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QIS Update #23 2011 - December 16th 2011

Included in this update:

  • Tax loss selling; Looking to buy or sell a home?; Merry Christmas and Happy New Year!
  • Blackbird Energy provides drilling update on Bigstone Montney well and announces closing of final tranche of private placement



As we are in the midst of tax loss selling season, QIS Capital would like to remind investors that December 23, 2011 is the final day for tax loss selling if you want to be able to utilize the loss on your 2011 tax return. All trades made after December 23 will have a settlement date in 2012 and will go towards that year’s tax return. The TSX is down by approximately 12% to- date in 2011 while the TSX Venture is down a whopping 32%. By all accounts – this has been a terrible year! However we are very excited for 2012 as we have several very exciting developments which we expect to conclude in 2012 including:


  • Blackbird Energy drilling its second and third high-impact wells and reaching production in excess of 1,000 boepd (Q2/12)
  • Cobra Venture completing its asset sale and having almost $0.50 per share in cash and investments
  • Dalmac Energy posting strong Q3 and Q4 numbers (Apr 30 year-end). The company is currently trading at less than 4 times expected earnings.
  • Audiotech Healthcare continuing its strong financial performance and possible takeover.
  • Virtutone announcing improved financial performance from its latest acquisition. The company is also looking at several attractive opportunities for growth.

    Despite the external market forces, 2012 should be an exciting and prosperous year for QIS Capital readers and we are eagerly looking forward to the next 12 months.


    Looking to buy or sell a home in 2012? QIS Capital is also actively involved in the Real Estate industry and is offering, through Century 21 Desert Hills Realty, a $500 Cashback reward for any readers who book their local agent with us. Whether you have already selected who you wish to work with, or if you would like us to refer your agent, we will make the arrangements and provide you with a $500 Cashback upon the successful sale or purchase of your home. Please call Doren Quinton at QIS Capital at 250-377-1182 for more details. We will be adding this section to our new website in early 2012.


    QIS Capital would like to wish all of its readers a very Merry Christmas and a Happy and Prosperous New Year! We wish all of our subscribers renewed prosperity in the next year and may we enjoy time with family and friends during this Holiday Season.


    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: $0.195 (coverage commenced Aug 19/11 - $0.18)


    Blackbird Energy Inc. has announced that further to its November 30, 2011 news release, it has been informed by the operator, Donnybrook Energy Inc., that the DEI Bigstone Hz 15-32-60-22 W5M well (25% working interest to Blackbird) has been drilled to total vertical depth, including the build section, being the process of gradually increasing the drilling slant angle from vertical to horizontal, into the Montney formation. Intermediate casing is currently being installed and cemented into place, subsequent to which drilling of the 2,500 meter lateral through the Montney formation will commence. The drilling program calls for the well to be drilled to a total measured depth of approximately 5,150 meters from surface location 3-29-60-22W5, cased and prepared for completion and fracing operations within an approximate 35 day time frame. The project operations are currently progressing within the targeted time frame and budget.


    Blackbird has also reported that it has raised additional gross proceeds of $836,500 in a combined closing of the third and final tranche of its previously announced brokered private placement led by lead agent PI Financial Corp. and certain non-brokered subscriptions. In the brokered Third Tranche, the company issued a total of 835,000 units, at a price of $0.20 per Unit and 2,280,000 flow-through shares at a price of $0.20 per flow-through Share, for gross proceeds of $623,000. Each unit consists of one common share in the capital of the company and one common share purchase warrant exercisable at a price of $0.30 until December 14, 2013. The non-brokered subscriptions consisted of 550,000 flow-through shares and 517,500 units for gross proceeds of $213,500.


    Pursuant to an agency agreement entered into between Blackbird and the agent, an aggregate of 186,900 agent's warrants were issued to the agent and its selling group, representing 6% of the units and flow-through shares sold in the brokered third tranche. The agents' warrants are exercisable at a price of $0.30 until December 14, 2013. The agent has also been paid a cash commission of $37,380, representing 6% of the gross proceeds of the third tranche.


    All of the securities issued pursuant to the private placement and the non-brokered subscriptions are subject to a four month hold period.

    The net proceeds from the private placement will be applied to the company's project with Donnybrook Energy Inc. for the lease construction and drilling of the second Montney well at Bigstone, drilling of which has commenced. The proceeds from the flow- through shares sold will be used by Blackbird to incur eligible Canadian exploration expenses.


    Blackbird announced that it has granted an aggregate of 2,100,000 incentive stock options to certain officers, directors and consultants. Such options are exercisable at the price of $0.20 until December 15, 2016. Currently, an aggregate of 480,627 shares remain available for issuance under the company's stock option plan.


    QIS Capital Comments:


    Blackbird is making excellent progress – on budget and on schedule - with its second well which spudded on November 25th and is expected to take 35 days to drill. The company should be announcing results toward the middle of January 2012. With the financing now completed, Blackbird has successfully raised funds for the completion of this well and the construction of gathering facilities and a pipeline in the first quarter of 2012. The company plans to go back to the market – hopefully at a much higher price – to raise money for the planned third high-impact well. We have recently seen a significant improvement in liquidity for Blackbird’s shares. 2012 should be a very exciting period for the company and its shareholders.



    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. 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 74,000 shares and 450,000 options of Blackbird Energy Inc. QIS Capital has 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 - 2011 QIS Capital Corporation.

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