the drilling of a horizontal well. During the year ended November 30, 2021, the Company recorded $1,589,972 (2020 - $976,326) in production revenue. During the period ended August 31, 2022, the Company recorded $1,428,917 (2021- $908,208) in production revenue. San Joaquin Basin Project, California As initially discussed in August 2019, Cobra entered into a participation agreement (the “Agreement”) with Makk Energy Ltd., a private oil and gas company controlled by Murray Rodgers, a Director of Cobra and QC Energy LLC, a private oil and gas company based in Denver, Colorado. Pursuant to the Agreement, Cobra has a nonoperating 25% working interest in the subject project. In early 2020, the joint venture group undertook an initiative to attract a strategic partner to fund leasing and drilling activity in the project area. While these initiatives were initially promising (with technical due diligence being concluded with favourable outcomes), the recent outbreak of Covid-19 pandemic, combined with the significant declines in the oil equity markets, has resulted in a pullback of interest in the project. The joint venture partners will continue to pursue new sources of capital for this project while working within the current global and local uncertainties surrounding oil and gas investments. MARKETABLE SECURITIES Investments are marketable securities comprised of 475,076 (November 30, 2021 – 475,076) common shares in Magnum Goldcorp Inc., a publicly traded company. The Company and Magnum Goldcorp Inc. have certain directors in common. INVESTMENT At August 31, 2022, the Company had 350,000 shares (November 30, 2021 - 350,000) of Star Valley Drilling Ltd, a privatelyowned company, valued at $350,000 (November 30, 2021 - $350,000) classified as FVTPL. As there is no quoted market price in an active market for the investment, the investment was initially measured at fair value which was the price paid by the company. There are no indicators during the current and prior year that cost might not be representative of fair value.
