QIS Update #27 2013 - November 14th 2013
Included in this update:
- Blackbird Energy provides operational update
- NTG Clarity Networks comments on recent share price activity
- Pennant Energy provides operational update
The Small-Cap Conference was held earlier this week on Tuesday evening in Vancouver and it was a resounding success! Thank you to all of our speakers and company participants as well as to all of those individuals who were able to attend. With approximately 190 people present, it was one of our busiest events of the past several years, which is in line with the market strength experienced by a large number of fundamental small-cap companies this year.
The company presentations will be available soon on the website at: www.smallcapconference.ca/presentations.php. We’ll also be sending out a summary email of the Fall 2013 Vancouver conference shortly.
Please feel free to email us anytime at firstname.lastname@example.org or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.
Blackbird Energy Inc. (BBI:TSX-V)
Current Price: $0.10 (coverage commenced Aug 19/11 - $0.18)
Blackbird Energy Inc. has announced the following updates on its operations:
Blackbird is currently licensing its first Midale well on its Bromhead land base where it holds a 100% working interest in two sections (1,280 acres) of land. The application is to re-enter an existing wellbore located at 1-27-3-13W2 to test the Midale formation. This re-entry is focused on by-passed light oil pay that the team has successfully pursued in other pools nearby. A by-passed Frobisher light oil zone is mapped to exist below the Midale as a secondary target.
MANTARIO SUCCESS WELL A15-6-26-24W3
Blackbird has completed its first Mantario Success Well at A15-6-26-24W3 (the A15-6 Well). The A15-6 Well encountered approximately 20 metres of oil bearing sands in the Success formation. The well has been cased, perforated and was put into production November 8, 2013. The A15-6 Well will be produced for approximately 15 days prior to releasing results. Blackbird has a 70% working interest in the A15-6 Well.
Garth Braun, President and CEO of Blackbird stated, The Blackbird team is very pleased with the initial analysis of our oil discovery on the Mantario Project. Our geological team has also identified two similar areas on existing Blackbird lands in our extensive southwest Saskatchewan holdings of over 35 sections. These two additional opportunities are favorable for further exploration through the acquisition of 2D seismic data to apply the seismic template from our recently evaluated Mantario Project. We look forward to continue to build our production and reserves via exploring and developing our lands via the drill-bit.
GREATER KARR MONTNEY & DEEPER RIGHTS
Blackbird has increased its holdings of Montney Petroleum & Natural Gas Rights in the Greater Karr area of Alberta to 18 sections (11,520 acres). All of the acquired sections also include deeper rights including rights to the prospective Duvernay formation.
RELOCATION OF HEAD OFFICE
Blackbird will be relocating its corporate head office to Calgary in the first quarter of 2014 in order to consolidate the location of its management team.
QIS Capital: 20m of oil bearing sands in the Success Formation at Mantario is massive for a small producer like Blackbird. In comparison the closest successful well in the area, which is approximately 200m away, had a “pay zone” of around 5m and Rock Energy, which has a very similar adjacent play, has achieved most of their success with a 5-6m pay zone. We will await production numbers and further development plans which we expect to see in the next few weeks.
Blackbird Energy was also recently featured in an OilPrice.com article. The article can be located by clicking here.
NTG Clarity Networks Inc. (NCI:TSX-V)
Current Price: $0.45 (coverage commenced Feb. 4/10 - $0.045)
NTG Clarity Networks Inc. has provide an update to shareholders.
Management is not aware of any reason for the recent decline in share value. The Company continues to work and deliver on projects in-hand and has announced more than $9.1 million in new orders since May 2013. Management is pursuing new contracts on a regular basis and will announce these orders as they are received.
As earlier announced, NTG Clarity has experienced a 102% increase in revenues during the first nine months of 2013 with net income growth of 458% to $1.8 million or $0.06 per share. The Company’s earnings for the third quarter of 2013 alone were $784,669 or $0.025 per share. Management is confident that the Company’s strong growth rates in both revenues and earnings will continue into the new year. As at September 30, 2013 NTG had a stable balance sheet with positive working capital of $3.9 million.
One of the main reasons for the strong growth in 2013 to-date has been a renewed international focus on state-of-the-art technology and networking capabilities. Mobile applications have been the fastest growing technology trend with NTG’s mobile application development being increasingly chosen as a leading product in these markets.
Pennant Energy Inc. (PEN:TSX-V)
Current Price: $0.05 (coverage commenced Dec 7/12 - $0.075)
Vancouver, BC, November 13, 2013 – Pennant Energy Inc. (“Pennant” or the “Company”) (TSXV: PEN) is pleased to provide an update on its Mantario oil project.
Pennant has completed its first Mantario Success Well at A15-6-26-24W3 (the “A15-6 Well”). The A15-6 Well encountered approximately 20 metres of oil bearing sands in the Success Formation. The A15-6 Well has been cased, perforated and was put into production on November 8, 2013. The A15-6 Well will produce for approximately 15 days prior to releasing results. Pennant has a 30% working interest in the A15-6 Well.
QIS Capital: As mentioned in our Blackbird Update above, 20m of oil bearing sands in the Success Formation at Mantario is massive for smaller players. We had the opportunity of hearing from Rock Energy, which has an analogous producing field in close proximity, at the Vancouver Small-Cap Conference on Tuesday, and their Mantario play continues to deliver solid and predictable results with little or no decline rates. Rock Energy’s share price has moved up into the $3 range now. (see our independent report in the Research section).
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 822,500 shares and 450,000 options of Blackbird Energy Inc., 1,180,000 shares of NTG Clarity Networks Inc., and 410,000 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.