New Bakken stock we are tracking

Posted by bakkenexpert

Oil continues to build a base in the $60 to $75 dollar range so we feel confident that this is a good opportunity to look at some additional bakken plays.   One that caught our eye was Cobra Oil & Gas (CGCA).  This had a big run in the last few weeks but now has settled around 1.20 which looks like a decent entry point.    Cohen recently came out with a target of $3.65 on this stock and it appears it has some room to run.    One thing that has caught the attention of some investors is that the oil giant Exxon-Mobil actually has an interest in this company:   Cobra entered into a Letter Of Intent (LOI) with Enercor, Inc. (Enercor) to purchase 20% lease assignment upon completion of financing activities. Enercor holds a contract with Exxon Mobil Corporation regarding the conversion of certain of Exxon Mobil’s leases covering approximately 26,000 acres of land owned by the BLM (Bureau of Land Management) in the State of Utah.  Although this investment isn’t directly due to CGCA’s bakken properties,  its a positive sign for the company itself.  In June 2008, the USGS reported that Cobra’s two primary Montana drilling targets represent nearly 4 trillion cubic feet of natural gas (see graphic below).  If oil continues to rise or even stay stable, this could be an easy double or triple

Related posts

• Strong Follow Through (0)
• Write your congressman (0)
• Why treehuggers do not like Bakken (5)
• Whiting Petroleum – Undervalued? (1)
• Weeky Roundup (0)

Tags: bakken blm cgca cobra oil enercor exxon exxon-mobil mobil utah