VUX Production Already Increased At Gull Lake As Per CBV MD VUX is a cash monster and I can't wait to see the Q1 2022 results with likely more production and of course $95 Q1 average oil pricing vs $71 they got in 2021. CBV.V (Cobra Venture Corporation) Q1 results already came out and they spent $80k(their portion) to increase production at Gull Lake. VUX owns 50% of that asset, so their production went up for sure on that one asset alone, nevermind whatever else was drilled.
From page 2 of CBV's recent MD&A(Gull Lake is their only producing oil asset at the moment): 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.
Also on page 3 of CBV's MD&A, which VUX has not yet mentioned in their Gull Lake MD&A section: 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.