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QIS Update #2 2013 - January 21st 2013

Included in this update:

  • Blackbird Energy announces purchase of additional O&G assets through its subsidiary
  • Pennant Energy announces change of auditor



We have selected the dates for our upcoming Small-Cap Conferences in Calgary and Vancouver. We are scheduled for March 12th in Vancouver and April 16th in Calgary. We require 3-4 outside companies to participate in order to make these conferences successful. If anyone has referrals or knows of a quality company that could benefit from quality exposure to investors, we would appreciate hearing from you with those ideas.


January has been a little more positive for small-cap stocks. The Venture Exchange has moved up a whopping 15 points, for a month-to-date gain of 1.2%. It’s a gain! Actually many fundamental companies have done very well thus far in 2013.


Our online virtual portfolio has also moved up nicely in January. We ended 2012 with an annual gain of 14% and we are up to about 20% now, for a January gain of approx 6%. If the rest of the year continues on this course, it will be a very positive period for patient small-cap investors.


Please feel free to email us anytime at or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.


Blackbird Energy Inc. (BBI:TSX-V)
Current Price: $0.08 (coverage commenced Aug 19/11 - $0.18)


Blackbird Energy Inc. has announced that its recently acquired wholly-owned subsidiary, Ruger Energy Inc., has purchased certain oil and gas assets from Twin Butte Energy Inc. for total cash consideration of $540,000.


The assets (the Flaxcombe Project) are located near Ruger's current oil production and water disposal facilities in the Alsask area and will allow for optimization and operating cost savings. Based on a McDaniels and Associates reserve estimate of 126,000 boe (P+P) deal metrics are $4.29/boe and $19,286/producing day barrel. Current production at the Flaxcombe Project is 28 boepd.

The Flaxcombe Project is accretive to Blackbird's Alsask Project. The Flaxcombe Project is comprised of a total of 5,041 acres (net 2,393 acres) in West Central Saskatchewan. Blackbird will have 100% working interest in the Sparky oil property with 3 producing oil wells. The acquisition includes 3D seismic coverage over the complete Sparky oil pool and two development oil well locations have been identified based on the 3D technical review.


Garth Braun, CEO of Blackbird stated, This acquisition expands Blackbird's land position in this area of focus and the Blackbird team believes that this project and our holdings in the area provide an opportunity to grow shareholder value. Blackbird's team is focused on diversifying its interest with the addition of these lower risk development oil projects in West Central Saskatchewan. The team is also focused on originating new high quality oil plays through the assembly of additional land positions.


Darrell Denney, COO of Blackbird stated, Our primary focus in 2013 is to establish a solid base of oil production. We will operate in areas where finding and development costs are lower and land is available. The Flaxcombe acquisition satisfies that criteria with low cost development drilling, acquisition opportunities and land availability. This oil focus will provide a balance to our Bigstone property long-life liquid rich gas reserves.


QIS Notes:

  • The Blackbird powerpoint presentation has been updated is now available on the Blackbird website.
  • The company has also updated its management profiles on the website
  • Blackbird is working diligently to bring low-risk, oil development prospects into its inventory to build up stable cash flow and add shareholder value. This press release is the first such significant development in this respect.



Pennant Energy Inc. (PEN:TSX-V)
Current Price: $0.07 (coverage commenced Dec 7/12 - $0.075)


Pennant Energy has announced that Charlton & Company, Chartered Accountants, has resigned as the company's auditor at the request of the company and, effective January 15, 2013, Pennant appointed Davidson & Company LLP, Chartered Accountants, as its auditor.


There were no reservations in the Former Auditor's reports for the two most recently-completed fiscal years or for any period subsequent to the most recently-completed period for which an audit report was issued and preceding the date of the Former Auditor's resignation. To the company's knowledge there was no “reportable event” (as that term is defined in section 4.11 of National Instrument 51-102 Continuous Disclosure Obligations) between the company and the Former Auditor or the Successor Auditor. The resignation of the Former Auditor as auditor of the company has been approved by the company's audit committee and its board of directors. The Notice of Change of Auditor, together with the letter from the Former Auditor and the letter from the Successor Auditor, have been reviewed by the company's audit committee and its board of directors. All procedures have been properly followed under NI 51-102 regarding the change of auditor and, as required, a Notice of Change of Auditor, together with the required letters from the Former Auditor and the Successor Auditor, will be filed on SEDAR.


QIS Notes:

  • Management is working diligently to restructure the company’s organization and cost structure following the appointment of new management in November.


Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 311,500 shares and 450,000 options of Blackbird Energy Inc., and 165,000 shares of Pennant Energy Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.

Canadian Small Caps

Canadian Small Caps

CLICK HERE to view the presentations from the Spring 2016 Small-Cap Conferences.

We are pleased to publish the PowerPoint presentations from The Small-Cap Conferences that were held in Calgary on March 30, 2016 and in Vancouver on May 3, 2016.

We encourage investors to review the presentations and contact the companies with any further questions.

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