The penny  stock I’m telling you about today has been a big winner for other newsletters and boards that I monitor and I feel it is now time to bring it to my members.   I have been watching it for quite a while and I believe that the time is right for you to look at it.  I have kicked myself for missing the first big run, but I am confident that we’re in a good spot now to see another run higher.  This small cap stock has been very volatile lately and looks to be setting itself up for another “pop”.

It’s Cobra Oil and Gas Company (CGCA)

Ariel Cohen, Senior Research Fellow for the Heritage Institute, wrote the following on April 7th, 2006:

“The United States is the largest oil importer in the world, bringing in 13.5 million barrels per day (mbd), which accounts for 63.5 percent of total U.S. daily consumption (20.6 mbd).  Oil from the Middle East (specifically, the Persian Gulf) accounts for 17 percent of U.S. oil imports, and this dependence is growing.

There is a broad consensus in America, from the President to the man on the street, that this situation is detrimental to the country’s economic health.” Full Article Link Here.

The facts are that:

• The United States imports too much oil
• Our oil dependency puts us in a economic and strategic disadvantage
• The United States possesses significant reserves that are undeveloped

CGCA is an oil and gas exploration company with the dual goals of contributing to American energy independence while growing shareholder value. The Company is focused on identifying short and long-term oil and gas opportunities in PROVEN, DOMESTIC energy plays in the UNITED STATES. Whether its conventional crude or America’s oil sands, CGCA’s criteria for project selection are based upon building a secure and abundant US resource base that is profitable to develop.

Why am I bringing CGCA to my members today?

The company appears to be moving at the fastest possible speed to create a first class portfolio of energy properties.

Here is the list today (and it is growing):

• CGCA’s 20% interest in the Oil Sand Project property in Utah includes 33,632 acres of leasehold property with reserves of approximately 32,000 barrels per acre. This translates to approximately 1.1 billion barrels of heavy oil and bitumen.
• In July 2009, CGCA finalized an agreement to purchase a 40% contract rights interest in the Utah Oil Sands Project from Enercor, Inc.
• In August 2009, CGCA completed the purchase of a 37.5% working interest in an additional 640 gross acres.
• The Company has also signed a further agreement to purchase a 62.5% working interest for an additional 640 gross acres.
• Cobra Oil & Gas has an option to buy a 50% interest, with 100% working interest and 80% net revenue interest on 82,000 acres in Williston Basin, Valley County, Montana. These prospects are located on multiple zone shallow gas trends and multiple zone deeper oil trends with preliminary estimates of potential gas reserves totaling 260 billion cubic feet.

Declining conventional crude discoveries, rise in exploration and production costs, increasing dependence on foreign oil and higher oil prices have resulted in renewed focus on alternative and synthetic oil production. One of the most credible and economically proven sources is oil from oil sands.  CGCA claims that its investment in the Utah Oil Sands project gives them control of over 15% of the projected 5 BILLION barrels of oil in the area!

CGCA looks like the real deal! Many resource companies are long on potential and typically short on financing….NOT CGCA.

Cobra Oil & Gas Co. just entered into $10 Million Financing Agreement

The details from the press release can be read by clicking on this link.  What is boils down to is a Swiss energy investment group has made an initial $6MM commitment to fund CGCA with an option for an additional $4MM.  This is a HUGE stamp of approval that they know what they are doing and are headed in the right direction.

The U.S. Government is promoting oil sands, too!

The Obama administration has given approval for a pipeline to carry oil-sands fuel from Canada into the U.S.  The pipeline will stretch over 1000 miles and is designed to carry up to 800,000 barrels of fuel a day from Canada’s vast oil sands.  Read release here.

The small cap stock itself looks like it is sitting on SOLID support at around its current level ($1.10). Volume has remained strong and an interesting fact is that the volume on the move up has been considerably higher than volume on the way down.  This suggests to me that the penny stock is under accumulation and that investors are buying this stock to keep.

You can do additional due diligence in their corporate website by clicking here.  To sum up: Cobra is well capitalized, has some strong Oil and Oil Shale properties and has a favorable chart.

I would be cautious though if this one drops BELOW the $1 mark.  That seems to be a major support level at the 50-day moving average right now.  Above that, I sure would like to see this get up near $1.50 again soon for all of us!