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QIS Update #31 2013 - December 23rd 2013



Included in this update:

  • Blackbird Energy provides update on operations
  • NTG Clarity Networks awarded US$1.4 million contract
  • Pennant Energy provides operational update

 


 

For tax-loss selling purposes, we would like to issue a reminder that Canadian investors have until December 24 to record a capital gain or loss for the 2012 tax year on Canadian-listed stocks. Anything sold after December 24 will not reach its date of settlement until 2013. For Canadian investors selling U.S. stocks, the deadline is December 26 this year.

 

With this QIS Update likely being our last one of 2013, QIS Capital would like to wish all of our investors a very Merry Christmas and may you all have a very healthy and prosperous 2014!

 

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

 


 

Blackbird Energy Inc. (BBI:TSX-V)
Website: www.blackbirdenergyinc.com
Current Price: $0.09 (coverage commenced Aug 19/11 - $0.18)

 

Blackbird Energy Inc. has provided an update on its continued operations.

At the recently drilled A15-6-26-24W3 (A15-6) well on its Mantario project, Blackbird encountered a 20 meter pay section in the Success formation containing oil bearing sands. The well is now tied in and producing approximately 25 bbls/d of heavy oil with minimal water cut. The well has a high pumping fluid level with additional production capability. The company is monitoring the well's sand cuts and torque levels for stabilization before further increasing the production rate. The company is following a carefully planned development versus high initial rates at the cost of future profit.

 

Blackbird is now beginning to evaluate utilizing horizontal drilling as this project would lend itself exceptionally well to this type of development as it would increase production and total recoverable oil. These horizontal wells have great economics as they require no expensive packer systems or fracture stimulation and qualify for exceptional royalty incentives.

 

Blackbird will continue to evaluate and increase production on this well with a plan to initiate a horizontal development program in the first half of 2014.

 

Blackbird holds a 70% working interest in the project.

 

Blackbird would also like to report that it intends to initiate its Bromhead re-entry in the first week of January. The well is targeting a by-passed Midale oil target.

 

QIS Capital: This area is characterized by a very stable production base with very low decline rates. While production has not yet reached a point the company was hoping for, the formation lends itself well to horizontal drilling which is a distinct possibility to increase production rates and return on investment going forward at only a modest additional cost. Blackbird is now moving to its Bromhead location and future wells at Mantario will be evaluated in early 2014.




 

NTG Clarity Networks Inc. (NCI:TSX-V)
Website: www.ntgclarity.com
Current Price: $0.395 (coverage commenced Feb. 4/10 - $0.045)

 

NTG Clarity Networks Inc. has announced that the company has signed a contract for US$1.4 million with a Canadian partner to supply the NTS Asset Management and Discovery Modules to a new customer in a new market for NTG. This project is expected to be completed in 12 to 18 months.

 

We are very pleased with the award of this project as it opens new markets and new opportunities and validates our quality product that competes with the world leading products, said Ashraf Zaghloul, NTG Clarity’s Chairman & CEO.

 

QIS Capital: NTG Clarity continues to build its product and service backlog as we enter 2014. The company still had a healthy backlog of work during Q4 which should lead to continued solid financial results. NTG continues to work on additional contracts and hopes to have further press releases in the near future. The company is presently trading at less than 5X trailing earnings and is forecasting continued growth in 2014.




 

Pennant Energy Inc. (PEN:TSX-V)
Website: www.pennantenergy.com
Current Price: $0.03 (coverage commenced Dec 7/12 - $0.075)

 

Pennant Energy Inc. has provided an update on its continued operations.

 

At the recently drilled A15-6-26-24W3 ("A15-6") well on its Mantario project, Pennant encountered a 20 meter pay section in the Success formation containing oil bearing sands. The well is now tied in and producing approximately 25 bbls/d of heavy oil with minimal water cut. The well has a high pumping fluid level with additional production capability. The company is monitoring the well's sand cuts and torque levels for stabilization before further increasing the production rate. The company is following a carefully planned development versus high initial rates at the cost of future profit.

 

Pennant and its partner Blackbird Energy Inc. are now beginning to evaluate utilizing horizontal drilling as this project would lend itself exceptionally well to this type of development as it would increase production and total recoverable oil. These horizontal wells have great economics as they require no expensive packer systems or fracture stimulation and qualify for exceptional royalty incentives.

Pennant will continue to evaluate and increase production on this well with a plan to initiate a horizontal development program in the first half of 2014.

 

Pennant holds a 30% non-operated working interest in the project.

 

QIS Capital: This area is characterized by a very stable production base with very low decline rates. While production has not yet reached a point that the operator was hoping for, the formation lends itself well to horizontal drilling which is a distinct possibility to increase production rates and return on investment going forward. Pennant will be evaluating further Mantario wells with the operator in early 2014.

 


 

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 573,500 shares and 650,000 options of Blackbird Energy Inc., 1,178,500 shares of NTG Clarity Networks Inc. and 310,000 shares and 200,000 options 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.

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