Iran is one of the world’s largest oil producers, yet its production capacity is only at a third of its capability due to outdated equipment and technology. A change in regime would have probably given western oil companies the go-ahead to do business in the country, greatly increasing global supply. This loss is equivalent to an estimated four million “unproduced” barrels of oil daily and once anticipated future production would have surely brought the price per barrel down. But the absence of change could signal real positives for domestic oil producers like Cobra Oil & Gas Co. (OTCBB:CGCA), an independent oil and gas exploration and production company headquartered in Houston, Texas and focused on the strategic exploration and development of domestic energy projects.
To that end, Cobra Oil & Gas has 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
purported to hold an estimated potential of up to 1.4 billion barrels of oil in
place in its tar sands. Clearly, this greatly increases Cobra’s future oil
interests at a time when oil prices are rising and the troubles in Iran
bode poorly for increased international supply.
The Iranian elections appear to be yet another factor improving prospects for U.S. producers and Cobra’s mantra of identifying oil in ‘proven American regions with abundant hydrocarbons’ seems both currently practical and forward-looking. If oil prices continue to rise, unabated by what some hoped would be a future increase from a liberated Iran, Cobra could find itself standing on more lucrative sand than even they had hoped for.
To read the full report on the elections in Iran and its impact on U.S. equities visit:
http://smallcapsentinel.com/IranAltEnergy
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