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.
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.
